CXJ GROUP CO Ltd
For the period ended May 31, 2023. Filed May 2, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed May 2, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2022-05-31; filed 2024-01-09.
0001493152-24-001811
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2023-05-31; filed 2024-05-02.
0001493152-24-017474
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 41 previous paragraphs and 32 current paragraphs.
22 unchanged; 8 reworded; 2 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Revenue totaled $2,046,553, for the year ended May 31, 2023, an decrease of $724,807 or 26.2%, as compared to that for the year ended May 31, 2022 $2,771,360. The decrement is mainly due to the decrease revenue of brand name management fees $398,266, motor oil and spare parts $621,969, training and others $113,296 and offset increased of automobile exhaust cleaner $408,724.
Current report
Net loss totaled $1,138,141 for the year ended May 31, 2023, compared to the year ended May 31, 2022 net loss $541,453, that is an increase net loss of $596,688, primarily due to the above changes of revenues and expenses.
Removed paragraphs (11)
Previous report
Revenue totaled $2,771,360, for the year ended May 31, 2022, an increase of $1,720,532 or 164%, as compared to that for the year ended May 31, 2021 $1,050,828 (as restated). The increment is mainly due to the increase revenue of brand name management fees $488,327, motor oil and spare parts $1,415,677 and decrease revenue of automobile exhaust cleaner $273,632.
Previous report
Restated revenue for the year ended May 31, 2021 is $1,050,828, as compared to original revenue $1,075,010, that is a decrement of $24,182, due to the adjustments of brand name management fees.
Previous report
Restated cost of revenue for the year ended May 31, 2021 is $403,927, as compared to original cost of revenue $419,152 that is a decrement of $15,225, due to the adjustment of motor oil and spare parts.
Previous report
Restated gross profit for the year ended May 31, 2021 is $646,901, as compared to original gross profit $655,858, that is a decrement of $8,957, due to the adjustments of increase motor oil and spare parts $16,779, offset decrease brand name management fees $24,183 and decrease training and other revenues $1,553.
Previous report
Restated operating expenses for the year ended May 31, 2021 is $2,218,163, as compared to original operating expenses $2,536,599, that is a decrement of $318,436, due to the decrease of bad debts written off $688,623 and offset increase in impaired goodwill written off $322,972.
Previous report
Net loss totaled $541,453 for the year ended May 31, 2022, compared to the year ended May 31, 2021 net loss $1,582,407 (as restated), that is an increase net income of $1,040,954, primarily as a result of the increaseof motor oil, spare parts and brand name management fees generated gross profit $1,086,584, bad debts written off reduced by $848,363, bad debts recovery $155,055, offset increase in payroll costs by $284,967 and impaired goodwill written off 694,992.
Previous report
Restated net loss for the year ended May 31, 2021 is $1,582,407, as compared to original net loss $1,886,242, that is an decrease net loss $303,835, due to bad debts written off reduced by $688,623 and offset increase in impaired goodwill written off $322,972.
Previous report
Restated working capital deficit for the year ended May 31, 2021 is $2,113,882, as compared to original working capital deficit $2,763,283, that is an increase of working capital $649,401, due to the decrease of advance received, accrued expenses and other payable $729,878 and decrease prepayment, deposit and other receivable $100,136.
Previous report
Restated cash flow provided by operating activities for the year ended May 31, 2021 is $103,242, as compared to original $286,630, that is a decrease of cash flow by $183,388. The decrease is mainly due to decrease advanced received, accrual liabilities and other payable $669,393, accounts payable $30,267 and prepayments, deposit paid and other receivable $37,168, offset by the increased net cash generated from net profit $228,073 and accounts receivable $327,246.
Previous report
Restated cash flow used in investing activities for the year ended May 31, 2021 is $11,456, as compared to original $12,014, that is a decrease of $558 due to purchase of intangible assets.
Previous report
Restated cash flow provided by financing activities for the year ended May 31, 2021 is $222,001, as compared to original $214,496, that is an increase of $7,505 from advances from directors.
Reworded paragraphs (8)
Previous wording
Cost of revenue totaled $1,037,875 for the year ended May 31, 2022, an increase of $633,948, as compared to that of May 31, 2021 $403,927 (as restated). The increment is mainly due to the increase in sales of motor oil and spare parts $807,825 and offset decrease in sales of automobile exhaust cleaner $179,072.
Current wording
Cost of revenue totaled $949,496 for the year ended May 31, 2023, a decrease of $88,379, as compared to that of May 31, 2022 $1,037,875. The decrement is mainly due to the decrease in sales of motor oil and spare parts $359,109, training and others $20,989 and offset increase in sales of automobile exhaust cleaner $291,719.
Previous wording
Gross profit was $1,733,485 for the year ended May 31, 2022, an increased of $1,086,584, as compared to that of May 31, 2021 $646,901 (as restated). Gross profit margin increased from 62% (2021 restated) to 63% for the year ended May 31, 2022, primarily due to the increase insales of higher profitable products motor oil and spare parts $608,052, increase brand name management fees $488,327, increase training and other revenues $84,766 and offset decrease automobile exhaust cleaner $94,560.
Current wording
Gross profit was $1,097,057 for the year ended May 31, 2023, an decreased of $636,428, as compared to that of May 31, 2021 $1,733,485. Gross profit margin decreased from 63% to 54% for the year ended May 31, 2023, primarily due to the decrease insales of higher profitable products motor oil and spare parts $262,860, decrease brand name management fees $398,266, training and others $92,307 and offset increase automobile exhaust cleaner $117,005.
Previous wording
Operating expenses are $2,258,212 and $2,218,163 (as restated) for the years ended May 31, 2022 and 2021 respectively, as compared that is a increase of $40,049. The increase is mainly due to the increase in impaired goodwill written off $694,992, payroll costs $287,967, advertisement costs $130,647, offset decrease in bad debts written off of $848,363 and bad debts recovery of $155,005.
Current wording
Operating expenses are $2,243,920 and $2,258,212 for the years ended May 31, 2023 and 2022 respectively, as compared that is a decrease of $14,292. The decrease is mainly due to the decrease in impaired goodwill written off $367,781, payroll costs $39,018, advertisement costs and conference exp $157,292, bad debts written off $44,467, R&D expenses written off $ 29,566 and offset increase in sales commission $191,719, audit and consultancy fees $175,635, bad debts recovery $155,005 and amortization of intangible assets $96,479.
Previous wording
As of May 31, 2022, we had working capital deficit of $1,558,256, an increase of working capital 555,626, as compared to working capital deficit of $2,113,882 as of May 31, 2021 (as restated), that is due to increment of total current assets $1,067,857 and total current liabilities $512,231.
Current wording
As of May 31, 2023, we had working capital deficit of $1,698,907, a decrease of working capital $140,651, as compared to working capital deficit of $1,558,256 as of May 31, 2022, that is due to decrement of total current assets $235,038 and offset decrease total current liabilities $94,387.
Previous wording
Increase of total current assets $1,067,857 mainly due to increment of cash and cash equivalents $487,035, prepayment, deposits and other receivables $217,715 and inventories $354,962. Increase of total current liabilities $512,231 due to increment of advance received, accrued expenses and other payable $486,084.
Current wording
Decrease of total current assets $235,038 mainly due to decrement of cash and cash equivalents $167,693 and inventories $306,409, offset increase of accounts receivable $1,944 and prepayment, deposits and other receivables $237,120. Decrease of total current liabilities $94,387 due to decrement of advance received, accrued expenses and other payable $278,381, due to related party and operating lease liabilities $36,469, offset increase of accounts payable $88,008 and amount due to directors $132,455.
Previous wording
Cash flow provided by operating activities for the year ended May 31, 2022 is $434,523 as compared to the amount of $103,242 (as restated) provided by operating activities for the year ended May 31, 2021, reflecting an increase of $340,281. The increase in net cash provided by operating activities is mainly due to net cash generated from net profit $474,884 and increase of advanced received, accrued liabilities and other payable $1,873,441, offset by the decreased cash flow in prepayment, deposit paid and other received $1,408,509, inventories $428,829, accounts receivable $120,734 and accounts payable $64,682.
Current wording
Cash flow used in operating activities for the year ended May 31, 2023 is $378,815 as compared to the amount of $443,523 provided by operating activities for the year ended May 31, 2022, reflecting an decrease of $822,338. The decrease in net cash provided by operating activities is mainly due to decrease net cash generated from net loss $638,733, impairment of goodwill $367,781, received in advance $938,937, prepayment, deposit paid and other receivable $224,462 and offset by the increased cash flow in inventories $659,537, accrued liabilities, other payable and deposit received $334,184, bad debts written $155,005, accounts payable $113,038 and amortization of intangible assets $91,963.
Previous wording
Cash flow used in investing activities is $38 for the year ended May 31, 2022, as compared to $11,456 (as restated) for the year ended May 31, 2021, reflecting an increase of $11,494. The increase is due to purchased of computers and intangible assets.
Current wording
Cash flow used in investing activities is $1,451,288 for the year ended May 31, 2023, as compared to cash flow provided by investing activities $38 for the year ended May 31, 2022, reflecting a decrease of $1,451,326. The decrease is due to purchased of intangible assets $1,423,186.
Previous wording
Cash flow provided by financing activities is $77,618 for the year ended May 31, 2022, compared to $222,001 (as restated) for the year ended May 31, 2021, reflecting a decrease of $144,383. The decrease in net cash provided by financing activities was mainly due to a decrease in advances from directors $172,052 and offset of increase repayments from related parties $27,669.
Current wording
Cash flow provided by financing activities is $1,709,638 for the year ended May 31, 2023, compared to $77,618 for the year ended May 31, 2022, reflecting an increase of $1,632,020. The increase in net cash provided by financing activities was mainly due to an increase in proceeds from share issuance $1,594,688 and advance from directors $81,631, offset decrease in related party $44,299.