CXJ GROUP CO Ltd

Previous 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.

Current wording

For the three months period ended August 31, 2023, we generated total revenue of $504,517 that included brand name administrative fee $183,081, exhaust gas cleaner, motor oil and auto parts $321,126 and others $310.

Previous 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.

Current wording

The Company are engaging in trading of exhaust gas cleaner, 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.

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

Revenues related to sales of exhaust gas cleaner, 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 customers.

Previous wording

We earned the brand name administrative fees from our customers, who pay one-time fixed fee RMB90,000 for one to three years and RMB200,000 for fives for exchange of (1) the right to use the brand name “Chejiangling / Teenage Hero Car” and “ECXJ”, (2) the right to receive 10% of other new shops’ brand name permission fee, (3) the right to receive 5% of other new shops’ selling, and (4) the right to receive 20% of other new shops’ administrative fee. The fee is not be refundable.

Current wording

We earned the brand name administrative fees from our customers, who pay one-time fixed fee RMB100,000, RMB200,000 and RMB300,000 for one year, RMB90,000 for one to three years and RMB200,000 for one to five years for exchange of (1) the right to use the brand name “Chejiangling / Teenage Hero Car” and “ECXJ”, (2) the right to receive 10% of other new shops’ brand name permission fee, (3) the right to receive 5% of other new shops’ selling, and (4) the right to receive 20% of other new shops’ administrative fee. The fee is not be refundable.

Previous wording

Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended February 28, 2023 compared to three months ended February 28, 2022 as below:

Current wording

Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended August 31, 2023 compared to three months ended August 31, 2022

Previous 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.

Current wording

Gross profit for the three months ended August 31, 2023 were $280,587 compared to $497,385 as of August 31, 2022, a decrement of $216,798 is mainly due to the decrease sales of motor oil and auto parts.

Previous 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.

Current 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.

Previous 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.

Current wording

Sales and marketing expenses for the three months ended August 31, 2023 were $156,563 compared to $223,543 as of August 31, 2022, a decrease of $66,980 is due to decrease in payroll costs $40,937, transportation costs $40,933, conference expenses $30,826 and offset increased in advertisement and exhibition expenses $48,212.

Previous 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.

Current wording

For three months ended August 31, 2023 compared to three months ended August 31, 2022:

Previous 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.

Current wording

G&A expenses for the three months ended August 31, 2023 were $634,930 compared to $227,369 as of August 31, 2022, an increase of $407,561 was primarily due to the increase of consultancy fee $388,930, amortization of intangible assets $51,266 and offset decrease in payroll costs $29,155.

Previous wording

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

Current wording

We recorded $0 and $3,898 income tax expenses for the period ended August 31, 2023 and August 31, 2022, respectively.

Previous 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.

Current wording

Net loss $502,944 and net profit $34,013 occurred for the three months ended August 31, 2023 and 2022 respectively, due to the factors discussed above.

Previous 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.

Current 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.

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 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.

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 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.

Previous 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.

Current wording

Cash flow provided by operating activities for the three months ended August 31, 2023 is $100,463 as compared to cash flow used in operating activities for the three months ended August 31, 2023 is $863,432, reflecting an increase of $963,895. The increase in net cash used in operating activities is mainly due to increase cash flow of advanced, accrued liabilities and other payable $1,635,520, amortization of intangible assets $51,266, and offset net cash outflow net loss $554,485 and inventory $188,586.

Previous 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.

Current wording

Cash flow used in financing activities is $14,204 for the three months ended August 31, 2023, compared to provide by financing activities $130,255 for the three months ended August 31, 2022, reflecting a decrease of $144,459. The decrease in net cash provided by financing activities was mainly due to proceeds from share issuance $147.510, advance from directors $18,904 and offset increase repayment to related party and directors $21,955.

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.e

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.