CXJ GROUP CO Ltd

Previous wording

The following table sets forth a summary of our consolidated results of operations and comprehensive loss for the periods presented, both in absolute amount and as a percentage of our revenues for the periods presented. This information should be read together with our audited consolidated financial statements and related notes as well as unaudited interim consolidated financial statements and related notes included elsewhere in this prospectus. The results of operations in any period are not necessarily indicative of our future trends.

Current wording

The following table sets forth a summary of our consolidated results of operations and comprehensive loss for the periods presented, both in absolute amount and as a percentage of our revenues for the periods presented. This information should be read together with our audited consolidated financial statements and related notes as well as unaudited interim consolidated financial statements and related notes included elsewhere in this Form 10-Q. The results of operations in any period are not necessarily indicative of our future trends.

Previous 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.

Current wording

For the three months period ended November 30, 2023, we generated total revenue of $866,366 that included brand name administrative fee $366,082, exhaust gas cleaner, motor oil and auto parts $499,355 and others $929.

Previous wording

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

Current wording

Total revenues for three months ended November 30, 2023 were $866,366 compared to $529,818 for the three months ended November 30, 2022, which increased by $336,548, mainly due to the increase of brand name administrative fee $179,617, sales of exhaust gas cleaner $108,128, motor oil and auto parts $48,587and others $216.

Previous 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.

Current wording

The Company are engaging in trading of auto parts, motor oil and automobile exhaust gas 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

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.

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, 2023 compared to three months ended August 31, 2022

Current wording

Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended November 30, 2023 compared to three months ended November 30, 2022 as below:

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, sales commission, conference and function expenses and other operating expenses associated with sales and marketing.

Previous wording

General and Administrative (G&A) expenses consist primarily of salary, employee benefits, facility cost, rental fee and other related expenses.

Current wording

General and Administrative (G&A) expenses consist primarily of salary, employee benefits, consultancy fees, rental fee and other related expenses.

Previous 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.

Current wording

G&A expenses for the three months ended November 30, 2023 were $149,720 compared to $209,265 as of November 30, 2022. a decrease of $59,545 was primarily due to decrease of consultancy fees $79,338, payroll costs $44,827 and offset increase of amortization of intangible assets $27,734, office expenses $11,305 and rental $8,268.

Previous wording

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

Current wording

We recorded zero and ($1,513) in income tax expenses for the period ended November 30, 2023 and November 30, 2022, respectively. Received a corporation tax refund $1,513 from tax authority in November 2022.

Previous 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.

Current wording

Net profit for the three months ended November 30, 2023 is $203,216 compared to net loss $23,814 as of November 30, 2022, an increase of profit $227,030 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 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.

Current wording

Cash flow used in operating activities for the six months ended November 30, 2023 is $542,850 as compared to the amount of $829,409 used in operating activities for the six months ended November 30, 2022, reflecting an increase of cash flow $286,559. The increase in net cash flow is mainly from cash inflow accrued liabilities and other payable $778,508, prepayment, deposit and other receivables $253,160 and amortization of intangible assets $45,463, and offset cash outflow in decrease net profit by $327,455, inventory $236,262 and accounts payable $215,668.

Previous 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.

Current wording

Cash flow used in financing activities is $32,753 for the six months ended November 30, 2023, compared to cash flow provided by financing activities $1,584,077 for the six months ended November 30, 2022, reflecting a decrease of $1,616,830. The decrease in net cash provided by financing activities was mainly due to proceeds from share issuance $1,552,004, repayment to related party $78,682 and offset advance from directors $13,856.