CXJ GROUP CO Ltd
For the period ended May 31, 2024. Filed Nov 8, 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.
FY2024 · Filed Nov 8, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-K
Period ended 2024-05-31; filed 2024-11-08.
0001493152-24-044128
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 32 previous paragraphs and 33 current paragraphs.
21 unchanged; 6 reworded; 6 added; 5 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 (6)
Current report
Revenue totaled of $2,318,712 for the year ended May 31, 2024, an increase of $192,325 or 9%, as compared to that for the year ended May 31, 2023 of $2,126,387. The increment is mainly due to the increase of revenue of brand name management fees $653,168, motor oil $120,113, and offset decrease of motor oil and spare parts $579,399 and others $1,557.
Current report
Gross profit was $1,646,075 for the year ended May 31, 2024, an increase of $469,184, as compared to that of May 31, 2023 of $1,176,891. Gross profit margin increased from 55.3% to 71% for the year ended May 31, 2024, primarily
Current report
due to the increase in brand name management fees $653,168, sales of exhaust gas cleaners $32,441, others $4,141 and offset decrease in sales of motor oil and spare parts $220,566.
Current report
Operating expenses are $3,791,453 and $2,243,920 for the years ended May 31, 2024 and 2023 respectively, as compared that is an increase of $1,547,533. The increase is mainly due to the increase in impairment of intangible assets $1,155,802, amortization of intangible assets $42,217, impairment of goodwill $399,801, consultancy fee $303,344, promotion and advertisement expenses $46,866, loss on disposal of subsidiary $25,229, others $11,182 and offset decrease payroll costs $212,104, sales commission $84,968, transportation $33,892, conference expenses $38,896, R&D expenses written off $27,347, travelling expenses $13,670, office expenses $15,735 and bad debts $10,296.
Current report
Cash flows used in operating activities for the year ended May 31, 2024 and 2023 are $590,038 and $378,815 respectively, reflecting a decrease cash flow of $211,223. The decrease in cash flow is mainly due to increase of net loss $1,078,832, advance received $843,382, accounts payable $313,258, inventories $265,912, operating lease liabilities $11,120, bad debts written off $10,296, and offset increased of impairment of intangible assets $1,155,802, amortization of intangible assets $42,217, impairment of goodwill $399,801, loss on disposal of subsidiary $25,229, prepayment, deposit paid and other receivable $468,403, accrued liabilities, deposits received and other payables $212,659, amortization of right-of-used assets $4,138, accounts receivables $2,437 and depreciation $891.
Current report
Cash flows used in investing activities are $5,738 and $1,451,288 for the year ended May 31, 2024 and 2023 respectively, reflecting an increase cash flow of $1,445,550. The increase is mainly due to decreased purchased of copyrights $1,447,718, office equipment $1,495 and offset net cash from acquisition and disposal of subsidiary $3,123.
Removed paragraphs (5)
Previous 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.
Previous report
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 report
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 report
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 report
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.
Reworded paragraphs (6)
Previous wording
During the year 2022 and 2023, the Company conducted its business in generally three revenue stream: product sales – automotive aftermarket products; brand name management fees; other consultancy fee.
Current wording
During the year 2023 and 2024, the Company conducted its business in generally four revenue streams: Brand name management fees, exhaust gas cleaners, motor oil and auto parts.
Previous 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.
Current wording
Cost of revenue totaled of $672,637 for the year ended May 31, 2024, a decrease of $276,859, as compared to that of May 31, 2023 of $949,496. The decrement is mainly due to the decrease in sales of motor oil and spare parts $358,833, others $5,698 and offset increase in sales of exhaust gas cleaners $87,672.
Previous wording
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.
Current wording
Net loss totaled $2,135,674 and $1,058,307 for the year ended May 31, 2024 and 2023 respectively, that is an increase net loss of $1,077,367, primarily due to the above changes of revenues and expenses.
Previous 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.
Current wording
As of May 31, 2024, we had working capital deficit of $1,444,350, an increase of working capital $176,968, as compared to working capital deficit of $1,621,318 as of May 31, 2023, that is due to increase of working capital from total current liabilities of $1,062,371 and offset decrease total current assets of $885,403.
Previous 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.
Current wording
Increase of working capital $176,968 is mainly due to decrement of advance received $1,301,839, accounts payables $223,967, due to related parties $71,221, and offset decrease of cash and cash equivalents $656,930, prepayment, deposits and other receivables $218,443, inventories $67,219, accounts receivables $2,780, increment of accrued expenses and other payable $439,018, operating lease liabilities $32,756 and amount due to director $2,913.
Previous 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.
Current wording
Cash flow used in financing activities is $56,012 for the year ended May 31, 2024, compared to cash flow provided by financing activities $1,709,638 for the year ended May 31, 2023, reflecting a decrease cash flow of $1,765,650. The decrease was mainly due decrease in proceeds from share issuance $1,594,688, advance from directors $120,875 and advances to related parties $50,087.