CXJ GROUP CO Ltd
For the period ended Aug 31, 2024. Filed Nov 27, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 31, 2024 · Filed Nov 27, 2024
ECXJStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-02-29; filed 2024-08-12.
0001493152-24-031184
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-08-31; filed 2024-11-27.
0001493152-24-047917
Item 2. 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 50 previous paragraphs and 51 current paragraphs.
31 unchanged; 11 reworded; 8 added; 8 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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 (8)
Current report
Total revenues for three months ended August 31, 2024 were $114,382 compared to $504,517 for the three months ended August 31, 2023, which decreased by $390,135. Due to the slow market activity, brand name administrative fee decreased by $98,063 and exhaust gas cleaner, motor oil, auto parts and others decreased by $292,072.
Current report
Cost of revenue for the three months ended August 31, 2024 were $19,373 compared to $223,930 as of ended August 31, 2023, a decrement of $204,557. Due to the slow market activity, exhaust gas cleaner, motor oil and auto parts decreased by $204,841 and offset increase of others by $284.
Current report
Selling and Distribution expenses for the three months ended August 31, 2024 were $56,129 compared to $156,563 as of August 31, 2023, a decrease of $100,434 is due to decrease in promotion expenses $54,022, payroll costs $24,552, consultancy fee $10,176, travelling expenses $7,367, conference expenses $3,782, transportation costs $2,568, other expenses $66, offset increased in office expenses $1,042, sales commission $900 and entertainment expenses $157. The decrease in selling and distribution expenses is due to slow market activity.
Current report
G&A expenses for the three months ended August 31, 2024 were $82,547 compared to $634,930 as of August 31, 2023, a decrease of $552,383 was primarily due to the decrease of consultancy fees $460,224, amortization of intangible assets $34,771, payroll costs $21,737, office expenses $16,998, impairment of development costs $14,907, travelling expenses $6,541, entertainment expenses $1,689 and others $1,056, offset increase in R&D expenses $3,165 and rental $2,375. The decrease in general and administrative expenses is due to slow market activity.
Current report
Net loss $41,567 and $502,944 occurred for the three months ended August 31, 2024 and 2023 respectively, due to the factors discussed above.
Current report
Cash flow provided by operating activities for the three months ended August 31, 2024 and 2023 is $75,876 and $100,463 respectively, reflecting a decrease of cash flow $24,587. The decrease in net cash provided by operating activities is mainly due to decrease cash flow of advance received $428,134, prepayment, deposit and other receivable $83,464, amortization of intangible assets $51,266, inventory $17,690, accrued liabilities and other payable $12,199, operating lease liabilities $9,008, accounts receivable $872, and offset net cash inflow of decrease net loss $464,642, accounts payable $103,255, amortization of right-use of assets $8,480, impairment of intangible assets $1,588 and depreciation $81.
Current report
Cash flow used in investing activities is $1,588 for the three months ended August 31, 2024, as compared to $21,600 for the three months ended August 31, 2023, reflecting an increase of cash flow $20,012. The increase is due to decrease of investment in development costs $14,907, disposal of subsidiary, net of cash disposed $2,804 and purchase of property, plant and equipment $2,301.
Current report
A provision of $84,626 is provided, where the Company has a business dispute with a customer, and the customer lodged a police report but no legal action is taken against us.
Removed paragraphs (8)
Previous report
Sales of Exhaust Gas Cleaners, Motor Oil and Auto Parts
Previous report
Cost of revenue for the three months ended February 29, 2024 were $63,528 compared to $42,541 for the three months ended February 28, 2023, an increase of $20,987 is mainly due to the increase of sales of exhaust gas cleaners, motor oil and auto parts $21,385 and offset decrease of others $398.
Previous report
For three months ended February 29, 2024 compared to three months ended February 28, 2023 are as below:
Previous report
Sales and marketing expenses for the three months ended February 29, 2024 were $79,920 compared to $125,193 for the three months ended February 28, 2023, the decrement was mainly due to decrease in payroll costs $15,313 and sales commission $38,544.
Previous report
G&A expenses for the three months ended February 29, 2024 were $132,964 compared to $165,019 for the three months ended February 28, 2023, a decrease of $32,055 was primarily due to the decrease of payroll costs $11,411 and amortization of intangible assets $12,138 and travelling expenses $6,795.
Previous report
Net profit for the three months ended February 29, 2024 is $108,741 compared to net loss $136,085 as of February 28, 2023, an increase of profit $244,826 is due to the factors discussed above.
Previous report
Cash flow used in operating activities for the nine months ended February 29, 2024 is $580,581 as compared to the amount of $944,948 used in operating activities for the nine months ended February 28, 2023, reflecting an increase of cash flow $364,367. The increase in net cash flow is mainly due to increase of advanced, accrued liabilities and other payable $642,342, prepayment, deposit, other receivables $253,548, amortization of intangible assets $44,245, and offset decrease in profit $82,629, accounts payable $261,858, inventory $219,839 and impaired of goodwill $9,133.
Previous report
Cash flow used in investing activities is $5,119 for the nine months ended February 29, 2024, as compared to $1,458,197 for the nine months ended February 28, 2023, reflecting an increase of cash flow $1,453,078. The increase in cash flow is due to Mr. Lixin Cai increased the share capital of HZ CXJ to $1,410,437 (or RMB10,000,000) by capitalized of purchased copyrights in the period ended February 28, 2023.
Reworded paragraphs (11)
Previous wording
For the three months period ended February 29, 2024, we generated total revenue of $390,268 that included brand name administrative fee $301,674, exhaust gas cleaner, motor oil and auto parts $87,653 and others $941.
Current wording
For the three months period ended August 31, 2024, we generated total revenue of $114,382 that included brand name administrative fee $85,018, exhaust gas cleaner, motor oil and auto parts $29,297 and others $67.
Previous wording
The Company are engaging in trading of exhaust gas cleaners, motor oil and auto parts 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
Total revenues for the three months ended February 29, 2024 were $390,268 compared to $191,637 for the three months ended February 28, 2023, which increased by $198,631, mainly due to the increase of brand name administrative fee $171,243, sales of exhaust gas cleaners, motor oil and auto parts $27,234 and others $154,
Current wording
Sales of Exhaust Gas Cleaner, Motor Oil and Auto Parts
Previous wording
The Company received the purchase order from their third-party agents, the selling price is based on the purchase price plus a certain margin. Revenues related to sales of exhaust gas cleaners, motor oil and auto parts 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, motor oil and auto parts 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
Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended February 29, 2024 compared to three months ended February 28, 2023 as below:
Current wording
Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended August 31, 2024 compared to three months ended August 31, 2023.
Previous wording
Gross profit for the three months ended February 29, 2024 were $326,740 compared to $149,096 for the three months ended February 28, 2023, an increase of $177,644 is mainly due to the increase of brand name administrative fee $171,243.
Current wording
Gross profit for the three months ended August 31, 2024 were $95,009 compared to $280,587 as of August 31, 2023, a decrement of $185,578 is mainly due to the decrease of revenue from brand name administrative fee and sales of motor oil and auto parts.
Previous wording
Selling and Distribution expenses include salary, sales-related consultancy fee, sales commission, 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
General and Administrative (G&A) expenses consist primarily of salary, employee benefits, amortization of intangible assets, consultancy fees, rental fee and other related expenses.
Current wording
General and Administrative (G&A) expenses consist primarily of payroll costs, audit fee, consultancy fee, rental fee and other related expenses.
Previous wording
We recorded $5,227 and $1,252 in income tax expenses for the period ended February 29, 2024 and February 28, 2023, respectively.
Current wording
We recorded a income tax refund of $2,263 and $0 income tax expenses for the period ended August 31, 2024 and August 31, 2023, respectively.
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 activities is $57,182 for the nine months ended February 29, 2024, compared to cash flow provided by activities $1,662,685 for the nine months ended February 28, 2023, reflecting a decrease of $1,719,867. The decrease in net cash provided by financing activities was mainly due to proceeds from share issuance $1,603,114, advance from directors $72,045 and advance to related party $44,708.
Current wording
Cash flow used in financing activities is $5,540 for the three months ended August 31, 2024, compared to provide by financing activities $14,204 for the three months ended August 31, 2023, reflecting an increase of $8,664. The decrease in net cash used in financing activities was mainly due to advance to director $13,904 and offset advance to related party $5,240.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For three months ended August 31, 2024 compared to three months ended August 31, 2023: