ADDENTAX GROUP CORP.

Previous wording

Our subsidiaries include(i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company; (ii) Yingxi Industrial Chain Investment Co., Ltd., a Hong Kong company (“Yingxi HK”); (iii) Qianhai Yingxi Textile & Garments Co., Ltd., a PRC company; (iv) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co., Ltd, a PRC company (“HSW”), (vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (ix) Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd, a PRC company (“ZHJ”), (x) Dongguan Au Te Si Garments Co., Ltd., a PRC company (“AOT”), (xi) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Current wording

Our subsidiaries include(i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company; (ii) Yingxi Industrial Chain Investment Co., Ltd., a Hong Kong company (“Yingxi HK”); (iii) Qianhai Yingxi Textile & Garments Co., Ltd., a PRC company; (iv) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co., Ltd, a PRC company (“HSW”), (vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (ix) Dongguan Au Te Si Garments Co., Ltd., a PRC company (“AOT”), (x) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Previous wording

“PRC Subsidiaries” refer to, collectively, (i) Qianhai Yingxi Textile & Garments Co., Ltd.; (ii) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), (iii) Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), (iv) Dongguan Yushang Clothing Co., Ltd (“YS”); (v) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (vi) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (vii) Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd, a PRC company (“ZHJ”), and (viii) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (ix) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Current wording

“PRC Subsidiaries” refer to, collectively, (i) Qianhai Yingxi Textile & Garments Co., Ltd.; (ii) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), (iii) Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), (iv) Dongguan Yushang Clothing Co., Ltd (“YS”); (v) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (vi) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (vii) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), and (viii) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Previous wording

Our garment manufacturing business consists of sales made principally to wholesaler located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through five wholly owned subsidiaries, namely Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), Dongguan Yushang Clothing Co., Ltd (“YS”), Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd (“ZHJ”), and Dongguan Aotesi Garments Co., Ltd., (“AOT”), which are located in the Guangdong province, China.

Current wording

Our garment manufacturing business consists of sales made principally to wholesaler located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through five wholly owned subsidiaries, namely Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), Dongguan Yushang Clothing Co., Ltd (“YS”)and Dongguan Aotesi Garments Co., Ltd., (“AOT”), which are located in the Guangdong province, China.

Previous wording

Total revenue for the three months ended September 30, 2024 was nearly the same as compared with the three months ended September 30, 2023.

Current wording

Total revenue for the three months ended December 31, 2024 decreased by approximately $0.4 million, or 27.9%, as compared with the three months ended December 31, 2023. The decrease was mainly due to the decrease of $0.4 million in logistics services business.

Previous wording

Revenue generated from our garment manufacturing business contributed approximately $0.1 million, or 11.1%, of our total revenue for the three months ended September 30, 2024. Revenue generated from garment manufacturing business contributed approximately $0.1 million or 6.8% of our total revenue for the three months ended September 30, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Current wording

Revenue generated from our garment manufacturing business contributed approximately $0.03 million, or 3.2%, of our total revenue for the three months ended December 31, 2024. Revenue generated from garment manufacturing business contributed approximately $0.03 million or 1.8% of our total revenue for the three months ended December 31, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Previous wording

Revenue generated from our logistics services business contributed approximately $1.0 million, or 71.9%, of our total revenue for the three months ended September 30, 2024. Revenue generated from our logistic business contributed approximately $1.2 million or 88.8% of our total revenue for the three months ended September 30, 2023.

Current wording

Revenue generated from our logistics services business contributed approximately $0.8 million, or 78.5%, of our total revenue for the three months ended December 31, 2024. Revenue generated from our logistic business contributed approximately $1.2 million or 81.0% of our total revenue for the three months ended December 31, 2023.

Previous wording

Revenue generated from our property management and subleasing business was 0.2 million, or 17.0%, of our total revenue for the three months ended September 30, 2024. The revenue from this business segment was $0.06 million or 4.3% of our total revenue for the three months ended September 30, 2023.

Current wording

Revenue generated from our property management and subleasing business was 0.2 million, or 18.4%, of our total revenue for the three months ended December 31, 2024. The revenue from this business segment was $0.3 million or 17.2% of our total revenue for the three months ended December 31, 2023.

Previous wording

Raw material costs for our garment manufacturing business were approximately 58.8% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared with 28.9% for the three months ended September 30, 2023. The increase in percentage was mainly due to increased orders received.

Current wording

Raw material costs for our garment manufacturing business were approximately 35.3% of our total garment manufacturing business revenue for the three months ended December 31, 2024, as compared with 15.7% for the three months ended December 31, 2023. The increase in percentage was mainly due to increased orders received.

Previous wording

Labor costs for our garment manufacturing business was approximately 24.5% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared with 50.9% for the three months ended September 30, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Current wording

Labor costs for our garment manufacturing business was approximately 38.1% of our total garment manufacturing business revenue for the three months ended December 31, 2024, as compared with 25.8% for the three months ended December 30, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Previous wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 4.8% of our total garment business revenue for the three months ended September 30, 2024, as compared with 2.9% of total garment business revenue for the three months ended September 30, 2023.

Current wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 10.0% of our total garment business revenue for the three months ended December 31, 2024, as compared with (4.8)% of total garment business revenue for the three months ended December 31, 2023.

Previous wording

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, of which the subcontracting fees to our largest contractor represented approximately nil% and 35.1% of total cost of revenues for our service segment for the three months ended September 30, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Current wording

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, of which the subcontracting fees to our largest contractor represented approximately % and 53.1% of total cost of revenues for our service segment for the three months ended December 31, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Previous wording

Fuel, toll and other costs for our service business for the three months ended September 30, 2024 were approximately $0.5 million as compared with $0.5 million for the three months ended September 30, 2023. Fuel, toll and other costs for our service business accounted for approximately 53.0% of our total service revenue for the three months ended September 30, 2024, as compared with 43.3% for the three months ended September 30, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Current wording

Fuel, toll and other costs for our service business for the three months ended December 31, 2024 were approximately $0.5 million as compared with $0.5 million for the three months ended December 31, 2023. Fuel, toll and other costs for our service business accounted for approximately 63.6% of our total service revenue for the three months ended December 31, 2024, as compared with 41.6% for the three months ended December 31, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Previous wording

Subcontracting fees for our service business for the three months ended September 30, 2024 decreased approximately 100.0% to $nil from $0.3 million for the three months ended September 30, 2023. Subcontracting fees accounted for nil% and 28.6% of our total service business revenue in the three months ended September 30, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

Current wording

Subcontracting fees for our service business for the three months ended December 31, 2024 decreased approximately 79.0% to $0.1 from $0.6 million for the three months ended December 31, 2023. Subcontracting fees accounted for 14.2% and 47.2% of our total service business revenue in the three months ended December 31, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

Previous wording

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the three months ended September 30, 2024 was $371,019, approximately 162.3% of our total property management and subleasing business revenue, as compared with $4,610, or 7.9% of the total property management and subleasing business revenue for the three months ended September 30, 2023.

Current wording

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the three months ended December 31, 2024 was $301,834, approximately 155.2% of our total property management and subleasing business revenue, as compared with $236,291, or 93.6% of the total property management and subleasing business revenue for the three months ended December 31, 2023.

Previous wording

Garment manufacturing business gross profit for the three months ended September 30, 2024 was $17,679, as compared with $15,767 for the three months ended September 30, 2023. Gross profit accounted for 11.9% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared to 17.3% for the three months ended September 30, 2023. The decrease of gross profit ratio was mainly due to the increased raw material costs.

Current wording

Garment manufacturing business gross profit for the three months ended December 31, 2024 was $5,620, as compared with $17,113 for the three months ended December 31, 2023. Gross profit accounted for 16.6% of our total garment manufacturing business revenue for the three months ended December 31, 2024, as compared to 63.3% for the three months ended December 31, 2023. The decrease of gross profit ratio was mainly due to the increased raw material costs.

Previous wording

Gross profit in our logistics services business for the three months ended September 30, 2024 was approximately $453,406 and gross margin was 47.0%. Gross profit in our logistics services business for the three months ended September 30, 2023 was approximately $333,667 and gross margin was 28.1%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Current wording

Gross profit in our logistics services business for the three months ended December 31, 2024 was approximately $184,545 and gross margin was 22.2%. Gross profit in our logistics services business for the three months ended December 31, 2023 was approximately $132,917 and gross margin was 11.2%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Previous wording

Gross loss in our property management and subleasing business for the three months ended September 30, 2024 was $142,440. Gross profit was $53,453 for the three months ended September 30, 2023. Gross loss accounted for (62.3)% of our total property management and subleasing business revenue for the three months ended September 30, 2024, as compared to 92.1% for the three months ended September 30, 2023. The decrease of gross profit ratio was mainly because the property management and subleasing business are still in preliminary stage.

Current wording

Gross loss in our property management and subleasing business for the three months ended December 31, 2024 was $107,346. Gross profit was $16,186 for the three months ended December 31, 2023. Gross loss accounted for (55.2)% of our total property management and subleasing business revenue for the three months ended December 31, 2024, as compared to 6.4% for the three months ended December 31, 2023. The decrease of gross profit ratio was mainly because the property management and subleasing business are still in preliminary stage.

Previous wording

Our selling expenses for our garment manufacturing business for the three months ended September 30, 2024 and 2023 was approximately $13,400 and nil, respectively. The selling expenses for property management and subleasing business for the three months ended September 30, 2024 and 2023 was approximately $8,952 and $37,200, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Current wording

Our selling expenses for our garment manufacturing business for the three months ended December 31, 2024 and 2023 was approximately $28,818 and $13,504, respectively. The selling expenses for property management and subleasing business for the three months ended December 31, 2024 and 2023 was approximately $83,127 and $81,817, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Previous wording

Our general and administrative expenses in our garment manufacturing business segment for the three months ended September 30, 2024 and 2023 was approximately $2,653 and $34,400, respectively. Our general and administrative expenses in our logistics services segment for the three months ended September 30, 2024 and 2023 was approximately $223,375 and $160,700, respectively. The general and administrative expenses in our property management and subleasing business was approximately $50,473 and nil for the three months ended September 30, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the three months ended September 30, 2024 and 2023 was approximately $274,855 and $475,600, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Current wording

Our general and administrative expenses in our garment manufacturing business segment for the three months ended December 31, 2024 and 2023 was approximately $8,021 and $34,007, respectively. Our general and administrative expenses in our logistics services segment for the three months ended December 31, 2024 and 2023 was approximately $175,837 and $174,618, respectively. The general and administrative expenses in our property management and subleasing business was approximately $43,790 and $132,336for the three months ended December 31, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the three months ended December 31, 2024 and 2023 was approximately $124,279 and $175,636, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Previous wording

Total general and administrative expenses for the three months ended September 30, 2024 decreased by approximately 4.2% to $1.1 million from $1.2 million for the three months ended September 30, 2023.

Current wording

Total general and administrative expenses for the three months ended December 31, 2024 decreased by approximately 31.9% to $0.4 million from $0.5 million for the three months ended December 31, 2023.

Previous wording

Loss from operations for the three months ended September 30, 2024 and 2023 was approximately $245,066 and $304,932, respectively. Income from operations of approximately $1,622 and loss from operation of $19,000 for the three months ended September 30, 2024 and 2023, respectively, which was attributed from our garment manufacturing segment. Income from operations of approximately $229,558 and $172,300 was attributed from our logistics services segment for the three months ended September 30, 2024 and 2023, respectively. Loss from operations of approximately $201,865 and $13,400for the three months ended September 30, 2024 and 2023, respectively, which was attributed from our property management and subleasing business. We incurred expenses from operations in corporate office of approximately $274,381 and $444,900 for the three months ended September 30, 2024 and 2023, respectively.

Current wording

Loss from operations for the three months ended December 31, 2024 and 2023 was approximately $381,054 and $449,592, respectively. Loss from operations of approximately $31,220 and loss from operation of $30,398 for the three months ended December 31, 2024 and 2023, respectively, which was attributed from our garment manufacturing segment. Income from operations of approximately $8,707 and loss from operation of $41,699 was attributed from our logistics services segment for the three months ended December 31, 2024 and 2023, respectively. Loss from operations of approximately $234,264 and $168,012 for the three months ended December 31, 2024 and 2023, respectively, which was attributed from our property management and subleasing business. We incurred expenses from operations in corporate office of approximately $124,277 and $209,483 for the three months ended December 31, 2024 and 2023, respectively.

Previous wording

Income tax expense for the three months ended September 30, 2024 and 2023 was approximately $1,062 and $3,237, respectively. Yingxi primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Current wording

Income tax expense for the three months ended December 31, 2024 and 2023 was approximately $3,116 and $3,225, respectively. Yingxi primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Previous wording

We incurred net loss of approximately $0.7 million and net income of $1.4 million for the three months ended September 30, 2024 and 2023, respectively. Our basic and diluted earnings per share were ($0.13) and $0.837 for the three months ended September 30, 2024 and 2023, respectively.

Current wording

We incurred net loss of approximately $1.1 million and $2.6 million for the three months ended December 31, 2024 and 2023, respectively. Our basic and diluted earnings per share were ($0.19) and ($0.66) for the three months ended December 31, 2024 and 2023, respectively.

Previous wording

The following table summarize our results of operations for the six months ended September 30, 2024 and 2023. The table and the discussion below should be read in conjunction with our consolidated financial statements and the notes thereto appearing elsewhere in this report.

Current wording

The following table summarize our results of operations for the nine months ended December 31, 2024 and 2023. The table and the discussion below should be read in conjunction with our consolidated financial statements and the notes thereto appearing elsewhere in this report.

Previous wording

Total revenue for the six months ended September 30, 2024 decreased by approximately $0.2 million, or 8.2%, as compared with the six months ended September 30, 2023. The decrease was mainly due to the decrease of $0.7 million in logistics services, increase of $0.1 million in garment manufacturing business and increase of $0.4 million in property management and subleasing business.

Current wording

Total revenue for the nine months ended December 31, 2024 decreased by approximately $0.6 million, or 15.7%, as compared with the nine months ended December 31, 2023. The decrease was mainly due to the decrease of $1.1 million in logistics services, decrease of $0.1 million in garment manufacturing business and increase of $0.4 million in property management and subleasing business.

Previous wording

Revenue generated from our garment manufacturing business contributed approximately $0.2 million, or 10.7%, of our total revenue for the six months ended September 30, 2024. Revenue generated from garment manufacturing business contributed approximately $0.1 million or 6.1% of our total revenue for the six months ended September 30, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Current wording

Revenue generated from our garment manufacturing business contributed approximately $0.3 million, or 8.3%, of our total revenue for the nine months ended December 31, 2024. Revenue generated from garment manufacturing business contributed approximately $0.2 million or 4.5% of our total revenue for the nine months ended December 31, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Previous wording

Revenue generated from our logistics services business contributed approximately $1.5 million, or 66.2%, of our total revenue for the six months ended September 30, 2024. Revenue generated from our logistic business contributed approximately $2.2 million or 91.5% of our total revenue for the six months ended September 30, 2023.

Current wording

Revenue generated from our logistics services business contributed approximately $2.3 million, or 70.2%, of our total revenue for the nine months ended December 31, 2024. Revenue generated from our logistic business contributed approximately $3.4 million or 87.5% of our total revenue for the nine months ended December 31, 2023.

Previous wording

Revenue generated from our property management and subleasing business was 0.5 million, or 23.1%, of our total revenue for the six months ended September 30, 2024. The revenue from this business segment was $0.06 million for the six months ended September 30, 2023.

Current wording

Revenue generated from our property management and subleasing business was 0.7 million, or 21.6%, of our total revenue for the nine months ended December 31, 2024. The revenue from this business segment was $0.3 million or 8.1% of our total revenue for the nine months ended December 31, 2023.

Previous wording

Raw material costs for our garment manufacturing business were approximately 53.2% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared with 17.9% for the six months ended September 30, 2023. The increase in percentage was mainly due to the increased order received.

Current wording

Raw material costs for our garment manufacturing business were approximately 50.9% of our total garment manufacturing business revenue for the nine months ended December 31, 2024, as compared with 17.5% for the nine months ended December 31, 2023. The increase in percentage was mainly due to the increased order received.

Previous wording

Labor costs for our garment manufacturing business was approximately 23.2% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared with 64.2% for the six months ended September 30, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Current wording

Labor costs for our garment manufacturing business was approximately 25.1% of our total garment manufacturing business revenue for the nine months ended December 31, 2024, as compared with 58.2% for the nine months ended December 31, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Previous wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 4.5% of our total garment business revenue for the six months ended September 30, 2024, as compared with 1.8% of total garment business revenue for the six months ended September 30, 2023.

Current wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 5.2% of our total garment business revenue for the nine months ended December 31, 2024, as compared with 0.8% of total garment business revenue for the nine months ended December 31, 2023.

Previous wording

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, which the subcontracting fees to our largest contractor represented approximately nil% and 36.1% of total cost of revenues for our service segment for the six months ended September 30, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Current wording

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, which the subcontracting fees to our largest contractor represented approximately nil% and 36.1% of total cost of revenues for our service segment for the nine months ended December 31, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Previous wording

Fuel, toll and other costs for our service business for the six months ended September 30, 2024 were approximately $0.8 million as compared with $1.0 million for the six months ended September 30, 2023. Fuel, toll and other costs for our service business accounted for approximately 52.4% of our total service revenue for the six months ended September 30, 2024, as compared with 45.8% for the six months ended September 30, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Current wording

Fuel, toll and other costs for our service business for the nine months ended December 31, 2024 were approximately $1.3 million as compared with $1.5 million for the nine months ended December 31, 2023. Fuel, toll and other costs for our service business accounted for approximately 56.5% of our total service revenue for the nine months ended December 31, 2024, as compared with 44.4% for the nine months ended December 31, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Previous wording

Subcontracting fees for our service business for the six months ended September 30, 2024 decreased approximately 100.0% to $nil from $0.6 million for the six months ended September 30, 2023. Subcontracting fees accounted for nil% and 28.4% of our total service business revenue in the six months ended September 30, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

Current wording

Subcontracting fees for our service business for the nine months ended December 31, 2024 decreased approximately 90.0% to $0.1 million from $1.2 million for the nine months ended December 31, 2023. Subcontracting fees accounted for 5.2% and 35.0% of our total service business revenue in the nine months ended December 31, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

Previous wording

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the six months ended September 30, 2024 was $0.7 million, approximately 140.3% of our total property management and subleasing business revenue, as compared with $$4,610 for the six months ended September 30, 2023.

Current wording

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the nine months ended December 31, 2024 was $1.0 million, approximately 144.5% of our total property management and subleasing business revenue, as compared with $0.2 million, approximately 77.6% of our total property managemet for the nine months ended December 31, 2023.

Previous wording

Garment manufacturing business gross profit for the six months ended September 30, 2024 was $44,942, as compared with $23,300 for the six months ended September 30, 2023. Gross profit accounted for 19.1% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared to 16.1% for the six months ended September 30, 2023. The increase of gross profit ratio was mainly due to increased sales.

Current wording

Garment manufacturing business gross profit for the nine months ended December 31, 2024 was $50,562, as compared with $40,433 for the nine months ended December 31, 2023. Gross profit accounted for 18.8% of our total garment manufacturing business revenue for the nine months ended December 31, 2024, as compared to 23.5% for the nine months ended December 31, 2023. The increase of gross profit ratio was mainly due to increased sales.

Previous wording

Gross profit in our logistics services business for the six months ended September 30, 2024 was approximately $690,617 and gross margin was 47.6%. Gross profit in our logistics services business for the six months ended September 30, 2023 was approximately $563,000 and gross margin was 25.8%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Current wording

Gross profit in our logistics services business for the nine months ended December 31, 2024 was approximately $875,162 and gross margin was 38.4%. Gross profit in our logistics services business for the nine months ended December 31, 2023 was approximately $695,940 and gross margin was 20.6%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Previous wording

Gross loss in our property management and subleasing business for the six months ended September 30, 2024 was $204,323. Gross profit was $53,500 for the six months ended September 30, 2023. Gross loss accounted for (40.3)% of our total property management and subleasing business revenue for the six months ended September 30, 2024, as compared to gross profit of 16.7% for the six months ended September 30, 2023. The decrease of gross profit ratio was mainly because the property management and subleasing business are still in preliminary stage.

Current wording

Gross loss in our property management and subleasing business for the nine months ended December 31, 2024 was $311,669. Gross profit was $69,639 for the nine months ended December 31, 2023. Gross loss accounted for (44.5)% of our total property management and subleasing business revenue for the nine months ended December 31, 2024, as compared to gross profit of 22.4% for the nine months ended December 31, 2023. The decrease was due to disposal of DY.

Previous wording

Our selling expenses for our garment manufacturing business for the six months ended September 30, 2024 and 2023 was approximately $96,002 and nil, respectively. The selling expenses for property management and subleasing business for the six months ended September 30, 2024 and 2023 was approximately $65,709 and $37,200, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Current wording

Our selling expenses for our garment manufacturing business for the nine months ended December 31, 2024 and 2023 was approximately $124,821 and $13,857, respectively. The selling expenses for property management and subleasing business for the nine months ended December 31, 2024 and 2023 was approximately $148,836 and $118,676, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Previous wording

Our general and administrative expenses in our garment manufacturing business segment for the six months ended September 30, 2024 and 2023 was approximately $10,963 and $64,100, respectively. Our general and administrative expenses in our logistics services segment for the six months ended September 30, 2024 and 2023 was approximately $439,625 and $388,100, respectively. The general and administrative expenses in our property management and subleasing business was approximately $136,266 and nil for the six months ended September 30, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the six months ended September 30, 2024 and 2023 was approximately $532,753 and $716,300, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Current wording

Our general and administrative expenses in our garment manufacturing business segment for the nine months ended December 31, 2024 and 2023 was approximately $18,984 and $98,117, respectively. Our general and administrative expenses in our logistics services segment for the nine months ended December 31, 2024 and 2023 was approximately $615,462 and $562,696, respectively. The general and administrative expenses in our property management and subleasing business was approximately $180,056 and $132,336 for the nine months ended December 31, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the nine months ended December 31, 2024 and 2023 was approximately $657,032 and $891,914, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.