CXJ GROUP CO., Ltd

Previous 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.

Current wording

Cost of revenue totalled of $85,975 for the year ended May 31, 2025, a decrease of $586,662 as compared to that of May 31, 2024 of $672,637. The decrement is mainly due to the decrease in sales of exhaust gas cleaners $405,100, motor oil and spare parts $180,294, and others $1,268.

Previous wording

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 wording

Operating expenses are $2,621,723 and $3,791,453 for the years ended May 31, 2025 and 2024 respectively, as compared that is a decrease of $1,169,730. The decrease is mainly due to the decrease in impairment of intangible assets $1,155,802, amortization of intangible assets $138,696, consultancy fee $157,003, sales commission $104,551, payroll costs $78,915, promotion expenses $75,695, travelling expenses $40,992, loss on disposal of subsidiary $25,229, R&D expenses written off $28,980, office expenses $17,479, conference expenses $14,889, entertainment expenses $13,937, transportation expenses $13,667, bad debts written off $2,150, others $7,357, and offset increased in impairment of goodwill $692,593, tax penalty $7,943, stock loss $3,662 and rental $1,414.

Previous 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.

Current wording

Net loss totalled $2,284,025 and $2,135,674 for the year ended May 31, 2025 and 2024 respectively, that is an increase net loss of $148,351, primarily due to the above changes of revenues and expenses.

Previous 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.

Current wording

As of May 31, 2025, we had working capital deficit of $1,570,983, a decrease of working capital $126,633, as compared to working capital deficit of $1,444,350 as of May 31, 2024, that is due to decrease of working capital from total current assets of $250,999 and offset increase total current liabilities of $124,366.

Previous 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.

Current wording

Decrease of working capital $126,633 is mainly due to decrease in prepayment $288,411, accounts receivable $56,314, amount due to director $75,507, and offset increase of cash and cash equivalents $7,516, deposits and other receivables $ 55,004, due to related parties $22,502, inventories $8,704, accounts payable $10,021, advance received $12,509, accrued expenses and other payable $129,314, operating lease liabilities $48,029.

Previous wording

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 wording

Cash flows used in operating activities for the year ended May 31, 2025 and 2024 are $418,525 and $590,038 respectively, reflecting an increase cash flow of $171,513. The increase in cash flow is mainly due to amortization of right-of-used assets $7,435, impairment of goodwill $692,593, accounts receivables $59,883, prepayment, deposits and other receivables $39,188, accounts payables $198,522, advance received $1,164,549, and offset increase of net profit $145,086, decrease in depreciation and amortization $71, bad debts written off $2,150, amortization and impairment of intangible assets $1,294,498, loss on disposal of subsidiary $25,229, inventories $29,965, operating lease liabilities $6,084, accrued liabilities, deposit received and other payables $487,574.

Previous wording

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.

Current wording

Cash flows used in investing activities are $0 and $5,738 for the year ended May 31, 2025 and 2024 respectively, reflecting an increase cash flow of $5,738. The increase is mainly due to decreased purchased of office equipment $2,934 and net cash from disposal of subsidiary $2,804.

Previous 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.

Current wording

Cash flow provided by financing activities is $423,172 for the year ended May 31, 2025, compared to cash flow used in financing activities $56,012 for the year ended May 31, 2024, reflecting an increase cash flow of $479,184. The increase was mainly due to increase in proceeds from share issuance $369,728, advance to related parties $38,221 and advances $71,235.

Previous wording

In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with U.S. generally accepted accounting principles. We base our estimates on historical experience, when available, and on other various assumptions that are believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates under different assumptions and conditions.

Current wording

In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with U.S. generally accepted accounting principles. We base our estimates on historical experience, when available, and on other various assumptions that are believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates under different assumptions and conditions. See Note 2 Summary of Significant Accounting Policies – Use of estimate.