ADDENTAX GROUP CORP.

Previous wording

The following discussion and analysis of our financial condition and results of operations for the three and six months ended September 30, 2025 and 2024 should be read in conjunction with the Financial Statements and corresponding notes included in this Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Special Note Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

Current wording

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended December 31, 2025 and 2024 should be read in conjunction with the Financial Statements and corresponding notes included in this Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Special Note Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

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) ShenzhenYingxi 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 Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (x) 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) Yingxi Textile & Garments Co., Ltd., a PRC company; (iv) ShenzhenYingxi 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 Aotesi Garments Co., Ltd., a PRC company (“AOT”), and (x) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Previous wording

For property management and subleasing business, we generally collect rental and management fees of the following month each month in advance.

Current wording

For property management and subleasing business, we generally collect rental and management fees for the following month each month in advance.

Previous wording

Total revenue for the three months ended September 30, 2025 decreased by approximately $0.3 million, or 26.3%, as compared with the three months ended September 30, 2024. The decrease was mainly due to the decrease of $0.1 million in garment manufacturing business revenue and decrease of $0.2 million in logistics services revenue.

Current wording

Total revenue for the three months ended December 31, 2025 increased by approximately $0.1 million, or 12.8%, as compared with the three months ended December 31, 2024. The increase was mainly due to the increase of $0.2 million in logistics services revenue.

Previous wording

Revenue generated from our garment manufacturing business contributed approximately $0.01 million, or 1.6%, of our total revenue for the three months ended September 30, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.1 million or 11.1% of our total revenue for the three months ended September 30, 2024. The low level of sales was mainly due to a decrease in order volume and fierce market competition.

Current wording

Revenue generated from our garment manufacturing business contributed approximately $0.01 million, or 0.5%, of our total revenue for the three months ended December 31, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.1 million or 1.6% of our total revenue for the three months ended December 31, 2024. The low level of sales was mainly due to a decrease in order volume and fierce market competition.

Previous wording

Revenue generated from our logistics services business contributed approximately $0.8 million, or 98.4%, of our total revenue for the three months ended September 30, 2025. By comparison, revenue generated from our logistic business contributed approximately $1.0 million or 71.9% of our total revenue for the three months ended September 30, 2024.

Current wording

Revenue generated from our logistics services business contributed approximately $1.0 million, or 99.5%, of our total revenue for the three months ended December 31, 2025. By comparison, revenue generated from our logistic business contributed approximately $0.8 million or 98.4% of our total revenue for the three months ended December 31, 2024.

Previous wording

Raw material costs for our garment manufacturing business were approximately 49.8% of our total garment manufacturing business revenue for the three months ended September 30, 2025, as compared with 58.8% for the three months ended September 30, 2024. The decrease in percentage was mainly due to a reduction in the costs of the raw materials.

Current wording

Raw material costs for our garment manufacturing business were approximately 93.9% of our total garment manufacturing business revenue for the three months ended December 31, 2025, as compared with 35.3% for the three months ended December 31, 2024. The increase in percentage was mainly because there was no production thus no labor cost in the quarter ended December 31, 2025 as we procured products from external manufacturers for resale instead of manufacturing.

Previous wording

Labor costs for our garment manufacturing business was nil for the three months ended September 30, 2025, as compared with 24.5% for the three months ended September 30, 2024. There was no production during the three months ended September 30, 2025 as we procured products from external manufacturers for resale instead of manufacturing.

Current wording

Labor costs for our garment manufacturing business was nil for the three months ended December 31, 2025, as compared with 38.1% for the three months ended December 31, 2024. There was no production during the three months ended December 31, 2025 as we procured products from external manufacturers for resale instead of manufacturing.

Previous wording

Overhead and other expenses for our garment manufacturing business was nil for the three months ended September 30, 2025, as compared with 4.8% of total garment business revenue for the three months ended September 30, 2024. There was no production during the three months ended September 30, 2025.

Current wording

Overhead and other expenses for our garment manufacturing business was nil for the three months ended December 31, 2025, as compared with 10.0% of total garment business revenue for the three months ended December 31, 2024. There was no production during the three months ended December 31, 2025.

Previous wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 7.8% ($0.09 million) and nil% of total cost of revenues for our service segment for the six months ended September 30, 2025 and 2024, respectively. The increase was attributed to the use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Current wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 12.8% ($0.09 million) and 18.2% of total cost of revenues for our service segment for the three months ended December 31, 2025 and 2024, respectively. The decrease was attributed to less use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Previous wording

Fuel, toll and other costs for our logistics services business for the three months ended September 30, 2025 were approximately $0.5 million as compared with $0.5 million for the three months ended September 30, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 62.4% of our total service revenue for the three months ended September 30, 2025, as compared with 53.0% for the three months ended September 30, 2024. The increase in percentage was primarily attributable to an increased use of contractors during the quarter.

Current wording

Fuel, toll and other costs for our logistics services business for the three months ended December 31, 2025 were approximately $0.6 million as compared with $0.5 million for the three months ended December 31, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 58.1% of our total service revenue for the three months ended December 31, 2025, as compared with 63.6% for the three months ended December 31, 2024. The decrease in percentage was primarily attributable to decreased prices of fuel, toll and other costs during the quarter.

Previous wording

Garment manufacturing business gross profit for the six months ended September 30, 2025 was $10,014, as compared with $44,942 for the six months ended September 30, 2024. Gross profit accounted for 30.5% of our total garment manufacturing business revenue for the six months ended September 30, 2025, as compared to 19.1% for the six months ended September 30, 2024. The increase of gross profit ratio was mainly due to the procurement of products from external manufacturers for resale instead of manufacturing.

Current wording

Garment manufacturing business gross profit for the three months ended December 31, 2025 was $290, as compared with $5,620 for the three months ended December 31, 2024. Gross profit accounted for 6.1% of our total garment manufacturing business revenue for the three months ended December 31, 2025, as compared to 16.6% for the three months ended December 30, 2024. The decrease in gross profit ratio was mainly due to a decline in segment revenue, primarily driven by reduced sales on the Taobao platform, which resulted in less efficient absorption of fixed and variable costs across operations.

Previous wording

Our general and administrative expenses in our garment manufacturing business segment for the six months ended September 30, 2025 and 2024 were $31,019 and $10,963, respectively. Our general and administrative expenses in our logistics services segment for the six months ended September 30, 2025 and 2024 were $355,769 and $439,625, respectively. Our general and administrative expenses in our corporate office for the six months ended September 30, 2025 and 2024 were $822,192 and $532,753, 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, 2025 and 2024 were $2,739 and $8,021, respectively. Our general and administrative expenses in our logistics services segment for the three months ended December 31, 2025 and 2024 were $151,967 and $175,837, respectively. Our general and administrative expenses of our corporate office for the three months ended December 31, 2025 and 2024 were $199,891 and $127,522, respectively. Total general and administrative expenses for the three months ended December 31, 2025 increased by approximately 13.9% to $354,597 from $311,383 for the three months ended December 31, 2024. The increase was primarily attributable to higher general operating maintenance expenses. 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

Income tax expense for the three months ended September 30, 2025 and 2024 was $70 and $1,062, respectively. YX 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, 2025 and 2024 was $248 and $3,116, respectively. YX primarily operates in the PRC and files tax returns in the PRC.

Previous wording

Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of Seychelles, is not subject to income taxes.

Current wording

Yingxi Industrial Chain Group Co., Ltd is incorporated in the Republic of Seychelles and, under the current laws of Seychelles, is not subject to income taxes.

Previous wording

Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three months ended September 30, 2025 and 2024.

Current wording

Yingxi HK is incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three months ended December 31, 2025 and 2024.

Previous wording

QYTG and YX were incorporated in the PRC and is subject to the PRC Enterprise Income Tax (EIT) rate of 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the three months ended September 30, 2025 and 2024.

Current wording

QYTG and YX are incorporated in the PRC and are subject to PRC Enterprise Income Tax (EIT) rate of 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the three months ended December 31, 2025 and 2024.

Previous wording

The majority of our subsidiaries are governed by the Income Tax L aws of the PRC. All YX’s operating companies are subject to progressive EIT rates from 5% to 15% in 2025. The preferential tax rates will expire at end of year 2025.

Current wording

The majority of our subsidiaries are governed by the Income Tax Laws of the PRC. All YX’s operating companies are subject to progressive EIT rates from 5% to 15% in 2025. The preferential tax rates will expire at end of 2026.

Previous wording

The following table summarizes our results of operations for the six months ended September 30, 2025 and 2024. 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 summarizes our results of operations for the nine months ended December 31, 2025 and 2024. 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, 2025 decreased by $38,962, or 2.3%, as compared with the six months ended September 30, 2024. The decrease was mainly due to the increase of $0.16 million in logistics services revenue and a decrease of $0.20 million in garment manufacturingrevenue.

Current wording

Total revenue for the nine months ended December 31, 2025 increased by $71,985, or 2.8%, as compared with the nine months ended December 31, 2024. The increase was mainly due to the increase of $0.30 million in logistics services revenue, offset by a decrease of $0.23 million in garment manufacturing revenue.

Previous wording

Revenue generated from our garment manufacturing business contributed $32,831, or 2.0%, of our total revenue for the six months ended September 30, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.2 million or 10.7% of our total revenue for the six months ended September 30, 2024. The low level of sales was mainly due to a decrease in order volume and fierce market competition.

Current wording

Revenue generated from our garment manufacturing business contributed $37,595, or 1.4%, of our total revenue for the nine months ended December 31, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.3 million or 8.3% of our total revenue for the nine months ended December 31, 2024. The low level of sales was mainly due to a decrease in order volume as a result of fierce market competition.

Previous wording

Revenue generated from our logistics services business contributed approximately $1.6 million, or 98.0%, of our total revenue for the six months ended September 30, 2025. By comparison, revenue generated from our logistic business contributed approximately $1.5 million or 66.2% of our total revenue for the six months ended September 30, 2024.

Current wording

Revenue generated from our logistics services business contributed approximately $2.6 million, or 98.6%, of our total revenue for the nine months ended December 31, 2025. By comparison, revenue generated from our logistic business contributed approximately $2.3 million or 70.2% of our total revenue for the nine months ended December 31, 2024.

Previous wording

Raw material costs for our garment manufacturing business were approximately 40.9% of our total garment manufacturing business revenue for the six months ended September 30, 2025, as compared with 53.2% for the six months ended September 30, 2024. The decrease in percentage was mainly due to a reduction in the costs of the raw materials.

Current wording

Raw material costs for our garment manufacturing business were approximately 47.6% of our total garment manufacturing business revenue for the nine months ended December 31, 2025, as compared with 50.9% for the nine months ended December 31, 2024. The decrease in percentage was mainly due to a reduction in the costs of the raw materials. This decrease was driven by our shift to purchasing finished garments amid lower order volumes in the nine months ended December 31, 2025. At smaller scale, direct sourcing is more cost-efficient than in-house manufacturing. Additionally, our small-batch, diversified product mix resulted in lower average unit costs, which reduced the overall ratio.

Previous wording

Labor costs for our garment manufacturing business was approximately 24.8% of our total garment manufacturing business revenue for the six months ended September 30, 2025, as compared with 23.2% for the six months ended September 30, 2024. We maintained a sustainable level in wages. The increase in portion of labor cost against revenue was mainly due to the decrease in revenue.

Current wording

Labor costs for our garment manufacturing business were approximately 21.7% of our total garment manufacturing business revenue for the nine months ended December 31, 2025, as compared with 25.1% for the nine months ended December 31, 2024. We maintained a sustainable level in wages. The decrease in portion of labor cost against revenue was mainly due to the decrease in revenue.

Previous wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 3.8% of our total garment business revenue for the six months ended September 30, 2025, as compared with 4.5% of total garment business revenue for the six months ended September 30, 2024.

Current wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 3.3% of our total garment business revenue for the nine months ended December 31, 2025, as compared with 5.2% of total garment business revenue for the nine months ended December 31, 2024.

Previous wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 16.0% ($0.09 million) and nil% of total cost of revenues for our service segment for the three months ended September 30, 2025 and 2024, respectively. The increase was attributed to the use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Current wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 9.6% ($0.2 million) and nil% of total cost of revenues for our service segment for the nine months ended December 31, 2025 and 2024, respectively. The increase was attributed to the use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Previous wording

Fuel, toll and other costs for our logistics services business for the six months ended September 30, 2025 were approximately $1.1 million as compared with $0.8 million for the six months ended September 30, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 66.6% of our total service revenue for the six months ended September 30, 2025, as compared with 52.4% for the six months ended September 30, 2024. The increase was primarily attributable to an increased use of contractors during the quarter ended September 30, 2025.

Current wording

Fuel, toll and other costs for our logistics services business for the nine months ended December 31, 2025 were approximately $1.6 million as compared with $1.3 million for the nine months ended December 31, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 63.4% of our total service revenue for the nine months ended December 31, 2025, as compared with 56.5% for the nine months ended December 31, 2024. The increase was primarily attributable to increased revenue during the nine months ended December 31, 2025.

Previous wording

Garment manufacturing business gross profit for the three months ended September 30, 2025 was $6,491, as compared with $17,679 for the three months ended September 30, 2024. Gross profit accounted for 50.2% of our total garment manufacturing business revenue for the three months ended September 30, 2025, as compared to 47.0% for the three months ended September 30, 2024. The increase of gross profit ratio was mainly due to the procurement of products from external manufacturers for resale instead of manufacturing.

Current wording

Garment manufacturing business gross profit for the nine months ended December 31, 2025 was $10,304, as compared with $50,562 for the nine months ended December 31, 2024. Gross profit accounted for 27.4% of our total garment manufacturing business revenue for the nine months ended December 31, 2025, as compared to 18.8% for the nine months ended December 31, 2024. The increase in gross profit ratio was mainly due to the procurement of products from external manufacturers for resale instead of manufacturing for the nine months ended December 31, 2025.

Previous wording

Gross profit in our logistics services business for the three months ended September 30, 2025 was $218,656 and gross margin was 27.1%. Gross profit in our logistics services business for the three months ended September 30, 2024 was $453,406 and gross margin was 47.0%. The decrease of gross profit ratio was mainly due to a combination of cost and market factors: significantly higher toll expenses; and a competitive “low-margin, high-volume” pricing strategy adopted to maintain market share amid intense economic competition, despite year-over-year revenue growth in the 2025 period.

Current wording

Gross profit in our logistics services business for the nine months ended December 31, 2025 was $700,710 and gross margin was 27.1%. Gross profit in our logistics services business for the nine months ended December 31, 2024 was $875,162 and gross margin was 38.4%. The decrease in gross profit ratio was mainly due to a combination of cost and market factors: significantly higher toll expenses; and a competitive “low-margin, high-volume” pricing strategy adopted to maintain market share amid intense economic competition, despite year-over-year revenue growth in the 2025 period.

Previous wording

Our selling expenses for our garment manufacturing business for the three months ended September 30, 2025 and 2024 were $4,643 and $13,400, 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, 2025 and 2024 were $19,714 and $124,821, 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, 2025 and 2024 were $4,569 and $2,653, respectively. Our general and administrative expenses in our logistics services segment for the three months ended September 30, 2025 and 2024 were $155,397 and $223,375, respectively. Our general and administrative expenses in our corporate office for the three months ended September 30, 2025 and 2024 were $510,384 and $274,855, 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, 2025 and 2024 were $33,758 and $18,984, respectively. Our general and administrative expenses in our logistics services segment for the nine months ended December 31, 2025 and 2024 were $507,736 and $615,462, respectively. Our general and administrative expenses for our corporate office for the nine months ended December 31, 2025 and 2024 were $1,022,083 and $657,032, 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

Loss from operations for the three months ended September 30, 2025 and 2024 was $449,848 and $245,066, respectively. Loss from operations in our garment manufacturing segments was $2,723 and income from operation of $1,622 for the three months ended September 30, 2025 and 2024, respectively. The increase in losses was mainly due to the decrease in revenue. Income (loss) from operations in our logistics services segment was $63,258 and $229,558 for the three months ended September 30, 2025 and 2024, respectively. The decrease in income was mainly due to decreased sales. We incurred expenses from operations in corporate office of $510,383 and $274,381 for the three months ended September 30, 2025 and 2024, respectively.

Current wording

Loss from operations for the nine months ended December 31, 2025 and 2024 was $873,516 and $490,574, respectively. Loss from operations in our garment manufacturing segments was $43,169 and $93,243 for the nine months ended December 31, 2025 and 2024, respectively. The reduction in operating loss was primarily attributable to strategic adjustments implemented in the garment manufacturing segment, which resulted in lower marketing and operating expenses during the current period. Income (loss) from operations in our logistics services segment was $191,698 and $259,144 for the nine months ended December 31, 2025 and 2024, respectively. The decrease in income was mainly due to increase in cost of fuel, toll and other costs.

Previous wording

Income tax expense for the six months ended September 30, 2025 and 2024 was $834 and $1,527, respectively. YX primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Current wording

Income tax expense for the nine months ended December 30, 2025 and 2024 was $1,082 and $4,643, respectively. YX primarily operates in the PRC and files tax returns in the PRC.

Previous wording

Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of Seychelles, is not subject to income taxes.

Current wording

Yingxi Industrial Chain Group Co., Ltd is incorporated in the Republic of Seychelles and, under the current laws of Seychelles, is not subject to income taxes.

Previous wording

Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the six months ended September 30, 2025 and 2024.

Current wording

Yingxi HK is incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the nine months ended December 31, 2025 and 2024.

Previous wording

QYTG and YX were incorporated in the PRC and is subject to the PRC Enterprise Income Tax (EIT) rate of 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the six months ended September 30, 2025 and 2024.

Current wording

QYTG and YX are incorporated in the PRC and are subject to PRC Enterprise Income Tax (EIT) rate of 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the nine months ended December 31, 2025 and 2024.

Previous wording

Addentax Group Corp. is a U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the six months ended September 30, 2025 and 2024.

Current wording

Addentax Group Corp. is a U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the nine months ended December 31, 2025 and 2024.

Previous wording

We incurred net loss of approximately $0.1 million and net loss of approximately $0.7million for the three months ended September 30, 2025 and 2024, respectively. Our basic and diluted loss per share were ($0.01) and ($0.13) for the three months ended September 30, 2025 and 2024, respectively.

Current wording

We incurred net loss of approximately $4.7 million and net loss of $3.0 million for the nine months ended December 31, 2025 and 2024, respectively. Our basic and diluted loss per share were $0.50 and $0.53 for the nine months ended December 31, 2025 and 2024, respectively.

Previous wording

Summary cash flows information for the six months ended September 30, 2025 and 2024 is as follow:

Current wording

Summary cash flows information for the nine months ended December 31, 2025 and 2024 is as follow:

Previous wording

Net cash used in operating activities in the six months ended September 30, 2025 was approximately $0.9 million as compared to cash of $0.5 million provided by operating activities in the six months ended September 30, 2024, which was approximately $1.5 million less than that of the six months ended September 30, 2024. The decrease was mainly due to (i) net income adjusted to operating cash flow for the six months ended September 30, 2025 was $0.4 million more than that of the six months ended September 30, 2024; (ii) the movement of operating assets and liabilities in the six months ended September 30, 2025 resulted in cash outflow of approximately $1.2 million, which was $1.1 million more than that of the corresponding period in 2024;.

Current wording

Net cash used in operating activities in the nine months ended December 31, 2025 was approximately $1.1 million as compared to cash of $0.8 million provided by operating activities in the nine months ended December 31, 2024, which was approximately $1.9 million less than that of the nine months ended December 31, 2024. The difference in cash flow between the two periods was mainly because of the movement of operating assets and liabilities in the nine months ended December 31, 2025, resulted in cash outflow of approximately $1.3 million, while the movement of operating assets and liabilities in the nine months ended December 31, 2024 resulted in cash inflow of approximately $0.6 million.