Agape ATP Corp

Previous wording

On November 11, 2021, AATP LB formed an entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which AATP LB owns 60% of the equity interest, to pursue the business of providing complementary health therapies.

Current wording

On November 11, 2021, AATP LB formed an entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which AATP LB owns 60% of the equity interest, to pursue the business of providing complementary health therapies. On June 11, 2026, AATP LB disposed its 60% equity interest in DSY Wellness to the same independent third party pursuant to the board resolution.

Previous wording

We generated revenue of $273,658, which comprised revenue from the Company’s network marketing business of $12,332 (approximately 4.5% of revenue); and revenue from the Company’s operations in the provision of complementary health therapies of $252,069 (approximately 92.1% of revenue); $9,257 from skin care and healthcare products (approximately 3.4% of revenue) and $0 from the operation in green energy (approximately 0% of revenue) for the three months ended March 31, 2026 as compared to $289,037, which comprised revenue from the Company’s network marketing business of $26,547 (approximately 9.2% of revenue); and revenue from the Company’s operations in the provision of complementary health therapies of $252,246 (approximately 87.3% of revenue); $8,679 from skin care and healthcare products (approximately 3.0% of revenue) and $1,565 from the operation in green energy (approximately 0.5% of revenue) for the three months ended March 31, 2025. Revenue from the Company’s network marketing business decreased by $14,215 or approximately 53.5%. Revenue from the Company’s operations in the provision of complementary health therapies decreased by $177 or approximately 0.01%. Revenue from the Company’s operations in wellness and wellbeing lifestyle increased by $578 or approximately 6.7% and the revenue from the operation in green energy decreased by $1,565 or approximately 100% to $0. Total revenue decreased by $15,379 or approximately 5.3%.

Current wording

We generated revenue of $13,693, which comprised revenue from the Company’s network marketing business of $7,996 (approximately 58.4% of revenue); $5,697 from skin care and healthcare products (approximately 41.6% of revenue) and no revenue from the operation in green energy for the three months ended June 30, 2026 as compared to $207,029, which comprised revenue from the Company’s network marketing business of $16,149 (approximately 7.8% of revenue); $55,446 from skin care and healthcare products (approximately 26.8% of revenue) and $135,434 from the operation in green energy (approximately 65.4% of revenue) for the three months ended June 30, 2025. Revenue from the Company’s network marketing business decreased by $8,153, or approximately 50.5%. Revenue from the Company’s operations in wellness and wellbeing lifestyle decreased by $49,749 or approximately 89.7% and the revenue from the operation in green energy decreased by $135,434 or 100% to $0. Total revenue decreased significantly by $193,336 or approximately 93.4%.

Previous wording

Gross profit for the three months ended March 31, 2026 amounted to $159,409, represented a gross margin of 58.3% as compared to $156,286 for the three months ended March 31, 2025, equivalent to a gross margin of 54.1%. The increase in gross margin was due to the varying type of health therapies offered, gross margin associated with the provision of complementary health therapies.

Current wording

Gross profit for the three months ended June 30, 2026 amounted to $11,770, represented a gross margin of approximately 86.0% as compared to $65,368 for the three months ended June 30, 2025, equivalent to a gross margin of approximately 31.6%. The significant increase in gross margin was due to the Company’s network marketing business contribute higher gross profit margin as compared to Company’s operations in wellness and wellbeing lifestyle and operation in green energy.

Previous wording

Our operating expenses consist of selling expenses, commission expenses and general and administrative expenses.

Current wording

Our operating expenses consist of selling expenses, commission expenses and general and administrative expenses (as defined below). Total operating expenses were $562,745 for the three months ended June 30, 2026, decreased by $124,157 or approximately 18.1% from $686,902 for the three months ended June 30, 2025.

Previous wording

Commission expenses were $4,920 and $7,945 for the three months ended March 31, 2026 and 2025, respectively. The decrease in commission expenses was in line with the decrease in revenue in the Company’s network marketing business.

Current wording

Commission expenses were $3,397 and $16,019 for the three months ended June 30, 2026 and 2025, respectively, a significant decrease of $12,622, or approximately 78.8%. The Company pays commission in the Company’s network marketing business and the operation in wellness and wellbeing lifestyle. The decrease in commission expenses was due to the decline in revenue of network marketing business and the operation in wellness and wellbeing lifestyle.

Previous wording

G&A expenses for the three months ended March 31, 2026 amounted to $794,712, as compared to $805,693 for the three months ended March 31, 2025, represented a decrease of $10,981 or approximately 1.4%. The decrease in G&A expenses was mainly due to the decrease in company event and activities. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses.

Current wording

G&A expenses for the three months ended June 30, 2026 amounted to $529,033, as compared to $611,020 for the three months ended June 30, 2025, a decrease of $81,987, or approximately 13.4%. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses. The decrease in G&A expenses was mainly due fewer activities in the operation in wellness and wellbeing lifestyle.

Previous wording

The net other income of $336,466 recorded during the three months ended March 31, 2026 comprised of other income of $1,776, unrealized holding gain on marketable securities of $12,232 and foreign currency exchange gain of $322,459.

Current wording

The net other income of $634,566 generated during the three months ended June 30, 2026 comprised of other income, net of $3,113, unrealized holding loss on marketable securities of $15,387, gain on disposal of assets of $1,813 and foreign currency exchange gain of $645,027.

Previous wording

The net other income of $7,485 recorded during the three months ended March 31, 2025 comprised of other income of $5,615, interest income of $3,263, unrealized holding loss on marketable securities of $1,096 and foreign currency exchange loss of $297.

Current wording

The net other income of $13,709 generated during the three months ended June 30, 2025 comprised of other income, net of $6,381, interest income of $153, unrealized holding gain on marketable securities of $7,748 and foreign currency exchange loss of $573.

Previous wording

Selling expenses for the three months ended March 31, 2026 amounted to $37,149 as compared to $63,052 for the three months ended March 31, 2025, represented a decrease of $25,903 or approximately 41.1%, mainly due to the decrease in advertisement cost. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Current wording

Selling expenses for the six months ended June 30, 2026 amounted to $65,087 as compared to $120,399 for the six months ended June 30, 2025, a decrease of $55,312, or approximately 45.9%, mainly due to the decrease in advertisement cost and marketing event related expenses. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Previous wording

For the three months ended March 31, 2026, we recorded an amount of $336,466 as net other income, as compared to $7,485 for the three months ended March 31, 2025, represented a significant increase of $408,492 or approximately 5,457.5%.

Current wording

For the six months ended June 30, 2026, the Company recorded an amount of $971,012 as other income, net, as compared to $21,194 for the six months ended June 30, 2025, represented a significant increase of $949,818 or approximately 4,481.5%.

Previous wording

Net loss decreased by $451,524 from net loss of $712,919 for the three months ended March 31, 2025 to net loss of $340,906 for the three months ended March 31, 2026, mainly due to reasons as discussed above.

Current wording

Net loss decreased by $1,144,696 from net loss of $1,336,165 for the six months ended June 30, 2025 to net loss of $191,469 for the six months ended June 30, 2026, mainly due to reasons as discussed above.

Previous wording

As of March 31, 2026, the Company had working capital of $21,918,986 consisting of cash and cash in bank of $207,296 and time deposits of $1,866 as compared to working capital of $22,236,994 consisted of cash and cash in bank of $140,072 and time deposits of $0 as of December 31, 2025. The Company had a net loss of $340,906 for the three months ended March 31, 2026 and accumulated deficits of $12,125,455 as of March 31, 2026 as compared to net loss of $2,307,607 for the year ended December 31, 2025 and accumulated deficits of $11,797,836 as of December 31, 2025.

Current wording

As of June 30, 2026, the Company had working capital of $21,895,248 consisting of cash and cash in bank of $45,480 as compared to working capital of $22,236,994 consisted of cash and cash in bank of $89,651 as of December 31, 2025. The Company had a net loss of $191,469 for the six months ended June 30, 2026 and accumulated deficits of $11,972,452 as of June 30, 2026 as compared to net loss of $2,307,607 for the year ended December 31, 2025 and accumulated deficits of $11,797,836 as of December 31, 2025.

Previous wording

The following summarizes the key components of our cash flows for the three months ended March 31, 2026 and 2025:

Current wording

The following summarizes the key components of our cash flows for the six months ended June 30, 2026 and 2025:

Previous wording

Net cash used in operating activities for the three months ended March 31, 2026 was $394,770, and were mainly comprised of the net loss of $340,906, unrealized holding gain on marketable securities of $12,232, unrealized exchange gain of 307,324, increase in other receivables from related parties of $343, increase in prepaid taxes of $1,942, the decrease in customer deposits of $4,908, the payment of operating lease liabilities of $45,587. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $2,739, amortization of finance assets of $11,906, amortization of operating right-of-use assets of $45,361, allowance for credit lossof $417, inventory write off of $2,099, the decrease in accounts receivables of $7,765, the decrease in inventories of $749, decrease in prepayments and deposits of $18,137, the decrease in other receivable of $7, increase in accounts payables (including related parties) of $5,533, the increase in other payables (including related parties) and accrued liabilities of $223,759.

Current wording

Net cash used in operating activities for the six months ended June 30, 2026 was $505,088, comprised of net loss of $149,337 from continuing operations and net loss of $42,132 from discontinued operations, unrealized exchange gain of $974,569, gain on disposal of discontinued operations of $74,760, gain on disposal of assets of $1,813, the increase in prepaid taxes of $587, the decrease in account payable (including related parties) $30, the decrease in customer deposits of $14,938, the payment of operating lease liabilities of $88,993 and the net cash used in discontinued operations of $40,637. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $1,070, amortization of finance assets of $13,518, amortization of operating right-of-use assets of $88,593, unrealized holding loss on marketable securities of $3,155, inventory write off of $2,087, the decrease in accounts receivables of $4,752, the decrease in other receivables from related parties of $61, the decrease in inventories of $2,364, the decrease in prepayments and deposits of $29,437, the decrease in other receivables of $30, the increase in other payables (including related parties) and accrued liabilities of $47,080 and the increase in amount due to directors of $648,651.

Previous wording

Net cash used in operating activities for the three months ended March 31, 2025 was $1,453,874, and were mainly comprised of the net loss of $712,919, increase in other receivables from related parties of $2,194, increase in prepaid taxes of $3,990, increase in prepayments and deposits of $581,028, decrease in accounts payables (including related parties) of $33,333, the decrease in customer deposits of $6,246, the payment of operating lease liabilities of $37,518, the decrease in other payables (including related parties) and accrued liabilities of $163,419. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $13,709, amortization of finance assets of $10,634, amortization of operating right-of-use assets of $37,316, allowance for credit lossof $8,280, inventory write off of $6,777, unrealized holding loss on marketable securities of $1,096, the decrease in accounts receivables of $4,366, the decrease in inventories of $2,898, and the decrease in other receivable of $1,697.

Current wording

Net cash used in operating activities for the six months ended June 30, 2025 was $1,948,332, comprised of net loss of $1,285,819 from continuing operations and net loss of $50,346 from discontinued operations, unrealized holding gain on marketable securities of $6,652, the increase in prepayments and deposits of $631,794, the decrease in account payable (including related parties) $41,996, the decrease in customer deposits of $6,533, the payment of operating lease liabilities of $76,876, the decrease in other payables (including related parties) and accrued liabilities of $125,847 and the net cash used in discontinued operations of $25,368. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $14,900, amortization of finance assets of $12,360, amortization of operating right-of-use assets of $76,465, inventory write off of $6,897, the decrease in accounts receivables of $31,462, the decrease in other receivables from related parties of $1,626, the decrease in inventories of $5,034, the decrease in other receivables of $2,517, and the increase in amount due to directors of $101,292.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $23,000,649, which was mainly from advances for investment.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was $23,000,660, which comprised of $23,000,000 for advances for investment and $660 from discontinued operations.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 was $22,994,658, which was mainly from the proceeds from issuance of shares of common stock.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025 was $23,115,678, consisted of the proceeds from issuance of common stock for $23,000,000, reduction of finance lease liability of $6,392, advance from director of $126,633 and net cash used of $4,563 from discontinued operations.

Previous wording

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the three months ended March 31, 2026 and 2025, there were no inventory write-down; and $2,099 and $6,777 inventory write-off respectively.

Current wording

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the six months ended June 30, 2026 and 2025, there were no inventory write-down; and $2,087 and $6,897 inventory write-off respectively.

Previous wording

As of March 31, 2026 and December 31, 2025, the carrying amounts of operating right-of-use assets amounted to $58,270 and $102,101, and property, plant and equipment amounted to $13,228 and $14,570. No impairment losses on operating right-of-use assets and property, plant and equipment were recognized as of March 31, 2026 and December 31, 2025.

Current wording

As of June 30, 2026 and December 31, 2025, the carrying amounts of operating right-of-use assets amounted to $15,108 and $102,101, respectively, and property, plant and equipment amounted to $4,071 and $5,140, respectively. No impairment losses on operating right-of-use assets and property, plant and equipment were recognized as of June 30, 2026 and December 31, 2025.

Previous wording

The Company estimates and records an allowance for credit loss related to its accounts receivable. Credit losses are determined by Current Estimate of Expected Credit Losses model in accordance with Topic 326 – Financial Instruments – Credit Losses. For accounts receivable, the Company considers the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As of March 31, 2026 and December 31, 2025, the Company recognize an allowance for credit loss of $8,549 and $8,082, respectively.

Current wording

The Company estimates and records an allowance for credit loss related to its accounts receivable. Credit losses are determined by Current Estimate of Expected Credit Losses model in accordance with Topic 326 – Financial Instruments – Credit Losses. For accounts receivable, the Company considers the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers.

Previous wording

The Company offers various coupon programs to customers, which result in the potential redemption of coupons against future purchases. The estimation of coupon redemption requires assumptions. This estimate is based on historical redemption patterns, customer behaviour trends, and the terms and conditions of the coupon programs. Management considers factors such as the type of coupon, the period of validity that could influence redemption rates. The Company makes estimates about the likelihood and timing of coupon redemptions, which may vary based on changing customer behaviour and economic conditions. If the actual redemption rate differs from the estimated rate, it could impact the redemption liability and related expenses in future periods. The allowance for coupon redemption is regularly reviewed and adjusted as more information becomes available to ensure that it reflects the expected redemption accurately.

Current wording

The Company offers various coupon programs to customers, which result in the potential redemption of coupons against future purchases. The estimation of coupon redemption requires assumptions. This estimate is based on historical redemption patterns, customer behavior trends, and the terms and conditions of the coupon programs. Management considers factors such as the type of coupon, the period of validity that could influence redemption rates. The Company makes estimates about the likelihood and timing of coupon redemptions, which may vary based on changing customer behavior and economic conditions. If the actual redemption rate differs from the estimated rate, it could impact the redemption liability and related expenses in future periods. The allowance for coupon redemption is regularly reviewed and adjusted as more information becomes available to ensure that it reflects the expected redemption accurately.

Previous wording

The Company based on the health screening test report to prescribe the products for the provision of complementary health therapies, the Company deliver the products to the customers during the consultation session.

Current wording

The Company prescribes the products for complementary health therapies based on health screening test reports and delivers the products to the customers during the consultation session.