CXJ GROUP CO., Ltd

Previous wording

Information included in this Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are not statements of historical facts, but rather reflect our current expectations concerning future events and results. We generally use the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “will” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in our Prospectus on Form S-1 for the period ended November 30, 2024 and the condensed consolidated financial statements included in this Report. Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this Report.

Current wording

Information included in this Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are not statements of historical facts, but rather reflect our current expectations concerning future events and results. We generally use the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “will” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in our Report for the period ended February 28, 2025 and the condensed consolidated financial statements included in this Report. Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this Report.

Previous wording

For the three months period ended November 30, 2024, we generated total revenue of $100,875 that included brand name administrative fee $41,053, exhaust gas cleaner, motor oil and auto parts $59,746 and others $76.

Current wording

For the three months period ended February 28, 2025, we generated total revenue of $64,541 that included brand name administrative fee $60,859, exhaust gas cleaner and motor oil and auto parts $3,682.

Previous wording

Total revenues for three months ended November 30, 2024 were $100,875 compared to $866,366 for the three months ended November 30, 2023, which decreased by $765,491. Due to the slow market activity, brand name administrative fee decreased by $325,029, exhaust gas cleaner, motor oil, auto parts and others decreased by $439,609 and others $853.

Current wording

Total revenues for three months ended February 28, 2025 were $64,541 compared to $390,268 for the three months ended February 29, 2024, which decreased by $325,727. Due to the slow market activity, brand name administrative fee decreased by $240,815, exhaust gas cleaner, motor oil and auto parts decreased by $83,971 and others decreased by $941 respectively.

Previous wording

Cost of revenue for the three months ended November 30, 2024 were $35,433 compared to $335,973 as of ended November 30, 2023, a decrement of $300,540. Due to the slow market activity, exhaust gas cleaner, motor oil and auto parts decreased by $299,893 and others by $647.

Current wording

Cost of revenue for the three months ended February 28, 2025 were $2,443 compared to $63,528 as of ended February 29, 2024, a decrement of $61,085. Due to the slow market activity, exhaust gas cleaner, motor oil and auto parts decreased by $60,704 and others by $381.

Previous wording

Gross profit for the three months ended November 30, 2024 were $65,442 compared to $530,393 as of November 30, 2023, a decrement of $464,951 is mainly due to the decrease of revenue from brand name administrative fee $325,029 and sales of exhaust gas cleaner, motor oil and auto parts $139,716 and others $206.

Current wording

Gross profit for the three months ended February 28, 2025 were $62,098 compared to $326,740 as of February 29, 2025, a decrement of $264,642 is mainly due to the decrease of revenue from brand name administrative fee $240,815, sales of exhaust gas cleaner, motor oil and auto parts $23,267 and others $560.

Previous wording

Selling and Distribution expenses for the three months ended November 30, 2024 were $48,624 compared to $183,389 as of November 30, 2023, a decrease of $134,765 is due to decrease in sales commission $81,428, promotion expenses $17,581, payroll costs $10,639, travelling expenses $11,134, consultancy fees $4,911, conference expenses $4,875, transportation costs $2,704, office expenses $786 and others $707 The decrease in selling and distribution expenses is due to slow market activity.

Current wording

Selling and Distribution expenses for the three months ended February 28, 2025 were $46,766 compared to $79,920 as of February 29, 2024, a decrease of $33,154 is due to decrease in sales commission $7,552, conference expenses $6,850, transportation costs $5,467, promotion expenses $4,216, travelling expenses $4,174, payroll costs $2,693, entertainment expenses $2,151 and others $51. The decrease in selling and distribution expenses is due to slow market activity.

Previous wording

G&A expenses for the three months ended November 30, 2024 were $123,570 compared to $149,720 as of November 30, 2023, a decrease of $26,150 was primarily due to the decrease of consultancy fees $34,435, office expenses $16,547, payroll costs $16,191, R&D expenses $11,773, entertainment expenses $8,834, travelling expenses $2,294, offset increase in consultancy fees $55,885, rental $986 and others $7,053. The decrease in general and administrative expenses is due to slow market activity.

Current wording

G&A expenses for the three months ended February 28, 2025 were $79,983 compared to $132,964 as of February 29, 2024, a decrease of $52,981 was primarily due to the decrease of amortization of intangible assets $34,965, payroll costs $10,373, R&D expenses $3,591, rental $3,292, consultancy fees $2,314, others $2,078 and offset increase in loss on disposal of slow movement stock $3,632. The decrease in general and administrative expenses is due to slow market activity.

Previous wording

We recorded an income tax expense of $37,017 and $0 for the period ended November 30, 2024 and November 30, 2023, respectively.

Current wording

We recorded an income tax expense of $0 for the period ended February 28, 2025 and February 29, 2024, respectively.

Previous wording

Net loss $143,693 and net profit $203,216 occurred for the three months ended November 30, 2024 and 2023 respectively, due to the factors discussed above.

Current wording

Net loss $64,638 and net profit $108,741 occurred for the three months ended February 28, 2025 and February 29, 2024 respectively, due to the factors discussed above.

Previous wording

Cash flow used in operating activities for the six months ended November 30, 2024 and 2023 is $397,664 and $542,850 respectively, reflecting an increase of cash flow $145,186. The increase is mainly due to decrease net loss $117,733, increase cash flow of advanced received $439,072, accounts payable $138,356, inventories $11,963, amortization of right-of-use assets $8,484, accounts receivable $2,604, impairment of intangible assets $1,597, depreciation $46 and offset decrease in accrued liabilities, deposit received and other payables $328,078, prepayments, deposits and other receivables $169,340, amortization of intangible assets $68,871, operating lease expenses $8,380.

Current wording

Cash flow used in operating activities for the nine months ended February 28, 2025 and February 29, 2024 is $370,928 and $637,763 respectively, reflecting an increase of cash flow $266,835. The increase is mainly due to increase cash flow of advanced received $798,095, accounts payable $223,014, advances to related parties $85,576, amortization of right-of-use assets $6,837, income tax refund $3,475, impairment of intangible assets $3,180, accounts receivable $2,604 and offset net loss increased by $55,646, decreased of accrued liabilities, deposit received and other payables $496,942 prepayments, deposits and other receivables $168,206, amortization of intangible assets $104,895, inventories $20,491, operating lease expenses $6,197, advances to directors $3,538 and depreciation $31.

Previous wording

Cash flow used in investing activities is $1,592 for the six months ended November 30, 2024, as compared to $5,084 for the six months ended November 30, 2023, reflecting an increase of cash flow $3,492. The increase is due to decrease of purchase of property and equipment $2,280, disposal of subsidiary, net of cash disposed $2,804 and offset increase of investment in development costs $1,592.

Current wording

Cash flow used in investing activities is $3,175 for the nine months ended February 28, 2025, as compared to $5,119 for the nine months ended February 29, 2024, reflecting an increase of cash flow $1,944. The increase is due to decrease of purchase of property and equipment $2,315 and disposal of subsidiary net of cash disposed $2,804, offset purchase of intangible assets $3,175.

Previous wording

Cash flow provided by financing activities is $394,463 for the six months ended November 30, 2024, compared to use in financing activities $32,753 for the six months ended November 30, 2023, reflecting an increase of $427,216. The increase in net cash provided by financing activities was mainly due to proceeds from share issuance $369,728, advance to related parties $124,484 and offset decrease in advances to directors $66,996.

Current wording

Cash flow provided by financing activities is $369,728 for the nine months ended February 28, 2025, compared to use in financing activities $0 for the nine months ended February 29, 2024, reflecting an increase of $369,728. The increase in net cash provided by financing activities was due to issuance of ordinary shares through private placements, proceeds $264,600 from issuance of 400,000 shares to Shiguo Wang and $105,128 from issuance of 160,000 shares to Zhongxin Lei.

Previous wording

A provision of $82,873 is provided, where the Company has a business dispute with a customer, and no legal action is taken against us.

Current wording

A provision of $82,418 is provided, where the Company has a business dispute with a customer, and no legal action is taken against us.