Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2020 | Nov. 16, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | ADDENTAX GROUP CORP. | |
Entity Central Index Key | 0001650101 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,346,004 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,178,394 | $ 531,681 |
Accounts receivables, net | 1,338,787 | 4,500,116 |
Inventories | 634,901 | 347,531 |
Other receivables | 215,566 | 231,974 |
Advances to suppliers | 717,799 | 389,940 |
Total current assets | 4,085,447 | 6,001,242 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 934,223 | 585,019 |
Operating lease right of use asset | 1,633,824 | 1,835,717 |
Total non-current assets | 2,568,047 | 2,420,736 |
TOTAL ASSETS | 6,653,494 | 8,421,978 |
CURRENT LIABILITIES | ||
Short-term loan | 234,149 | 353,114 |
Accounts payable | 1,218,896 | 3,620,583 |
Amount due to related parties | 5,959,583 | 5,429,440 |
Advances from customers | 56,472 | 18,931 |
Accrued expenses and other payables | 227,070 | 230,917 |
Operating lease liability current portion | 433,215 | 443,543 |
Total current liabilities | 8,129,385 | 10,096,528 |
NON-CURRENT LIABILITIES | ||
Operating lease liability, net of current portion | 1,200,609 | 1,392,174 |
Total non-current liabilities | 1,200,609 | 1,392,174 |
TOTAL LIABILITIES | 9,329,994 | 11,488,702 |
EQUITY | ||
Common stock ($0.001 par value, 50,000,000 shares authorized, 26,093,004 and 25,346,004 shares issued and outstanding at September 30, 2020 and March 31, 2020, respectively) | 26,093 | 25,346 |
Additional paid-in capital | 3,795,303 | 61,050 |
Retained earnings | (6,489,747) | (3,233,122) |
Statutory reserve | 23,514 | 23,514 |
Accumulated other comprehensive loss | (31,663) | 56,488 |
Total deficit | (2,676,500) | (3,066,724) |
TOTAL LIABILITIES AND EQUITY | $ 6,653,494 | $ 8,421,978 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,093,004 | 25,346,004 |
Common stock, shares outstanding | 26,093,004 | 25,346,004 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
REVENUES | $ 11,684,297 | $ 1,945,002 | $ 17,602,512 | $ 4,154,494 |
COST OF REVENUES | (14,705,387) | (1,624,083) | (19,825,963) | (3,475,643) |
GROSS (LOSS) PROFIT | (3,021,090) | 320,919 | (2,223,451) | 678,851 |
OPERATING EXPENSES | ||||
Selling and marketing | (5,788) | (3,639) | (159,033) | (10,866) |
General and administrative | (466,043) | (626,647) | (922,005) | (1,331,094) |
Total operating expenses | (471,831) | (630,286) | (1,081,038) | (1,341,960) |
LOSS FROM OPERATIONS | (3,492,921) | (309,367) | (3,304,489) | (663,109) |
Interest income | 4 | 10 | 15 | 50 |
Interest expenses | (1,026) | (7,902) | (5,955) | (12,330) |
Other income (expense), net | 37,471 | (3,814) | 61,216 | (10,820) |
LOSS BEFORE INCOME TAX EXPENSE | (3,456,472) | (321,073) | (3,249,213) | (686,209) |
INCOME TAX EXPENSE | (4,053) | (852) | (7,412) | (3,064) |
NET LOSS | (3,460,525) | (321,925) | (3,256,625) | (689,273) |
Foreign currency translation gain (loss) | (83,696) | 74,201 | (88,151) | 109,156 |
TOTAL COMPREHENSIVE LOSS | $ (3,544,221) | $ (247,724) | $ (3,344,776) | $ (580,117) |
LOSS PER SHARE | ||||
Basic and diluted | $ (0.14) | $ 0 | $ (0.13) | $ 0 |
Weighted average number of shares outstanding - Basic and diluted | 25,521,529 | 25,346,004 | 25,521,529 | 25,346,004 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutory Reserve [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Mar. 31, 2019 | $ 25,346 | $ 61,050 | $ (1,775,767) | $ 21,779 | $ (34,955) | $ (1,702,547) |
Balance, shares at Mar. 31, 2019 | 25,346,004 | |||||
Foreign currency translation | 109,156 | 109,156 | ||||
Net loss for the period | (689,273) | (689,273) | ||||
Balance at Sep. 30, 2019 | $ 25,346 | 61,050 | (2,465,040) | 21,779 | 74,201 | (2,282,664) |
Balance, shares at Sep. 30, 2019 | 25,346,004 | |||||
Balance at Jun. 30, 2019 | $ 25,346 | 61,050 | (2,143,115) | 21,779 | 2,048 | (2,032,892) |
Balance, shares at Jun. 30, 2019 | 25,346,004 | |||||
Foreign currency translation | 72,153 | 74,201 | ||||
Net loss for the period | (321,925) | (321,925) | ||||
Balance at Sep. 30, 2019 | $ 25,346 | 61,050 | (2,465,040) | 21,779 | 74,201 | (2,282,664) |
Balance, shares at Sep. 30, 2019 | 25,346,004 | |||||
Balance at Mar. 31, 2020 | $ 25,346 | 61,050 | (3,233,122) | 23,514 | 56,488 | (3,066,724) |
Balance, shares at Mar. 31, 2020 | 25,346,004 | |||||
Issuance of common stocks | $ 747 | 3,734,253 | 3,735,000 | |||
Issuance of common stocks, shares | 747,000 | |||||
Foreign currency translation | (88,151) | (88,151) | ||||
Net loss for the period | (3,256,625) | (3,256,625) | ||||
Balance at Sep. 30, 2020 | $ 26,093 | 3,795,303 | (6,489,747) | 23,514 | (31,663) | (2,676,500) |
Balance, shares at Sep. 30, 2020 | 26,093,004 | |||||
Balance at Jun. 30, 2020 | $ 25,346 | 61,050 | (3,029,222) | 23,514 | 52,033 | (2,867,279) |
Balance, shares at Jun. 30, 2020 | 25,346,004 | |||||
Issuance of common stocks | $ 747 | 3,734,253 | 3,735,000 | |||
Issuance of common stocks, shares | 747,000 | |||||
Foreign currency translation | (83,696) | (83,696) | ||||
Net loss for the period | (3,460,525) | (3,460,525) | ||||
Balance at Sep. 30, 2020 | $ 26,093 | $ 3,795,303 | $ (6,489,747) | $ 23,514 | $ (31,663) | $ (2,676,500) |
Balance, shares at Sep. 30, 2020 | 26,093,004 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,256,625) | $ (689,273) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 78,079 | 56,630 |
Loss on disposal of plant and equipment | 32,988 | 3,342 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,161,329 | 142,009 |
Inventories | (287,370) | (20,952) |
Advances to suppliers | (327,859) | (64,957) |
Other receivables | 16,408 | 452 |
Accounts payables | (2,500,432) | (224,377) |
Accrued expenses and other payables | (16,614) | 13,514 |
Advances from customers | 37,541 | (98,256) |
Net cash provided by (used in) operating activities | (3,062,555) | (881,868) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (400,585) | (95,445) |
Proceeds from sale of property and equipment | 21,192 | |
Net cash used in investing activities | (379,393) | (95,445) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stocks | 3,735,000 | |
Proceeds from related party borrowings | 6,079,859 | 1,268,124 |
Repayment of related party borrowings | (5,621,945) | (443,356) |
Proceeds from bank borrowings | 86,886 | 461,151 |
Repayment of bank borrowings | (205,850) | (316,589) |
Net cash provided by financing activities | 4,073,950 | 969,330 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 632,002 | (7,983) |
Effect of exchange rate changes on cash and cash equivalents | 14,711 | (890) |
Cash and cash equivalents, beginning of the period | 531,681 | 277,264 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 1,178,394 | 268,391 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 4,441 | 7,706 |
Cash paid during the year for income tax | 7,412 | 3,064 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 28,865 | $ 1,901,008 |
Organization and Business Acqui
Organization and Business Acquisitions | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Acquisitions | 1. ORGANIZATION AND BUSINESS ACQUISITIONS Addentax Group Corp. (“ATXG”) was incorporated in Nevada on October 28, 2014, and before the transaction described below, ATXG is engaged in the field of producing images on multiple surfaces using heat transfer technology. On December 28, 2016, ATXG acquired 250,000,000 shares of the issued and outstanding stock of Yingxi Industrial Chain Group Co., Ltd. (“Yingxi”). The 250,000,000 shares of Yingxi were acquired from the members of Yingxi in a share exchange transaction in return for the issuance of 500,000,000 shares of common stock of ATXG. The 250,000,000 shares of Yingxi constitute 100% of its issued and outstanding stock, and as a result of the transaction, Yingxi became a wholly-owned subsidiary of ATXG. And following the consummation of the reverse acquisition effective on September 25, 2017, and giving effect to the securities exchanged in the offering, the members of Yingxi will beneficially own approximately ninty-nine percent (99%) of the issued and outstanding common stock of ATXG. For accounting purposes, the Company was treated as an acquiree and Yingxi as an acquirer, as a result, the business and financial information contained in this report is that of the acquirer prior to the consummation date and that of the combined entity after that date. Yingxi was incorporated in the Republic of Seychelles on August 4, 2016. ATXG, together with Yingxi and its subsidiaries (the “Company”) is engaged in the business of garments manufacturing, providing logistic services in the People’s Republic of China (“PRC” or “China”) and epidemic prevention supplies manufacturing and distribution both in China and overseas markets. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on June 29, 2020 (“2020 Form 10-K.”). GOING CONCERN UNCERTAINTY The accompanying unaudited condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $3,460,525 and $321,925 for the three months ended September 30, 2020 and 2019, respectively, and $3,256,625 and $689,273 for the six months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and March 31, 2020, the Company had net current liability of $4,043,938 and $4,095,286, respectively, and a deficit on total equity of $2,676,500 and $3,066,724, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies from the year ended March 31, 2020. Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 4. RISKS AND UNCERTAINTIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Concentration Risks During the three and six months ended September 30, 2020 and 2019, approximately 99.6% and 88.4%, 97.2% and 74.5% of total inventory purchases were from the Company’s five largest suppliers, respectively. Management believes that should the Company lose any one of its major suppliers, other suppliers are available that could provide similar products to the Company. During the three and six months ended September 30, 2020 and 2019, approximately 93.6% and 54.5%, 86.8% and 34.6% of total sales were from the Company’s five largest customers, respectively. For the three months ended September 30, 2020, two customers provided more than 10% of total revenue of the Company, with one from garment segment and the other one from epidemic prevention supplies segment, represented 13.7% and 74.9% of total revenue of the Company for the three months, respectively. For the six months ended September 30, 2020, two customers provided more than 10% of our total revenue, with one from garments segment and the other one from epidemic prevention supplies segment, represented 14.7% and 59.3% of total revenue of the Company for the six months, respectively. The high concentration in three and six months ended September 30, 2020 was mainly due to concentration of distributors in trading of epidemic prevention supplies. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. (c) Interest Rate Risk The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of September 30, 2020, the total outstanding borrowings amounted to $234,149 (RMB1,590,000) with various interest rate from 4.84% to 6.96% p.a. (Note 10) |
Accounts Receivables
Accounts Receivables | 6 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivables | 5. ACCOUNTS RECEIVABLES The receivables and allowance balances at September 30, 2020 and March 31, 2020 are as follows: September 30, 2020 March 31, 2020 Accounts receivable $ 1,338,787 $ 4,500,116 Less: allowance for doubtful accounts - - Accounts receivable, net $ 1,338,787 $ 4,500,116 No allowance for doubtful accounts was made for the three and six months ended September 30, 2020 and 2019. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. RELATED PARTY TRANSACTIONS Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of DT Jinlong Huang A spouse of legal representative of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. In September, the Company disposed of $114,229 aged inventories in HSW to Mr. Jinlong Huang at cost with no gain or loss recognized. The Company had the following related party balances as of September 30, 2020 and March 31, 2020: Amounts due to related parties September 30, 2020 March 31, 2020 Zhida Hong $ 5,327,512 $ 5,043,489 Bihua Yang 167,095 - Zhongpeng Chen 167,262 160,427 Dewu Huang 135,630 81,287 Jinlong Huang 162,084 144,237 $ 5,959,583 $ 5,429,440 The balances with related parties are unsecured, non-interest bearing and repayable on demand. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. INVENTORIES Inventories consist of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Raw materials $ 600,425 $ 230,742 Work in progress 6,140 62,150 Finished goods 28,336 54,639 Total inventories $ 634,901 $ 347,531 There is no inventory write-off for the three and six months ended September 30, 2020 and 2019. |
Advances to Suppliers
Advances to Suppliers | 6 Months Ended |
Sep. 30, 2020 | |
Advances To Suppliers | |
Advances to Suppliers | 8. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | 9. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Production plant $ 103,015 $ 67,247 Motor vehicles 1,232,428 868,743 Office equipment 20,301 19,471 1,355,744 955,461 Less: accumulated depreciation (421,521 ) (370,442 ) Plant and equipment, net $ 934,223 $ 585,019 During the nine months ended September 30, 2020, the Company acquired two production lines amounted to $54,327 to manufacture masks for the epidemic prevention supplies business and seven new motor truckers amounted to $315,920 for the logistic service business . During the period, the Company disposed of an old motor trucker with original cost of $22,505 and accumulated depreciation of $15,791. The Company also replaced a few small items of old machinery and office equipment. Depreciation expense for the three and six months ended September 30, 2020 and 2019 was $27,686 and $27,931, $51,159 and $29,238, respectively. |
Short-term Bank Loan
Short-term Bank Loan | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-term Bank Loan | 10. SHORT-TERM BANK LOAN In September 2018, HSW, a subsidiary of the Company entered into a facility agreement with Dongguan Agricultural Commercial Bank and obtained a line of credit, which allows the Company to borrow up to approximately $212,334 (RMB1,500,000) for daily operations with fixed interest rate of 6.96% per annum. The loans are guaranteed at no cost by legal representative of HSW. In September 2020, the Company fully repaid the outstanding loan and this line of credit was cancelled (March 31, 2020: $211,868). In August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $147,264 (RMB1,000,000) for daily operations. The loans are guaranteed at no cost by the legal representative of HSW. As of September 30, 2020, the Company has borrowed $147,264 (RMB1,000,000) (March 31, 2020: $141,246) under this line of credit with various annual interest rates from 4.84% to 4.9%. The line of credit is fully used. The outstanding loan balance will be due on March 31, 2021. In August 2020, DT entered into a new facility agreement with Webank and obtained a credit facility of $88,358 (RMB600,000) for daily operations with various annual interest rate from 16.2% to 16.29%. The loans are guaranteed at no cost by the legal representative of DT. The loan borrowing was $86,886 (RMB590,000) as of September 30, 2020 (March 31, 2020: Nil). |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES (a) Enterprise Income Tax (“EIT”) The Company operates in the PRC and files tax returns in the PRC jurisdictions. Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive 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 and six months ended September 30, 2020 and 2019. YX were incorporated in the PRC and is subject to the EIT tax rate of 25%. No provision for income taxes in the PRC has been made as YX had no taxable income for the three and six months ended September 30, 2020 and 2019. The Company is governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies were subject to progressive EIT rates from 5% to 15% in 2020 and 2019. The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. The Company’s parent entity, Addentax Group Corp. is an 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 three and six months ended September 30, 2020 and 2019. The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: Three months ended Six months ended September 30, September 30, 2020 2019 2020 2019 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected expenses (864,118 ) (80,268 ) (812,304 ) (171,552 ) Temporary differences 829,401 10,370 725,469 9,086 Deferred tax assets 38,770 70,750 94,247 165,530 Income tax expense $ 4,053 $ 852 $ 7,412 $ 3,064 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13%, which is levied on the invoiced value of sales and is payable by the purchaser. The subsidiaries HSW, DT and YS enjoyed preferential VAT rate of 13%. The Companies are required to remit the VAT they collect to the tax authority. A credit is available whereby VAT paid on purchases can be used to offset the VAT due on sales. For services, the applicable VAT rate is 9% under the relevant tax category for logistic company, except the branch of HPF enjoyed the preferential VAT rate of 3% in 2020 and 2019. The Company is required to pay the full amount of VAT calculated at the applicable VAT rate of the invoiced value of sales as required. A credit is available whereby VAT paid on gasoline and toll charges can be used to offset the VAT due on service income. |
Consolidated Segment Data
Consolidated Segment Data | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Consolidated Segment Data | 12. CONSOLIDATED SEGMENT DATA Segment information is consistent with how chief operating decision maker reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following three segments: (a) Garments (b) Logistic service (c) Epidemic prevention supplies The Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”. Selected information in the segment structure is presented in the following tables: Revenues by segment for the three and six months ended September 30, 2020 and 2019 are as follows: Three months ended Six months ended Revenues 2020 2019 2020 2019 Garments $ 1,623,255 $ 322,131 $ 2,898,061 873,448 Logistic service 1,307,003 1,622,871 2,840,384 3,281,046 Epidemic prevention supplies 8,754,039 - 11,864,067 - $ 11,684,297 $ 1,945,002 $ 17,602,512 4,154,494 Income from operations by segment for the three and six months ended September 30, 2020 and 2019 are as follows: Three months ended Six months ended September 30, September 30, 2020 2019 2020 2019 Garments $ 75,956 $ (16,682 ) $ 141,518 $ 29,535 Logistic service 25,724 26,027 35,284 7,716 Epidemic prevention supplies (3,384,835 ) - (3,096,118 ) - Corporate and other (209,766 ) (318,712 ) (385,173 ) (700,360 ) Income (loss) from operations $ (3,492,921 ) $ (309,367 ) $ (3,304,489 ) $ (663,109 ) Garments 9,503 ) (12,102 ) 30,661 (19,284 ) Logistic service 27,165 420 25,722 (3,707 ) Epidemic prevention supplies (4 ) - (3 ) - Corporate and other (215 ) (24 ) (1,104 ) (109 ) Income (loss) before income tax $ (3,456,472 ) (321,073 ) (3,249,213 ) (686,209 ) Income tax expense (4,053 ) (852 ) (7,412 ) (3,064 ) Net income (loss) $ (3,460,525 ) $ (321,925 ) $ (3,256,625 ) $ (689,273 ) Total assets by segment as at September 30, 2020 and March 31, 2020 are as follows: Total assets September 30, 2020 March 31, 2020 Garments $ 1,647,452 $ 4,098,758 Logistic service 2,851,451 2,422,140 Epidemic prevention supplies 197,058 - Corporate and other 1,957,533 1,901,080 $ 6,653,494 $ 8,421,978 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | 13. ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Accrued wages and welfare 64,372 61,776 Other tax payable - 25,206 Rental payable 44,108 24,972 Other payables 118,590 118,963 $ 227,070 $ 230,917 |
Lease Right-of-Use Asset and Le
Lease Right-of-Use Asset and Lease Liabilities | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Right-of-Use Asset and Lease Liabilities | 14. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company implemented new accounting policy according to the ASC 842, Leases, on April 1, 2019 on a modified retrospective basis and did not restate comparative periods. Under the new policy, the Company recognized approximately $0.06 million lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of September 30, 2020, with discounted rate of 4.35%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. Lease cost Three months ended Six months ended 2020 2019 2020 2019 Operating lease cost 113,015 142,779 224,721 199,612 Short-term lease cost - 6,278 - 63,785 $ 113,015 $ 149,057 224,721 263,397 Other information Three months ended Six months ended 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 113,015 $ 149,057 $ 224,721 $ 263,397 Right-of-use assets obtained in exchange for new operating leases liabilities 28,865 1,633,055 28,865 1,901,008 Weighted average remaining lease term - Operating leases (years) 3.8 4.7 3.8 4.7 Weighted average discount rate - Operating leases 4.35 % 4.35 % 4.35 % 4.35 % |
Share Capital
Share Capital | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Share Capital | 15. SHARE CAPITAL In August 2020, the Company offered 747,000 common stocks to an individual investor. The subscription price was $5.00 per share. The proceeds were all received in August 2020. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS In November 2020, the Company disposed of $194,164 inventories in HSW to Mr. Huang and a third party at cost for cash with no gain or loss recognized. Such cash was received in November 2020. No other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies from the year ended March 31, 2020. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables and Allowance Balances | The receivables and allowance balances at September 30, 2020 and March 31, 2020 are as follows: September 30, 2020 March 31, 2020 Accounts receivable $ 1,338,787 $ 4,500,116 Less: allowance for doubtful accounts - - Accounts receivable, net $ 1,338,787 $ 4,500,116 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties | Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of DT Jinlong Huang A spouse of legal representative of HSW |
Schedule of Related Parties Transactions | The Company had the following related party balances as of September 30, 2020 and March 31, 2020: Amounts due to related parties September 30, 2020 March 31, 2020 Zhida Hong $ 5,327,512 $ 5,043,489 Bihua Yang 167,095 - Zhongpeng Chen 167,262 160,427 Dewu Huang 135,630 81,287 Jinlong Huang 162,084 144,237 $ 5,959,583 $ 5,429,440 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Raw materials $ 600,425 $ 230,742 Work in progress 6,140 62,150 Finished goods 28,336 54,639 Total inventories $ 634,901 $ 347,531 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Production plant $ 103,015 $ 67,247 Motor vehicles 1,232,428 868,743 Office equipment 20,301 19,471 1,355,744 955,461 Less: accumulated depreciation (421,521 ) (370,442 ) Plant and equipment, net $ 934,223 $ 585,019 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes | The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: Three months ended Six months ended September 30, September 30, 2020 2019 2020 2019 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected expenses (864,118 ) (80,268 ) (812,304 ) (171,552 ) Temporary differences 829,401 10,370 725,469 9,086 Deferred tax assets 38,770 70,750 94,247 165,530 Income tax expense $ 4,053 $ 852 $ 7,412 $ 3,064 |
Consolidated Segment Data (Tabl
Consolidated Segment Data (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected information in the segment structure is presented in the following tables: Revenues by segment for the three and six months ended September 30, 2020 and 2019 are as follows: Three months ended Six months ended Revenues 2020 2019 2020 2019 Garments $ 1,623,255 $ 322,131 $ 2,898,061 873,448 Logistic service 1,307,003 1,622,871 2,840,384 3,281,046 Epidemic prevention supplies 8,754,039 - 11,864,067 - $ 11,684,297 $ 1,945,002 $ 17,602,512 4,154,494 Income from operations by segment for the three and six months ended September 30, 2020 and 2019 are as follows: Three months ended Six months ended September 30, September 30, 2020 2019 2020 2019 Garments $ 75,956 $ (16,682 ) $ 141,518 $ 29,535 Logistic service 25,724 26,027 35,284 7,716 Epidemic prevention supplies (3,384,835 ) - (3,096,118 ) - Corporate and other (209,766 ) (318,712 ) (385,173 ) (700,360 ) Income (loss) from operations $ (3,492,921 ) $ (309,367 ) $ (3,304,489 ) $ (663,109 ) Garments 9,503 ) (12,102 ) 30,661 (19,284 ) Logistic service 27,165 420 25,722 (3,707 ) Epidemic prevention supplies (4 ) - (3 ) - Corporate and other (215 ) (24 ) (1,104 ) (109 ) Income (loss) before income tax $ (3,456,472 ) (321,073 ) (3,249,213 ) (686,209 ) Income tax expense (4,053 ) (852 ) (7,412 ) (3,064 ) Net income (loss) $ (3,460,525 ) $ (321,925 ) $ (3,256,625 ) $ (689,273 ) Total assets by segment as at September 30, 2020 and March 31, 2020 are as follows: Total assets September 30, 2020 March 31, 2020 Garments $ 1,647,452 $ 4,098,758 Logistic service 2,851,451 2,422,140 Epidemic prevention supplies 197,058 - Corporate and other 1,957,533 1,901,080 $ 6,653,494 $ 8,421,978 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consist of the following as of September 30, 2020 and March 31, 2020: September 30, 2020 March 31, 2020 Accrued wages and welfare 64,372 61,776 Other tax payable - 25,206 Rental payable 44,108 24,972 Other payables 118,590 118,963 $ 227,070 $ 230,917 |
Lease Right-of-Use Asset and _2
Lease Right-of-Use Asset and Lease Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease cost Three months ended Six months ended 2020 2019 2020 2019 Operating lease cost 113,015 142,779 224,721 199,612 Short-term lease cost - 6,278 - 63,785 $ 113,015 $ 149,057 224,721 263,397 |
Schedule of Other Information for Right-of Use Asset and Lease Liabilities | Other information Three months ended Six months ended 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 113,015 $ 149,057 $ 224,721 $ 263,397 Right-of-use assets obtained in exchange for new operating leases liabilities 28,865 1,633,055 28,865 1,901,008 Weighted average remaining lease term - Operating leases (years) 3.8 4.7 3.8 4.7 Weighted average discount rate - Operating leases 4.35 % 4.35 % 4.35 % 4.35 % |
Organization and Business Acq_2
Organization and Business Acquisitions (Details Narrative) - Yingxi Industrial Chain Group Co., Ltd [Member] | Dec. 28, 2016shares |
Number of shares acquired | 250,000,000 |
Number of shares issued | 500,000,000 |
Equity investment percentage | 100.00% |
Beneficially owned percentage | 99.00% |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Net loss | $ (3,460,525) | $ (321,925) | $ (3,256,625) | $ (689,273) | ||||
Net current liability | 4,043,938 | 4,043,938 | $ 4,095,286 | |||||
Deficit on total equity | $ (2,676,500) | $ (2,282,664) | $ (2,676,500) | $ (2,282,664) | $ (2,867,279) | $ (3,066,724) | $ (2,032,892) | $ (1,702,547) |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019 | |
Outstanding borrowings | $ | $ 234,149 | ||||
RMB [Member] | |||||
Outstanding borrowings | ¥ | ¥ 1,590,000 | ||||
Minimum [Member] | Dongguan Agricultural Bank of China [Member] | |||||
Line of credit facility, interest rate | 4.84% | 4.84% | |||
Maximum [Member] | Dongguan Agricultural Bank of China [Member] | |||||
Line of credit facility, interest rate | 6.96% | 6.96% | |||
Five Largest Customers [Member] | |||||
Percentage of sales | 93.60% | 54.50% | 86.80% | 86.80% | 34.60% |
Two Customers [Member] | Minimum [Member] | |||||
Percentage of sales | 10.00% | 10.00% | 10.00% | ||
Customer One [Member] | Garments [Member] | |||||
Percentage of sales | 13.70% | 14.70% | 14.70% | ||
Customer Two [Member] | Epidemic Prevention Supplies [Member] | |||||
Percentage of sales | 74.90% | 59.30% | 59.30% | ||
Five Largest Suppliers [Member] | |||||
Percentage of inventory purchase | 99.60% | 88.40% | 97.20% | 97.20% | 74.50% |
Accounts Receivables (Details N
Accounts Receivables (Details Narrative) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Receivables [Abstract] | |||
Allowance for doubtful accounts |
Accounts Receivables - Schedule
Accounts Receivables - Schedule of Accounts Receivables and Allowance Balances (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Receivables [Abstract] | |||
Accounts receivable | $ 1,338,787 | $ 4,500,116 | |
Less: allowance for doubtful accounts | |||
Accounts receivable, net | $ 1,338,787 | $ 4,500,116 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Sep. 30, 2020USD ($) |
Heng Sheng Wei Garments Co., Ltd [Member] | Jinlong Huang [Member] | |
Disposal of inventory | $ 114,229 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Parties (Details) | 6 Months Ended |
Sep. 30, 2020 | |
Zhida Hong [Member] | |
Name of Related Parties | Zhida Hong |
Relationship with the Company | President, CEO, and a director of the Company |
Zhongpeng Chen [Member] | |
Name of Related Parties | Zhongpeng Chen |
Relationship with the Company | A legal representative of HPF |
Bihua Yang [Member] | |
Name of Related Parties | Bihua Yang |
Relationship with the Company | A legal representative of XKJ |
Dewu Huang [Member] | |
Name of Related Parties | Dewu Huang |
Relationship with the Company | A legal representative of DT |
Jinlong Huang [Member] | |
Name of Related Parties | Jinlong Huang |
Relationship with the Company | A spouse of legal representative of HSW |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Parties Transactions (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
Amounts due to related parties | $ 5,959,583 | $ 5,429,440 |
Zhida Hong [Member] | ||
Amounts due to related parties | 5,327,512 | 5,043,489 |
Bihua Yang [Member] | ||
Amounts due to related parties | 167,095 | |
Zhongpeng Chen [Member] | ||
Amounts due to related parties | 167,262 | 160,427 |
Dewu Huang [Member] | ||
Amounts due to related parties | 135,630 | 81,287 |
Jinlong Huang [Member] | ||
Amounts due to related parties | $ 162,084 | $ 144,237 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory write-offs |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 600,425 | $ 230,742 |
Work in progress | 6,140 | 62,150 |
Finished goods | 28,336 | 54,639 |
Total inventories | $ 634,901 | $ 347,531 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disposal of assets | $ 22,505 | |||
Accumulated depreciation | 15,791 | |||
Depreciation expense | 78,079 | $ 56,630 | ||
Two Production Lines [Member] | Epidemic Prevention Supplies [Member] | ||||
Property acquired during the period | 54,327 | |||
Seven Motor Truckers [Member] | Logistic Service [Member] | ||||
Property acquired during the period | 315,920 | |||
Plant and Equipment [Member] | ||||
Depreciation expense | $ 27,686 | $ 27,931 | $ 51,159 | $ 29,238 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
Plant and equipment, gross | $ 1,355,744 | $ 955,461 |
Less: accumulated depreciation | (421,521) | (370,442) |
Plant and equipment, net | 934,223 | 585,019 |
Production Plant [Member] | ||
Plant and equipment, gross | 103,015 | 67,247 |
Motor Vehicles [Member] | ||
Plant and equipment, gross | 1,232,428 | 868,743 |
Office Equipment [Member] | ||
Plant and equipment, gross | $ 20,301 | $ 19,471 |
Short-term Bank Loan (Details N
Short-term Bank Loan (Details Narrative) | 1 Months Ended | 6 Months Ended | ||||||
Aug. 31, 2020USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Mar. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Dongguan Agricultural Bank of China [Member] | Minimum [Member] | ||||||||
Line of credit facility, interest rate | 4.84% | |||||||
Dongguan Agricultural Bank of China [Member] | Maximum [Member] | ||||||||
Line of credit facility, interest rate | 6.96% | |||||||
Facility Agreement [Member] | Dongguan Agricultural Commercial Bank [Member] | ||||||||
Line of credit maximum borrowing capacity | $ 212,334 | |||||||
Line of credit facility, interest rate | 6.96% | |||||||
Line of credit facility, maturity date | Mar. 31, 2021 | |||||||
Facility Agreement [Member] | Dongguan Agricultural Commercial Bank [Member] | RMB [Member] | ||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,500,000 | |||||||
Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | ||||||||
Line of credit maximum borrowing capacity | $ 147,264 | |||||||
Line of credit outstanding value | $ 147,264 | $ 211,868 | ||||||
Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | Minimum [Member] | ||||||||
Line of credit facility, interest rate | 4.84% | |||||||
Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | Maximum [Member] | ||||||||
Line of credit facility, interest rate | 4.90% | |||||||
Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | RMB [Member] | ||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,000,000 | |||||||
Line of credit outstanding value | ¥ | ¥ 1,000,000 | |||||||
Facility Agreement [Member] | Webank [Member] | ||||||||
Line of credit maximum borrowing capacity | $ 88,358 | $ 86,886 | ||||||
Facility Agreement [Member] | Webank [Member] | Minimum [Member] | ||||||||
Line of credit facility, interest rate | 16.20% | |||||||
Facility Agreement [Member] | Webank [Member] | Maximum [Member] | ||||||||
Line of credit facility, interest rate | 16.20% | |||||||
Facility Agreement [Member] | Webank [Member] | RMB [Member] | ||||||||
Line of credit maximum borrowing capacity | $ 600,000 | $ 590,000 | ||||||
Facility Agreement One [Member] | Dongguan Agricultural Bank of China [Member] | ||||||||
Line of credit maximum borrowing capacity | $ 141,246 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | |
Percentage of preferential tax benefits and EIT rate and term description | The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. | ||||
Deferred taxes | |||||
Percentage of preferential value added tax | 3.00% | 3.00% | |||
Domestic Tax Authority [Member] | |||||
Percentage of value added tax | 13.00% | ||||
Dongguan Heng Sheng Wei Garments Co., Ltd [Member] | |||||
Percentage of preferential value added tax | 13.00% | ||||
Logistic Company [Member] | |||||
Percentage of value added tax | 9.00% | ||||
Minimum [Member] | |||||
Percentage on enterprise income tax | 5.00% | 5.00% | |||
Maximum [Member] | |||||
Percentage on enterprise income tax | 15.00% | 15.00% | |||
Hong Kong [Member] | |||||
Income tax rate | 16.50% | ||||
People's Republic of China [Member] | |||||
Federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income tax expense | $ 4,053 | $ 852 | $ 7,412 | $ 3,064 |
People's Republic of China [Member] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Computed expected expenses | $ (864,118) | $ (80,268) | $ (812,304) | $ (171,552) |
Temporary differences | 829,401 | 10,370 | 725,469 | 9,086 |
Deferred tax assets | 38,770 | 70,750 | 94,247 | 165,530 |
Income tax expense | $ 4,053 | $ 852 | $ 7,412 | $ 3,064 |
Consolidated Segment Data (Deta
Consolidated Segment Data (Details Narrative) | 6 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Consolidated Segment Data - Sch
Consolidated Segment Data - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Revenues | $ 11,684,297 | $ 1,945,002 | $ 17,602,512 | $ 4,154,494 | |
Income (loss) from operations | (3,492,921) | (309,367) | (3,304,489) | (663,109) | |
Income (loss) before income tax | (3,456,472) | (321,073) | (3,249,213) | (686,209) | |
Income tax expense | (4,053) | (852) | (7,412) | (3,064) | |
Net income (loss) | (3,460,525) | (321,925) | (3,256,625) | (689,273) | |
Total assets | 6,653,494 | 6,653,494 | $ 8,421,978 | ||
Garments [Member] | |||||
Revenues | 1,623,255 | 322,131 | 2,898,061 | 873,448 | |
Income (loss) from operations | 75,956 | (16,682) | 141,518 | 29,535 | |
Income (loss) before income tax | 9,503 | (12,102) | 30,661 | (19,284) | |
Total assets | 1,647,452 | 1,647,452 | 4,098,758 | ||
Logistic Service [Member] | |||||
Revenues | 1,307,003 | 1,622,871 | 2,840,384 | 3,281,046 | |
Income (loss) from operations | 25,724 | 26,027 | 35,284 | 7,716 | |
Income (loss) before income tax | 27,165 | 420 | 25,722 | (3,707) | |
Total assets | 2,851,451 | 2,851,451 | 2,422,140 | ||
Epidemic Prevention Supplies [Member] | |||||
Revenues | 8,754,039 | 11,864,067 | |||
Income (loss) from operations | (3,384,835) | (3,096,118) | |||
Income (loss) before income tax | (4) | (3) | |||
Total assets | 197,058 | 197,058 | |||
Corporate and Other [Member] | |||||
Income (loss) from operations | (209,766) | (318,712) | (385,173) | (700,360) | |
Income (loss) before income tax | (215) | $ (24) | (1,104) | $ (109) | |
Total assets | $ 1,957,533 | $ 1,957,533 | $ 1,901,080 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Schedule of Accrued Expenses and Other Payables (Details) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued wages and welfare | $ 64,372 | $ 61,776 |
Other tax payable | 25,206 | |
Rental payable | 44,108 | 24,972 |
Other payables | 118,590 | 118,963 |
Accrued expenses and other payables | $ 227,070 | $ 230,917 |
Lease Right-of-Use Asset and _3
Lease Right-of-Use Asset and Lease Liabilities (Details Narrative) - USD ($) | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Apr. 02, 2019 |
Operating lease, right of use asset | $ 1,633,824 | $ 1,835,717 | ||
Weighted average discount rate leases | 4.35% | 4.35% | ||
ASU 2016-02 [Member] | ||||
Operating lease, right of use asset | $ 60,000 | |||
Operating lease, liability | $ 60,000 |
Lease Right-of-Use Asset and _4
Lease Right-of-Use Asset and Lease Liabilities - Schedule of Lease Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 113,015 | $ 142,779 | $ 224,721 | $ 199,612 |
Short-term lease cost | 6,278 | 63,785 | ||
Lease cost | $ 113,015 | $ 149,057 | $ 224,721 | $ 263,397 |
Lease Right-of-Use Asset and _5
Lease Right-of-Use Asset and Lease Liabilities - Schedule of Other Information for Right-of Use Asset and Lease Liabilities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases | $ 113,015 | $ 149,057 | $ 224,721 | $ 263,397 |
Right-of-use assets obtained in exchange for new operating leases liabilities | $ 28,865 | $ 1,633,055 | $ 28,865 | $ 1,901,008 |
Weighted average remaining lease term - Operating leases (years) | 3 years 9 months 18 days | 4 years 8 months 12 days | 3 years 9 months 18 days | 4 years 8 months 12 days |
Weighted average discount rate - Operating leases | 4.35% | 4.35% | 4.35% | 4.35% |
Share Capital (Details Narrativ
Share Capital (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Company offered common stocks shares | $ 747,000 | $ 3,735,000 | $ 3,735,000 | |
Par value | $ 0.001 | $ 0.001 | ||
Subscription price | $ 5 | $ 5 |
Subsequent Events (Details Narr
Subsequent Events (Details Narratve) - Heng Sheng Wei Garments Co., Ltd [Member] - Jinlong Huang [Member] - USD ($) | Oct. 31, 2020 | Sep. 30, 2020 |
Disposal of inventory | $ 114,229 | |
Subsequent Event [Member] | ||
Disposal of inventory | $ 194,164 |