Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2022 | Feb. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 333-206097 | |
Entity Registrant Name | ADDENTAX GROUP CORP. | |
Entity Central Index Key | 0001650101 | |
Entity Tax Identification Number | 35-2521028 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Kingkey 100, Block A | |
Entity Address, Address Line Two | Room 4805 | |
Entity Address, Address Line Three | Luohu District | |
Entity Address, City or Town | Shenzhen City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 518000 | |
City Area Code | + (86) | |
Local Phone Number | 755 86961 405 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ATXG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,454,670 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,588,385 | $ 1,390,644 |
Accounts receivables, net | 2,090,372 | 2,164,970 |
Debt securities held-to-maturity | 17,500,000 | |
Inventories | 254,692 | 266,596 |
Prepayments and other receivables | 4,791,716 | 575,210 |
Advances to suppliers | 1,054,827 | 1,181,466 |
Amount due from related party | 110,242 | |
Total current assets | 27,279,992 | 5,689,128 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 675,402 | 836,419 |
Long-term prepayments | 73,504 | 31,496 |
Operating lease right of use asset | 3,548,168 | 6,530,017 |
Total non-current assets | 4,297,074 | 7,397,932 |
TOTAL ASSETS | 31,577,066 | 13,087,060 |
CURRENT LIABILITIES | ||
Short-term loan | 138,265 | 151,090 |
Accounts payable | 159,414 | 1,334,483 |
Amount due to related parties | 2,057,822 | 3,694,989 |
Advances from customers | 5,291 | 2,375 |
Accrued expenses and other payables | 2,760,150 | 1,445,473 |
Operating lease liability current portion | 3,383,626 | 3,763,931 |
Total current liabilities | 8,504,568 | 10,392,341 |
NON-CURRENT LIABILITIES | ||
Operating lease liability | 164,542 | 2,766,086 |
TOTAL LIABILITIES | 8,669,110 | 13,158,427 |
EQUITY (deficit) | ||
Common stock ($0.001 par value, 50,000,000 shares authorized, 31,693,004 shares and 26,693,004 shares issued and outstanding at December 31 and March 31, 2022, respectively) | 31,693 | 26,693 |
Additional paid-in capital | 29,532,326 | 6,815,333 |
Accumulated Deficit | (6,673,191) | (6,756,230) |
Statutory reserve | 28,452 | 13,821 |
Accumulated other comprehensive loss | (11,324) | (170,984) |
Total equity (deficit) | 22,907,956 | (71,367) |
TOTAL LIABILITIES AND EQUITY | $ 31,577,066 | $ 13,087,060 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 31,693,004 | 26,693,004 |
Common stock, shares outstanding | 31,693,004 | 26,693,004 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 2,122,242 | $ 2,791,470 | $ 6,652,645 | $ 9,835,733 |
COST OF REVENUES | (1,514,780) | (2,323,716) | (5,023,338) | (8,314,149) |
GROSS PROFIT | 607,462 | 467,754 | 1,629,307 | 1,521,584 |
OPERATING EXPENSES | ||||
Selling and marketing | (24,511) | (43,118) | (60,155) | (135,310) |
General and administrative | (675,918) | (452,312) | (1,545,865) | (1,375,513) |
Total operating expenses | (700,429) | (495,430) | (1,606,020) | (1,510,823) |
(LOSS) INCOME FROM OPERATIONS | (92,967) | (27,676) | 23,287 | 10,761 |
Interest income | 1,687 | 72 | 6,687 | 2,135 |
Interest expenses | (1,986) | (2,526) | (6,653) | (5,375) |
Other income, net | 19,232 | 43,958 | 93,288 | 132,959 |
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | (74,034) | 13,828 | 116,609 | 140,480 |
INCOME TAX EXPENSE | (8,184) | (2,209) | (18,939) | (17,893) |
NET (LOSS) INCOME | (82,218) | 11,619 | 97,670 | 122,587 |
Foreign currency translation gain (loss) | (43,032) | (28,755) | 159,660 | (62,897) |
TOTAL COMPREHENSIVE (LOSS) INCOME | $ (125,250) | $ (17,136) | $ 257,330 | $ 59,690 |
EARNINGS PER SHARE | ||||
Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of shares outstanding – Basic and diluted | 28,377,936 | 26,556,566 | 28,377,936 | 26,556,566 |
Condensed Consolidated Stateme
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutor Reserve [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Mar. 31, 2021 | $ 26,093 | $ 6,815,333 | $ (6,834,228) | $ 13,821 | $ (103,117) | $ (81,498) |
Beginning balance, shares at Mar. 31, 2021 | 26,693,004 | |||||
Foreign currency translation | (62,897) | (62,897) | ||||
Net income (loss) | 122,587 | 122,587 | ||||
Ending balance, value at Dec. 31, 2021 | $ 26,693 | 6,815,333 | (6,711,641) | 13,821 | (166,014) | (21,808) |
Ending balance, shares at Dec. 31, 2021 | 26,693,004 | |||||
Beginning balance, value at Sep. 30, 2021 | $ 26,093 | 6,815,333 | (6,723,260) | 13,821 | (137,259) | (4,672) |
Beginning balance, shares at Sep. 30, 2021 | 26,693,004 | |||||
Foreign currency translation | (28,755) | (28,755) | ||||
Net income (loss) | 11,619 | 11,619 | ||||
Ending balance, value at Dec. 31, 2021 | $ 26,693 | 6,815,333 | (6,711,641) | 13,821 | (166,014) | (21,808) |
Ending balance, shares at Dec. 31, 2021 | 26,693,004 | |||||
Beginning balance, value at Mar. 31, 2022 | $ 26,693 | 6,815,333 | (6,756,230) | 13,821 | (170,984) | (71,367) |
Beginning balance, shares at Mar. 31, 2022 | 26,693,004 | |||||
Foreign currency translation | 159,660 | 159,660 | ||||
Net income (loss) | 97,670 | 97,670 | ||||
Paid in capital | $ 5,000 | 22,716,993 | 22,721,993 | |||
Paid in capital, shares | 5,000,000 | |||||
Appropriation to Statutory Reserves | (14,631) | 14,631 | ||||
Ending balance, value at Dec. 31, 2022 | $ 31,693 | 29,532,326 | (6,673,191) | 28,452 | (11,324) | $ 22,907,956 |
Ending balance, shares at Dec. 31, 2022 | 31,693,004 | 31,693,004 | ||||
Beginning balance, value at Sep. 30, 2022 | $ 31,693 | 29,532,326 | (6,576,342) | 13,821 | 31,708 | $ 23,033,206 |
Beginning balance, shares at Sep. 30, 2022 | 31,693,004 | |||||
Foreign currency translation | (43,032) | (43,032) | ||||
Net income (loss) | (82,218) | (82,218) | ||||
Appropriation to Statutory Reserves | (14,631) | 14,631 | ||||
Ending balance, value at Dec. 31, 2022 | $ 31,693 | $ 29,532,326 | $ (6,673,191) | $ 28,452 | $ (11,324) | $ 22,907,956 |
Ending balance, shares at Dec. 31, 2022 | 31,693,004 | 31,693,004 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 97,670 | $ 122,587 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 264,876 | 115,561 |
Changes in operating assets and liabilities | ||
Accounts receivable | 74,598 | 3,038,527 |
Inventories | 11,904 | (27,762) |
Advances to suppliers | 126,639 | (1,166,916) |
Other receivables | (1,789,539) | 73,540 |
Accounts payables | (1,309,228) | (1,899,642) |
Accrued expenses and other payables | 992,046 | 96,276 |
Advances from customers | 2,916 | 31,654 |
Net cash (used in) provided by operating activities | (1,528,118) | 383,825 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment and other assets | (176,268) | |
Purchase of debt securities | (17,500,000) | |
Net cash used in investing activities | (17,500,000) | (176,268) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issue of ordinary shares | 20,221,993 | |
Proceeds from related party borrowings | 2,376,221 | 3,797,473 |
Repayment of related party borrowings | (3,356,829) | (5,341,046) |
Repayment of bank borrowings | (408) | |
Net cash provided by (used in) financing activities | 19,240,977 | (1,543,573) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 212,859 | (1,336,016) |
Effect of exchange rate changes on cash and cash equivalents | (15,118) | (2,719) |
Cash and cash equivalents, beginning of the period | 1,390,644 | 1,845,077 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 1,588,385 | 506,342 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | ||
Cash paid during the year for income tax | 18,939 | 17,893 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 342,457 |
ORGANIZATION AND BUSINESS ACQUI
ORGANIZATION AND BUSINESS ACQUISITIONS | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BUSINESS ACQUISITIONS | 1. ORGANIZATION AND BUSINESS ACQUISITIONS ATXG and its subsidiaries (the “Company”) are engaged in the business of garments manufacturing, providing logistic services and property leasing and management service in the People’s Republic of China (“PRC” or “China”). |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2022 | |
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, 2022 filed with the Securities and Exchange Commission (“SEC”) on June 23, 2022 (“2022 Form 10-K”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2022 | |
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 for the three months ended December 31, 2022. 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd A company controlled by CEO, Mr. Zhida Hong Bihua Yang A legal representative of Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), a wholly subsidiary of our Company Dewu Huang A legal representative of Shantou Yi Bai Yi Garments Co., Ltd (“YBY”), a wholly-owned subsidiary of our Company Jinlong Huang A spouse of legal representative of Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly owned subsidiary of our Company Huilin Chen A legal representative of Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”), a wholly-owned subsidiary of our Company The Company leases Shenzhen XKJ office rent-free from Bihua Yang. The Company had the following related party balances as of December 31, 2022 and March 31, 2022: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party December 31, 2022 March 31, 2022 Hongye Financial Consulting (Shenzhen) Co., Ltd. $ - $ 110,242 $ - $ 110,242 Related party borrowings December 31, 2022 March 31, 2022 Zhida Hong (1) $ 903,398 $ 3,297,951 Hongye Financial Consulting (Shenzhen) Co., Ltd. 4,909 - Huilin Chen 724 - Bihua Yang (2) - 31,738 Dewu Huang 1,057,309 212,290 Jinlong Huang 91,482 153,010 $ 2,057,822 $ 3,694,989 (1) Being interest free loan as financial support from Zhida Hong to daily operation of the Company. (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) Being interest free advanced loan as financial support from Dewu Huang for YBY’s daily operation. The borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand. |
DEBT SECURITIES HELD-TO-MATURIT
DEBT SECURITIES HELD-TO-MATURITY | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT SECURITIES HELD-TO-MATURITY | 5. DEBT SECURITIES HELD-TO-MATURITY SCHEDULE OF DEBT SECURITIES HELD TO MATURITY December 31, 2022 March 31, 2022 Debt securities held-to-maturity $ 17,500,000 $ - The Company purchased a note issued by a third-party investment company on August 24, 2022. The principal amount of the note is $ 17,500,000 note was renewable with one-year tenor and 2.5 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories consist of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF INVENTORIES December 31, 2022 March 31, 2022 Raw materials $ 9,319 $ 184,498 Work in progress 129,328 1,327 Finished goods 116,045 80,771 Total inventories $ 254,692 $ 266,596 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 9 Months Ended |
Dec. 31, 2022 | |
Advances To Suppliers | |
ADVANCES TO SUPPLIERS | 7. 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. |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 9 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
PREPAYMENTS AND OTHER RECEIVABLES | 8. PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consist of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES December 31, 2022 March 31, 2022 Prepayment 18,412 14,046 Deposit 1,349,669 64,653 Receivable of consideration on disposal of subsidiaries 242,139 269,798 Other receivables 3,181,496 226,713 Total Prepayment $ 4,791,716 $ 575,210 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 9. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT December 31, 2022 March 31, 2022 Production plant $ 67,948 $ 74,034 Motor vehicles 1,094,285 1,192,296 Office equipment 25,874 28,191 Total gross 1,188,107 1,294,521 Less: accumulated depreciation (512,704 ) (458,102 ) Plant and equipment, net $ 675,402 $ 836,419 Depreciation expense for the three and nine months ended December 31, 2022 and 2021 was $ 33,817 44,164 102,649 115,561 |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOAN | 10. SHORT-TERM BANK LOAN 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 $ 153,172 1,000,000 138,265 955,281 151,090 4.84% 4.9% |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2022 | |
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, and is not subject to income taxes. It’s wholly owned subsidiary of Addentax Group Corp. Yingxi HK (Yingxi Industrial Chain Investment Co., Ltd.) was incorporated in Hong Kong which is indirectly wholly owned by Addentax Group Corp., and is subject to Hong Kong income tax at a progressive rate of 16.5% YX, our wholly owned subsidiary, were incorporated in the PRC and is subject to the EIT tax rate of 25% 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% 15% 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 a U.S entity and is subject to the United States federal income tax. No provision for income taxes in the United States have been made as Addentax Group Corp. had no United States taxable income for the three and nine months ended December 31, 2022 and 2021. The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits (18,509 ) 3,457 29,152 35,120 Temporary differences (54,616 ) (30,951 ) (148,387 ) (87,797 ) Permanent difference 9,933 1,444 13,278 1,691 Changes in valuation allowance 71,376 28,259 124,896 68,879 Income tax expense $ 8,184 $ 2,209 18,939 17,893 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13% 13% For services, the applicable VAT rate is 9% 3% |
CONSOLIDATED SEGMENT DATA
CONSOLIDATED SEGMENT DATA | 9 Months Ended |
Dec. 31, 2022 | |
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) Garment manufacturing (b) Logistics services (c) Property management and subleasing. The Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”. The Company used to have an operating segment named “Epidemic prevention supplies”, which included manufacturing, distribution and trading of epidemic prevention supplies. As the COVID-19 pandemic is getting better, the Company ceased to operate in the Epidemic prevention supplies business at the beginning of the quarter. The remaining assets of the segment was reclassified into the “Corporate and others” segment. The corresponding items of segment information for the earlier periods was restated to reflect the change of the new segment structure. Selected information in the segment structure is presented in the following tables: Revenues by segment for the three and nine months ended December 31, 2022 and 2021 are as follows: SCHEDULE OF SEGMENT REPORTING FOR REVENUE Revenues from external customers 2022 2021 2022 2021 Three months ended Nine months ended December 31, December 31, Revenues from external customers 2022 2021 2022 2021 Garments manufacturing segment 100,723 25,641 142,010 2,488,173 Logistics services segment 1,213,530 1,719,202 3,826,070 4,144,604 Property management and subleasing 796,343 1,046,627 2,671,379 3,202,956 Total of reportable segments 2,110,596 2,791,470 6,639,459 9,835,733 Corporate and other 11,646 - 13,186 - Total consolidated revenue $ 2,122,242 $ 2,791,470 $ 6,652,645 $ 9,835,733 Intersegment revenue Garments manufacturing segment - - - - Income (loss) from operations by segment for the three and nine months ended December 31, 2022 and 2021 are as follows: SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION 2022 2021 2022 2021 Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 Garments manufacturing segment 7,745 (28,473 ) (48,999 ) 96,275 Logistics services segment 91,147 100,769 363,569 210,878 Property management and subleasing 131,213 14,844 ) 254,934 47,935 Total of reportable segments $ 230,105 $ 87,140 $ 569,504 $ 355,088 Corporate and other (323,072 ) (114,816 ) (546,217 ) (344,327 ) Total consolidated income (loss) from operations (92,967 ) (27,676 ) 23,287 10,761 Total assets by segment as of December 31, 2022 and March 31, 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR ASSETS Total assets December 31, March 31, Garment manufacturing segment $ 1,735,455 $ 1,784,020 Logistics services segment 2,903,654 2,610,469 Property management and subleasing 5,899,871 7,608,997 Total of reportable segments 10,538,980 12,003,486 Corporate and other 21,038,086 1,083,574 Consolidated total assets $ 31,577,066 $ 13,087,060 Geographical Information The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF GEOGRAPHICAL INFORMATION Geographic Information 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Revenues China 2,122,242 2,791,470 6,652,645 9,835,733 Total 2,122,242 2,791,470 6,652,645 9,835,733 December 31, 2022 March 31, Long-Lived Assets - - China 4,297,074 7,397,932 |
LEASE RIGHT-OF-USE ASSET AND LE
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 9 Months Ended |
Dec. 31, 2022 | |
Lease Right-of-use Asset And Lease Liabilities | |
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 13. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2022, with discounted rate of 4.75% The Company leases its head office. The lease period is 5 years 4.5 3 years The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Operating lease cost 902,455 968,170 2,723,514 2,878,730 Short-term lease cost 19,540 20,955 58,955 62,799 Lease Cost $ 921,995 $ 989,125 $ 2,782,469 $ 2,941,529 The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 921,995 $ 989,170 2,782,469 2,941,529 Right-of-use assets obtained in exchange for new operating leases liabilities 159,758 (3,390 ) (332,682 ) 342,457 Weighted average remaining lease term - Operating leases (years) 1.1 2.0 1.1 2.0 Weighted average discount rate - Operating leases 4.75 % 4.75 % 4.75 % 4.75 % The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY Years ending December 31 Lease cost 2023 $ 3,544,349 2024 115,966 2025 67,647 Total lease payments 3,727,962 Less: Interest (179,794 ) Total $ 3,548,168 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 9 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 14. 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) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 6.909 6.341 6.852 6.466 (c) Concentration Risks The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of December 31, 2022 and March 31, 2022. SCHEDULE OF CONCENTRATION RISKS Garment manufacturing segment December 31, 2022 March 31, 2022 Customer A 82.0 % 85.3 % Customer B 9.8 % 11.4 % Customer C 7.8 % Nil Customer D 0.4 % Nil The high concentration as of December 31, 2022 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment December 31, 2022 March 31, 2022 Customer A 20.1 % 19.1 % Customer B 7.7 % 3.9 % Customer C 6.0 % Nil % Customer D 5.5 % 8.2 % Customer E 4.6 % 1.1 % Property management and subleasing segment There is no account receivable for Property management and subleasing segment as of both December 31, 2022 and March 31, 2022. For the three months ended December 31, 2022, one customer from logistics services segment provided more than 10% 11.8% 10% 10.8% 10% 10% 24.8% Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three and nine months ended December 31, 2022 and 2021. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 Garment manufacturing segment Nil % 100.0 % Nil % 99.8 % Logistics services segment 100.0 % 100.0 % 100.0 % 92.2 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % (d) 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 December 31, 2022, the total outstanding borrowings amounted to $ 138,265 955,281 4.84% 6.96% (e) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in the last three quarters of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS On January 4, 2023, Addentax Group Corp. (the “Company”) entered into a Securities Purchase Agreement (the “Securities Purchase Agreement) with certain accredited investors (the “Purchasers”), pursuant to which the Company received a net proceed of $ 15,000,000 ● senior secured convertible notes in the aggregate original principal amount of $ 16,666,666.66 ● warrants to purchase up to 16,077,172 1.25 The transactions contemplated under the Securities Purchase Agreement closed on January 4, 2023. The Company intends to use the proceeds from the issuance of the Convertible Notes and the PIPE Warrants for general corporate purposes. The Convertible Notes bear interest at an interest rate of 5% On January 10, 2023, the Company entered into an amendment (the “Amendment”, and the Original Purchase Agreement, as amended, the “Purchase Agreement”) to the Original Purchase Agreement with each Investor in accordance with the terms of the Original Purchase Agreement. Under the Amendment, the original increase in the authorized shares of the Company from 50,000,000 150,000,000 250,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
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 for the three months ended December 31, 2022. |
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. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY | SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd A company controlled by CEO, Mr. Zhida Hong Bihua Yang A legal representative of Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), a wholly subsidiary of our Company Dewu Huang A legal representative of Shantou Yi Bai Yi Garments Co., Ltd (“YBY”), a wholly-owned subsidiary of our Company Jinlong Huang A spouse of legal representative of Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly owned subsidiary of our Company Huilin Chen A legal representative of Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”), a wholly-owned subsidiary of our Company |
SCHEDULE OF RELATED PARTY TRANSACTION | The Company had the following related party balances as of December 31, 2022 and March 31, 2022: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party December 31, 2022 March 31, 2022 Hongye Financial Consulting (Shenzhen) Co., Ltd. $ - $ 110,242 $ - $ 110,242 Related party borrowings December 31, 2022 March 31, 2022 Zhida Hong (1) $ 903,398 $ 3,297,951 Hongye Financial Consulting (Shenzhen) Co., Ltd. 4,909 - Huilin Chen 724 - Bihua Yang (2) - 31,738 Dewu Huang 1,057,309 212,290 Jinlong Huang 91,482 153,010 $ 2,057,822 $ 3,694,989 (1) Being interest free loan as financial support from Zhida Hong to daily operation of the Company. (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) Being interest free advanced loan as financial support from Dewu Huang for YBY’s daily operation. |
DEBT SECURITIES HELD-TO-MATUR_2
DEBT SECURITIES HELD-TO-MATURITY (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF DEBT SECURITIES HELD TO MATURITY | SCHEDULE OF DEBT SECURITIES HELD TO MATURITY December 31, 2022 March 31, 2022 Debt securities held-to-maturity $ 17,500,000 $ - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF INVENTORIES December 31, 2022 March 31, 2022 Raw materials $ 9,319 $ 184,498 Work in progress 129,328 1,327 Finished goods 116,045 80,771 Total inventories $ 254,692 $ 266,596 |
PREPAYMENTS AND OTHER RECEIVA_2
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES | Prepayments and other receivables consist of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES December 31, 2022 March 31, 2022 Prepayment 18,412 14,046 Deposit 1,349,669 64,653 Receivable of consideration on disposal of subsidiaries 242,139 269,798 Other receivables 3,181,496 226,713 Total Prepayment $ 4,791,716 $ 575,210 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT | Property, plant and equipment consists of the following as of December 31, 2022 and March 31, 2022: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT December 31, 2022 March 31, 2022 Production plant $ 67,948 $ 74,034 Motor vehicles 1,094,285 1,192,296 Office equipment 25,874 28,191 Total gross 1,188,107 1,294,521 Less: accumulated depreciation (512,704 ) (458,102 ) Plant and equipment, net $ 675,402 $ 836,419 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits (18,509 ) 3,457 29,152 35,120 Temporary differences (54,616 ) (30,951 ) (148,387 ) (87,797 ) Permanent difference 9,933 1,444 13,278 1,691 Changes in valuation allowance 71,376 28,259 124,896 68,879 Income tax expense $ 8,184 $ 2,209 18,939 17,893 |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING FOR REVENUE | Revenues by segment for the three and nine months ended December 31, 2022 and 2021 are as follows: SCHEDULE OF SEGMENT REPORTING FOR REVENUE Revenues from external customers 2022 2021 2022 2021 Three months ended Nine months ended December 31, December 31, Revenues from external customers 2022 2021 2022 2021 Garments manufacturing segment 100,723 25,641 142,010 2,488,173 Logistics services segment 1,213,530 1,719,202 3,826,070 4,144,604 Property management and subleasing 796,343 1,046,627 2,671,379 3,202,956 Total of reportable segments 2,110,596 2,791,470 6,639,459 9,835,733 Corporate and other 11,646 - 13,186 - Total consolidated revenue $ 2,122,242 $ 2,791,470 $ 6,652,645 $ 9,835,733 Intersegment revenue Garments manufacturing segment - - - - |
SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION | Income (loss) from operations by segment for the three and nine months ended December 31, 2022 and 2021 are as follows: SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION 2022 2021 2022 2021 Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 Garments manufacturing segment 7,745 (28,473 ) (48,999 ) 96,275 Logistics services segment 91,147 100,769 363,569 210,878 Property management and subleasing 131,213 14,844 ) 254,934 47,935 Total of reportable segments $ 230,105 $ 87,140 $ 569,504 $ 355,088 Corporate and other (323,072 ) (114,816 ) (546,217 ) (344,327 ) Total consolidated income (loss) from operations (92,967 ) (27,676 ) 23,287 10,761 |
SCHEDULE OF SEGMENT REPORTING FOR ASSETS | Total assets by segment as of December 31, 2022 and March 31, 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR ASSETS Total assets December 31, March 31, Garment manufacturing segment $ 1,735,455 $ 1,784,020 Logistics services segment 2,903,654 2,610,469 Property management and subleasing 5,899,871 7,608,997 Total of reportable segments 10,538,980 12,003,486 Corporate and other 21,038,086 1,083,574 Consolidated total assets $ 31,577,066 $ 13,087,060 |
SCHEDULE OF GEOGRAPHICAL INFORMATION | The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF GEOGRAPHICAL INFORMATION Geographic Information 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Revenues China 2,122,242 2,791,470 6,652,645 9,835,733 Total 2,122,242 2,791,470 6,652,645 9,835,733 December 31, 2022 March 31, Long-Lived Assets - - China 4,297,074 7,397,932 |
LEASE RIGHT-OF-USE ASSET AND _2
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Lease Right-of-use Asset And Lease Liabilities | |
SCHEDULE OF LEASE COST | The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Operating lease cost 902,455 968,170 2,723,514 2,878,730 Short-term lease cost 19,540 20,955 58,955 62,799 Lease Cost $ 921,995 $ 989,125 $ 2,782,469 $ 2,941,529 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2022 2021 2022 2021 Three months ended Nine months ended 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 921,995 $ 989,170 2,782,469 2,941,529 Right-of-use assets obtained in exchange for new operating leases liabilities 159,758 (3,390 ) (332,682 ) 342,457 Weighted average remaining lease term - Operating leases (years) 1.1 2.0 1.1 2.0 Weighted average discount rate - Operating leases 4.75 % 4.75 % 4.75 % 4.75 % |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY | The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY Years ending December 31 Lease cost 2023 $ 3,544,349 2024 115,966 2025 67,647 Total lease payments 3,727,962 Less: Interest (179,794 ) Total $ 3,548,168 |
RISKS AND UNCERTAINTIES (Tables
RISKS AND UNCERTAINTIES (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATION RISKS | The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of December 31, 2022 and March 31, 2022. SCHEDULE OF CONCENTRATION RISKS Garment manufacturing segment December 31, 2022 March 31, 2022 Customer A 82.0 % 85.3 % Customer B 9.8 % 11.4 % Customer C 7.8 % Nil Customer D 0.4 % Nil The high concentration as of December 31, 2022 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment December 31, 2022 March 31, 2022 Customer A 20.1 % 19.1 % Customer B 7.7 % 3.9 % Customer C 6.0 % Nil % Customer D 5.5 % 8.2 % Customer E 4.6 % 1.1 % |
SCHEDULE OF PURCHASES FROM SUPPLIERS | The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three and nine months ended December 31, 2022 and 2021. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Nine months ended December 31, December 31, 2022 2021 2022 2021 Garment manufacturing segment Nil % 100.0 % Nil % 99.8 % Logistics services segment 100.0 % 100.0 % 100.0 % 92.2 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % |
SCHEDULE OF RELATED PARTIES REL
SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY (Details) | 9 Months Ended |
Dec. 31, 2022 | |
Zhida Hong [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Zhida Hong |
Relationship with the Company | President, CEO, and a director of the Company |
Hongye Financial [Member]. | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Hongye Financial Consulting (Shenzhen) Co., Ltd |
Relationship with the Company | A company controlled by CEO, Mr. Zhida Hong |
Bihua Yang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Bihua Yang |
Relationship with the Company | A legal representative of Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), a wholly subsidiary of our Company |
Dewu Huang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Dewu Huang |
Relationship with the Company | A legal representative of Shantou Yi Bai Yi Garments Co., Ltd (“YBY”), a wholly-owned subsidiary of our Company |
Jinlong Huang [Member]. | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Jinlong Huang |
Relationship with the Company | A spouse of legal representative of Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly owned subsidiary of our Company |
Huilin Chen [Member]. | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Huilin Chen |
Relationship with the Company | A legal representative of Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”), a wholly-owned subsidiary of our Company |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTION (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Amounts due from related parties | $ 110,242 | ||
Amounts due to related parties | 2,057,822 | 3,694,989 | |
Zhiyong Zhou [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | [1] | 110,242 | |
Hongye Financial Consulting [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 110,242 | ||
Zhida Hong [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | [1] | 903,398 | 3,297,951 |
Hongye Financial [Member]. | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | 4,909 | ||
Huilin Chen [Member]. | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | 724 | ||
Bihua Yang [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | [2] | 31,738 | |
Dewu Huang [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | 1,057,309 | 212,290 | |
Jinlong Huang [Member]. | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | $ 91,482 | $ 153,010 | |
[1]Being interest free loan as financial support from Zhida Hong to daily operation of the Company.[2]Being financial support from Bihua Yang for XKJ’s daily operation. |
SCHEDULE OF DEBT SECURITIES HEL
SCHEDULE OF DEBT SECURITIES HELD TO MATURITY (Details) - USD ($) | Dec. 31, 2022 | Aug. 24, 2022 | Mar. 31, 2022 |
Debt Disclosure [Abstract] | |||
Debt securities held-to-maturity | $ 17,500,000 | $ 17,500,000 |
DEBT SECURITIES HELD-TO-MATUR_3
DEBT SECURITIES HELD-TO-MATURITY (Details Narrative) - USD ($) | Dec. 31, 2022 | Aug. 24, 2022 | Mar. 31, 2022 |
Debt Disclosure [Abstract] | |||
Debt securities | $ 17,500,000 | $ 17,500,000 | |
Debt interest percent | 2.50% |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,319 | $ 184,498 |
Work in progress | 129,328 | 1,327 |
Finished goods | 116,045 | 80,771 |
Total inventories | $ 254,692 | $ 266,596 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Receivables [Abstract] | ||
Prepayment | $ 18,412 | $ 14,046 |
Deposit | 1,349,669 | 64,653 |
Receivable of consideration on disposal of subsidiaries | 242,139 | 269,798 |
Other receivables | 3,181,496 | 226,713 |
Total Prepayment | $ 4,791,716 | $ 575,210 |
SCHEDULE OF PROPERTY PLANT AND
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total gross | $ 1,188,107 | $ 1,294,521 |
Less: accumulated depreciation | (512,704) | (458,102) |
Plant and equipment, net | 675,402 | 836,419 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | 67,948 | 74,034 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | 1,094,285 | 1,192,296 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | $ 25,874 | $ 28,191 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 33,817 | $ 44,164 | $ 102,649 | $ 115,561 |
SHORT-TERM BANK LOAN (Details N
SHORT-TERM BANK LOAN (Details Narrative) | 9 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Aug. 31, 2019 USD ($) | Aug. 31, 2019 CNY (¥) | |
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.84% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 6.96% | ||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 153,172 | ¥ 1,000,000 | |||
Line of credit outstanding value | $ 138,265 | ¥ 955,281 | $ 151,090 | ||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.84% | ||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.90% |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
PRC statutory tax rate | 25% | 25% | 25% | 25% |
Computed expected benefits (expense) | $ (18,509) | $ 3,457 | $ (29,152) | $ 35,120 |
Computed expected benefits (expense) | 18,509 | (3,457) | 29,152 | (35,120) |
Temporary differences | (54,616) | (30,951) | (148,387) | (87,797) |
Permanent difference | 9,933 | 1,444 | 13,278 | 1,691 |
Changes in valuation allowance | 71,376 | 28,259 | 124,896 | 68,879 |
Income tax expense | $ 8,184 | $ 2,209 | $ 18,939 | $ 17,893 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Federal statutory tax rate | 25% | 25% | 25% | 25% |
HSW, DT and YS [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage of preferential value added tax | 13% | |||
Shenzhen Hua Peng Fa Logistic Co., Ltd [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage of preferential value added tax | 3% | 3% | ||
Domestic Tax Authority [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage of value added tax | 13% | |||
Logistic Company [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage of value added tax | 9% | |||
HONG KONG | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Income tax rate | 16.50% | |||
Peoples Republic of China [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Federal statutory tax rate | 25% | |||
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. | |||
Peoples Republic of China [Member] | Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage on enterprise income tax | 5% | 5% | ||
Peoples Republic of China [Member] | Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Percentage on enterprise income tax | 15% | 15% |
SCHEDULE OF SEGMENT REPORTING F
SCHEDULE OF SEGMENT REPORTING FOR REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | $ 2,122,242 | $ 2,791,470 | $ 6,652,645 | $ 9,835,733 |
Garment Manufacturing Segment [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | 100,723 | 25,641 | 142,010 | 2,488,173 |
Garments manufacturing segment | ||||
Logistic Services Segment [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | 1,213,530 | 1,719,202 | 3,826,070 | 4,144,604 |
Property Management And Subleasing [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | 796,343 | 1,046,627 | 2,671,379 | 3,202,956 |
Total Of Reportable Segments [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | 2,110,596 | 2,791,470 | 6,639,459 | 9,835,733 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenue | $ 11,646 | $ 13,186 |
SCHEDULE OF SEGMENT REPORTING_2
SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | $ (92,967) | $ (27,676) | $ 23,287 | $ 10,761 |
Garment Manufacturing Segment [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 7,745 | (28,473) | (48,999) | 96,275 |
Logistic Services Segment [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 91,147 | 100,769 | 363,569 | 210,878 |
Property Management And Subleasing [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 131,213 | 14,844 | 254,934 | 47,935 |
Total Of Reportable Segments [Member]. | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 230,105 | 87,140 | 569,504 | 355,088 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | $ (323,072) | $ (114,816) | $ (546,217) | $ (344,327) |
SCHEDULE OF SEGMENT REPORTING_3
SCHEDULE OF SEGMENT REPORTING FOR ASSETS (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 31,577,066 | $ 13,087,060 |
Garment Manufacturing Segment [Member]. | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,735,455 | 1,784,020 |
Logistic Services Segment [Member]. | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 2,903,654 | 2,610,469 |
Property Management And Subleasing [Member]. | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 5,899,871 | 7,608,997 |
Total Of Reportable Segments [Member]. | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 10,538,980 | 12,003,486 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 21,038,086 | $ 1,083,574 |
SCHEDULE OF GEOGRAPHICAL INFORM
SCHEDULE OF GEOGRAPHICAL INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total | $ 2,122,242 | $ 2,791,470 | $ 6,652,645 | $ 9,835,733 | |
Long-Lived Assets | |||||
CHINA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total | 2,122,242 | $ 2,791,470 | 6,652,645 | $ 9,835,733 | |
China | $ 4,297,074 | $ 4,297,074 | $ 7,397,932 |
SCHEDULE OF LEASE COST (Details
SCHEDULE OF LEASE COST (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | ||||
Operating lease cost | $ 902,455 | $ 968,170 | $ 2,723,514 | $ 2,878,730 |
Short-term lease cost | 19,540 | 20,955 | 58,955 | 62,799 |
Lease Cost | $ 921,995 | $ 989,125 | $ 2,782,469 | $ 2,941,529 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | ||||
Operating cash flow from operating leases | $ 921,995 | $ 989,170 | $ 2,782,469 | $ 2,941,529 |
Right-of-use assets obtained in exchange for new operating leases liabilities | $ 159,758 | $ (3,390) | $ (332,682) | $ 342,457 |
Weighted average remaining lease term - Operating leases (years) | 1 year 1 month 6 days | 2 years | 1 year 1 month 6 days | 2 years |
Weighted average discount rate - Operating leases | 4.75% | 4.75% | 4.75% | 4.75% |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY (Details) | Dec. 31, 2022 USD ($) |
Lease Right-of-use Asset And Lease Liabilities | |
2023 | $ 3,544,349 |
2024 | 115,966 |
2025 | 67,647 |
Total lease payments | 3,727,962 |
Less: Interest | (179,794) |
Total | $ 3,548,168 |
LEASE RIGHT-OF-USE ASSET AND _3
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Details Narrative) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average discount rate leases | 4.75% | 4.75% |
Plant and Dormitory [Member] | ||
Lease period | 4 years 6 months | |
Floors in Commercial Duilding [Member] | ||
Lease period | 3 years | |
Head Office [Member] | ||
Lease period | 5 years |
SCHEDULE OF CONCENTRATION RISKS
SCHEDULE OF CONCENTRATION RISKS (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Customer A [Member] | Garment Manufacturing Segment [Member]. | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 82% | 85.30% |
Customer A [Member] | Logistics Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20.10% | 19.10% |
Customer B [Member] | Garment Manufacturing Segment [Member]. | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 9.80% | 11.40% |
Customer B [Member] | Logistics Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.70% | 3.90% |
Customer C [Member] | Garment Manufacturing Segment [Member]. | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.80% | |
Customer C [Member] | Logistics Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6% | |
Customer D [Member]. | Garment Manufacturing Segment [Member]. | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 0.40% | |
Customer D [Member]. | Logistics Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.50% | 8.20% |
Customer E [Member]. | Logistics Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.60% | 1.10% |
SCHEDULE OF PURCHASES FROM SUPP
SCHEDULE OF PURCHASES FROM SUPPLIERS (Details) - Five Largest Suppliers [Member] | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Garment Manufacturing Segment [Member]. | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | 100% | 99.80% | ||
Logistic Services Segment [Member]. | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | 100% | 100% | 100% | 92.20% |
Property Management And Subleasing [Member]. | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | 100% | 100% | 100% | 100% |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 | Mar. 31, 2022 | |
Concentration Risk [Line Items] | ||||||
Translated exchange rates | 0.06909 | 0.06909 | 0.06909 | 0.06341 | ||
Revenue and expenses translated average exchange rates | 0.06852 | 0.06852 | 0.06466 | |||
Outstanding borrowings | $ 138,265 | ¥ 955,281 | ||||
Minimum [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Line of credit facility, interest rate | 4.84% | 4.84% | ||||
Maximum [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Line of credit facility, interest rate | 6.96% | 6.96% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member]. | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 10% | 10% | 10% | 10% | ||
Revenue, percentage | 11.80% | 10.80% | 10.80% | 24.80% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 10% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) | Jan. 10, 2023 | Jan. 04, 2023 | Jan. 09, 2023 |
Subsequent Event [Line Items] | |||
Convertible note aggregated principal amount | $ 16,666,666.66 | ||
No of aditional shares increased | 250,000,000 | ||
Convertible Notes Payable [Member] | |||
Subsequent Event [Line Items] | |||
Convertible notes interest rate | 5% | ||
Maximum [Member] | |||
Subsequent Event [Line Items] | |||
No of shares authorized | 150,000,000 | ||
Minimum [Member] | |||
Subsequent Event [Line Items] | |||
No of shares authorized | 50,000,000 | ||
Warrant [Member] | |||
Subsequent Event [Line Items] | |||
Warrant price per share | $ 1.25 | ||
Warrant [Member] | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Warrents to common stock, shares | 16,077,172 | ||
Securities Purchase Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Received net proceed of consideration | $ 15,000,000 |