As filed with the Securities and Exchange Commission on August 5, 2015

May 13 , 2019

Registration No. 333-_____333- 230943




UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,

WASHINGTON, D.C. 20549

 

FORM S-1


/A

(Amendment No. 1)

REGISTRATION STATEMENT

UNDER THE SECURITIES ACT OF 1933


 

ADDENTAX GROUP CORP.

(NameExact name of small business issuerregistrant as specified in its charter)


Nevada3990399035-2521028

(State or Other Jurisdictionother jurisdiction of Incorporation

incorporation or Organization)organization)

(Primary Standard Industrial

Classification Code Number)

(IRSI.R.S. Employer

Identification Number)

Kingkey 100, Block A, Room 5403

Luohu District, Shenzhen City, China 518000

+ (86) 755 8233 0336

70, Av Allal Ben Abdellah,
Fes, Morocco, 30000
Phone +17026606161
E-mail addentax@gmail.com
(Address, including zip code, and telephone number,

including area code, of registrant'sregistrant’s principal executive offices)


Business Filings Incorporation

311Incorporated

701 S DivisionCarson Street, Suite 200

Carson City, NV 89703

Nevada 89701

Tel: 1- 608-827-5300

(608) 827-5300

(Address,Name, address, including zip code, and telephone number,

including area code, of agent for service)service of process)

Copies To:

Mitchell S. Nussbaum, Esq.

Lawrence Venick, Esq.

Loeb & Loeb LLP

345 Park Avenue

New York, NY 10154

Telephone: (212) 407-4000

Fang Liu, Esq.

Mei & Mark LLP

818 18th Street NW, Suite 410

Washington, DC 20006

Telephone: (202) 567-6417


COPIES OF COMMUNICATIONS TO:

Stepp Law Corporation
15707 Rockfield Boulevard, Suite 101
Irvine, California 92618
Phone: (949) 660-9700 ext. 124
Fax: (949) 660-9010

Approximate date of commencement of proposed sale to the public:As soon as practicable after this Registration Statement becomesis declared effective.


If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 please check the following box: [X]


If this formForm is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering:offering. [  ]


If this formForm is a post-effective registration statementamendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering:offering. [  ]


If this formForm is a post-effective registration statementamendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering:offering. [  ]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of “largelarge accelerated filer,“accelerated filer”accelerated filer,” “smaller reporting company and “smaller reporting company”emerging growth company in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filero [  ]Accelerated filero [  ]

Non-accelerated filer

o [  ]

Smaller reporting companyx [X]
(Do not check if a smaller reporting company)Emerging growth company [X]
Securities to be Registered 
Amount to be
Registered
  
Offering
Price Per
Share (1)
  
Aggregate
Offering Price
  
Registration
Fee
 
             
Common Stock  3.000 000  $0.03  $90.000  $10.46 
(1) Estimated solely

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for the purpose of calculating the registration fee pursuantcomplying with any new or revised financial accounting standards provided to Rule 457(a)Section 7(a)(2)(B) of the Securities Act.


[  ]

CALCULATION OF REGISTRATION FEE

Title of Each Class of Security Being Registered Amount to be Registered  Proposed Maximum Offering Price  Proposed Maximum Aggregate Offering Price (1)  Amount of Registration Fee 
             
Common Stock, $0.001 par value (2)       $20,000,000  $2,424.00 
Common Stock, $0.001 par value (3)  2,364,837  $89.75  $212,244,121  $25,723.99 
Placement Agent Warrants (4)            
Common Stock Underlying Placement Agent Warrants (5)       $2,000,000  $242.40
Total       $234,244,121  $28,390.39(6)

(1)Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.
(2)Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price.
(3)This Registration Statement also covers the resale under a separate resale prospectus (the “Resale Prospectus”) by selling stockholders of the Registrant of up to 2,364,837 shares of common stock previously issued to the selling stockholders as named in the Resale Prospectus. Estimated solely for purposes of calculating the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, using the average of the high and low prices of the Registrant’s common stock reported by the OTCQB Marketplace on April 17, 2019.
(4)No fee is required pursuant to Rule 457(g) under the Securities Act. Resales of the placement agent warrants on a delayed or continuous basis pursuant to Rule 415 under the Securities Act are registered hereby.
(5)Resales of shares of common stock issuable upon exercise of the placement agent warrants on a delayed or continuous basis pursuant to Rule 415 under the Securities Act are also registered hereby.
(6)Previously paid.

The registrant hereby amends this registration statementRegistration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statementRegistration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until the registration statementRegistration Statement shall become effective on such date as the Securities and Exchange Commission acting pursuant to said Section 8(a), may determine.



 



PROSPECTUS

THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THESE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED. THERE IS NO MINIMUM PURCHASE REQUIREMENT FOR THE OFFERING TO PROCEED.
ADDENTAX GROUP CORP.
3,000,000 SHARES OF COMMON STOCK
$0.03 PER SHARE

EXPLANATORY NOTE

This is the initialRegistration Statement contains two prospectuses, as set forth below.

Public Offering Prospectus. A prospectus to be used for the public offering of a minimum of 1,000,000 and a maximum of 4,000,000 shares of common stock of the Registrant (the “Public Offering Prospectus”) through the placement agent named on the cover page of the Public Offering Prospectus.
Resale Prospectus. A prospectus to be used for the resale by the selling stockholders set forth therein of 2,364,837 shares of common stock of the Registrant (the “Resale Prospectus”).

The Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:

they contain different outside and inside front covers and back covers;
they contain different Offering sections in the Prospectus Summary section beginning on page 2;
they contain different Use of Proceeds sections on page 20;
a Selling Stockholder section is included in the Resale Prospectus;
the Plan of Distribution section from the Public Offering Prospectus on page 56 is deleted from the Resale Prospectus and a Selling Stockholder Plan of Distribution is inserted in its place; and
the Legal Matters section in the Resale Prospectus on page 61 deletes the reference to counsel for the placement agent.

The Registrant has included in this Registration Statement a set of alternate pages after the back cover page of the Public Offering Prospectus (the “Alternate Pages”) to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale offering by the selling stockholders.

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED MAY 13, 2019

PRELIMINARY PROSPECTUS

Addentax Group Corp.

MINIMUM OFFERING: 1,000,000 Shares of Common Stock

MAXIMUM OFFERING: 4,000,000 Shares of Common Stock

Addentax Group Corp. and no public market currently exists for the securities being offered.  We areis offering for sale a totalminimum of 3,000,0001,000,000 shares of common stock, atpar value $0.001 per share, and a fixedmaximum of 4,000,000 shares of common stock. We currently expect the public offering price to be $ 5.00 per share. The offering is being made on a “best efforts” basis without a firm commitment by the placement agent who has no obligation or commitment to purchase any of $0.03our shares. The placement agent must sell the minimum number of shares offered ( 1,000,000 shares of common stock), if any are sold, and are only required to use their best efforts to sell the shares offered. See “Plan of Distribution.”

This offering will terminate 180 days from the date of this prospectus (the “Termination Date”), unless extended by our board of directors for an additional 90 days, although we may close the offering on any date prior to the Termination Date, if the offering is fully subscribed or upon the vote of the board of directors. Reasons the board may consider in determining whether to extend or terminate the offering may include, but are not limited to, the amount of funds raised, the potential to raise additional capital, and the response to the offering as of that date.

We are a reporting company under Section 15(d) of the Securities Exchange Act of 1934, as amended. Our common stock is currently quoted on the OTCQB Marketplace (the “OTCQB”) under the symbol “ATXG.” The closing price for our common stock on May 10 , 2019, was $89.75 per share. There is no minimum numbera limited public trading market for our common stock. We are applying to list our common stock on the Nasdaq Capital Market under the symbol “ATXG.”

Investing in our securities involves risks. You should carefully consider the risk factors beginning on page 8 of shares that must be soldthis prospectus and set forth in the documents incorporated by usreference herein before making any decision to invest in our securities.

   

Offering Price Per Share

($)

  

Commission

per

Share(1)(2)

   Net Proceeds
to Addentax
($)
 

Minimum Offering ( 1,000,000 shares)

  5.00   0.30   

4,700,000

 

Maximum Offering ( 4,000,000 shares)

  5.00   0.30   

18,800,000

 

(1)

Does not include a non-accountable expense allowance equal to 1.5% of the gross proceeds of this offering, payable to Network 1 Financial Securities, Inc., the placement agent. See “Plan of Distribution” beginning on page 56 of this prospectus for additional information regarding total placement agent compensation. It also does not include our expected cash expense for this offering to be approximately $ 521,028, exclusive of the above commissions.

(2)We and the placement agent have agreed to pay commissions of 6.0% per share (or $ 0.30 per share).

In addition to the offeringplacement agent commissions listed above and the non-accountable expense allowance described in the footnote, we have agreed to proceed, and we will retainissue share purchase warrants, exercisable commencing 180 days immediately following the proceeds from the saledate of anyeffectiveness of the offered shares. Theregistration statement of which this prospectus forms a part or the commencement of sales in this offering is being conducted on a self-underwritten, best efforts basis, which means our President, Otmane Tajmouati, will attempt to sell the shares. This Prospectus will permit our President to sell the shares directly to the public, with no commission or other remuneration payable to him for any shares he may sell.  In offering the securities on our behalf, he will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities and Exchange Act of 1934. 


The shares will be offered at a fixed price of $0.03 per share for a period of two hundred and forty (240) days from the effective date of this prospectus. The offering shall terminate on the earlier of (i) when the offering period ends (240 days from the effective date of this prospectus), (ii) the date when the sale of all 3,000,000 shares is completed, (iii) when the Board of Directors decides that it is in the best interest of the Company to terminate the offering prior the completion of the sale of all 3,000,000 shares registered under the Registration Statement of which this Prospectus is part. 

Addentax Group Corp. is a development stage company that has limited operations.  To date we have been involved primarily in organizational activities. We do not have sufficient capital for operations. For the period from October 28, 2014 (inception) to March 31, 2015 we had generated limited revenues of $1,080 and nominal income of $161. Any investment in the shares offered herein involves a high degree of risk.  You should only purchase shares if you can afford a loss of your investment.  Our independent registered public accountant has issued an audit opinion for Addentax Group Corp., which includes a statement expressing substantial doubt as to our ability to continue as a going concern.

We are a “shell company” within the meaning of Rule 405, promulgated pursuant to Securities Act, because we have nominal assets and nominal operations. Accordingly, the ability of holders of our common stock to re-sell their shares may be limited by applicable regulations. Specifically, the securities sold through this offering can only be resold through registration under the Securities Act of 1933, pursuant to Section 4(1) of the Securities Act, or by meeting the conditions of Rule 144(i) under the Securities Act. For us to cease being a “shell company” we must have more than nominal operations and more that nominal assets or assets which do not consist solely of cash or cash equivalents.
There has been no market for our securities and a public market may never develop, or, if any market does develop, it may not be sustained. Our common stock is not traded on any exchange or on the over-the-counter market. Afterfive years after the effective date of the offering, to purchase shares of common stock equal to 10% of the total number of shares sold in this offering and may be exercisable at a per share price equal to 120% of the public offering price (the “Placement Agent Warrants”). The registration statement relating toof which this prospectus we hope to haveis a market maker file an applicationpart also covers the Placement Agent. Warrants and the shares of common stock issuable upon the exercise thereof. For additional information regarding our arrangement with the Financial Industry Regulatory Authority (“FINRA”placement agent, please see “Plan of Distribution” beginning on page 56.

Until we sell at least 1,000,000 shares of common stock, all investor funds will be held in an escrow account at Continental Stock Transfer & Trust, New York, New York, as agent, for the benefit of the investors. If we do not sell at least 1,000,000 shares of common stock by ______________ , 2019 , all funds will be returned to investors without interest or deduction promptly after the Termination Date. If we complete this offering, net proceeds will be promptly delivered to us on the closing date. Affiliates of the company and affiliates and associated persons of the placement agent may invest in this offering on the same terms and conditions as the public investors participating in this offering, and any shares of common stock purchased will make up a portion of the minimum offering needed to complete this offering.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The placement agent expects to deliver the shares of common stock to purchasers on                       , 2019.

The date of this prospectus is               , 2019

TABLE OF CONTENTS

Page
About This Prospectus1
Prospectus Summary2
The Offering5
Summary Financial and Other Data6
Forward-Looking Statements7
Risk Factors8
Use of Proceeds20
Capitalization21
Dilution23
Market for Common Equity and Related Stockholder Matters24
Selected Historical Financial and Operating Data25
Management’s Discussion and Analysis of Financial Condition and Results of Operations26
Description of Business41
Directors and Executive Officers46
Executive Compensation50
Certain Relationships and Related Party Transactions51
Security Ownership of Certain Beneficial Owners and Management52

Description of Capital Stock

53
Shares Eligible for Future Sale55
Plan of Distribution56
Experts61
Where You Can Find More Information61
Financial StatementsF-1

-i-

ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC” or the “Commission) for. You should rely only on the information contained in this prospectus or any supplement or amendment hereto. We and the placement agent have not authorized any person to provide you with different information. We and the placement agent are not offering to sell, or seeking an offer to buy, our common stock in any jurisdiction where such offer or sale is not permitted. You should assume that the information contained in this prospectus and any supplement or amendment hereto is accurate only as of their respective dates, regardless of the time of delivery of this prospectus or of any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date. On February 27 , we effected a 1-for-20 reverse split on our shares of common stock and the proportional reduction of our total authorized shares of common stock from 506,920,000 shares to 25,346,004 shares.

You should read this prospectus, together with additional information described under “Where You Can Find More Information”, beginning on page 61, before making an investment decision.

The market data and certain other statistical information used throughout this prospectus is based on independent industry publications, reports by market research firms or other independent sources that we believe to be eligiblereliable sources. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We are responsible for trading onall of the Over-the-Counter Bulletin Board or other quotation service. To be eligible for quotation, issuers must remain currentdisclosure contained in their quarterlythis prospectus, and annual filings with the SEC. Ifwe believe these industry publications and third-party research, surveys and studies are reliable. While we are not ableaware of any misstatements regarding any third-party information presented in this prospectus, their estimates, in particular, as they relate to payprojections, involve numerous assumptions, are subject to risks and uncertainties, and are subject to change based on various factors. Some market and other data included herein, as well as the expenses associated withdata of competitors as they relate to Addentax Group Corp., is also based on our reporting obligations we will not be ablegood faith estimates.

Unless the context otherwise requires, all references in this prospectus to:

we,” “us,” “our,” the “Registrant”, the “Company,” and “Addentax” refer to Addentax Group Corp. and its subsidiaries;
Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
SEC” or the “Commission” refers to the United States Securities and Exchange Commission;
Securities Act” refers to the Securities Act of 1933, as amended;
China,” “Chinese” or the “PRC” refers to the People’s Republic of China, excluding, for the purposes of this prospectus only, Hong Kong, Macau and Taiwan;
all references to “RMB” or “Chinese Yuan” is to the legal currency of the People’s Republic of China; and
all references to “U.S. dollars,” “dollars,” “USD” or “$” are to the legal currency of the United States;

Unless otherwise noted, all translations from Chinese Yuan to apply for quotation onU.S. dollars using the OTC Bulletin Board or other quotation service. We do not yet have a market maker who has agreedexchange rate refers to file such application. There can be no assurance that our common stock will ever bethe exchange rate quoted on a stock exchangehttp://www.oanda.com on December 31, 2018, which was RMB 6.8761 to USD$1.00. We make no representation that the Chinese Yuan amounts referred to in this prospectus could have been or a quotation servicecould be converted into U.S. dollars at any particular rate or that any market for our stock will develop.

at all.


THE PURCHASE OF THE SECURITIES OFFERED THROUGH THIS PROSPECTUS INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD CAREFULLY READ AND CONSIDER THE SECTION OF THIS PROSPECTUS ENTITLED “RISK FACTORS” ON PAGES 4 THROUGH 9 BEFORE BUYING ANY SHARES OF ADDENTAX GROUP CORP.’S COMMON STOCK.

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

SUBJECT TO COMPLETION, DATED _____________, 2015



TABLE OF CONTENTS
-1-
PROSPECTUS SUMMARY3
RISK FACTORS4
FORWARD-LOOKING STATEMENTS9
USE OF PROCEEDS9
DETERMINATION OF OFFERING PRICE10
DILUTION10
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS12
DESCRIPTION OF BUSINESS15
LEGAL PROCEEDINGS18
DIRECTORS, EXECUTIVE OFFICERS, PROMOTER AND CONTROL PERSONS18
EXECUTIVE COMPENSATION19
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS20
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT20
PLAN OF DISTRIBUTION21
DESCRIPTION OF SECURITIES22
INDEMNIFICATION 23
INTERESTS OF NAMED EXPERTS AND COUNSEL23
EXPERTS23
LEGAL MATTERS23
AVAILABLE INFORMATION23
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE24
INDEX TO THE FINANCIAL STATEMENTS25

WE HAVE NOT AUTHORIZED ANY DEALER, SALESPERSON OR OTHER PERSON TO GIVE ANY INFORMATION OR REPRESENT ANYTHING NOT CONTAINED IN THIS PROSPECTUS. YOU SHOULD NOT RELY ON ANY UNAUTHORIZED INFORMATION. THIS PROSPECTUS IS NOT AN OFFER TO SELL OR BUY ANY SHARES IN ANY STATE OR OTHER JURISDICTION IN WHICH IT IS UNLAWFUL. THE INFORMATION IN THIS PROSPECTUS IS CURRENT AS OF THE DATE ON THE COVER. YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS PROSPECTUS.

2


PROSPECTUS SUMMARY

AS USED IN THIS PROSPECTUS, UNLESS THE CONTEXT OTHERWISE REQUIRES, “WE,

This summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before investing in our securities, you should carefully read this entire prospectus, especially the risks of investing in our securities as discussed under “Risk Factors“US,” “OUR,” AND “ADDENTAX GROUP CORP.” REFERS TO ADDENTAX GROUP CORP. THE FOLLOWING SUMMARY DOES NOT CONTAIN ALL OF THE INFORMATION THAT MAY BE IMPORTANT TO YOU.  YOU SHOULD READ THE ENTIRE PROSPECTUS BEFORE MAKING AN INVESTMENT DECISION TO PURCHASE OUR COMMON STOCK.

ADDENTAX GROUP CORP.
and the financial statements and notes thereto herein. The following summary is qualified in its entirety by the detailed information appearing elsewhere in this prospectus.

Overview

We are a developmentgarment manufacturer and logistics service provider based in China. Our garment manufacturing business consists of sales made principally to wholesalers located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines which we believe ensures that we meet our high quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through two wholly-owned subsidiaries, Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), and Shantou Chenghai Dai Tou Garments Co., Ltd (“DT”), which are located in the Guangdong province, China.

Our logistic business consists of delivery and courier services covering approximately seven provinces in China. Although we have our own motor vehicles and drivers, we currently outsource some of the business to our contractors. We believe outsourcing allows us to maximize our capacity and maintain flexibility while reducing capital expenditures and the costs of keeping drivers during slow seasons. We conduct our logistic operations through two wholly-owned subsidiaries, Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), and Shenzhen Hua Peng Fa Logistic Co., Ltd (“HPF”), which are located in the Guangdong province, China.

Competitive Strengths

We believe we have the following competitive strengths:

Cost-effective production. We have adopted a vertical integration production process. We produce garments in our own production facilities and employ our in-house transport teams to deliver garments to our customers. This one-stop service optimizes production efficiency and saves costs by lowering the cost per unit, thereby achieving economies of scale.

Stringent quality control process. As of March 31, 2019, we had 15 employees in the production department that are responsible for conducting our quality control process. We implement a stringent quality control process which monitors various stages of our garment manufacturing business, including sampling checks of semi-finished products and finished products. We prepare inspection reports to address the quality problems and make recommendations to improve the quality of our products. During final product inspection, we pay special attention to the measurements, workmanship, ironing and packaging of our products to help best ensure that the quality of our products comply with the specifications, standards and requirements of our customers.

Strong design capabilities. Our design team works closely with our customers to understand their needs and make recommendations to them. Our design team also conducts market research and attend industry exhibitions to understand the latest market trends. As of March 31, 2019, our design team consisted of 4 members.

Extensive delivery network. Our logistics business has nine routes and covers 66 cities in seven provinces and two municipalities in the PRC.

Our Strategies

Key elements of our business and growth strategies include the following:

-2-

Sales of raw materials. We intend to enter into exclusive agreements with textile and garment suppliers in Southeast China to be their exclusive agent and supply their textiles and garments to our customers. To execute this plan, we intend to set up several retailers for the sales of textiles and garments to retail customers and supply the textiles and garments exclusively to various high-end fashion brands.

Develop our own brands.We intend to develop our own brands that focus on fast fashion with teenagers being our primary target customers. We plan to adopt a low cost strategy at the early stage company, whichand improve the quality of our products after increasing our market share. We are in the process of registering a trademark for our own brand and intend to start our advertising campaign after the registration of this trademark. We plan to distribute our products in different channels, including our own retailers, co-operative retailers and franchisees.

Expand our delivery network. As of March 31, 2019, we provided logistics services to over 66 cities in seven provinces and two municipalities in the PRC. We plan to open our logistic points in 20 more cities in the PRC in the third and fourth quarters of 2019.

Develop international logistics services and warehousing services.We intend to develop international logistics services for customers located all over the world and international warehousing services.

Our Corporate Structure

 

-3-

Risks Related to Our Business

Our ability to implement our business strategy is working onsubject to numerous risks and uncertainties that you should be aware of before making an investment decision. We face many risks inherent in our business and our industry generally. You should carefully consider all of the field of producing images on multiple surfaces using heat transfer technology. information set forth in this prospectus and, in particular, the information under the heading “Risk Factors,” prior to making an investment in our common stock. These risks include, among others, the following:

Our success depends on our customer’s ability to market and sell their products manufactured by us.
Our future expansion plans are subject to uncertainties and risks.
Future price increases in raw materials or changes in the supply of raw materials may materially and adversely affect our business, financial condition and results of operations.
Any labor shortages, increased labor costs or other factors affecting labor supply for our production materials may materially and adversely affect our business operations.
If we are unable to attract additional customers and clients to purchase our services (and future products we may develop or sell) it will have a negative effect on our ability to generate the revenue.

Corporate Information

Addentax Group Corp. was incorporated in the State of Nevada on October 28, 2014. We intend to use the net proceeds from this offering to develop our business operations (See “Descriptionhave a fiscal year-end of Business” and “Use of Proceeds”). To implement our plan of operations we require a minimum of $30,000 for the next twelve months as described in our Plan of Operations. The amount of funds necessary to implement our plan of operations cannot be predicted with any certainty and may exceed any estimates we set forth. However, there is no assurance that we will generate significant revenue in the first twelve months after completion our offering.


Being a development stage company, we have very limited operating history. After twelve months period we may need additional financing. If we do not generate significant revenues we may need a minimum of $10,000 of additional funding to pay for ongoing SEC filing requirements. The Company has an arrangement for additional financing from our sole officer and director Otmane Tajmouati dated March 2, 2015 for a period of one year. This agreement is filed in Exhibit 10.1 to the Registration Statement of which this Prospectus forms a part.31. Our principal executive office isoffices are located at 70, Av Allal Ben Abdellah, Fes, Morocco 30000. Our phoneKingkey 100, Block A, Room 5403, Luohu District, Shenzhen City, China 518000 and our telephone number is +17026606161.

From inception until the date+ (86) 755 8233 0336. We maintain a website at www.addentax.com. The information contained on our website is not, and should not be interpreted to be, a part of this filing, we have had limited operating activities. Our financial statements from inception (October 28, 2014) through March 31, 2015, show limited revenuesprospectus.

-4-

THE OFFERING

The offering is being made on a “best efforts, minimum/maximum” basis. The offering is being made without a firm commitment by the placement agent, who has no obligation or commitment to purchase any of $1,080 and nominal income of $161. Our independent registered public accounting firm has issued an audit opinion for Addentax Group Corp., which includes a statement expressing substantial doubt as to our ability to continue as a going concern. To date, we have developed our business plan, purchased one unit of equipment, signed a Contract for the sale of goods with Derb il Horra dated February 3, 2015, the Company has earned $1,080 from Derb il Horra for the provision of printed products and entered into a Lease Agreement was signed with Samir Mustafajev for office space for a period of half a year signed December 15, 2015 and commenced March 1, 2015.


Asshares. The closing of the dateoffering and delivery of this prospectus, therethe shares is expected to occur no public trading market for ourlater than _______________ , 2019 . See “Plan of Distribution.” The placement agent must sell the minimum number of shares offered ( 1,000,000 shares of common stockstock), if any are sold, and no assurance that a trading market for our securitiesare only required to use their best efforts to sell the shares offered. If the placement agents d oes not sell the minimum number of shares, the offering will ever develop. The Company is publicly offering its shares to raise funds in order for our business to develop its operations and increase its likelihood of commercial success. Our sole officer and director will only be devoting approximately 75% of his time a week to our operations, because of his other family and life interests. Otmane Tajmouati has agreed to devote more time to the Company’s operation if it is required. As a result, our operations may be sporadic and occur at times, which are convenient to our sole officer and director.

THE OFFERING

terminated on               , 2019.

The Issuer:Common Stock Being OfferedADDENTAX GROUP CORP.

Minimum: 1,000,000 shares

Maximum: 4,000,000 shares

  
Securities Being Offered:Shares of Common Stock Outstanding Before this Offering3,000,00025,346,004 shares of common stock.
  
Price Per Share:Shares of Common Stock Outstanding After this Offering$0.03

Minimum: 26,346,004 shares

Maximum: 29,346,004 shares

  
DurationOffering Price Per Share$ 5.00 per share
Use of ProceedsOur net proceeds from this offering, assuming the Offering:minimum number of shares of common stock offered ( 1,000,000 shares) is sold are expected to be approximately $ 4,700,000 , and assuming the maximum number of shares of common stock offered ( 4,000,000 shares) is sold are expected to be approximately $ 18,800,000 , each at the public offering price of $ 5.00 . We intend to use the net proceeds from this offering for the purchase and sale of raw materials and developing our own brands, including working capital and general corporate purposes. See “Use of Proceeds” on page 20.
Best Efforts

The placement agent is selling our common stock on a “best efforts” basis. Accordingly, the placement agent has no obligation or commitment to purchase any common stock. The placement agent is not required to sell any specific number or dollar amount of common stock but will use its best efforts to sell the common stock offered.

We do not intend to close this offering unless we sell at least a minimum number of shares will beof common stock, at the price per share set forth on the cover page of this prospectus, to result in sufficient proceeds to list our common stock on the Nasdaq Capital Market.

Offering Period

The common stock is being offered for a period of two hundred and forty (240)180 days fromcommencing on the effective date of this prospectus.prospectus, unless extended by our board of directors for an additional 90 days. If the minimum offering amount is not raised within such time period, all subscription funds from the escrow account will be returned to investors promptly by noon of the next business day after the Termination Date without interest or deduction of fees. The offering shallmay close or terminate, as the case may be, on the earlier of (i) whenany time after the minimum offering period ends (240amount of our common stock is raised, or (ii) 180 days from the effective date of this prospectus), (ii)prospectus, unless extended by our board of directors for an additional 90 days, although we retain the date when the sale of all 3,000,000 shares is completed, (iii) when the Board of Directors decides that it is in the best interest of the Companyright to terminate the offering prior to the completionexpiration of the sale of all 3,000,000 shares registered under the Registration Statement of which this Prospectus is part. 

Gross Proceeds of all of shares are sold:$90,000
Gross Proceeds of two third of shares are sold:$60,000
Gross Proceeds of one third of shares are sold:$30,000
Furthermore, the Company may not sell any shares. In this instance, we, will not receive any proceeds from this offering.
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Securities Issued and Outstanding:There are 3,000,000 shares of common stock issued and outstanding as of the date of this prospectus, held by our sole officer and director, Otmane Tajmouati
Subscriptions:All subscriptions once accepted by us are irrevocable.
Registration Costs:We estimate our total offering registration costs to be approximately $7,000.
Risk Factors:See “Risk Factors” and the other information in this prospectus for a discussion of the factors you should consider before deciding to invest in shares of our common stock.

SUMMARY FINANCIAL INFORMATION
The tables and information below are derived from our audited financial statements for the period from October 28, 2014 (Inception) to March 31, 2015: 

Financial Summary

March 31, 2015 ($)180-day period.

  (Audited) 
Cash and cash equivalents

Escrow

 6,990
Total Assets11,289
Total Liabilities8,128
Total Stockholder’s Equity3,161

Statement of Operations

Accumulated From
October 28, 2014
(Inception)

Unless sooner withdrawn or cancelled by either us or the placement agent, the offering will continue through _________ , 2019 . Until we sell at least 1,000,000 shares of common stock, all investor funds will be held in a non-interest bearing escrow account at Continental Stock Transfer & Trust, as agent, for the benefit of the investors. If we do not sell at least 1,000,000 shares of common stock by ________________ 2019, unless we determine to

March 31, 2015 ($)
extend the offering, all funds will be promptly returned to investors after the termination without interest or deduction. If we complete this offering, net proceeds will be promptly delivered to us on the closing date. See “Plan of Distribution — Escrow Agent and Deposit of Offering Proceeds.”

  (Audited)
Proposed NASDAQ trading symbol“ATXG”

Lock-Up Agreements

“See “Plan of Distribution” for more information.

 
Total revenueRisk Factors 1,080
Total operating expenses891
Net Income161
Net Income per Share0.00*

* Denotes income of less than $0.01 per share.

RISK FACTORS
An investment in our common stock involves a high degree of risk. Before making an investment decision, investors should carefully consider the “Risk Factors” discussed beginning on page 8.OTCQB Market Symbol

“ATXG��

The number of shares of our common stock to be outstanding after this offering is based on 25,346,004 shares outstanding as of May 13 , 2019.

Unless otherwise indicated, all information in this prospectus gives effect to a 1-for-20 reverse stock split of our common stock effected on February 27, 2019.

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SUMMARY FINANCIAL AND OTHER DATA

The following tables set forth our summary historical financial data for the periods presented. The following summary financial data for the years ended March 31, 2018 and 2017 are derived from our audited financial statements appearing elsewhere in this prospectus. The following summary financial data for the nine-month periods ended December 31, 2018 and 2017 and the selected balance sheet data as of December 31, 2018 are derived from our unaudited financial statements appearing elsewhere in this prospectus.

This summary financial data should be read together with the historical financial statements and related notes to those statements, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which are included elsewhere in this prospectus.

  As of March 31, 
  2018  2017 
       
Balance Sheet Data:        
Cash and cash equivalents $264,806  $176,905 
Prepayments, Deposits and Other Receivable  6,129,762   6,777,748 
Total Assets  7,518,111   8,547,518 
Total Current Liabilities  8,623,045   8,791,500 
Total Liabilities  8,623,045   8,791,500 
Total Stockholders’ equity (deficit)  (1,104,934)  (243,983)

  Years Ended
March 31,
 
  2018  2017 
Statements of Operations Data:      
Revenues $13,437,569  $5,335,501 
         
Operating expenses        
Selling, General and Administrative Expenses  (1,585,836)  (595,334)
Depreciation  (111,740)  (34,905)
Total operating expenses  (1,697,576)  (630,239)
Loss from Operations  (255,954)  (374,221)
         
Loss before provision for income taxes  (690,054)  (358,225)
         
Net Loss $(709,396) $(371,802)
         
Net income per common share        
Basic* $0.00  $0.00 
Diluted* $0.00  $0.00 

  As of December 31, 
  2018  2017 
       
Balance Sheet Data:        
Cash and cash equivalents $356,969  $146,365 
Prepayments, Deposits and Other Receivable  2,777,080   8,248,026 
Total Assets  4,260,405   9,979,510 
Total Current Liabilities  5,811,303   10,364,081 
Total Liabilities  5,811,303   10,364,081 
Total Stockholders’ equity(deficit)  (1,550,898)  (384,571)

  Nine-Months Ended
December 31,
 
  2018  2017 
Statements of Operations Data:      
Revenues $8,108,408  $10,677,416 
         
Operating expenses        
Selling, General and Administrative Expenses  (1,515,952)  (1,153,594)
Depreciation  (88,434)  (84,535)
Total operating expenses  (1,604,386)  (1,238,129)
Loss from Operations  (582,127)  (33,090)
         
Income before provision for income taxes  (562,995)  (27,469)
         
Net Income $(569,586) $(41,182)
         
Net income per common share        
Basic* $0.00  $0.00 
Diluted* $0.00  $0.00 

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FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements within the meaning of Section 27A of the Securities Act and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements that are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this prospectus and those documents which we have filed with the SEC as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

The forward-looking statements in this prospectus represent our views as of the date of this prospectus. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should therefore not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this prospectus.

You should also consider carefully the statements under “Risk Factors” and other sections of this prospectus, which address additional facts that could cause our actual results to differ from those set forth in the forward-looking statements. We caution investors not to place significant reliance on the forward-looking statements contained in this prospectus. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as otherwise required by law.

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RISK FACTORS

You should carefully consider the risks described below and the other informationelsewhere in this prospectus, before investing inwhich could materially and adversely affect our common stock.business, results of operations or financial condition. Our business faces significant risks and the risks described below may not be the only risks we face. Additional risks not presently known to us or that we currently believe are immaterial may materially affect our business, results of operations, or financial condition. If any of the followingthese risks occur, our business, operating results and financial condition could be seriously harmed.  Thethe trading price of our common stock when and if we trade at a later date, could decline, due to any of these risks, and you may lose all or part of your investment.

RISKS ASSOCIATED TO OUR BUSINESS

OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTANT HAS EXPRESSED SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

We have recognized nominal net income of $161 and limited revenues of $1,080 for the period from our inception on October 28, 2014 to March 31, 2015. Our future is dependent upon our ability to obtain significant financing and upon future profitable operations. Further, the finances required to fully develop our plan cannot be predicted with any certainty and may exceed any estimates we set forth. Cutler & Co., LLC, our independent registered public accounting firm, has expressed substantial doubt about our ability to continue as a going concern. This opinion could materially limit our ability to raise additional funds by issuing new debt or equity securities or otherwise. You should consider our independent registered public accountants' comments when determining if an investment in Addentax Group Corp. is suitable.

WE ARE A DEVELOPMENT STAGE COMPANY AND HAVE COMMENCED LIMITED OPERATIONS IN OUR BUSINESS. WE EXPECT TO INCUR SIGNIFICANT OPERATING LOSSES FOR THE FORESEEABLE FUTURE.

4


We were incorporated on October 28, 2014business and have commenced limited business operations. Accordingly, we have no way to evaluate the likelihood that our business will be successful. Potential investors should be aware of the difficulties normally encountered by new companies and the high rate of failure of such enterprises.  The likelihood of success must be consideredprospects in light of the problems, expenses, difficulties, complications and delays encounteredchallenges we face, including the ones discussed in connection withthis section. In the operationsevent that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to the ability to generate significant cash flow to operate our business, and additional costs and expenses that may exceed current estimates. We anticipate that we will incur increased operating expenses without realizing significant revenues. We expect to incur significant losses into the foreseeable future. We recognize that if the effectiveness of our business plan is not forthcoming, we will not be able to continue business operations. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and it is doubtful that we will generate significant operating revenues. If we are unsuccessful in addressing these risks, our business may likely be harmed. 

THE EFFECT OF THE RECENT ECONOMIC CRISIS MAY IMPACT OUR BUSINESS, OPERATING RESULTS OR FINANCIAL CONDITIONS.

The recent global crisis has caused disruption and extreme volatility in global financial markets and increased rates of default and bankruptcy, and has impacted levels of consumer spending. These macroeconomic developments may affect our business, operating results or financial condition in a number of ways. For example, our potential customers may never start spending money with us or may have difficulty paying us. A slow or uneven pace of economic recovery would negatively affect our ability to start our business and obtain financing.

BECAUSE OUR SOLE OFFICER AND DIRECTOR WILL OWN 50% OR MORE OF OUR OUTSTANDING COMMON STOCK, IF ALL THE SHARES BEING OFFERED ARE SOLD, HE WILL MAKE AND CONTROL CORPORATE DECISIONS THAT MAY BE DISADVANTAGEOUS TO MINORITY SHAREHOLDERS.

If the maximum number of shares being offered are sold, Mr. Tajmouati, our sole officer and director, will still own 50 % of the outstanding shares of our common stock. Accordingly, he will have significant influence in determining the outcome of all corporate transactions or other matters, including the election of directors, mergers, consolidations and the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control.  The interests of Mr. Tajmouati may differ from the interests of the other stockholders and may result in corporate decisions that are disadvantageous to other shareholders.

OUR INTERNAL CONTROLS MAY BE INADEQUATE, WHICH COULD CAUSE OUR FINANCIAL REPORTING TO BE UNRELIABLE AND LEAD TO MISINFORMATION BEING DISSEMINATED TO THE PUBLIC. AS A RESULT, OUR STOCKHOLDERS COULD LOSE CONFIDENCE IN OUR FINANCIAL RESULTS, WHICH COULD HARM OUR BUSINESS AND THE MARKET VALUE OF OUR COMMON SHARES.

Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. We mayevents described in the future discover areas of our internal controls that need improvement. Section 404 of the Sarbanes-Oxley Act of 2002 will require us to continue to evaluate and to report on our internal controls over financial reporting. We cannot be certain that we will be successful in continuing to maintain adequate control over our financial reporting and financial processes. Furthermore, if our business grows, our internal controls will become more complex, and we will require significantly more resources to ensure our internal controls remain effective. Additionally, the existence of any material weakness or significant deficiency would require management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner.

BECAUSE OUR SOLE OFFICER AND DIRECTOR WILL ONLY BE DEVOTING LIMITED TIME TO OUR OPERATIONS, OUR OPERATIONS MAY BE SPORADIC WHICH MAY RESULT IN PERIODIC INTERRUPTIONS OR SUSPENSIONS OF OPERATIONS.  THIS ACTIVITY COULD PREVENT US FROM ATTRACTING ENOUGH CUSTOMERS AND RESULT IN A LACK OF REVENUES.

Otmane Tajmouati, our sole officer and director will only be devoting limited time to our operations.  He will be devoting approximately 75% of his time to our operations. Because our sole office and director will only be devoting limited time to our operations, our operations may be sporadic andrisk factors below occur, at times which are convenient to him. As a result, operations may be periodically interrupted or suspended which could result in a lack of revenues and a possible cessation of operations. He plans to devote more time to our operations, when it is necessary to satisfy production capacity.

KEY MANAGEMENT PERSONNEL MAY LEAVE THE COMPANY, WHICH COULD ADVERSELY AFFECT THE ABILITY OF THE COMPANY TO CONTINUE OPERATIONS.

The Company is entirely dependent on the efforts of its sole officer and director. The Company does not have an employment agreement in place with its sole officer and director. His departure or the loss of any other key personnel in the future could have a material adverse effect on our operations and cash flow and cause the business.value of our securities to decline in value or become worthless.

Risks Associated with Our Company

Our success depends on our customer’s ability to market and sell their products manufactured by us.

All of our customers in our garment manufacturing business are garment wholesalers and retailers. Consequently, our business and results of operations are directly affected by the demand of their end customers for their products supplied by us. Drastic changes in consumer preferences are beyond our control and will affect the demand for certain products supplied by us. We may not be able to anticipate and respond to such changes in consumer preferences in a timely manner. If the sales of our customers’ products decrease or do not grow as we expect, our customers may decrease the volume or purchase price of their orders, which could materially and adversely affect our business, financial condition and results of operations.

Our future expansion plans are subject to uncertainties and risks.

We have set out our future business plans in the “Business – Business Strategies” section in this prospectus. The implementation of such future plans requires us to effectively manage our sales, procurement, new logistics points and other aspects of our operations. If we fail to effectively and efficiently implement our future plans, we may not be successful in achieving desirable and profitable results. Even if we effectively and efficiently implement our future plans, there may be other unexpected events or factors that prevent us from achieving the desirable and profitable results from the implementation of our future plans, such as changes in our ability to comply with local rules and regulations or any delays or difficulties in obtaining the necessary licenses and approvals from local governments. Our business, financial condition, results of operations and growth prospects may be materially and adversely affected if our future expansion plans fail to achieve positive results.

If we are unable to create brand influence, we may face difficulties in attracting new business partners and clients.

Our brand is still being nurtured. It is of critical importance that we create and develop brand awareness in our industry in order to attract new clients and business partners. Our major competitors have built well-known brands and continue to increase their influence. Our failure to create and develop brand awareness for any reason may result in a material adverse effect on our business, operational results, and financial position.

Our ability to adequately protect our trade names, trademarks and patents could have an impact on our brand images and ability to penetrate new markets.

We believe that our trade names, trademarks and patents are important assets and an essential element of our strategy. We have applied the registration of these trade names, trademarks and patents in China and Hong Kong, and these registrations are currently pending approval from the corresponding departments. There can be no assurance that we will obtain such registrations or that the registrations we obtain will prevent the imitation of our products or infringement of our intellectual property rights by others. In particular, the laws of certain foreign countries may not protect proprietary rights to the same extent as the laws of the U.S. If any third-party copies our products or our stores in a manner that projects lesser quality or carries a negative connotation, it could have a material adverse effect on our brand image and reputation as well as our results of operations, financial condition and cash flows.

-8-

We may be impacted by our ability to adequately source, distribute and sell merchandise and other materials in China.

We face a variety of other risks generally associated with doing business in China. For example:

political instability, significant health hazards, environmental hazards or natural disasters which could negatively affect international economies, financial markets and business activity;
imposition of new or retaliatory trade duties, sanctions or taxes and other charges on imports or exports;
evolving, new or complex legal and regulatory matters;
volatility in currency exchange rates;
local business practice and political issues (including issues relating to compliance with domestic or international labor standards) which may result in adverse publicity or threatened or actual adverse consumer actions, including boycotts;
potential delays or disruptions in shipping and transportation and related pricing impacts;
disruption due to labor disputes; and
changing expectations regarding product safety due to new legislation or other factors.

We also rely upon third-party transportation providers for certain of our product shipments, including shipments to and from our distribution centers, to our customers. Our utilization of these delivery services for shipments is subject to risks, including increases in labor costs and fuel prices, which would increase our shipping costs, and associate strikes and inclement weather, which may impact our transportation providers’ ability to provide delivery services that adequately meet our shipping needs.

Future price increases in raw materials or changes in the supply of raw materials may materially and adversely affect our business, financial condition and results of operations.

The purchase of raw materials accounted for a substantial amount of our total purchases. The price of finished fabric and yarns can be volatile and affected by factors such as weather, industry demand and supply. We cannot assure you that we can fully pass on the increased cost in raw materials to our customers. Future price increases in raw materials or changes in the supply of raw materials may materially and adversely affect our business, financial condition and results of operations.

Any labor shortages, increased labor costs or other factors affecting labor supply for our production materials may materially and adversely affect our business operations.

We rely on skilled workers to a significant extent as our production process in our garment manufacturing business is labor intensive in nature. Our business performance relies on the steady supply of relatively low cost labor in the PRC. There is no guarantee that our supply of labor will not be disrupted or that our labor costs will not increase. If we fail to retain our existing labor resources and/or recruit sufficient labor in a timely manner, we may not be able to accommodate sudden increases in demand for our products.

Labor costs are affected by the demand for and supply of labor and economic factors, such as the inflation rate and costs of living. Labor costs may further increase in the future due to a shortage of skilled labor and growing industry demands. The failure to identify and recruit replacement personnel,staff immediately following the unexpected loss of skilled workers could reduce our competitiveness. In addition, we expect continued increases in labor costs in the PRC. In these circumstances, our business, financial condition, results of operations and prospects could be materially and adversely affected.

-9-

We may be impacted by our ability to attract, develop and retain qualified associates and manage labor-related costs.

We believe our competitive advantage is providing a positive, engaging and satisfying experience for each customer, which requires us to have highly trained and engaged associates. Our success depends in part upon our ability to attract, develop and retain a sufficient number of qualified associates, including skill intensive labor. The turnover rate in the textile industry is generally high, and qualified individuals of the requisite caliber and number needed to fill these positions may be in short supply in our operations. Competition for such qualified individuals or changes in labor laws could require us to incur higher labor costs. Our inability to recruit a sufficient number of qualified individuals in the future may delay planned delivery of finished products or affect the speed with which we expand. Delayed deliveries, significant increases in associate turnover rates or significant increases in labor-related costs could have a material adverse effect on our results of operations, financial condition and cash flows.

We may be impacted by our vendors’ ability to manufacture and deliver raw materials in a timely manner, meet quality standards and comply with applicable laws and regulations.

We purchase raw materials from third-party vendors. Factors outside our control, such as production or shipping delays or quality problems, could disrupt merchandise deliveries and result in lost sales, cancellation charges or excessive markdowns.

In addition, quality problems could result in a product liability judgment or a widespread product recall that may negatively impact our sales and profitability for a period of time depending on product availability, competition reaction and consumer attitudes. Even if the product liability claim is unsuccessful or is not fully pursued, the negative publicity surrounding any will helpassertions could adversely impact our reputation with existing and potential customers and our brand image.

Our business could also suffer if our third-party vendors fail to comply with applicable laws and regulations. While our internal and vendor’s operating guidelines promote ethical business practices and our associates visit and monitor the Companyoperations of our third-party vendors, we do not control these vendors or their practices. The violation of labor, environmental or other laws by third-party vendors used by us, or the divergence of a third-party vendor’s or partner’s labor or environmental practices from those generally accepted as ethical or appropriate, could interrupt or otherwise disrupt the shipment of finished products to operate profitably. The Company doesus or damage our reputation.

Large and similar sized competitors could steal our market share by offering lower prices.

We endeavor to provide the highest possible quality service to our clients at the best possible price, however, large and similar sized competitors might steal some of our market share by offering lower prices, causing us to lose some of our clients. If this happens, we might not maintain key person life insurance on its sole officerbe able to generate adequate revenues and director

5

OUR SOLE OFFICER AND DIRECTOR HAS NO EXPERIENCE MANAGING A PUBLIC COMPANY WHICH IS REQUIRED TO ESTABLISH AND MAINTAIN DISCLOSURE CONTROL AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING.

We have never operated as a public company. Otmane Tajmouati, our sole officer and director has no experience managing a public company, whichmay soon find ourselves lacking the capital that is required to establishcontinue operations.

If we are unable to attract additional customers and maintain disclosure controlsclients to purchase our services (and future products we may develop or sell), it will have a negative effect on our ability to generate the revenue.

We currently have a limited number of clients and procedurescustomers. We have identified additional potential clients, but we cannot guarantee that we will be able to secure them as clients. Even if we obtain additional clients and internal control overcustomers, there is no guarantee that we will be able develop products and/or services that our clients and customers will want to purchase. If we are unable to attract enough customers and clients to purchase services (and any products we may develop or sell) it will have a negative effect on our ability to generate the revenue that is necessary to operate or expand our business. The lack of sufficient revenue will have a negative effect on the ability of our company to continue operations and could force us to cease operations.

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We may be adversely affected by the performance of third-party contractors.

We engaged third-party contractors to carry out logistics services. We endeavor to engage third-party companies with a strong reputation and track record, high performance reliability and adequate financial reporting. Asresources. However, any such third-party contractor may still fail to provide satisfactory logistics services at the level of quality or within the timeframe required by us or our customers. While we generally require our logistics contractors to fully reimburse us for any losses arising from delay in delivery or non-delivery, our results of operation and financial condition may be adversely affected if any of the losses are not borne by them. If the performance of any third-party contractor is not satisfactory, we may need to replace such contractor or take other remedial actions, which could adversely affect the cost structure and delivery schedule of our products and thus have a negative impact on our reputation, financial position and business operations. In addition, as we are expanding our business into other geographical locations in the PRC, there may be a shortage of third-party contractors that meet our quality standards and other selection criteria in such locations and, as a result, we may not be able to operate successfully asengage a public company, even if our operations are successful. We plan to comply with allsufficient number of the various rules and regulations, which are required for a public company that is reporting company with the Securities and Exchange Commission. However, if we cannot operate successfully as a public company, your investment may be materially adversely affected.


WE OPERATE IN A COMPETITIVE ENVIRONMENT, AND IF WE ARE UNABLE TO COMPETE WITH OUR COMPETITORS, OUR BUSINESS, FINANCIAL CONDITION, RESULTS OF OPERATIONS, CASH FLOWS AND PROSPECTS COULD BE MATERIALLY ADVERSELY AFFECTED.

We operatehigh-quality third-party contractors in a competitive environment.  Our competition includes large, small and midsized companies, and many of themtimely manner, which may sell similar printed products in our markets at competitive prices. Competitive environment could materially adversely affect our delivery schedules and delivery costs and hence our business, financial condition, results of operations cash flows and prospects.

BECAUSE WE WILL PURCHASE OUR RAW MATERIALS FROM OVERSEAS, A DISRUPTION IN THE DELIVERY OF IMPORTED SUPPLIES MAY HAVE A GREATER EFFECT ON US THAN ON OUR COMPETITORS.

financial conditions.

Our insurance may not be sufficient.

We will import raw materialscarry insurance that we consider adequate in regard to the nature of the covered risks and equipmentthe costs of coverage. We are not fully insured against all possible risks, nor are all such risks insurable.

Our business depends on the continued contributions made by Mr. Hong Zhida, as our key executive officer, the loss of who may result in a severe impediment to our business.

Our success is dependent upon the continued contributions made by our CEO and President, Mr. Hong Zhida. We rely on his expertise in business operations when we are developing new products and services. The Company has no “Key Man” insurance to cover the resulting losses in the event that any of our officer or directors should die or resign.

If Mr. Hong Zhida cannot serve the Company or is no longer willing to do so, the Company may not be able to find alternatives in a timely manner or at all. This would likely result in a severe damage to our business operations and would have an adverse material impact on our financial position and operational results. To continue as a viable operation, the Company may have to recruit and train replacement personnel at a higher cost.

Additionally, if Mr. Hong Zhida joins our competitors or develops similar businesses that are in competition with our Company, our business may also be negatively impacted.

Our future success depends on our ability to attract and retain qualified long-term staff to fill management, technology, sales, marketing, and customer services positions. We have a great need for qualified talent, but we may not be successful in attracting, hiring, developing, and retaining the talent required for our productionsuccess.

We may be adversely impacted by certain compliance or legal matters.

We, along with third parties we do business with, are subject to complex compliance and litigation risks. Actions filed against us from China. Because we keeptime to time include commercial, tort, intellectual property, customer, employment, wage and hour, data privacy, securities, anti-corruption and other claims, including purported class action lawsuits. The cost of defending against these types of claims against us or the ultimate resolution of such claims, whether by settlement or adverse court decision, may harm our business. Further, potential claimants may be encouraged to bring lawsuits based on a minimum stocksettlement from us or adverse court decisions against us. We cannot currently assess the likely outcome of raw materials at our place, we believe that disruptions in shipping deliveries maysuch suits, but if the outcome were negative, it could have a greatermaterial adverse effect on us than on competitors who keep a greater stockour reputation, results of raw materials and/or warehouse supplies. Deliveries of our raw materials may be disrupted through factors such as:


operations, financial condition and cash flows.

(1)Raw material shortages, work stoppages, strikes and political unrest;-11-
 

In addition, we may be impacted by litigation trends, including class action lawsuits involving consumers and shareholders, that could have a material adverse effect on our reputation, the market price of our common stock, results of operations, financial condition and cash flows.

We are exposed to liabilities relating to environmental protection and safety laws and regulations.

Our operations are subject to comprehensive and frequently changing laws and regulations relating to environmental protection and health and safety. The discharge of waste and pollutants from our manufacturing operations into the environment may give rise to liabilities that may require us to incur costs to remedy such discharge. If we violate such laws or regulations, we may be required to implement corrective actions and could be subject to civil or criminal fines or penalties or other sanctions.

However, we cannot assure you that any environmental laws adopted in the future will not materially increase our operating costs and other expenses. We cannot assure you that we will not have to make significant capital or operating expenditures in the future in order to comply with existing or new laws and regulations or that we will comply with applicable environmental laws at all times. Such violations or liability could have a material adverse effect on our business, financial condition and results of operations.

If our employees do not maintain a strong work ethic and comply with our code of ethics, including our confidentiality requirements, their actions may negatively influence our business and reputation.

Employees with good professional ethics are important for any company’s development. An employee might, either intentionally or unintentionally, disclose confidential information about our Company or our clients and particularly unscrupulous employees might endeavor to sell material information to industry competitors. Furthermore, our employees will develop relationships with our business partners and clients, and may acquire information that could be used to harm their business interests. If this should happen, our partners and clients might lose faith in our company. While we can never eliminate these ethical risks entirely, we will attempt to reduce the likelihood of breaches of trust and mitigate their impacts of it by hiring highly professional employees and establishing strong internal information management systems.

We also plan to establish a series of policies to reduce the likelihood of such events.

However, in the event that any employee discloses confidential information about our Company or our clients or sells material information to industry competitors, it could have a material adverse effect on our reputation, operations and cash flow.

We face risks associated with future Chinese regulations.

Currently there are no government regulations in China regarding our type of services. The Chinese government encourages small-medium sized traditional industry companies to conduct business model transformation and technology updates, which may help companies gain more competitive advantages in international markets.

Other than the required adherence to general business laws and regulatory disclosures, our services are not affected by any specific additional Chinese government regulations. However, this does not preclude the possibility that China may institute regulations that will make it difficult or impossible for us to operate successfully, if at all, in the future. If that occurs, we may have to focus our business on companies located outside China. This could cause our results of operations to be materially adversely effected, reduce our revenues and cause the value of our securities to decline in value.

(2)Problems with ocean shipping, including work stoppages and shipping container shortages;-12-
 (3)Increased inspections of import shipments or other factors causing delays in shipments; and

We may require additional financing in the future and our operations could be curtailed if we are unable to obtain required additional financing when needed.

We may need to obtain additional debt or equity financing to fund future capital expenditures. While we do not anticipate seeking additional financing in the immediate future, any additional equity may result in dilution to the holders of our outstanding shares of capital stock. Additional debt financing may include conditions that would restrict our freedom to operate our business, such as conditions that:

 (4)Economic crises, international disputeslimit our ability to pay dividends or require us to seek consent for the payment of dividends;
increase our vulnerability to general adverse economic and wars.industry conditions;
require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow to fund capital expenditures, working capital and other general corporate purposes; and
limit our flexibility in planning for, or reacting to, changes in our business and our industry.

Most of our competitors warehouse large quantities of raw materials they import from overseas, which allow them to continue delivering their products for the near term, despite overseas shipping disruptions. If our competitors are

We cannot guarantee that we will be able to deliver products when we cannot,obtain any additional financing on terms that are acceptable to us, or at all.

Natural disasters and other events beyond our reputationcontrol could materially adversely affect us.

Natural disasters or other catastrophic events may be damaged and we may lose customerscause damage or disruption to our competitors.


operations, international commerce and the global economy, and thus could have a strong negative effect on us. Our business operations are subject to interruption by natural disasters, fire, power shortages, pandemics and other events beyond our control. This may result in delivery delays, malfunctioning of facilities or shutdown of logistic points. Such events could make it difficult or impossible for us to deliver our products and services to our customers and could decrease demand for our services. In the past, there was no significant disruption of operation at our production facilities and logistic points. However, we could not assure you that the production facilities and logistic points will always operate normally in the future.

AS AN “EMERGING GROWTH COMPANY” UNDER THE JOB’S ACT, WE ARE PERMITTED TO RELY ON EXEMPTIONS FROM CERTAIN DISCLOSURE REQUIREMENTS.


We qualify asare an “emerging growth company” underand we cannot be certain if the JOBS Act. As a result, we are permittedreduced disclosure requirements applicable to and intendemerging growth companies will make our common stock less attractive to rely on exemptions from certain disclosure requirements. For so long as weinvestors.

We are an emerging“emerging growth company, we will not be required to:


Have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
Provide an auditor attestation with respect to management’s report on the effectiveness of our internal controls over financial reporting;
Comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
Submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
Disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive’s compensation to median employee compensation.

In addition, Section 107 of” as defined in the JOBS Act, also provides that an emerging growth company canand we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including not being required to comply with the extended transition period provided inauditor attestation requirements of Section 7(a)(2)(B)404 of the SecuritiesSarbanes-Oxley Act, for complying with new or revised accounting standards. In other words, an emerging growth company can delayreduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the adoptionrequirements of certain accounting standards until those standards would otherwise apply to private companies.holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

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We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period. Even if we no longer qualify for the exemptions for an emerging growth company, we may still be, in certain circumstances, subject to scaled disclosure requirements as a smaller reporting company. For example, smaller reporting companies, like emerging growth companies, are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation S-K or auditor attestation of internal controls over financial reporting.  

Until such time, however, we cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

ANY ADDITIONAL FUNDING WE ARRANGE THROUGH THE SALE OF OUR COMMON STOCK WILL RESULT IN DILUTION TO EXISTING SHAREHOLDERS.

General Risks Associated with Business Operations in China

You may have difficulty enforcing judgments against us.

We must raise additional capital in order forare a Nevada corporation and most of our business plan to succeed.  Our most likely sources of additional capitalassets are and will be through saleslocated outside of the United States. Almost all of our printed products and through the sale additional shares of the common stock. Such stock issuances will cause stockholders' interests in our company to be diluted.  Such dilution will negatively affect the value of an investor's shares.


RISKS ASSOCIATED WITH THIS OFFERING

OUR OFFERING IS BEING MADE ON A BEST EFFORTS BASIS WITH NO MINIMUM AMOUNT OF SHARES ARE REQUIRED TO BE SOLD FOR THE OFFERING TO PROCEED.

In order to implement our business plan, we require funds from this offering. We require a minimum of $30,000 from the offering. However, our offering is being made on a best efforts basis with no minimum amount of shares required to be sold for the offering to proceed. If we raise only a nominal amount of proceeds we will utilize needed amount from our sole officer and director Otmane Tajmouati, under terms and conditions described in Loan Agreement that is filed in Exhibit 10.1 to the Registration Statement of which this Prospectus forms a part. If the loaned funds are not enough to implement our business plan we may be unable to continue operations and our business may be seriously and you may lose your investment in the Company.

BECAUSE THE COMPANY HAS ARBITRARILY SET THE OFFERING PRICE, YOU MAY NOT REALIZE A RETURN ON YOUR INVESTMENT UPON RESALE OF YOUR SHARES.
The offering price and other terms and conditions relative to the Company’s shares have been arbitrarily determined by us and do not bear any relationship to assets, earnings, book value or any other objective criteria of value. Additionally, as the Company was formed on October 28, 2014 and has only a limited operating history and limited revenues of $1,080, the price of the offered shares is not based on its past earnings and no investment banker, appraiser or other independent third party has been consulted concerning the offering price for the shares or the fairness of the offering price used for the shares, as such our stockholders may not be able to receive a return on their investment when they sell their shares of common stock.

WE ARE SELLING THIS OFFERING WITHOUT AN UNDERWRITER AND MAY BE UNABLE TO SELL ANY SHARES.
This offering is self-underwritten, that is, we are not going to engage the services of an underwriter to sell the shares; we intend to sell our shares through our President Otmane Tajmouati, who will receive no commissions. There is no guarantee that he will be able to sell anyconducted in China. In addition, our officers and directors are nationals and residents of the shares. Unless he is successful in selling at least half of the shares or raising $30,000 from this offering, we may have to rely on loans from our sole officer and director or seek alternative financing for implementation our business plan.

THE TRADING IN OUR SHARES WILL BE REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION RULE 15G-9 WHICH ESTABLISHED THE DEFINITION OF A “PENNY STOCK.”
The shares being offered are defined as a penny stock under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and rules of the Commission. The Exchange Act and such penny stock rules generally impose additional sales practice and disclosure requirements on broker-dealers who sell our securities to personscountry other than certain accredited investors whothe United States. All of their assets are generally, institutions with assets in excess of $3,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 ($300,000 jointly with spouse). For transactions covered bylocated outside the penny stock rules,United States. As a broker dealer must make certain mandated disclosures in penny stock transactions, including the actual sale or purchase price and actual bid and offer quotations, the compensation to be received by the broker-dealer and certain associated persons, and deliver certain disclosures required by the Commission. Consequently, the penny stock rules may make it difficult for you to resell any shares you may purchase, if at all.

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DUE TO THE LACK OF A TRADING MARKET FOR OUR SECURITIES, YOU MAY HAVE DIFFICULTY SELLING ANY SHARES YOU PURCHASE IN THIS OFFERING.
We are not registered on any market or public stock exchange. There is presently no demand for our common stock and no public market exists for the shares being offered in this prospectus. We plan to contact a market maker immediately following the completion of the offering and apply to have the shares quoted on the Over-the-Counter Bulletin Board (“OTCBB”). The OTCBB is a regulated quotation service that displays real-time quotes, last sale prices and volume information in over-the-counter securities. The OTCBB is not an issuer listing service, market or exchange. Although the OTCBB does not have any listing requirements, to be eligible for quotation on the OTCBB, issuers must remain current in their filings with the SEC or applicable regulatory authority. If we are not able to pay the expenses associated with our reporting obligations we will not be able to apply for quotation on the OTC Bulletin Board or other quotation service. Market makers are not permitted to begin quotation of a security whose issuer does not meet this filing requirement. Securities already quoted on the OTCBB that become delinquent in their required filings will be removed following a 30 to 60 day grace period if they do not make their required filing during that time.  We cannot guarantee that our application will be accepted or approved and our stock listed and quoted for sale.  As of the date of this filing, there have been no discussions or understandings between Addentax Group Corp. and anyone acting on our behalf, with any market maker regarding participation in a future trading market for our securities. If no market is ever developed for our common stock, it will be difficult for you to sell any shares you purchase in this offering. In such a case, you may find that you are unable to achieve any benefit from your investment or liquidate your shares without considerable delay, if at all. In addition, if we fail to have our common stock quoted on a public trading market, your common stock will not have a quantifiable value and it may be difficult, if not impossible, to ever resell your shares, resulting in an inability to realize any value from your investment.

WE WILL INCUR ONGOING COSTS AND EXPENSES FOR SEC REPORTING AND COMPLIANCE. WITHOUT REVENUE WE MAY NOT BE ABLE TO REMAIN IN COMPLIANCE, MAKING IT DIFFICULT FOR INVESTORS TO SELL THEIR SHARES, IF AT ALL.
The estimated cost of this registration statement is $7,000. We will have to utilize funds from Otmane Tajmouati, our sole officer and director, who has agreed to loan the Company funds to complete the registration process. However, Mr. Tajmouati has an obligation to loan such funds to us and there is a guarantee that he will loan such funds to the Company, as described in Loan Agreement, which is filed in Exhibit 10.1 to the Registration Statement of which this Prospectus forms a part. After the effective date of this prospectus, we will be required to file annual, quarterly and current reports, or other information with the SEC as provided by the Securities Exchange Act. We plan to contact a market maker immediately following the close of the offering and apply to have the shares quoted on the OTC Electronic Bulletin Board or other quotation service. To be eligible for quotation, issuers must remain current in their filings with the SEC. In order for us to remain in compliance we will require future revenues to cover the cost of these filings, which could comprise a substantial portion of our available cash resources. If we are unable to generate significant revenues to remain in complianceresult, it may be difficult for you to reselleffect service of process within the United States upon them. It may also be difficult for you to enforce in U.S. courts judgments on the civil liability provisions of the U.S. federal securities laws against us and our officer and director, since he is not a resident in the United States. In addition, there is uncertainty as to whether the courts of China would recognize or enforce judgments of U.S. courts.

Foreign exchange fluctuations may affect our business.

We accept the payment for services in Chinese Yuan (CNY), Hong Kong Dollars (HKD), and U.S. Dollars (USD). Therefore, foreign exchange fluctuations may influence our business in unpredictable ways.

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The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. For instance, in August 2015, the People’s Bank of China, or PBOC, changed the way it calculates the mid-point price of Renminbi against the U.S. dollar, requiring the market-makers who submit for reference rates to consider the previous day’s closing spot rate, foreign-exchange demand and supply as well as changes in major currency rates. In 2016 and 2017, the value of the Renminbi depreciated approximately 7.2% and appreciated 6.3% against the U.S. dollar, respectively. From the end of 2017 through the end of June 2018, the value of the Renminbi depreciated by approximately 1.7% against the U.S. dollar. It is difficult to predict how market forces or PRC or U.S. government policy, including any interest rate increases by the Federal Reserve, may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC government to adopt a more flexible currency policy, including from the U.S. government, which has threatened to label China as a “currency manipulator,” which could result in greater fluctuation of the Renminbi against the U.S. dollar.

A substantial percentage of our revenues and costs are denominated in Renminbi, and a significant portion of our assets are also denominated in Renminbi. We are a holding company and we rely on dividends, loans and other distributions on equity paid by our operating subsidiaries in China. Any significant fluctuations in the value of the Renminbi may materially and adversely affect our liquidity and cash flows. Appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amount we would receive. Conversely, to the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive.

Inflation could pose a risk to our business.

Inflation is an important factor that must be considered as we move forward. A change in the rate of inflation could influence the profits that we generate from our business. When the rate of inflation rises, the operational costs of running our company would increase, such as labor costs, raw materials and public utilities, affecting our ability to provide our services at competitive prices. An increase in the rate of inflation would force our clients to search for other service providers, causing us to lose business and revenue.

We face the risk that changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of such business.

The PRC’s economy is in a transition from a planned economy to a market oriented economy subject to five-year and annual plans adopted by the central government that set national economic development goals. Policies of the PRC government can have significant effects on the economic conditions of the PRC. The PRC government has confirmed that economic development will follow the model of a market economy. Under this direction, we believe that the PRC will continue to strengthen its economic and trading relationships with foreign countries and business development in the PRC will follow market forces. While we believe that this trend will continue, we cannot assure you that this will be the case. A change in policies by the PRC government could adversely affect our interests by, among other factors: changes in laws, regulations or the interpretation thereof, confiscatory taxation, restrictions on currency conversion, imports or sources of supplies, or the expropriation or nationalization of private enterprises. Although the PRC government has been pursuing economic reform policies for more than two decades, we cannot assure you that the government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption, or other circumstances affecting the PRC’s political, economic and social environment.

There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations.

Most of our operations are conducted in the PRC, and are governed by PRC laws, rules and regulations. Our PRC subsidiaries are subject to laws, rules and regulations applicable to foreign investment in China. The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions may be cited for reference but have limited precedential value.

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In 1979, the PRC government began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general. The overall effect of legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign investment in China. However, China has not developed a fully integrated legal system, and recently enacted laws, rules and regulations may not sufficiently cover all aspects of economic activities in China or may be subject to significant degree of interpretation by PRC regulatory agencies and courts. In particular, because these laws, rules and regulations are relatively new, and because of the limited number of published decisions and the non-precedential nature of these decisions, and because the laws, rules and regulations often give the relevant regulator significant discretion in how to enforce them, the interpretation and enforcement of these laws, rules and regulations involve uncertainties and can be inconsistent and unpredictable. Therefore, it is possible that our existing operations may be found not to be in full compliance with relevant laws and regulations in the future. In addition, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all, and which may have a retroactive effect. As a result, we may not be aware of our violation of these policies and rules until after the occurrence of the violation.

Any administrative and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention. Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems. These uncertainties may impede our ability to enforce the contracts we have entered into and could materially and adversely affect our business, financial condition and results of operations.

PRC regulations regarding acquisitions impose significant regulatory approval and review requirements, which could make it more difficult for us to pursue growth through acquisitions.

Under the PRC Anti-Monopoly Law, companies undertaking acquisitions relating to businesses in China must notify the anti-monopoly enforcement agency, in advance of any transaction where the parties’ revenues in the China market exceed certain thresholds and the buyer would obtain control of, or decisive influence over, the other party. In addition, on August 8, 2006, six PRC regulatory agencies, including the MOFCOM, the State-Owned Assets Supervision and Administration Commission, the State Administration of Taxation, the SAIC, the China Securities Regulatory Commission, or the CSRC, and the State Administration of Foreign Exchange, or SAFE, jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which came into effect on September 8, 2006 and was amended on June 22, 2009. Under the M&A Rules, the approval of MOFCOM must be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire domestic companies affiliated with such PRC enterprises or residents. Applicable PRC laws, rules and regulations also require certain merger and acquisition transactions to be subject to security review.

PRC regulations relating to investments in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries or limit our PRC subsidiaries’ ability to increase their registered capital or distribute profits.

SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, on July 4, 2014, which replaced the former circular commonly known as “SAFE Circular 75” promulgated by SAFE on October 21, 2005. SAFE Circular 37 requires PRC residents to register with local branches of SAFE in connection with their direct establishment or indirect control of an offshore entity, for the purpose of overseas investment and financing, with such PRC residents’ legally owned assets or equity interests in domestic enterprises or offshore assets or interests, referred to in SAFE Circular 37 as a “special purpose vehicle.” SAFE Circular 37 further requires amendment to the registration in the event of any significant changes with respect to the special purpose vehicle, such as increase or decrease of capital contributed by PRC individuals, share transfer or exchange, merger, division or other material event. In the event that a PRC shareholder holding interests in a special purpose vehicle fails to fulfill the required SAFE registration, the PRC subsidiaries of that special purpose vehicle may be prohibited from making profit distributions to the offshore parent and from carrying out subsequent cross-border foreign exchange activities, and the special purpose vehicle may be restricted in its ability to contribute additional capital into its PRC subsidiary. Moreover, failure to comply with the various SAFE registration requirements described above could result in liability under PRC law for evasion of foreign exchange controls.

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We have notified substantial beneficial owners of shares of common stock who we know are PRC residents of their filing obligation, and pursuant to SAFE Circular 37, we have periodically filed and updated the above-mentioned foreign exchange registration on behalf of certain employee shareholders who we know are PRC residents. However, we may not be aware of the identities of all of our beneficial owners who are PRC residents. We do not have control over our beneficial owners and cannot assure you that all of our PRC-resident beneficial owners will comply with SAFE Circular 37 and subsequent implementation rules. The failure of our beneficial owners who are PRC residents to register or amend their SAFE registrations in a timely manner pursuant to SAFE Circular 37 and subsequent implementation rules, or the failure of future beneficial owners of our company who are PRC residents to comply with the registration procedures set forth in SAFE Circular 37 and subsequent implementation rules, may subject the beneficial owners or our PRC subsidiaries to fines and legal sanctions. On February 13, 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which became effective on June 1, 2015. Pursuant to SAFE Notice 13, entities and individuals are required to apply for foreign exchange registration of foreign direct investment and overseas direct investment, including those required under the SAFE Circular 37, with designated domestic banks, instead of SAFE. The designated domestic banks will directly review the applications and conduct the registration.

Furthermore, since it is unclear how those new SAFE regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented by the relevant PRC government authorities, we cannot predict how these regulations will affect our business operations or future strategy. Failure to register or comply with relevant requirements may also limit our ability to contribute additional capital to our PRC subsidiaries and limit our PRC subsidiaries’ ability to distribute dividends to our company. These risks may have a material adverse effect on our business, financial condition and results of operations.

We may be treated as a resident enterprise for PRC tax purposes under the PRC Enterprise Income Tax Law, and we may therefore be subject to PRC income tax on our global income.

Under the PRC Enterprise Income Tax Law and its implementing rules, both of which came into effect on January 1, 2008, enterprises established under the laws of jurisdictions outside of China with “de facto management bodies” located in China may be considered PRC tax resident enterprises for tax purposes and may be subject to the PRC enterprise income tax at the rate of 25% on their global income. “De facto management body” refers to a managing body that exercises substantive and overall management and control over the production and business, personnel, accounting books and assets of an enterprise. The State Administration of Taxation issued the Notice Regarding the Determination of Chinese-Controlled Offshore-Incorporated Enterprises as PRC Tax Resident Enterprises on the basis of de facto management bodies, or Circular 82, on April 22, 2009. Circular 82 provides certain specific criteria for determining whether the “de facto management body” of a Chinese-controlled offshore-incorporated enterprise is located in China. Although Circular 82 only applies to offshore enterprises controlled by PRC enterprises, not those controlled by foreign enterprises or individuals, the determining criteria set forth in Circular 82 may reflect the State Administration of Taxation’s general position on how the “de facto management body” test should be applied in determining the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises. If we were to be considered a PRC resident enterprise, we would be subject to PRC enterprise income tax at the rate of 25% on our global income. In such case, our profitability and cash flow may be materially reduced as a result of our global income being taxed under the Enterprise Income Tax Law. We believe that none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de facto management body.”

Restrictions on currency exchange may limit our ability to utilize our PRC revenue effectively.

Substantially all of our revenue is denominated in Renminbi. The Renminbi is currently convertible under the “current account,” which includes dividends, trade and service-related foreign exchange transactions, but requires approval from or registration with appropriate government authorities or designated banks under the “capital account,” which includes foreign direct investment and loans, including loans we may secure from our onshore subsidiaries or variable interest entities. Currently, our PRC subsidiaries, which are wholly-foreign owned enterprises, may purchase if at all. Also, ifforeign currency for settlement of “current account transactions,” including payment of dividends to us, without the approval of SAFE by complying with certain procedural requirements. However, the relevant PRC governmental authorities may limit or eliminate our ability to purchase foreign currencies in the future for current account transactions.

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Since 2016, PRC governmental authorities have imposed more stringent restrictions on outbound capital flows, including heightened scrutiny over “irrational” overseas investments for certain industries, as well as over four kinds of “abnormal” offshore investments, which are:

● investments through enterprises established for only a few months without substantive operation;

● investments with amounts far exceeding the registered capital of onshore parent and not supported by its business performance shown on financial statements;

● investments in targets which are unrelated to onshore parent’s main business; and

● investments with abnormal sources of Renminbi funding suspected to be involved in illegal transfer of assets or illegal operation of underground banking.

On January 26, 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, which tightened the authenticity and compliance verification of cross-border transactions and cross-border capital flow, including requiring banks to verify board resolutions, tax filing forms and audited financial statements before wiring foreign invested enterprises’ foreign exchange dividend distribution of over US$50,000. In addition, the Outbound Investment Sensitive Industry Catalogue (2018) lists certain sensitive industries that are subject to NDRC pre-approval requirements prior to remitting investment funds offshore, which subjects us to increased approval requirements and restrictions with respect to our overseas investment activity. Since a significant amount of our PRC revenue is denominated in Renminbi, any existing and future restrictions on currency exchange may limit our ability to utilize revenue generated in Renminbi to fund our business activities outside of the PRC, make investments, service any debt we may incur outside of China or pay dividends in foreign currencies to our shareholders.

The disclosures in our reports and other filings with the SEC and our other public pronouncements are not ablesubject to pay the expenses associatedscrutiny of any regulatory bodies in the PRC.

We are regulated by the SEC and our reports and other filings with the SEC are subject to SEC review in accordance with the rules and regulations promulgated by the SEC under the Securities Act and the Exchange Act. Our SEC reports and other disclosure and public pronouncements are not subject to the review or scrutiny of any PRC regulatory authority. For example, the disclosure in our reporting obligationsSEC reports and other filings are not subject to the review by China Securities Regulatory Commission, a PRC regulator that is responsible for oversight of the capital markets in China. Accordingly, you should review our SEC reports, filings and our other public pronouncements with the understanding that no local regulator has done any review of us, our SEC reports, other filings or any of our other public pronouncements.

Introduction of new laws or changes to existing laws by the PRC government may adversely affect our business.

The PRC legal system is a codified legal system made up of written laws, regulations, circulars, administrative directives and internal guidelines. Unlike common law jurisdictions like the U.S., decided cases (which may be taken as reference) do not form part of the legal structure of the PRC and thus have no binding effect on subsequent cases with similar issues and fact patterns. Furthermore, in line with its transformation from a centrally-planned economy to a more free market-oriented economy, the PRC government is still in the process of developing a comprehensive set of laws and regulations. As the legal system in the PRC is still evolving, laws and regulations or the interpretation of the same may be subject to further changes. For example, the PRC government may impose restrictions on the amount of service fees that may be payable by municipal governments to wastewater and sludge treatment service providers. Also, the PRC central and municipal governments may impose more stringent environmental regulations which would affect our ability to comply with, or our costs to comply with, such regulations. Such changes, if implemented, may adversely affect our business operations and may reduce our profitability.

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Risks Related to this Offering and our Common Stock

Prior to this offering, we willhad a limited public market for our shares of common stock and you may not be able to applyresell our shares at or above the price you paid, or at all.

Prior to this offering, there was a limited public market for quotation onour common stock in the OTC Bulletin BoardOTCQB. We cannot assure you that an active public market for our common stock will develop or other quotation service.


BECAUSE WE ARE A SHELL COMPANY, YOU WILL NOT BE ABLE TO RESELL YOUR SHARES IN CERTAIN CIRCUMSTANCES, WHICH COULD HINDER THE RESALE OF YOUR SHARES.
We arethat the market price of our shares will not decline below the public offering price. The public offering price of our shares may not be indicative of prices that will prevail in the trading market following the offering.

Future sales of substantial amounts of the shares of common stock by existing shareholders could adversely affect the price of our common stock.

If our existing shareholders sell substantial amounts of the shares following this offering, the market price of our common stock could fall. Such sales by our existing shareholders might make it more difficult for us to issue new equity or equity-related securities in the future at a “shell company” within the meaningtime and place we deem appropriate. Up to 4,000,000 shares of Rule 405, promulgated pursuant to Securities Act of 1933, as amended (the “Securities Act”), because we have nominal assets and nominal operations. Accordingly, the securities soldcommon stock offered in this offering can onlywill be resold through registrationeligible for immediate resale in the public market without restrictions. All remaining shares, which are currently held by our existing shareholders, may be sold in the public market in the future subject to the lock-up agreements and the restrictions contained in Rule 144 under Section 5 the Securities Act, Section 4(1),Act. If any existing shareholders sell a substantial number of shares, the prevailing market price for our shares could be adversely affected.

The market price of our shares is likely to be highly volatile and subject to wide fluctuations in response to factors such as:

variations in our actual and perceived operating results;
news regarding gains or losses of customers or partners by us or our competitors;
news regarding gains or losses of key personnel by us or our competitors;
announcements of competitive developments, acquisitions or strategic alliances in our industry by us or our competitors;
changes in earnings estimates or buy/sell recommendations by financial analysts;
potential litigation;
the imposition of fines or penalties related to our activities in the PRC and failure to comply with applicable rules and regulations;
general market conditions or other developments affecting us or our industry; and
the operating and stock price performance of other companies, other industries and other events or factors beyond our control.

In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are not related to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of the shares.

-18-

We may never be able to pay dividends and are unlikely to do so.

To date, we have not paid, nor do we intend to pay in the foreseeable future, dividends on our common stock, even if available,we become profitable. Earnings, if any, are expected to be used to advance our activities and for non-affiliatesworking capital and general corporate purposes, rather than to make distributions to stockholders. Since we are not in a financial position to pay dividends on our common stock and future dividends are not presently being contemplated, investors are advised that return on investment in our common stock is restricted to an appreciation in the share price. The potential or likelihood of an increase in share price is uncertain.

In addition, under Nevada law, we may only pay dividends subject to our ability to service our debts as they become due and provided that our assets will exceed our liabilities after the dividend. Our ability to pay dividends will therefore depend on our ability to generate sufficient profits. Further, because of the various rules applicable to our operations in China and the regulations on foreign investments as well as the applicable tax law, we may be subject to further limitations on our ability to declare and pay dividends to our shareholders.

Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of securities.

Wherever possible, our board of directors will attempt to use non-cash consideration to satisfy obligations. In many instances, we believe that the non-cash consideration will consist of shares of our common stock, warrants to purchase shares of our common stock or other securities. Our board of directors has authority, without action or vote of the shareholders, to issue all or part of the authorized but unissued shares of common stock or warrants to purchase such shares of common stock. In addition, we may attempt to raise capital by meetingselling shares of our common stock, possibly at a discount to market in the conditionsfuture. These actions will result in dilution of Rule 144 (i), whichthe ownership interests of existing shareholders and may further dilute common stock book value, and that dilution may be material. Such issuances may also serve to enhance existing management’s ability to maintain control of us, because the shares may be issued to parties or entities committed to supporting existing management.

In the event that our shares are traded, they may trade under $5.00 per share and thus will potentially reducebe a penny stock. Trading in penny stocks has many restrictions and these restrictions could severely affect the price and liquidity of our shares.

In the event that our shares are traded, and our stock trades below $5.00 per share, our stock would be known as a “penny stock”, which is subject to various regulations involving disclosures to be given to you prior to the purchase of any penny stock. The SEC has adopted regulations which generally define a “penny stock” to be any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. Depending on market fluctuations, our common stock could be considered to be a “penny stock”. A penny stock is subject to rules that impose additional sales practice requirements on broker/dealers who sell these securities to persons other than established Members and accredited investors. For transactions covered by these rules, the broker/dealer must make a special suitability determination for the purchase of these securities. Another implicationIn addition, he must receive the purchaser’s written consent to the transaction prior to the purchase. He must also provide certain written disclosures to the purchaser. Consequently, the “penny stock” rules may restrict the ability of us beingbroker/dealers to sell our securities, and may negatively affect the ability of holders of shares of our common stock to resell them. These disclosures require you to acknowledge that you understand the risks associated with buying penny stocks and that you can absorb the loss of your entire investment. Penny stocks are low priced securities that do not have a shell company is that we cannot file registration statements under Section 5very high trading volume. Consequently, the price of the Securities Act usingstock is often volatile and you may not be able to buy or sell the stock when you want to.

We will have discretion in applying a Form S-8, a short form of registration to register securities issued to employees and consultants under an employee benefit plan. Additionally, though exemptions, such as Section 4(1)portion of the Securities Actnet proceeds of this offering and may not use these proceeds in ways that will enhance the market value of our common stock.

Our management will have considerable discretion in the application of the proceeds received by us from this offering. Such proceeds may be availableused to purchase and sell raw materials, grow our brand and for non-affiliate holders our sharesworking capital and general corporate purposes. You will not have the opportunity, as part of your investment decision, to resell their shares, because weassess whether the proceeds are a shell company, a holder of our securities may notbeing used appropriately. You must rely on the safe harbor from being deemed statutory underwriter under Section 2(11)judgment of our management regarding the application of the Securities Act,net proceeds of this offering. The net proceeds may be used for corporate purposes that do not improve our profitability or increase our common stock price. The net proceeds from this offering may also be placed in investments that do not produce income or that lose value. Future issuances of capital stock may depress the trading price of our common stock. Any issuance of shares of our common stock after this offering could dilute the interests of our existing stockholders and could substantially decrease the trading price of our common stock. We may issue additional shares of common stock in the future for a number of reasons, including to finance our operations and business strategy (including in connection with acquisitions, strategic collaborations or other transactions).

Sales of a substantial number of shares of our common stock in the public market could depress the market price of our common stock, and impair our ability to raise capital through the sale of additional equity securities. We cannot predict the effect that future sales of our common stock or other equity-related securities would have on the market price of our common stock.

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USE OF PROCEEDS

After deducting the estimated placement agent commissions and estimated offering expenses payable by us, we expect to receive net proceeds of $ 4,700,000 from this offering, if the minimum offering amount is sold, or $ 18,800,000 , if the maximum offering amount is sold. We anticipate that the proceeds of a minimum and a maximum offering would be applied approximately as providedfollows:

MINIMUM OFFERING ($4,700,000)

Planned ActionsAmount (US$)
Sales of raw materials
Leasing Costs300,000
Staffing132,000
Funding for Day to Day Operations880,000
Development of our own brands
Advertising and Marketing Costs710,000
Staffing400,000
Funding for Day to Day Operations1,120,000
Establishing an Office56,000
Leasing Costs580,972
Offering Expenses521,028
TOTAL4,700,000

MAXIMUM OFFERING ($18,800,000)

Planned ActionsAmount (US$)
Sales of raw materials
Leasing Costs660,000
Staffing500,000
Working capital and general corporate purposes1,800,000
Development of our own brands
Advertising and Marketing Costs1,695,000
Staffing1,660,000
Working capital and general corporate purposes10,000,000
Establishing an Office127,000
Leasing Costs1,836,972
Offering Expenses521,028
TOTAL18,800,000

The amount and timing of these expenditures will vary depending on a number of factors, including the amount of cash generated by Rule 144, to resell his or her securities. Only after we (i) are not a shell company,our operations and (ii) have filed all reportsthe rate of growth, if any, of our business.

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CAPITALIZATION

The following table sets forth our capitalization as of December 31, 2018:

On an actual basis; and
On a pro forma, as adjusted basis to give effect to the sale of the minimum and maximum number of shares of common stock by us in this offering at the public offering price of $ 5.00 per share, which is set forth on the cover page of this prospectus, and after deducting the estimated placement agent commissions and estimated offering expenses payable by us.

You should read this table in conjunction with “Management’s Discussion and other materials requiredAnalysis of Financial Condition and Results of Operations” and the financial statements and related notes included elsewhere in this prospectus.

MINIMUM OFFERING ( 1,000,000 Shares)

  December 31, 2018 
  Actual  Pro Forma 
  (audited)  (unaudited) 
Cash and cash equivalents $356,969  $4,460,941 
Accounts receivable  1,887,702   1,887,702 
Inventories, net  391,646   391,646 
Other receivables  195,740   195,740 
Advances to suppliers  221,843   221,843 
Amounts due from related parties  80,149   80,149 
Total current assets  3,134,049   7,238,021 
         
Plant and equipment, net  651,353   651,353 
Goodwill  475,003   475,003 
Total non-current assets  1,126,356   1,126,356 
         
Total Assets  4,260,405   8,364,377 
         
Total Current Liabilities  5,811,303   5,811,303 
         
Stockholders’ Equity:        
         
Common stock, $.001 par value, 50,000,000 shares authorized; 25,346,004 shares issued and outstanding, actual; 50,000,000 shares authorized; 26,346,004 shares issued and outstanding, pro forma*  506,920   507,920 
Additional paid-in capital  (420,524)  3,682,448 
Retained earnings  (1,650,784)  (1,650,784)
Statutory reserve  21,539   21,539 
Accumulated other comprehensive income  (8,049)  (8,049)
Total stockholders’ equity  (1,550,898)  2,553,074 
         
Total Liabilities and stockholders’ equity  4,260,405   8,364,377 

The pro forma number of shares to be filedoutstanding immediately after this offering as shown above is based on shares outstanding as of December 31, 2018, assumes the minimum offering amount ( 1,000,000 shares) has been sold at the public offering price of $ 5.00 which is set forth on the cover page of this prospectus, and after deducting the estimated placement agent commissions and estimated offering expenses payable by section 13 or 15(d)us.

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MAXIMUM OFFERING ( 4,000,000 Shares)

  December 31, 2018 
  Actual  Pro Forma 
  (audited)  (unaudited) 
Cash and cash equivalents $356,969  $18,335,941 
Accounts receivable  1,887,702   1,887,702 
Inventories, net  391,646   391,646 
Other receivables  195,740   195,740 
Advances to suppliers  221,843   221,843 
Amounts due from related parties  80,149   80,149 
Total current assets  3,134,049   21,113,021 
         
Plant and equipment, net  651,353   651,353 
Goodwill  475,003   475,003 
Total non-current assets  1,126,356   1,126,356 
         
Total Assets  4,260,405   22,239,377 
         
Total Current Liabilities  5,811,303   5,811,303 
         
Stockholders’ Equity:        
         
Common stock, $.001 par value, 50,000,000 shares authorized; 25,346,004 shares issued and outstanding, actual; 50,000,000 shares authorized; 29,346,004 shares issued and outstanding, pro forma  506,920   510,920 
Additional paid-in capital  (420,524)  17,554,448 
Retained earnings  (1,650,784)  (1,650,784)
Statutory reserve  21,539   21,539 
Accumulated other comprehensive income  (8,049)  (8,049)
Total stockholders’ equity  (1,550,898)  16,428,074 
         
Total Liabilities and stockholders’ equity  4,260,405   22,239,377 

The pro forma number of shares to be outstanding immediately after this offering as shown above is based on shares outstanding as of December 31, 2018, assumes the maximum offering amount ( 4,000,000 shares) has been sold at the public offering price of $ 5.00 which is set forth on the cover page of this prospectus, and after deducting the estimated placement agent commissions and estimated offering expenses payable by us.

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DILUTION

If you invest in our common stock, your interest will be diluted immediately to the extent of the Exchange Act,difference between the public offering price per share you will pay in this offering and the pro forma as applicable, duringadjusted net tangible book value per share of our common stock after this offering. Our net tangible book value as of December 31, 2018 was ( $ 2,025,901) , or ( $ 0.08) per share of common stock. Our pro forma net tangible book value per share set forth below represents our total tangible assets less total liabilities, divided by the preceding 12 months (or for such shorter periodnumber of shares of our common stock outstanding on December 31, 2018.

If the minimum offering amount is sold at the public offering price of $ 5.00 per share, which is set forth on the cover page of this prospectus, after deducting the estimated placement agent commissions and offering expenses payable by us, the pro forma as adjusted net tangible book value as of December 31, 2018 would have been $ 2,078,071 , or $ 0.08 per share. This represents an immediate increase in net tangible book value to existing shareholders of $ 0.16 per share. The public offering price per share will significantly exceed the net tangible book value per share. Accordingly, new investors who purchase shares of common stock in this offering will suffer an immediate dilution of their investment of $ 4.92 per share. The following table illustrates this per share dilution to the new investors purchasing shares of common stock in this offering assuming the minimum offering amount is sold:

Assumed public offering price per share   $5.00 
Net tangible book value per share as of December 31, 2018 $(0.08)    
Increase in net tangible book value per share attributable to the offering  0.16     
Pro forma net tangible book value per share as of December 31, 2018 after giving effect to the offering      0.08 
Dilution per share to new investors     $4.92 

A $1.00 increase (decrease) in the public offering price of $ 5.00 per share would increase (decrease) the pro forma net tangible book value by $ 925,000 , the pro forma net tangible book value per share after this offering by $ 0.03 per share and the dilution in pro forma net tangible book value per share to investors in this offering by $ 0.97 per share, assuming that we may be required to file such reports and materials, other than Form 8-K reports); and have filed current “Form 10 information” with the SEC reflecting our statusnumber of shares offered by us, as an entity that is no longer a shell company for a periodset forth on the cover page of not less than 12 months, can our securities be resold pursuant to Rule 144.

“Form 10 information” is, generally speaking,this prospectus, remains the same typeand after deducting the placement agent commissions and estimated offering expenses payable by us.

If the maximum offering amount is sold at the public offering price of information,$ 5.00 per share, which is set forth on the cover page of this prospectus, after deducting the estimated placement agent commissions and offering expenses payable by us, the pro forma as we are requiredadjusted net tangible book value as of December 31, 2018 would have been $ 15,953,071 , or $ 0.54 per share. This represents an immediate increase in net tangible book value to discloseexisting shareholders of $ 0.62 per share. The public offering price per share will significantly exceed the net tangible book value per share. Accordingly, new investors who purchase shares of common stock in this prospectus, but withoutoffering will suffer an offeringimmediate dilution of securities. These circumstances regarding how Rule 144 appliestheir investment of $ 4.46 per share.

The following table illustrates this per share dilution to shell companies may hinder your resale of yourthe new investors purchasing shares of common stock in this offering assuming the Company.

OUR COMMON SHARES WILL NOT INITIALLY BE REGISTERED UNDER THE EXCHANGE ACT AND AS maximum offering amount is sold:

Assumed public offering price per share   $5.00 
Net tangible book value per share as of December 31, 2018 $(0.08)    
Increase in net tangible book value per share attributable to the offering  0.62     
Pro forma net tangible book value per share as of December 31, 2018 after giving effect to the offering      0.54 
Dilution per share to new investors     $4.46 

A RESULT WE WILL HAVE LIMITED REPORTING DUTIES WHICH COULD MAKE OUR COMMON STOCK LESS ATTRACTIVE TO INVESTORS.


8


Our common shares are not registered under Section 12$1.00 increase in the public offering price of $ 5.00 per share, which is set forth on the cover page of this prospectus, would increase the pro forma net tangible book value by $ 3,700,000 , the pro forma net tangible book value per share after this offering by $ 0.13 per share and the dilution in pro forma net tangible book value per share to investors in this offering by $ 0.87 per share, assuming that all of the Exchange Act. As a result, we will not be subject to the federal proxy, tender offer, and short swing insider trading rules for Section 12 registrations, and our directors, executive officers and 10% beneficial holders will not be subject to Section 16 of the Exchange Act. In addition, our reporting obligations under Section 15(d) of the Exchange Act may be suspended automatically if we have fewer than 300 shareholders of recordshares offered by us, as set forth on the first daycover page of our fiscal year. Our common shares are not registered under the Securities Exchange Act of 1934, as amended, and we do not intend to register our common shares under the Exchange Act for the foreseeable future, provided that, we will register our common shares under the Exchange Act if we have, after the last day of our fiscal year, more than either (i) 2000 persons; or (ii) 500 shareholders of record who are not accredited investors, in accordance with Section 12(g) of the Exchange Act. As a result, although, upon the effectiveness of the registration statement of which this prospectus, forms a part, we will be required to file annual, quarterly,remains the same and current reports pursuant to Section 15(d) ofafter deducting the Exchange Act, as long as our common shares are not registered under the Exchange Act, we will not be subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the Securities and Exchange Commission a proxy statement and form of proxy complying with the proxy rules.estimated offering expenses payable by us.

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In addition, so long as our common shares are not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common shares will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors, and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5, respectively. Such information about our directors, executive officers, and beneficial holders will only be available through this (and any subsequent) registration statement, and periodic reports we file thereunder.

BECAUSE OUR

MARKET FOR COMMON STOCK IS NOT REGISTERED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, OUR REPORTING OBLIGATIONS UNDER SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, MAY BE SUSPENDED AUTOMATICALLY IF WE HAVE FEWER THAN 300 SHAREHOLDERS OF RECORD ON THE FIRST DAY OF OUR FISCAL YEAR.

EQUITY AND RELATED STOCKHOLDER MATTERS

Our common stock is not registeredcurrently quoted on the OTCQB under the Exchange Act,symbol “ATXG.”

Trading in stocks quoted on the OTCQB is often thin and weis characterized by wide fluctuations in trading prices due to many factors that may have little to do not intend to registerwith a company’s operations or business prospects. We cannot assure you that there will be a market for our common stock underin the Exchange Act forfuture.

We received our trading symbol on September 12, 2016 and were first quoted on September 12, 2016 but no shares were traded until December 12, 2016.

The following table sets forth the foreseeable future (provided that, we will registerhigh and low trading prices of one share of our common stock for each fiscal quarter over the past two fiscal years, and April 1, 2018 to the date of this prospectus. The quotations provided are for the over the counter market, which reflect interdealer prices without retail mark-up, mark-down or commissions, and may not represent actual transactions. Our common stock trades on a limited, sporadic and volatile basis. These high and low bid prices per share of common stock have been adjusted to give effect to the 1-for-20 reverse stock split of our common stock effected on February 27, 2019.

Fiscal Year 2019 High Bid  Low Bid 
First Quarter $78.00  $46.00 
Second Quarter $82.00  $75.00 
Third Quarter $

  $

 
Fourth Quarter $

  $

 

Fiscal Year 2018 High Bid  Low Bid 
First Quarter $41.00  $26.00 
Second Quarter $49.00  $32.00 
Third Quarter $46.00  $33.40 
Fourth Quarter $58.00  $40.00 

Fiscal Year 2017 High Bid  Low Bid 
First Quarter $  $ 
Second Quarter $  $ 
Third Quarter $40.20  $20.20 
Fourth Quarter $40.00  $21.00 

Holders of Our Common Stock

As of April 15, 2019, we had 546 shareholders of our common stock, including the shares held in street name by brokerage firms. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of the common stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to the common stock.

Dividend Policy

No cash dividends were paid on our shares of common stock during the fiscal years ended March 31, 2018 and March 31, 2017. We have not paid any cash dividends since October 28, 2014 (inception) and do not foresee declaring any cash dividends on our common stock in the foreseeable future.

Securities Authorized for Issuance under Equity Compensation Plans

We do not have in effect any compensation plans under which our equity securities are authorized.

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SELECTED HISTORICAL FINANCIAL AND OPERATING DATA

The following table presents our selected historical financial data for the Exchange Act if we have, afterperiods presented and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the last dayfinancial statement and notes thereto included elsewhere in this prospectus.

The following summary financial data for the years ended March 31, 2018 and 2017 are derived from our audited financial statements appearing elsewhere in this prospectus. The following summary financial data for the nine -month periods ended December 31, 2018 and 2017 and the selected balance sheet data as of December 31, 2018 are derived from our unaudited financial statements appearing elsewhere in this prospectus.

  As of March 31, 
  2018  2017 
       
Balance Sheet Data:        
Cash and cash equivalents $264,806  $176,905 
Prepayments, Deposits and Other Receivable  6,129,762   6,777,748 
Total Assets  7,518,111   8,547,518 
Total Current Liabilities  8,623,045   8,791,500 
Total Liabilities  8,623,045   8,791,500 
Total Stockholders’ equity (deficit)  (1,104,934)  (243,983)

  Years Ended
March 31,
 
  2018  2017 
Statements of Operations Data:      
Revenues $13,437,569  $5,335,501 
         
Operating expenses        
Selling, General and Administrative Expenses  (1,585,836)  (595,334)
Depreciation  (111,740)  (34,905)
Total operating expenses  (1,697,576)  (630,239)
Loss from Operations  (255,954)  (374,221)
         
Loss before provision for income taxes  (690,054)  (358,225)
         
Net Loss $(709,396) $(371,802)
         
Net income per common share        
Basic $0.00  $0.00 
Diluted $0.00  $0.00 

  As of December 31, 
  2018  2017 
       
Balance Sheet Data:        
Cash and cash equivalents $356,969  $146,365 
Prepayments, Deposits and Other Receivable  2,777,080   8,248,026 
Total Assets  4,260,405   9,979,510 
Total Current Liabilities  5,811,303   10,364,081 
Total Liabilities  5,811,303   10,364,081 
Total Stockholders’ equity(deficit)  (1,550,898)  (384,571)

  Nine-Months Ended
December 31,
 
  2018  2017 
Statements of Operations Data:      
Revenues $8,108,408  $10,677,416 
         
Operating expenses        
Selling, General and Administrative Expenses  (1,515,952)  (1,153,594)
Depreciation  (88,434)  (84,535)
Total operating expenses  (1,604,386)  (1,238,129)
Loss from Operations  (582,127)  (33,090)
         
Income before provision for income taxes  (562,995)  (27,469)
         
Net Income $(569,586) $(41,182)
         
Net income per common share        
Basic $0.00  $0.00 
Diluted $0.00  $0.00 

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

The following discussion should be read in conjunction with the attached consolidated unaudited financial statements and notes thereto, and our consolidated audited financial statements and related notes for our fiscal year $10,000,000ended March 31, 2018 found in total assets and either more than 2,000 shareholders of record or 500 shareholders of record who are not accredited investorsour Annual Report on Form 10-K (as such term is defined byamended). In addition to historical information, the Securities and Exchange Commission), in accordance with Section 12(g) of the Exchange Act).   As long as our common stock is not registered under the Exchange Act, our obligation to file reports under Section 15(d) of the Exchange Act will be automatically suspended if, on the first day of any fiscal year (other than a fiscal year in which a registration statement under the Securities Act has gone effective), we have fewer than 300 shareholders of record.  This suspension is automatic and does not require any filing with the SEC.  In such an event, we may cease providing periodic reports and current or periodic information, including operational and financial information, may not be available with respect to our results of operations.


FORWARD LOOKING STATEMENTS
This prospectusfollowing discussion contains forward-looking statements that involve riskrisks, uncertainties and uncertainties. We useassumptions. Where possible, we have tried to identify these forward-looking statements by using words such as “anticipate”, “believe”, “plan”, “expect”, “future”, “intend”, andanticipate,” “believe,” “intends,” or similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing.expressions. Our actual results could differ materially from those anticipated by the forward-looking statements due to important factors and risks including, but not limited to, those set forth in our Annual Report on Form 10-K (as amended), and amendments thereto.

This prospectus contains statements that we believe are, or may be considered to be, “forward-looking statements”. All statements other than statements of historical fact included in this prospectus regarding the prospects of our industry or our prospects, plans, financial position or business strategy, may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “project,” “anticipate,” “believe,” “plans,” “forecasts,” “continue” or “could” or the negatives of these terms or variations of them or similar terms. Furthermore, such forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission or press releases or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements for many reasons, including the risks faced by us as described in the “Risk Factors” section and elsewhere in this prospectus.

USE OF PROCEEDS
Our offering is being made on a self-underwritten and “best-efforts” basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $0.03. The following table sets forth the uses of proceeds assuming the sale of one-third, two-third and 100%, respectively, of the securities offered for sale by the Company. There is no assuranceare reasonable, we cannot assure you that wethese expectations will raise the full $90,000 as anticipated.

Gross proceeds $30,000  $60,000  $90,000 
Offering expenses $7,000  $7,000  $7,000 
Net proceeds $23,000  $53,000  $83,000 
Website development $1,500  $3,000  $3,000 
Leasing premises and equipment $5,980  $9,680  $14,460 
Raw materials $1,520  $17,320  $30,540 
Employees’ salary $-  $6,000  $12,000 
Miscellaneous expenses $1,000  $2,000  $3,000 
Marketing and advertising $3,000  $5,000  $10,000 
SEC reporting and compliance $10,000  $10,000  $10,000 
9

The above figures represent only estimated costs.  If necessary, Otmane Tajmouati, our president and director, has agreed to loan the Company funds to complete the registration process, implement business plan, and maintain reporting status and quotation on the OTC Bulletin Board or other quotation service. Also, these loans would be necessary if the proceeds from this offering will not be sufficient to implement our business plan and maintain reporting status. Mr. Tajmouati will not be paid any compensation or anything from the proceeds of this offering. There is no due date for the repayment of the funds advanced by Mr. Tajmouati. Mr. Tajmouati will be repaid from revenues of operations if and when we generate significant revenues to pay the obligation. The Company will conduct the repayment of director’s loans in accordance to the sequence of loans in full amount.

DETERMINATION OF OFFERING PRICE
We have determined the offering price of the shares arbitrarily.  The price does not bear any relationship to our assets, book value, earnings, or other established criteria for valuing a privately held company.  In determining the number of sharesprove to be offered and the offering price, we took into consideration our cash on hand and the amount of money we would need to implement our business plan.  Accordingly, the offering price should not be considered an indication of the actual value of the securities.

DILUTION
The price of the current offering is fixed at $0.03 per share. This price is significantly higher than the price paid by the Company’s officer for common equity since the Company’s inception on October 28, 2014.  Otmane Tajmouati, the Company’s sole officer and director, paid $0.001 per share for the 3,000,000 shares of common stock he purchased from the Company on December 26, 2014.

Dilution represents the difference between the offering price and the net tangible book value per share immediately after completion of this offering. Net tangible book value is the amount that results from subtracting total liabilities and intangible assets from total assets. Dilution arises mainly as a result of our arbitrary determination of the offering price of the shares being offered. Dilution of the value of the shares you purchase is also a result of the lower book value of the shares held by our existing stockholders. The following tables compare the differences of your investment in our shares with the investment of our existing stockholders.

As of March 31, 2015, the net tangible book value of our shares of common stock was $3,161 or approximately $0.001 per share based upon 3,000,000 shares outstanding.

If 100% of the Shares Are Sold:

Upon completion of this offering, in the event all of the shares are sold, the net tangible book value of the 6,000,000 shares to be outstanding will be $86,161 or approximately $0.0144 per share. The net tangible book value per share prior to the offering is $0.001. The net tangible book value of the shares held by our existing stockholders will be increased by $0.0134 per share without any additional investment on his part. Investors in the offering will incur an immediate dilution from $0.03 per share to $0.0144 per share.

After completion of this offering, if 3,000,000 shares are sold, investors in the offering will own 50% of the total number of shares then outstanding for which they will have made cash investment of $90,000 or $0.03 per share. Our existing stockholder will own 50% of the total number of shares then outstanding, for which he has made contributions of cash totaling $3,000 or $0.001 per share.

If two-third of the Shares Are Sold

Upon completion of this offering, in the event 2,000,000 shares are sold, the net tangible book value of the 5,000,000 shares to be outstanding will be $56,161, or approximately $0.0113 per share. The net tangible book value per share prior to the offering is $0.001. The net tangible book value of the shares held by our existing stockholders will be increased by $0.0103 per share without any additional investment on his part. Investors in the offering will incur an immediate dilution from $0.03 per share to $0.0113 per share.

After completion of this offering investors in the offering will own 40% of the total number of shares then outstanding for which they will have made cash investment of $60,000, or $0.03 per share. Our existing stockholder will own 60% of the total number of shares then outstanding, for which he has made contributions of cash totaling $3,000 or $0.001 per share.

If one-third of the Shares Are Sold

Upon completion of this offering, in the event 1,000,000 shares are sold, the net tangible book value of the 4,000,000 shares to be outstanding will be $26,161, or approximately $0.0066 per share. The net tangible book value per share prior to the offering is $0.001. The net tangible book value of the shares held by our existing stockholders will be increased by $0.0056 per share without any additional investment on his part. Investors in the offering will incur an immediate dilution from $0.03 per share to $0.0066 per share.
After completion of this offering investors in the offering will own 25% of the total number of shares then outstanding for which they will have made cash investment of $30,000, or $0.03 per share. Our existing stockholder will own 75% of the total number of shares then outstanding, for which he has made contributions of cash totaling $3,000 or $0.001 per share.

The following table compares the differences of your investment in our shares with the investment of our existing stockholders.

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Existing Stockholder if all of the Shares are Sold:   
Price per share  $0.001 
Net tangible book value per share before offering  $0.001 
Potential gain to existing shareholder $90,000 
Net tangible book value per share after offering  $0.0144 
Increase to present stockholders in net tangible book value per share after offering  $0.0134 
Capital contributions  $3,000 
Number of shares outstanding before the offering   3,000,000 
Number of shares after offering assuming the sale of 50% of shares  6,000,000 
Percentage of ownership after offering   50
     
Existing Stockholder if two-third of Shares are Sold:     
Price per share  $0.001 
Net tangible book value per share before offering  $0.001 
Potential gain to existing shareholder $60,000 
Net tangible book value per share after offering  $0.0113 
Increase to present stockholders in net tangible book value per share after offering  $0.0103 
Capital contributions  $3,000 
Number of shares outstanding before the offering   3,000,000 
Number of shares after offering assuming the sale of 50% of shares  5,000,000 
Percentage of ownership after offering   60
     
Existing Stockholder if one-third of Shares are Sold:     
Price per share  $0.001 
Net tangible book value per share before offering  $0.001 
Potential gain to existing shareholder $30,000 
Net tangible book value per share after offering  $0.0066 
Increase to present stockholders in net tangible book value per share after offering  $0.0056 
Capital contributions  $3,000 
Number of shares outstanding before the offering   3,000,000 
Number of shares after offering assuming the sale of the maximum number of shares   4,000,000 
Percentage of ownership after offering   75
     
Purchasers of Shares in this Offering if all 100% Shares Sold    
Price per share  $0.03 
Dilution per share  $0.0156 
Capital contributions  $90,000 
Number of shares after offering held by public investors   3,000,000 
Percentage of capital contributions by existing shareholder   3.23
Percentage of capital contributions by new investors   96.77
Percentage of ownership after offering   50
     
Purchasers of Shares in this Offering if two-third of Shares Sold    
Price per share  $0.03 
Dilution per share  $0.0187 
Capital contributions  $60,000 
Percentage of capital contributions by existing shareholder  4.76
Percentage of capital contributions by new investors   95.24
Number of shares after offering held by public investors   2,000,000 
Percentage of ownership after offering   40
     
Purchasers of Shares in this Offering if one-third of Shares Sold     
Price per share  $0.03 
Dilution per share  $0.0234 
Capital contributions  $30,000 
Percentage of capital contributions by existing shareholder  9.09
Percentage of capital contributions by new investors   90.91
Number of shares after offering held by public investors   1,000,000 
Percentage of ownership after offering   25

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MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes and other financial information included elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includescorrect. These forward-looking statements that involveare subject to certain known and unknown risks and uncertainties. You should review the “Risk Factors” section of this prospectus for a discussion of important factorsuncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements contained herein, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this prospectus.

You should read the matters described in or impliedRisk Factors” and the other cautionary statements made in this prospectus, and incorporated by reference herein, as being applicable to all related forward-looking statements wherever they appear in this prospectus. We cannot assure you that the forward-looking statements containedin this prospectus will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements.

Critical Accounting Policies and Estimates

The discussion and analysis of the Company’s financial condition and results of operations are based upon its consolidated unaudited financial statements, which have been prepared in accordance with accounting principles generally accepted in the following discussionUnited States of America. The preparation of these unaudited financial statements requires management to make estimates and analysis.


Asjudgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an issuer with total annual gross revenues of less than $1 billion during our most recently completed fiscal year, we qualify as an “emerging growth company”on-going basis, management evaluates past judgments and estimates, including those related to bad debts, accrued liabilities, convertible promissory notes and contingencies. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the JOBS Act.circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The accounting policies and related risks described in the Company’s Annual Report on Form 10-K as initially filed with the Securities and Exchange Commission on July 16, 2018 (as amended on September 21, 2018) are those that depend most heavily on these judgments and estimates. As a result, we are permittedof December 31, 2018, there had been no material changes to and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

any of the critical accounting policies contained therein.

·  Have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;-26-
·  Provide an auditor attestation with respect to management’s report on the effectiveness of our internal controls over financial reporting;
·  Comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
·  Submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
·  Disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period. However, even if we no longer qualify for the exemptions for an emerging growth company, we may still be, in certain circumstances, subject to scaled disclosure requirements as a smaller reporting company. For example, smaller reporting companies, like emerging growth companies, are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation S-K or auditor attestation of internal controls over financial reporting.
Our cash balance

Corporate History

Addentax Group Corp. was $6,990 as of March 31, 2015. We have been utilizing and continue to utilize funds from Otmane Tajmouati, our Chairman and President, who has formally and verbally agreed to loan funds to allow the Company to pay for offering costs, filing fees, and professional fees.  As of March 31, 2015, Mr. Tajmouati had advanced us $8,100 under verbal conditions. Mr. Tajmouati has agreed to loan $30,000 to us pursuant to the terms of the Loan Agreement that is filed as Exhibit 10.1 to the Registration Statement of which this Prospectus forms a part. In order to implement our plan of operations for the next twelve months period, we require a minimum of $30,000 of funding from this offering. If we generate less that minimum needed amount from this offering, less than one third of the offered shares will be sold, we will utilize funds from Mr. Tajmouati. Being a development stage company, we have limited operating history. After twelve months period we may need additional financing. Our principal executive office is located at 70, Av Allan ben Abdellah, Fes, Morocco 30000. Our phone number is +17026606161.


We are a development stage company and have generated limited revenue to date of $1,080 and nominal net income of $161. Our full business plan entails activities describedincorporated in the PlanState of Operation section below. Long term financing beyond the maximum aggregate amount of this offering may be requiredNevada on October 28, 2014. We were originally incorporated to expand our business. The exact amount of funding will dependproduce images on the scale of our development and expansion. We do not have plan for an expansion, and we have not decided yet on the scale of our development and expansion and on exact amount of funding needed for our long term financing.

12


To meet our need for cash we are attempting to raise money from this offering. We believe that we will be able to raise enough money through this offering to continue our proposed operations but we cannot guarantee that once we continue operations we will stay in business after doing so. If we are unable to successfully find customers we may quickly use up the proceeds from this offering and will need to find alternative sources. At the present time, we have made an arrangement to raise additional cash, other than through this offering,multiple surfaces, such as Loan Agreement from our sole officerglass, leather, plastic, ceramic, textile, and director, which is filed in Exhibit 10.1 to the Registration Statement of which this Prospectus formsothers using a part.

According to our Plan of Operation, the $90,000 that would be raised if we sold all shares in this offering would last one year.  Thus, without generating significant revenue, we may need more funds for business operations in the next year, and we will have to revert to obtaining additional money.

PLAN OF OPERATION

After the effectiveness of our registration statement by the Securities and Exchange Commissions, we intend to concentrate our efforts on raising capital. During this period, our operations will be limited due to the limited amount of funds on hand.  Upon completion of our public offering, our specific goal is to profitably sell our products of heat transfer printing and attract new customers. Our plan of operations following the completion is as follows:

Establish our Office
Time Frame: 1st - 3rd months.
Material costs: no cost anticipated.

Our sole officer and director, Otmane Tajmouati is taking care of our initial administrative duties. He is providing his own computer, furniture and other needed items for the office. Mr. Tajmouati is also taking care about expenses associated with office service. The modern equipment for the office will be purchased when the Company starts generating significant revenue from selling its printed products.

Ordering equipment
Time Frame: 4th – 6th months.
Material costs: $3,000-$9,000.

If we sell 1/3 of all shares in this offer, we will purchase one 3D sublimation vacuum heat transfer machine,machine. We no longer pursue opportunities related to 3D printing positioning.

We have a fiscal year-end of March 31. On July 12, 2016, we filed an amendment to our articles of incorporation, which amendment was effectuated by our transfer agent on July 20, 2016. The certificate of amendment was filed in order to undertake a two for one laptopforward stock split and one printerincrease our authorized shares of common stock, par value $0.001 per share, to 150,000,000 shares, which forward stock split has been retroactively reflected throughout this prospectus. On February 27, 2019, we filed a Certificate of Change to effect a 1-for-20 reverse stock split, which reduced our authorized shares of common stock to 50,000,000 shares.

Current Business

Effective December 28, 2016, the Company executed a Sale & Purchase Agreement (“S&P”) for the cost $3,000 including transportation costs, customs and taxes. If we sell 2/3acquisition of all shares we will buy two 3D sublimation vacuum heat transfer machines, two laptops and two printers for the price $6,000 and if we sell 100% of the shares of Yingxi Industrial Chain Group Co., Ltd. (“YICG”), a company incorporated under the laws of the Republic of Seychelles. YICG is currently a garment manufacturer. Intending to diversify its service portfolio, the Company plans to develop another branch of business: international supply chain management consulting service, which will focus exclusively on the textile & garments industry. The Company plans to assist clients to open textile and garment sales outlets throughout China. The Company will also provide assistance services in plan implementation. Pursuant to the S&P, which transaction closed on September 25, 2017, the Company issued five hundred million (500,000,000) restricted common shares of the Company to the owners of Yingxi Industrial Chain Group Co., Ltd. in consideration for the acquisition of YICG.

After the Share Exchange, YICG’s business became our business. We are a garment manufacturer and logistic service provider based in China. Our common stock is listed on the OTCQB under the symbol of “ATXG”. We classify our businesses into two segments: Garment manufacturing and logistics services.

Our garment manufacturing business consists of sales made principally to wholesalers located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through two wholly-owned subsidiaries, Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), and Shantou Chenghai Dai Tou Garments Co., Ltd (“DT”), which are located in the Guangdong province, China.

Our logistics business consists of delivery and courier services covering approximately seven provinces in China. Although we have our own motor vehicles and drivers, we currently outsource some of the business to our contractors. We believe outsourcing allows us to maximize our capacity and maintain flexibility while reducing capital expenditures and the costs of keeping drivers during slow seasons. We conduct our logistics operations through two wholly-owned subsidiaries, Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), and Shenzhen Hua Peng Fa Logistic Co., Ltd (“HPF”), which are located in the Guangdong province, China.

Business Objectives

Garment Manufacturing Business

We believe the strength of our garment manufacturing business is mainly due to our consistent emphasis on exceptional quality and timely delivery. The primary business objective for our garment manufacturing segment is to expand our customer base and improve our profit.

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Logistics Business

The business objective and future plan for our logistics service segment is to establish an efficient logistics system and to build a nationwide delivery and courier network in China. As of March 31, 2018, we provided logistics service to over 66 cities in seven provinces and two municipalities. We expect to develop an additional 20 logistics points in existing serving cities in the third quarter and fourth quarter of 2018 and improve the Company’s profit in the 2019 fiscal year.

Seasonality of Business

Our business is affected by seasonal trends, with higher levels of garment sales in our second and third quarters and higher logistic service revenue in our third and fourth fiscal quarters. These trends primarily result from the timing of seasonal garment manufacturing shipments and holiday periods in the logistic segment.

Credit period

Garment manufacturing business

For our new customers, we generally require orders placed to be backed by advances or deposits. For our long-term and established customers with good payment track records, we generally provide payment terms between 30 to 180 days following their acknowledgement of receipt of goods.

Logistics business

For our logistics service, we generally receive payments from the customers between 30 to 90 days following the date of the registration of our receipt of packages.

Markets

Currently, our market focuses on small and medium-sized enterprises in China who have business expansion plans.

Economic Uncertainty

Our business is dependent on consumer demand for our products and services. We believe that the significant uncertainty in the economy in China has increased our clients’ sensitivity to the cost of our products and services. We have experienced continued pricing pressure. If the economic environment becomes weak, the economic conditions could have a negative impact on our sales growth and operating margins, cash position and collection of accounts receivable. Additionally, business credit and liquidity have tightened in China. Some of our suppliers and customers may face credit issues and could experience cash flow problems and other financial hardships. These factors currently have not had an impact on the timeliness of receivable collections from our customers. We cannot predict at this time how this situation will develop and whether accounts receivable may need to be allowed for or written off in the coming quarters.

Despite the various risks and uncertainties associated with the current economy in China, we believe our core strengths will continue to allow us to execute our strategy for long-term sustainable growth in revenue, net income and operating cash flow.

Sufficiency of Cash Flows

Because current cash balances and our projected cash generated from operations are not sufficient to meet our cash needs for working capital and capital expenditures, management intends to seek additional equity or obtain additional credit facilities. However, we may be unable to raise additional capital upon terms acceptable to us. The sale of additional equity will result in additional dilution to our shareholders. A portion of our cash may be used to acquire or invest in complementary businesses or products or to obtain the right to use complementary technologies. From time to time, in the ordinary course of business, we evaluate potential acquisitions of such businesses, products or technologies.

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Summary of Critical Accounting Policies

We have identified critical accounting policies that, as a result of judgments, uncertainties, uniqueness and complexities of the underlying accounting standards and operation involved could result in material changes to our financial position or results of operations under different conditions or using different assumptions.

Estimates and Assumptions

We regularly evaluate the accounting estimates that we use to prepare our financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Revenue Recognition

Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:

(i)identification of the promised goods and services in the contract;
(ii)

determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract;

(iii)measurement of the transaction price, including the constraint on variable consideration;
(iv)allocation of the transaction price to the performance obligations; and
(v)

recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules.

Concentrations of Credit Risk

Cash held in banks: We maintain cash balances at the financial institutions in China. We have not experienced any losses in such accounts.

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Accounts Receivable: Customer accounts typically are collected within a short period of time, and based on its assessment of current conditions and its experience collecting such receivables, management believes it has no significant risk related to its concentration within its accounts receivable.

Recently issued and adopted accounting pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework – Change to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its financial statements.

In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This standard was effective for the Company on September 1, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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 September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”)”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company evaluated the impact of adopting the new standard and concluded that there was no material impact to its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02,“Lease (Topic 842)”, which amends recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. This standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of this new standard 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.

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Results of Operations for the nine months ended December 31, 2018 and 2017

The following tables summarize our results of operations for the nine months ended December 31, 2018 and 2017. The table and the discussion below should be read in conjunction with our condensed consolidated financial statements and the notes thereto appearing elsewhere in this report.

  Nine Months Ended December 31,  Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)    
Revenue $8,108,408   100% $10,677,416   100.0% $(2,569,008)  (24.1)%
Cost of revenues  (7,086,149)  (87.4)%  (9,472,377)  (88.7)%  (2,386,228)  (25.2)%
Gross profit  1,022,259   12.6%  1,205,039   11.3%  (182,780)  (15.2)%
Operating expenses  (1,604,386)  (19.8)%  (1,238,129)  (11.6)%  366,257   29.6%
(Loss) from operation  (582,127)  (7.2)%  (33,090)  (0.3)%  549,037   1659.2%
Other income, net  19,132   0.2%  5,621   (0.0)%  13,511   240.4%
Income tax expense  (6,591)  (0.0)%  (13,713)  (0.1)%  (7,122)  (51.9)%
Net (loss) $(569,586)  (7.0)% $(41,182)  (0.4)% $528,404   (1283.1)%

Revenue

Revenue generated from our garment manufacturing business contributed $2,760,966 or 34.1% of our total revenue for the nine months ended December 31, 2018. Revenue generated from our garment manufacturing business contributed $3,779,595 or 35.4% of our total revenue for the nine months ended December 31, 2017. The decrease was due to we terminated business with certain customers with low profit margin during the nine months ended December 31, 2018. We have begun to implement control on reviewing and monitoring profit margin with each customer to increase profitability.

Revenue generated from our logistic business contributed $5,347,442 or 65.9% of our total revenue for the nine months ended December 31, 2018. Revenue generated from our logistic business contributed $6,897,821 or 64.6% of our total revenue for the nine months ended December 31, 2017. The decrease was due to terminated business with certain customers with low profit margin during the nine months ended December 31, 2018. We have begun to implement control on reviewing and monitoring profit margin with each customer to increase profitability.

Total revenue for the nine months ended December 31, 2018 was $8,108,408, a 24.1% decrease compared with the nine months ended December 31, 2017. The decrease was due to terminated business with certain customers with low profit margin during the nine months ended December 31, 2018. We have begun to implement control on reviewing and monitoring profit margin with each customer to increase profitability.

Cost of revenue

  Nine Months Ended December 31,  Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)    
Net revenue for garment manufacturing $2,760,966   100% $3,779,595   100.0% $(1,018,629)  (27.0)%
Raw materials  2,220,433   80.4%  2,957,368   78.2%        
Labor  243,710   8.8%  410,562   10.9%        
Other and Overhead  57,286   2.1%  159,834   4.2%        
Total cost of revenue for garment manufacturing  2,521,429   91.3%  3,527,764   93.3%  (1,006,335)  (28.5)%
Gross profit for garment manufacturing  239,537   8.7%  251,831   6.7%  (12,294)  (4.9)%
Net revenue for logistic service  5,347,442   100%  6,897,821   100.0%  (1,550,379)  (22.5)%
Fuel and toll  2,089,404   39.1%  4,835,293   70.1%        
Subcontracting fees  2,475,316   46.3%  1,109,320   16.1%        
Total cost of revenue for logistic service  4,564,720   85.4%  5,944,613   86.2%  (1,379,893)  (23.2)%
Gross Profit for logistic service  782,722   14.6%  953,208   13.8%  (170,486)  (17.9)%
Total cost of revenue $7,086,149   87.4% $9,472,377   88.7% $(2,386,228)  (25.2)%
Gross profit $1,022,259   12.6% $1,205,039   11.3% $(182,780)  (15.2)%

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Cost of revenue for our manufacturing segment for the nine months ended December 31, 2018 and 2017 was $2,521,429 and $3,527,764, respectively, which includes direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of revenue for our service segment for the nine months ended December 31, 2018 and 2017 was $4,564,720 and $5,944,613, respectively, which includes gasoline and diesel fuel, toll charges and subcontracting fees.

For our garment manufacturing business, we purchase the majority of our raw materials directly from numerous local fabric and accessories suppliers. Aggregate purchases from our five largest raw material suppliers represented approximately 51.4% and 57% of raw materials purchases for the nine months ended December 31, 2018 and 2017, respectively. One and three suppliers provided more than 10% of our raw materials purchases for the nine months ended December 31, 2018 and 2017. We have not experienced difficulty in obtaining raw materials essential to our business, and we believe we maintain good relationships with our suppliers.

For our logistic business, we outsource some of the business to our contractors. The Company relied on three subcontractors, in which the subcontracting fees to our largest contractor represented approximately 15.19% and 60% of total cost of revenues for our service segment for the nine months ended December 31, 2018 and 2017, respectively. We have not experienced any disputes with our subcontractor and we believe we maintain good relationships with our contract logistic service provider.

Raw material costs for our manufacturing business were 80.4% of our total manufacturing business revenue in the nine months ended December 31, 2018, compared with 78.2% in the nine months ended December 31, 2017. The increase was mainly due to the increase in raw materials price.

Labor costs for our manufacturing business were 8.8% of our total manufacturing business revenue in the nine months ended December 31, 2018, compared with 10.9% in the nine months ended December 31, 2017.

Overhead and other expenses for our manufacturing business accounted for 2.1% of our total manufacturing business revenue for the nine months ended December 31, 2018, compared with 4.2% of total manufacturing business revenue for the nine months ended December 31, 2017.

Fuel and toll costs for our service business for the nine months ended December 31, 2018 were $2,089,404 compared with $4,835,293 for the nine months ended December 31, 2017. Fuel and toll costs for our service business accounted for 39.1% of our total service revenue for the nine months ended December 31, 2018, compared with 70.1% for the nine months ended December 31, 2017. The decrease was primarily attributable to we subcontracted more shipping orders to subcontractors in 2018 due to the increase in shipping orders with the destination that were not covered by the Company’s own delivery and transportation networks.

Subcontracting fees for our service business for the nine months ended December 31, 2018 increased 123.1% to $2,475,316 from $1,109,320 for the nine months ended December 31, 2017. Subcontracting fees accounted for 46.3% and 16.1% of our total service business revenue in the nine months ended December 31, 2018 and 2017, respectively. This increase was primarily attributable to we subcontracted more shipping orders to subcontractors in 2018 due to the increase in shipping orders with the destination that were not covered by the Company’s own delivery and transportation networks.

Total cost of revenue for the nine months ended December 31, 2018 was $7,086,149, a 25.2% decrease from $9,472,377 for the nine months ended December 31, 2017. Total cost of sales as a percentage of total sales for the nine months ended December 31, 2018 was 87.4%, compared with 88.7% for the nine months ended December 31, 2017. Gross margin for the nine months ended December 31, 2018 was 12.6% compared with 11.3% for the nine months ended December 31, 2017.

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Gross profit

  Nine Months Ended December 31,  Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)    
Gross profit $1,022,259   100% $1,205,039   100%  (182,780)  (15.2)%
Operating expenses:                        
Selling expenses  (14,480)  (1.4)%  (21,643)  (1.8)%  (7,163)  (33.1)%
General and administrative expenses  (1,589,906)  (155.5)%  (1,216,487)  (101.0)%  373,419   30.7%
Total $(1,604,386)  (156.9)% $(1,238,129)  (102.8)%  366,257   29.6%
(Loss) from operations $(582,127)  (56.9)% $(33,090)  (2.8)%  549,037   1659.2%

Manufacturing business gross profit for the nine months ended December 31, 2018 was $239,537 compared with $251,831 for the nine months ended December 31, 2017. Gross profit accounted for 8.7% of our total manufacturing business revenue for the nine months ended December 31, 2018, compared with 6.7% for the nine months ended December 31, 2017.

Gross profit in our service business for the nine months ended December 31, 2018 was $782,722 and gross margin was 14.6%. Gross profit in our service business for the nine months ended December 31, 2017 was $953,208 and gross margin was 13.8%.

The increase in gross margin was due to the implementation of cost-cutting measures and the effective control on our costs to increase profitability during the nine months ended December 31, 2018.

Selling, General and administrative expenses

Our selling expenses in our manufacturing segment for the nine months ended December 31, 2018 and 2017 were $14,480 and $21,643, respectively. Our selling expenses in our service segment for the nine months ended December 31, 2018 and 2017 were $nil and $nil, respectively. Selling expenses consist primarily of local transportation, unloading charges and product inspection charges.

Our general and administrative expenses in our manufacturing segment for the nine months ended December 31, 2018 and 2017 were $237,514 and $295,324, respectively. Our general and administrative expenses in our service segment, for the nine months ended December 31, 2018 and 2017 were $745,431 and $803,721, respectively. Our general and administrative expenses in our corporate and other segment for the nine months ended December 31, 2018 and 2017 were $606,961 and $117,441, respectively. General and administrative expenses consist primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Selling expenses for the nine months ended December 31, 2018 decreased 33.1% to $14,480 from $21,643 for the nine months ended December 31, 2017.

General and administrative expenses for the nine months ended December 31, 2018 increased 30.7% to $1,589,906 from $1,216,487 for the nine months ended December 31, 2017. The increase was mainly due to the increased in legal and professional fees to comply with the SEC accounting, disclosure and reporting requirements

Income (loss) from operations

(Loss) from operations for the nine months ended December 31, 2018 and 2017 was ($582,127) and ($33,090), respectively. (Loss) from operations of ($12,458) and ($6,027) was attributed from our manufacturing segment for the nine months ended December 31, 2018 and 2017, respectively. Income from operations of $37,292 and $116,644 was attributed from our service segment for the nine months ended December 31, 2018 and 2017, respectively. We incurred a (loss) from operations in corporate segment of ($606,961) and ($143,707) for the nine months ended December 31, 2018 and 2017, respectively. The loss from our corporate segment was mainly due to the increased in legal and professional fees to comply with the SEC accounting, disclosure and reporting requirements

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Income Tax Expenses

Income tax expense for the nine months ended December 31, 2018 and 2017 was $6,591 and $13,713, respectively, a 51.9% decrease compared to the same period of 2017. 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 tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the nine months ended December 31, 2018 and 2017.

QYTG and YX were incorporated in the PRC and are subject to the PRC statutory tax rate of 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the nine months ended December 31, 2018 and 2017.

The Company is governed by the Income Tax Laws of the PRC. Yingxi’s operating companies, HSW, HPF and DT were subject to an EIT rate of 25% in calendar year of 2018 and 2017. XKJ enjoyed the preferential tax benefits and its EIT rate was 15% in calendar year of 2018 and 2017.

The Company is a U.S. entity and is subject to United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the nine months ended December 31, 2018 and 2017.

Net loss

We incurred a net (loss) of ($569,586) and ($41,182) for the nine months ended December 31, 2018 and 2017, respectively. Our basic and diluted earnings per share were $0.0 and $0.0 for the nine months ended December 31, 2018 and 2017, respectively.

Summary of cash flows

Summary cash flows information for the nine months ended December 31, 2018 and 2017 is as follow:

  2018  2017 
  (In U.S. dollars) 
Net cash provided by operating activities $1,083,074  $756,510 
Net cash used in investing activities $(91,246) $(3,102,539)
Net cash (used in) provided by financing activities $(887,410) $2,310,965 

Net cash used in operating activities consist of net loss of ($569,586), increased by depreciation of $88,434, and increased by increase in change of operating assets and liabilities of $1,564,226. We will improve our operating cash flow by closely monitoring the timely collection of accounts and other receivables. We generally do not hold any significant inventory for more than ninety days, as we typically manufacture upon receipt of customers’ orders.

Net cash used in investing activities consist of purchase of plant and equipment of $91,246.

Net cash provided by financing activities consist of repayment of third party borrowings of $3,507,077 and we received third party proceeds of $3,596,628; and repayment of related party borrowings of $5,388,040 and we received related party proceeds of $4,251,157; and we received proceeds from bank borrowings of $159,922.

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Financial Condition, Liquidity and Capital Resources

As of December 31, 2018, we had cash on hand of $356,969, total current assets of $3,134,049 and current liabilities of $5,811,303. We presently finance our operations primarily from cash flows from borrowings from related parties and third parties. We aim to improve our operating cash flows and anticipate that cash flows from our operations and borrowings from related parties and third parties will continue to be our primary source of funds to finance our short-term cash needs.

The growth and development of our business will require a significant amount of additional working capital. We currently have limited financial resources and based on our current operating plan, we will buy three setsneed to raise additional capital in order to continue as a going concern. We currently do not have adequate cash to meet our short or long-term objectives. In the event additional capital is raised, it may have a dilutive effect on our existing stockholders.

We are subject to all the substantial risks inherent in the development of a new business enterprise within an extremely competitive industry. Due to the absence of a long standing operating history and the emerging nature of the necessary equipmentmarkets in which we compete, we anticipate operating losses until we can successfully implement our business strategy, which includes all associated revenue streams. Our revenue model is new and evolving, and we cannot be certain that it will be successful. The potential profitability of this business model is unproven. We may never ever achieve profitable operations. Our future operating results depend on many factors, including demand for our services, the price $9,000.


We are not planninglevel of competition, and the ability of our officers to sell the one 3D sublimation vacuum heat transfer machine we have already purchased. It will serve us an additional machine for printed products productionmanage our business and be reserve equipment in case onegrowth. As a result of the machines purchased during operations breaks downemerging nature of the market in which we compete, we may incur operating losses until such time as we can develop a substantial and stable revenue base. Additional development expenses may delay or negatively impact the ability of the Company to generate profits. Accordingly, we cannot assure you that our business model will be serviced.

Installation and testing
Time Frame: 6th-7th months.
Material costs: $700-$2,100.

The machinesuccessful or that we can sustain revenue growth, achieve or sustain profitability, or continue as a going concern.

We have purchased before has already been installed and tested at our location and ready for production. Once we get more machines, we plan to install and test them at our location.very limited financial resources. We will need to hire professionalsraise substantial additional capital to work partsupport the on-going operation and increased market penetration of our services, until such time such as electricians, mechanicswe generate revenues sufficient to support our operations, if ever. Our failure to obtain additional capital to finance our working capital needs on acceptable terms, or at all, will negatively impact our business, financial condition and loaders. It will cost about $700 per one set of equipment.


Supplies
Time Frame: 3rd-12th months.
Material costs: $1,520-$30,540.

We plan to purchase raw materials in accordance with sales volumes, but keep the stock not lower than represented calculations. According to the finance attracted, our expenses for raw materials will be as following:
33% financing – purchase of one 3d sublimation vacuum heat transfer machine (2 in stock):  $1,520;
66% financing – purchase of two 3d sublimation vacuum heat transfer machine (3 in stock):  $17,320;
100% financing – purchase of three 3d sublimation vacuum heat transfer machine (4 in stock):  $30,540.

Commence of production process
Time frame: started in March 2015
Material costs: in accordance to orders from customers.

The Company has started production process in March 2015. First order was made for Derb il Horra, Addentax Group Corp.’s first customer, which contains heat transfer printing on t-shirts and hoodies with one and various colors images on them. The Contract of the sale goods, dated February 3, 2015, is filed in Exhibit 10.2 to the Registration Statement of which this Prospectus forms a part.
13

Develop Our Website
Time Frame: 5th –12th months.
Material costs: $1,500-$3,000.

During this period, we intend to begin developing our website. Our sole officer and director, Otmane Tajmouati will be in charge of developing our website.liquidity. As of the dateDecember 31, 2018, we had $5,811,303 of this prospectus we have registered a domain name for our website www.addentaxgroup.com and have filled it up with basic information and pictures of our products.current liabilities. We plan to hire a web designer to help us with designing and developing of the website. Wecurrently do not have any written agreements with any web designers at current time. The website development costs, including site designthe resources to satisfy these obligations, and implementation will be approximately $1,500. If we sell 100% ofour inability to do so could have a material adverse effect on our business, our ability to continue as a going concern, and the shares offered we will develop more sophisticated and well-designed web site, therefore developing cost will be $3,000. Updating and improving our website will continue throughout the lifetimevalue of our operations.

Hire employees
securities.

Time Frame: 6Off-Balance Sheet Arrangementsth-7th months.

Material costs: $6,000-$12,000.

With respect to the selling shares, in case of two/third shares will be sold we will buy second heat transfer machine and raw materials accordingly and hire one worker, who will cost us $6,000 per year. If we sell all the shares in this offering, we plan to hire two workers for the third and second machines that we are planning to purchase in such event and it will cost us $12,000 per year.

Marketing
Time Frame: 3th - 12th months.
Material costs: $3,000-$10,000.

We will start out from straight marketing, such as offering our product at the fairs and exhibitions, handing out booklets with description of our product. We intent to launch our e-commerce ready web site, put banners on popular websites and advertisements in social networks. We will send our commercial quotations to event, designer, PR and advertising agencies, which can raise customer awareness and attract new partners. We also expect to get new customers from "word of mouth" advertising where our new customers will refer their colleagues to us. We will encourage such advertising by rewarding person with a discount who referred new customers to us. This strategy generates a repeated customer base that will be critical to our long-term success. We intend to spend at least $3,000 if we raise $30,000 and maximum of $10,000 if we raise $90,000 on marketing efforts during the first year. Marketing is an ongoing matter that will continue during the life of our operations.

In summary, our plan of operation contains office establishment, developing our website, purchasing raw materials. Furthermore we should be ready to start more significant operations and continue selling our products to future customers. From period of half a year, month 6 through 12, we will be developing our marketing campaign, purchase additional equipment and hire employees in the event of selling sufficient quantity of shares. There is no assurance that we will generate significant revenue in the first twelve months after completion our offering.

Otmane Tajmouati, our president will be devoting approximately 75% of his time per week to our operations. Once we expand operations, and are able to attract more customers to buy our products, Mr. Tajmouati has agreed to commit more time as required. Because Mr. Tajmouati will only be devoting limited time to our operations, the operations may be sporadic and occur at times which is convenient to him.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements (as that term is defined in Item 303(a)(4)(ii) of Regulation S-K) as of December 31, 2018 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.


LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical

Results of Operations for the years ended March 31, 2018 and 2017

The following tables summarize our results of operations for the years ended March 31, 2018 and 2017. The table and the discussion below should be read in conjunction with our condensed consolidated financial information about us upon which to base an evaluationstatements and the notes thereto appearing elsewhere in this prospectus.

              Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)       
Revenue $13,437,569   100.0% $5,335,501   100% $8,102,068   151.9%
Cost of revenues  (11,995,947)  (89.3)%  (5,079,483)  (95.2)%  6,916,464   136.2%
Gross profit  1,441,622   10.7%  256,018   4.8%  1,185,604   463.1%
Operating expenses  (1,697,576)  (12.6)%  (630,239)  (11.8)%  1,067,337   169.3%
Loss from operations  (255,954)  (1.9)%  (374,221)  (7.0)%  (118,267)  (31.6)%
Impairment loss on goodwill  (454,659)  (3.4)%  -   -   454,659   100%
Other income, net  20,558   0.2%  15,996   0.3%  (4,562)  (28.3)%
Income tax expense  (19,342)  (0.1)%  (13,577)  (0.3)%  5,765   42.5%
Net loss $(709,396)  (5.2)% $(371,802)  (7.0)% $337,594   90.8%

Revenue

Revenue generated from our garment manufacturing business contributed $5,069,699 or 37.7% of our performance.total revenue for the year ended March 31, 2018. Revenue generated from our garment manufacturing business contributed $2,750,210 or 51.5% of our total revenue for the year ended March 31, 2017.

Revenue generated from our logistic business contributed $8,367,870 or 62.3% of our total revenue for the year ended March 31, 2018. Revenue generated from our logistic business contributed $2,585,291 or 48.5% of our total revenue for the year ended March 31, 2017.

Total revenue for the year ended March 31, 2018 and 2017 were $13,437,569 and $5,335,501, respectively, a 151.9% increase compared with the year ended March 31, 2017. The increase was due to revenue generated for the year ended March 31, 2017 represents only four months results beginning December 2016 when the operating companies in the PRC were being acquired and consolidated to the Company.

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Cost of revenue

     Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)    
Net revenue for garment manufacturing $5,069,699   100.0% $2,750,210   100% $2,319,489   84.3%
Raw materials  4,250,043   83.8%  2,502,627   91.0%        
Labor  359,897   7.1%  110,389   4.0%        
Other and Overhead  106,693   2.1%  27,911   1.0%        
Total cost of revenue for garment manufacturing  4,716,633   93.0%  2,640,927   96.0%  2,075,706   78.6%
Gross profit for garment manufacturing  353,066   7.0%  109,283   4.0%  243,783   223.1%
Net revenue for logistic service  8,367,870   100.0%  2,585,291   100%  5,782,579   223.7%
Fuel and toll  6,290,430   75.2%  2,289,116   88.5%        
Subcontracting fees  988,883   11.8%  149,440   5.8%        
Total cost of revenue for logistic service  7,279,313   87.0%  2,438,556   94.3%  4,840,757   198.5%
Gross Profit for logistic service  1,088,557   10.7%  146,735   5.7%  941,822   641.9%
Total cost of revenue $11,995,946   89.3% $5,079,483   95.2% $6,916,463   136.2%
Gross profit $1,441,623   10.7% $256,018   4.8% $1,185,605   463.1%

Cost of revenue for our manufacturing segment for the years ended March 31, 2018 and 2017 was $4,716,633 and $2,640,927, respectively, which includes direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of revenue for our service segment for the years ended March 31, 2018 was $7,279,313 and $2,438,556, respectively, which includes gasoline and diesel fuel, toll charges and subcontracting fees.

For our garment manufacturing business, we purchase the majority of our raw materials directly from numerous local fabric and accessories suppliers. Aggregate purchases from our five largest raw material suppliers represented approximately 45.3% and 81.1% of raw materials purchases for the years ended March 31, 2018 and 2017, respectively. Two and four suppliers provided more than 10% of our raw materials purchases for the years ended March 31, 2018 and 2017. We arehave not experienced difficulty in start-up stage operationsobtaining raw materials essential to our business, and we believe we maintain good relationships with our suppliers.

For our logistic business, we outsource some of the business to our contractors. The Company relied on a few subcontractors, in which the subcontracting fees to our largest contractor represented approximately 29.1% and 31.7% of total cost of revenues for our service segment for the years ended March 31, 2018 and 2017, respectively. We have generated limited revenuesnot experienced any disputes with our subcontractor and we believe we maintain good relationships with our contract logistic service provider.

Raw material costs for our manufacturing business were 83.8% of $1,080. We cannot guarantee we will be successfulour total manufacturing business revenue in the year ended March 31, 2018, compared with 91.0% in the year ended March 31, 2017. The decrease in percentages was mainly due to the purchase cost of the raw materials remained consistent, while the labor costs continued rising.

Labor costs for our manufacturing business were 7.1% of our total manufacturing business revenue in the year ended March 31, 2018, compared with 4.0% in the year ended March 31, 2017. The increase in percentages was mainly due to the rising wages in the PRC.

Overhead and other expenses for our manufacturing business accounted for 2.1% of our total manufacturing business revenue for the year ended March 31, 2018, compared with 1.0% of total manufacturing business revenue for the year ended March 31, 2017.

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Fuel and toll costs for our service business for the year ended March 31, 2018 were $6,290,430 compared with $2,289,116 for the year ended March 31, 2017. Fuel and toll costs for our service business accounted for 75.2% of our total service revenue for the year ended March 31, 2018, compared with 88.5% for the year ended March 31, 2017. The decrease in percentages was primarily attributable to the Company subcontracted more shipping orders to subcontractors in 2018 due to the increase in shipping orders with the destination that were not covered by the Company’s own delivery and transportation networks.

Subcontracting fees for our service business for the year ended March 31, 2018 increased 562% to $988,883 from $149,440 for the year ended March 31, 2017. Subcontracting fees accounted for 11.8% and 5.8% of our total service business revenue in the years ended March 31, 2018 and 2017, respectively. This increase in percentages the Company subcontracted more shipping orders to subcontractors in 2018 due to the increase in shipping orders with the destination that were not covered by the Company’s own delivery and transportation networks

Total cost of revenue for the year ended March 31, 2018 was $11,995,947, a 60.3% increase from $5,335,501 for the year ended March 31, 2017. Total cost of sales as a percentage of total sales for the year ended March 31, 2018 was 89.3%, compared with 95.2% for the year ended March 31, 2017. Gross margin for the year ended March 31, 2018 was 10.7% compared with 4.8% for the year ended March 31, 2017. The increase in gross margin was due to the effective control of our cost through business restructuring in 2017 for reorganizing the operational and other structures of our garment manufacturing subsidiaries to increase profitability.

Gross profit

              Increase (decrease) in 
  2018  2017  2018 compared to 2017 
  (In U.S. dollars, except for percentages)       
Gross profit $1,441,622   100% $256,018   100%  1,185,604   463.1%
Operating expenses:                        
Selling expenses  (25,428)  (1.8)%  (7,696)  (3.0)%  17,732   230.4%
General and administrative expenses  (1,672,148)  (116.0)%  (622,543)  (243.2)%  1,049,605   168.6%
Total $(1,697,576)  (117.8)% $(630,239)  (246.2)%  1,067,337   171.4%
Loss from operations $(255,954)  (17.8)% $(374,221)  (146.2)%  (118,267)  (31.6)%

Manufacturing business gross profit for the year ended March 31, 2018 was $353,066 compared with $109,283 for the year ended March 31, 2017. Gross profit accounted for 7.0% of our total manufacturing business revenue for the year ended March 31, 2018, compared with 4.0% for the year ended March 31, 2017.

Gross profit in our service business operations. for the year ended March 31, 2018 was $1,088,557 and gross margin was 10.7%. Gross profit in our service business for the year ended March 31, 2017 was $146,735 and gross margin was 5.7%.

The increase in gross margin was due to the effective control of our cost through business restructuring in 2017 for reorganizing the operational and other structures of our garment manufacturing subsidiaries to increase profitability.

Selling, General and administrative expenses

Our businessselling expenses in our manufacturing segment for the years ended March 31, 2018 and 2017 was $25,428 and $7,696, respectively. Our selling expenses in our service segment for the year ended March 31, 2017 was $nil and $nil, respectively. Selling expenses consist primarily of local transportation, unloading charges and product inspection charges.

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Our general and administrative expenses in our manufacturing segment for the years ended March 31, 2018 and 2017 was $266,493 and $235,688, respectively. Our general and administrative expenses in our service segment, for the year ended March 31, 2018 and 2017 was $1,077,999 and $349,845, respectively. Our general and administrative expenses in our corporate and other segment for the year ended March 31, 2018 and 2017 was $327,656 and $37,010, respectively. General and administrative expenses consist primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Selling expenses for the year ended March 31, 2018 increased 230.4% to $25,428 from $7,696 for the year ended March 31, 2017.

General and administrative expenses for the year ended March 31, 2018 increased 168.6% to $1,672,148 from $622,543 for the year ended March 31, 2017. The increase was due to revenue generated for the year ended March 31, 2017 represents only four months results beginning December 2016 when the operating companies in the PRC were being acquired and consolidated to the Company, offset with the decrease in expenses as a result of cost cutting policy applied in 2017 including streamlining operating process and laying off redundant employees.

Income from operations

Loss from operations for the years ended March 31, 2018 and 2017 was 255,954 and $374,220, respectively. Income (loss) from operations of $61,145 and ($134,100) was attributed from our manufacturing segment for the years ended March 31, 2018 and 2017, respectively. Income from operations of $10,406 and ($203,110) was attributed from our service segment for the years ended March 31, 2018 and 2017, respectively. We incurred a loss from operations in corporate segment of $327,505 and $37,010 for the years ended March 31, 2018 and 2017, respectively. The loss from our corporate segment was mainly due to the legal and professional fee in connection to the reverse merger transactions incurred in 2017.

Income Tax Expenses

Income tax expense for the years ended March 31, 2018 and 2017 was $19,342 and $13,577, respectively, a 42.5% increase compared to 2017. 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 tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the years ended March 31, 2018 and 2017.

QYTG and YX were incorporated in the PRC and is subject to the PRC statutory tax rate is 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the years ended March 31, 2018 and 2017.

The Company is governed by the Income Tax Laws of the PRC. Yingxi’s operating companies, HSW, HPF and DT were subject to an EIT rate of 25% in 2017. XKJ enjoyed the preferential tax benefits and its EIT rate was 15% in 2017.

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 years ended March 31, 2018 and 2017.

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Impairment Loss on Goodwill

For the year ended March 31, 2018, we recognized an impairment loss on goodwill of $454,659. A number of factors, including the overall financial performance, the slower than expected growth and trading conditions were considered. The goodwill impairment assessment process was conducted at the reporting units. We determined the fair value based on discounted cash flow calculations. Based on our impairment test of goodwill, the recoverable amount was lower than the carrying amount of the goodwill recorded and it was concluded that carrying amount of goodwill of $454,659 was impaired.

Net Income

We incurred a net loss of $709,396 and $371,802 for the years ended March 31, 2018 and 2017, respectively. Our basic and diluted earnings per share were $0.00 and $0.00 for the year ended March 31, 2018, respectively.

Summary of cash flows

Summary cash flows information for the years ended March 31, 2018 and 2017 is as follows:

  2018  2017 
  (In U.S. dollars) 
Net cash provided by operating activities $1,880,166  $561,458 
Net cash used in investing activities $(3,122,828) $227,711 
Net cash provided by (used in) financing activities $1,323,044  $(612,354)

Net cash used in operating activities consist of net loss of $709,396, increased by depreciation of $111,740 and impairment loss on goodwill of $454,659, and reduced by increase in change of operating assets and liabilities of $2,023,163. We intend to improve our operating cash flow by closely monitoring the timely collection of accounts and other receivables. We generally do not hold any significant inventory for more than ninety days, as we typically manufacture upon customers’ order.

Net cash used in investing activities consist of payment for acquisition of subsidiaries of $3,025,751 and purchase of plant and equipment of $97,077.

Net cash provided by financing activities consist of repayment of related party borrowings of $2,893,064 and we received related party proceeds of $797,422. repayment of third party borrowings of $2,391,411 and we received third party proceeds of $1,618,813.

Financial Condition, Liquidity and Capital Resources

As of March 31, 2018, we had cash on hand of $264,806, total current assets of $6,394,568 and current liabilities of $8,623,045. We presently finance our operations primarily from cash flows from borrowings from related parties and third parties. We aim to improve our operating cash flows and anticipate that cash flows from our operations and borrowings from related parties and third parties will continue to be our primary source of funds to finance our short-term cash needs.

The growth and development of our business will require a significant amount of additional working capital. We currently have limited financial resources and based on our current operating plan, we will need to raise additional capital in order to continue as a going concern. We currently do not have adequate cash to meet our short or long-term objectives. In the event additional capital is raised, it may have a dilutive effect on our existing stockholders.

We are subject to all the substantial risks inherent in the establishmentdevelopment of a new business enterprise within an extremely competitive industry. Due to the absence of a long standing operating history and the emerging nature of the markets in which we compete, we anticipate operating losses until we can successfully implement our business strategy, which includes all associated revenue streams. Our revenue model is new and evolving, and we cannot be certain that it will be successful. The potential profitability of this business model is unproven. We may never ever achieve profitable operations. Our future operating results depend on many factors, including limited capital resourcesdemand for our services, the level of competition, and possible cost overruns duethe ability of our officers to pricemanage our business and cost increasesgrowth. As a result of the emerging nature of the market in serviceswhich we compete, we may incur operating losses until such time as we can develop a substantial and products.stable revenue base. Additional development expenses may delay or negatively impact the ability of the Company to generate profits. Accordingly, we cannot assure you that our business model will be successful or that we can sustain revenue growth, achieve or sustain profitability, or continue as a going concern.

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We have no assurance that future financingvery limited financial resources. We currently have a monthly cash requirement of approximately $1.6 million, exclusive of capital expenditures. We will be availableneed to usraise substantial additional capital to support the on-going operation and increased market penetration of our services, until such time as we generate revenues sufficient to support our operations, if ever. Our failure to obtain additional capital to finance our working capital needs on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expandat all, will negatively impact our operations. Equity financing could result in additional dilution to existing shareholder.


14


Results of operations

From Inception on October 28, 2014 to March 31, 2015

During the period since we incorporated the Company has prepared a business, plan, purchased one unit of equipment, signed a contract for the sale of goods with Derb il Horra dated February 3, 2015, earned revenue of $1,080 from Derb il Horra for the provision of printed productsfinancial condition and the signed a Lease Agreement with Samir Mustafajev for office space for a period of half a year signed December 15, 2015 and effective March 1, 2015.

Since inception, we have sold 3,000,000 shares of common stock to our sole officer and director for net proceeds of $3,000.

LIQUIDITY AND CAPITAL RESOURCES
liquidity. As of March 31, 2015,2018, we had negative working capital of $2.2 million. We currently do not have the Company had $6,990 cashresources to satisfy these obligations, and our liabilities were $8,100, comprising $8,100 owedinability to Otmane Tajmouati,do so could have a material adverse effect on our sole officerbusiness, our ability to continue as a going concern, and director. Since inception, we have sold 3,000,000 sharesthe value of common stocksour securities.

Foreign Currency Translation Risk

Our operations are located in the China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility in foreign exchange rates between the U.S. dollar and the Chinese Renminbi (“RMB”). All of our sole officer and director, at a price of $0.001 per share, for aggregate proceeds of $3,000.


Wesales are attemptingin RMB. In the past years, RMB continued to raise funds to proceed with our plan of operation. We will have to utilize funds from Otmane Tajmouati, our sole officer and director, who has agreed to loanappreciate against the Company funds to complete the registration process.U.S. dollar. As of March 31, 2015, Mr. Tajmouati2018, the market foreign exchange rate had advanced us $8,100 under verbal conditions. Mr. Tajmouati has agreedincreased to loan $30,000RMB 6.28 to us pursuant toone U.S. dollar. Our financial statements are translated into U.S. dollars using the termsclosing rate method. The balance sheet items are translated into U.S. dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the Loan Agreementtransactions while income and expenses items are translated at the average exchange rate for the period. All translation adjustments are included in accumulated other comprehensive income in the statement of equity. The foreign currency translation (loss) gain for the years ended March 31, 2018 and 2017 was ($151,555) and $19,884, respectively.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements (as that term is fileddefined in Item 303(a)(4)(ii) of Regulation S-K) as Exhibit 10.1of March 31, 2018 that have or are reasonably likely to the Registration Statement of which this Prospectus formshave a part. In order to implementcurrent or future effect on our planfinancial condition, changes in financial condition, revenues or expenses, results of operations, for the next twelve months period, we require a minimum of $30,000 of funding from this offering. If we generate less that minimum needed amount from this offering, less than one third of the offered shares will be sold, we will utilize funds from Mr. Tajmouati.liquidity, capital expenditures or capital resources.

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We cannot guarantee that we will be able to sell all the shares required to satisfy our twelve months financial requirement. If we are successful, any money raised will be applied to the items set forth in the Use of Proceeds section of this prospectus.  We will attempt to raise at least the minimum funds of $30,000 necessary to proceed with our plan of operation. In a long term we may need additional financing. Obtaining additional funding will be subject to a number of factors, including general market conditions, investor acceptance of our business plan and initial results from our business operations.  These factors may impact the timing, amount, terms or conditions of additional financing available to us.

Management believes that current trends toward lower capital investment in start-up companies, volatility in printed products distribution market pose the most significant challenges to the Company’s success over the next year and in future years.  Additionally, the Company will have to meet all the financial disclosure and reporting requirements associated with being a publicly reporting company. The Company’s management will have to spend additional time on policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley Act of 2002.  This additional corporate governance time required of management could limit the amount of time management has to implement is business plan and impede the speed of its operations.

DESCRIPTION OF

BUSINESS


General

Our company

Overview

Addentax Group Corp. was incorporated in the State of Nevada on October 28, 2014 and established a fiscal yearend2014. We were principally engaged in the business of March 31. We have generated limited revenues of $1,080, have minimal assets and have generated nominal net income of $161 since inception. We are a development-stage company created for producing images on multiple surfaces, such as glass, leather, plastic, ceramic, textile, and others, using 3D sublimation vacuum heat transfer machine. We have recently started our operation. As of today, we have developed our business plan, purchased and set up our first machine, signed a contract for the sale of goods with Derb il Horra dated February 3, 2015, the Company generated revenue of $1,080 from Derb il Horra for the sale of printed products and entered into a Lease Agreement with Samir Mustafajev for office space for a period of half a year dated December 15, 2015, came into force from March 1, 2015 To the date we have set up our first heat transfer machine, tested its operation and produced a range of demonstration samples for attraction of potential business partners. In the beginning we may not be able to provide enough revenue to cover the company’s operating expenses during first twelve months. We plan to purchase one more heat transfer machine if we sell 1/3 of the shares, and purchase two or three more, if we sell 2/3 and all of the shares respectively. Our director will fund our initial administrative expenses using his own funds.


Total estimated amount of funding necessary for our business start-up in the first year is $30,000. We need funding to purchase and deliver additional heat transfer machine, to cover general running and administrative expenses, business development and marketing, auxiliary materials, expenses connected with company public presentation, payment of salaries and the, purchase of raw materials. Our business office is located at 70, Av Allan Ben Abdellah, Fes, Morocco 30000. Our telephone number is +17026606161.

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Our Business

The Company is working on a field of producing images on a surface such as glass, leather, plastic, ceramic, textile, and others using 3D sublimation vacuum heat transfer machine. Heat transfer technology is one of most economical methods of application of any way to creatively approach to the implementation of various ideas. This modern technology is quiet popular for many years and has not lost its relevance. Materials for the images can be varied, such as ceramics, glass, crockery different quality, metal, clothing, caps, bags, leather products and other. Our products will be interesting for people with individual single orders, business owners associated with the sale of souvenirs, and business owners who intend to order souvenirs in the corporate style. In order to organize our business, we need equipment and supplies, so we can make the images on our customer’s products, and then we will rent more space for the warehouse with goods on which apply the images to provide the customer with the final product. We plan to conclude a contract of carriage with local shipping companies for delivery of our goods to other cities such as Meknes, Rabat, Kenitra and worldwide.

3D sublimation vacuum heat transfer machine

We plan to purchase 3Dthree-dimensional sublimation vacuum heat transfer machine (“Original Business”).

On December 28, 2016, we entered into a Sale and Purchase Agreement (“SPA”) with Yingxi Industrial Chain Group Co., Ltd. (“YICG”), which was incorporated under the laws of the Republic of Seychelles and principally engaged in garment manufacture, where we agreed to apply imagesacquire 100% of the equity interest in YICG and to issue five hundred million (500,000,000) restricted common shares of the Company to YICG. The completion of the SPA took place on many surfaces. The 3D sublimation vacuum heat transfer machine does not require highSeptember 25, 2017.

Following the completion of the SPA, we are now a garment manufacturer and logistics service provider based in the PRC. We no longer pursue our Original Business.

Total revenue and net loss for the years ended March 31, 2017 were $5,335,501 and $(371,802) and 2018 were $13,437,569 and $(709,396) and the nine months ended December 31, 2018 were $8,108,408 and $(569,586).

Competitive Strengths

We believe we have the following competitive strengths:

Cost-effective production. We have adopted a vertical integration production process. We produce garments in our own production facilities and employ our in-house transport teams to deliver garments to our customers. This one-stop service optimizes production efficiency and saves costs by lowering the cost per unit, thereby achieving economies of scale.

Stringent quality control process. As of March 31, 2019, we had 15 employees in the production department that are responsible for conducting our quality control process. We implement a stringent quality control process which monitors various stages of our garment manufacturing business, including sampling checks of semi-finished products and finished products. We prepare inspection reports to address the quality problems and make recommendations to improve the quality of our products. During final product inspection, we pay special attention to the measurements, workmanship, ironing and packaging of our products to help best ensure that the quality of our products comply with the specifications, standards and requirements of our customers.

Strong design capabilities.Our design team works closely with our customers to understand their needs and make recommendations to them. Our design team also conducts market research and attends industry exhibitions to understand the latest market trends. As of March 31, 2019, our design team consisted of four members.

Extensive delivery network. Our logistics business has nine routes and covers 66 cities in seven provinces and two municipalities in the PRC.

Business Strategies

Key elements of our business and growth strategies include the following:

Sales of raw materials. We intend to enter into exclusive agreements with textile and garment suppliers in Southeast China to be their exclusive agent and supply their textiles and garments to our customers. To execute this plan, we intend to set up several retailers for the sales of textiles and garments to retail customers and supply the textiles and garments exclusively to various high-end fashion brands.

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Development of our own brands.We intend to develop our own brands that focus on fast fashion with teenagers being our primary target customers are teenagers. We plan to adopt a low cost strategy at the early stage and improve the quality of our products after increasing our market share. We are in the process of registering a trademark for our own brand and intend to start our advertising campaign after the registration of this trademark. We plan to distribute our products in different channels, including our own retailers, co-operative retailers and franchisees.

Expand our delivery network. As of March 31, 2019, we provided logistics services to over 66 cities in seven provinces and two municipalities in the PRC. We plan to open our logistics points in 20 more cities in the PRC in the third and fourth quarters of 2019.

Develop international logistics services and warehousing services.We intend to develop international logistics services for customers located all over the world and international warehousing services.

Our garment manufacturing business

We manufacture garments for various high-end fashion brands through two of our wholly-owned subsidiaries, Dongguan Heng Sheng Wei Garments Co., Ltd and Shantou Chenghai Dai Tou Garments Co., Ltd, which are located in Guangdong, the PRC.

Operations

Our customer relationship team is responsible for cultivating and maintaining our relationship with customers.

Our design team works closely with our customer relationship team to understand our customers’ needs and make recommendations to them based on their designs.

Our fabric team leverages our experience in fabric sourcing as well as our understanding in fabric features to recommend the types of fabric to be used in our customers’ products. Our fabric team may also suggest alternative fabrics to our customers. Our fabric team works with our research and development team to understand fabric types and aims to identify different fabric we source and improve the quality and comfort of the fabric we produce.

Our product and technical skillsteam is mainly responsible for productdevelopment samples of products, preparing structural and production guidance of products as well as producing paper patterns for our garment production team. Upon order confirmation from our customers, our customer relationship team informs our fabric team to carry out raw material sourcing.

We source finished fabric and yarns from our suppliers for garment production. The set of printing machine includesprocedures for fabric production are normally divided into the machine itselffollowing stages: (1) spinning; (2) weaving or knitting; (3) dyeing or printing; and all(4) finishing. Our fabric team normally requires four to six weeks to source raw materials necessaryfrom our suppliers.

Our garment production team is responsible for produce garments based on the raw materials we source. The major steps involved in garment production include: paper patterning, fabric cutting, sewing, interim quality inspection, trimming, washing, and ironing.

Seasonality

We generally receive more purchase orders during our second and third quarters and less manufacture orders during May and June.

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Credit period

For our long-term and established customers with good payment track records, we generally provide payment terms between 30 to 180 days following the delivery of finished goods. For our new customers, we generally require advances or deposits to be made when placing orders.

Our logistics business

We pack products and provide logistics service to our customers through two of our wholly-owned subsidiaries, Shenzhen Xin Kuai Jie Transportation Co., Ltd., and Shenzhen Hua Peng Fa Logistic Co., Ltd., which are located in Guangdong province, the PRC. Our in-house logistics teams deliver to approximately seven provinces and two municipalities in the PRC.

Where a customer is located in an area not covered by our delivery fleet or where our in-house logistics teams are fully engaged, we will outsource delivery to third-party contractors. We believe outsourcing allows us to maximize our delivery capacity and improve inventory flexibility while minimizing capital expenditures, such shipping costs and the costs of additional drivers during low seasons.

Our logistics services

We provide comprehensive logistics services to our customers, which include storage, transportation, warehousing, handling, packaging and order processing. We also provide customs declaration and tax clearance service to our customers who export goods to overseas.

Our network

We have over 100 logistics points and they are located in seven provinces and two municipalities which cover 66 cities in the PRC.

Our internal management

Our management in logistics business is responsible for setting upout business strategies and testing,managing the daily operation. Specifically, they have regular meetings with different departments, conduct inspection and supervise the finance department, operation department and administration department.

Seasonality

We generally receive more delivery orders in our third and fourth quarters and are more vulnerable to shipping delays in the PRC during Chinese New Year due to traffic and port congestion, border crossing delays and customs clearance issues.

Credit period

We generally require payments from the customers between 30 to 90 days following their acknowledgement of receipt of goods.

Customers and Suppliers

Customers

Our customer base is diverse. Our customers in garment manufacturing business are mainly garment wholesalers and retailers and our customers in logistics business are mainly trading companies and logistic companies. For the years ended March 31, 2017 and 2018 and the nine months ended December 31, 2018, no single customer accounted for more than 30% of our net sales.

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Suppliers

We procured our garments through various textile companies in our garment manufacturing business. In our logistics business, we procured our garments from packing companies and transportation companies. No single supplier accounted for more than 20% of our total costs for the years ended March 31, 2017 and 2018 and the nine months ended December 31, 2018.

Inventory

Garment manufacturing business. We maintain our raw materials forin our storage facilities. We review our inventory levels in order to identify slow-moving materials and broken assortments.

Logistics business. Since we deliver products as soon as we receive orders from customers, we do not operate distribution centers and hence do not need to carry a significant amount of inventory.

Intellectual Property

We currently do not own any intellectual property rights. We are in the process of registering trademarks and copyright in relation to our garment manufacturing business pending approval from the PRC government.

Competition

While the PRC is still the world’s largest clothing manufacturer with enormous production process.


  
3D sublimation vacuum heat
transfer machine MA3
 
Item:   
Import: Morocco 
Export: China 
Machine cost: $1,000 
Laptop: $450 
Printer: $350 
Country of origin: China 
Cost of delivery and insurance: $600 
Total cost: $2,400 
Raw materials $200 
DTA  --- 
VAT $600 
Total: unit, import, customs and taxes $3,200 

Industrial flatbed printing machine is not large, user-friendly,capacity, oversupply, increasing labor costs and simplerising local protectionism have eroded its competitiveness.

The principal competitive factors in maintaining and doesn’t require any special service. At the time this project is being offered we have already purchased one 3D sublimation vacuum heat transfer machine, produced by Chinese company PANDA ONE HOLDINGS LIMITED.


Technical characteristics:

garment manufacturing market include:

Model Number:brand awareness and focus;
 MA3 
Rated Voltage:breadth of product offerings; and
quality control.

The principal competitive factors in the logistics market include:

delivery time; and
network coverage.

We believe we compete favorably with our competitors on the basis of the above factors as a result of our market position and customer base. By offering one-stop-shop services and affordable price points, we provide services to our customers that are difficult for other competitors to address.

Employees

As of March 31, 2019, we had approximately 179 employees and there was no labor union established by our employees. The following table sets out a breakdown of the number of employees by function as of March 31, 2019:

FunctionNumber of employees
Administration  220V/110V23 
Material:Finance aluminum and iron10 
Weight:Logistics 23 kg7 
Dimensions:Management 330*430*120 mm18 
Work table size:Marketing 330*430 mm7 
Production capacity: 
15 mugs for 480s (depending on
type of materials and size)
54
Operation60
Total179 


Target market

We can determine two different directions our product can cover - corporate and private. By corporate we mean large and small companies, which always care much about image and update company information. Corporate style of any company is often reflected by printed images on pens, souvenirs, notepads, laptops and others. We are ready to provide image printing on any of the aforesaid products. By private we mean any private events, where memorable gifts can be suitable. Weddings, birthdays, and anniversaries – any holiday of any scale can become even more memorable with some kind of commemorative image on a glass or metal souvenir, which can be hanged on the wall, for example. Addentax Group Corp. is able to offer any type of client the printed product that can meet their very special requirements.

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We have signed Contract for the sale of goods with Derb il Horra, a small enterprise, which is involved mostly in selling souvenirs not only in Fes, also in another cities of Morocco. The Company generated revenue of $1,080 from Derb il Horra for the sale of printed products. The terms and conditions of the contract are described in Contract for the sale of goods that is filed in Exhibit 10.2 to the Registration Statement of which this Prospectus forms a part.

Marketing

Our sole officer and director, Otmane Tajmouati, will be responsible for the marketing of the Company. We intend to use marketing strategies, such as web, namely dissemination of information on social networks such as Facebook, Twitter and on sites with ads, direct mailing, distribution of flyers in hotels, cafes and restaurants, handing out flyers in public and tourist spots, shopping malls to acquire potential customers. We believe that one of the most powerful aspects of online marketing is the ability to target our chosen group with a high degree of accuracy and cost effective way. We will use many online marketing tools to direct traffic to our website and identify potential customers. As of the date of this prospectus we have registered a domain names for our website www.addentaxgroup.com and fill it with initial information about the Company and its products. To accomplish this, we plan to contact an independent web designing company. Our website is describing our products, shows our contact information, and includes some general information and pictures of our products. We also plan to attend shows and exhibitions in our industry and other related industries, where it would be appropriate to attract new customers and advertising our products. We will promote our products through word of mouth.

Also we have prepared the brochure for representing Addentax Group Corp. and our business, which contains basic information about the Company. We believe it will help us in our marketing on the start of our production process for making our products more known to potential customers.
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Storage

According to PRC regulations, we must participate in various employee social security plans organized by local governments, including pension, unemployment insurance, childbirth insurance, work-related injury insurance, medical insurance and delivery


The product producedhousing insurance. We are also required under PRC law to contribute to employee benefit plans at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount specified by Addentax Group Corp.the local government from time to time.

We believe that we maintain a good working relationship with our employees, and to date we have not experienced any significant labor disputes.

Government Regulations

Currently, apart from customary business laws and regulations, the PRC government does not require any storage facilities. It willregulate the garment manufacturing business and logistics business. The PRC government may, however, from time to time institute rules and regulations on such businesses which makes it difficult or impossible for us to operate successfully, if at all, in the PRC. Please see the section on “Risk Factors” for further details.

The PRC government encourages small to medium-sized companies in traditional industries, such as garment manufacturing, to modernize their business models with technological updates in order to sharpen their competitive edge in global markets.

Properties

Our principal place of business is Kingkey 100, Block A, Room 5403, Luohu District, Shenzhen City, China 518000, the PRC. We also lease two properties in the PRC from third parties which properties serve as our manufacturing factory and an additional office. The following table sets forth a summary of certain information regarding our leased properties.

Property Type Address Monthly Rental (RMB)  Size (Square Meter) 
Manufacturing factory HSW, Hengli Comprehensive Development Zone, Dongguan, Guangdong, PRC  6,650   2,800 
Principal Office Kingkey 100, Room A5403, Luohu District, Shenzhen, Guangdong, China  156,000   650 
Office No. 42-46, Building 1, Block 5, District B, Jinpeng Distribution Center, No. 536, Sha Ping North Rd, Danping Committee, Nanwan St, Longgang, Shenzhen, Guangdong, PRC  44,400   720 

We also have over 100 logistics points and they are located in seven provinces and two municipalities in the PRC.

Legal Proceedings

From time to time, we may become involved in legal proceedings or be produced directly for each order. The numbersubject to claims arising in the ordinary course of demonstration samples kept is insignificant and doesn’t require any special premises for storage.our business. We are goingnot presently a party to sign a contract with delivering company on regular basis for deliveringany legal proceedings that in the opinion of our productsmanagement, if determined adversely to the customers. We expect that term of delivery shall be not more than 15 days, which shall include product production and procedure of products acceptance by client. To date our first customer Derb il Horra agreed to accept delivery of the products in our office, the Company does not have to organize delivery of products. Our machines will be located at our leased premise in Rue du Somalie, Fes 30060, Morocco.


Competition

We need proceeds from this offering to enter this business. We will be in a market where we compete with other companies offering similar products. We will be in direct competition with them. Many of these companies may have a greater, more established customer base than us. We will likely lose business to such companies. Also, many of these companies will be able to afford to offer better price for similar products than us, which may also harm business. We foresee to continue to face challenges from new market entrants. We may be unable to continue to compete effectively with these existingwould individually or new competitors, which couldtaken together have a material adverse effect on our business, operating results, financial condition, and results of operations.or cash flows.

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Nearly all Addentax Group Corp.'s competitors have significantly greater financial resources, technical expertise, and managerial capabilities than Addentax Group Corp. We are, consequently, at a competitive disadvantage in being able to provide such products and become a successful company in printing industry. Therefore, Addentax Group Corp. may not be able to establish itself within the industry at all.
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Insurance

We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we are made a party of a products liability action, we may not have sufficient funds to defend the litigation. If that occurs a judgment could be rendered against us that could cause us to cease operations.

Employees

We are a development stage company and as of March 31, 2015 have no employees, other than our sole officer, Otmane Tajmouati - who will initially perform all works in production and organization of our business.

Offices

Our production office is located at Rue du Somalie, Fes 30060, Morocco.  Samir Mustafajev provides the office to Addentax Group Corp. for a period of half a year, which starts from March 1, 2015. The property is 30 square meters and located on a shopping center, which makes the ordering more convenient to the potential customer. Our phone number is +17026606161.  We have signed a Lease Agreement with Samir Mustafajev that is filed in Exhibit 10.3 to the Registration Statement of which this Prospectus forms a part.

Government Regulation

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to our business in any jurisdiction which we would conduct activities. We do not believe that regulation will have a material impact on the way we conduct our business.

LEGAL PROCEEDINGS

We are not a party to any legal proceedings, and we are not aware of any pending or potential legal actions.

DIRECTORS AND EXECUTIVE OFFICERS PROMOTER AND CONTROL PERSONS


The name, address, age and titles of our executive officerofficers and director isare as follows:


Name and& Address of Executive
Officer and/or Director
 Age PositionTitleDate of First Appointment

Hong Zhida

28

Chairman of the Board, Chief Executive Officer, President and Secretary

March 10, 2017
     
Otmane Tajmouati
70, Av Allal Ben Abdellah, Fes, Morocco, 30000

Huang Chao

26

Chief Financial Officer and Treasurer

March 8, 2019

Ng Chung Chi (1)

38Independent DirectorMarch 13, 2019

Yu Jiaxin (1)

37Independent DirectorMarch 13, 2019

Li Weilin (1)

38Independent DirectorMarch 13, 2019

Hong Zhiwang

 25 
President, Treasurer, Secretary and Director
(Principal Executive, Financial and Accounting Officer)
March 13, 2019

Otmane Tajmouati has acted as our President, Treasurer, Secretary and sole Director since our incorporation on October 28, 2014. Mr. Tajmouati owns 100%

(1) Member of the outstanding sharesAudit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee.

Hong Zhida, Chairman, CEO, President and Secretary

Mr. Hong Zhida received his Bachelor’s Degree in Electronic Information Science and Technology from Sun Yat-sen University in July 2013. From June 2014 to Present, he served as the Director of our common stock.China Huiying Joint Supply Chain Group Co. Ltd. He graduatedwas responsible for assisting the company’s chairman to plan development strategy. From September 2013 to May 2014, he served as Head of Membership Department of the Guangzhou Haifeng Chamber of Commerce. In that position he was responsible for the membership management of the institution.

Mr. Huang Chao, Chief Financial Officer and Treasurer

Mr. Huang Chao earned two bachelor’s degrees, one in marketing from Shaoguan University, China in 2014 and the other in international logistics and trade finance from University of New England, Tangier, Morocco, onNorthampton, United Kingdom in 2015. He earned his master’s degree in finance and investment management from University of Liverpool, United Kingdom in 2016 to broaden and deepen his knowledge in the Faculty of Business administration for the period of 2007-2013. Mr. Tajmouati worked for GLOBAL PROJECT SARL from 2013 till 2014accounting and finance field. After his graduation in 2016, he was appointed as a managersecretary to Chairman in customers department, and fulfilled duties concerning customer communication and assistance. The enterprise is working on import and distribution different piece of furniture and accessories for the house and offices. Mr. Tajmouati is devoting 75% of his time a week for planning and organizing activities of Addentax Group Corp.


During He handles all Company’s filings to ensure the past tenCompany complies with regulation and advising on good corporate governance practice. Huang Chao interacts with the directors, general manager of each business unit, various regulatory and professional bodies such as the SEC, auditors and attorneys to ensure the compliance. His managing experiences, and profound knowledge in finance make him well positioned for his role as Chief Financial Officer and Treasurer.

Ng Chung Chi, Independent Director

Ms. Ng Chung Chi earned her bachelor’s degree in accountancy and law from City University of Hong Kong in 2003, and earned her professional accountancy qualifications from the ACCA and HKICPA in 2008 and 2010, respectively. Ms. Ng currently is the CFO of a multinational security services company. Prior to her CFO role, she was an Audit Senior Manager and Asian Services Leader in a Top 10 ranked International CPA firm in the United States. Ms. Ng has over fifteen years Mr. Tajmouati has not beenof accounting and financial reporting experience at an International CPA firm, providing audit and assurance services to publicly-traded company in the subjectUS with its main operations in the US and Asia Pacific, including China, Taiwan, Singapore, India, New Zealand, etc. In addition, to any ofproviding audit and assurance service, she involved in assisting companies in the following events:


going public and going private transactions in the US, supporting their needs for on-going SEC compliance, internal control advisory, and merger and acquisition activities. She brings to the Board deep finance, audit and business experience.

1.Any bankruptcy petition filed by or against any business of which Mr. Tajmouati was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.-46-
 

Yu Jiaxin, Independent Director

Ms. Yu Jiaxin earned her bachelor’s degree in business management from Nankai University, China in 2006. Ms. Yu currently is the senior human resources director of Kingkey Capital Management Co., Ltd., a Group which offers real estate development, commercial operation, financial investment, and other services in Shenzhen, China. She has worked for Kingkey Group since 2008, initially as a human resources officer and now as senior human resources director. She assisted in the set-up of Kingkey’s annual operating plan and budget in accordance with the company’s annual goals and strategies, building the company’s organizational structure and coordinating Human Resource and Administration, establishing the sound comprehensive personnel administrative management system which is adaptable to the company’s development, and implementing and supervising the system. Bringing over ten years of human resources administration experience, she brings to the Board insights on compensation and benefits.

Li Weilin, Independent Director

Mr. Li Weilin earned his bachelor’s degree in Computer Science & Technology from Sun Yat-sen University, China in 2005 and earned his master’s degree in Software Engineering from the same University in 2011. Mr. Li currently is the information and network center director in Xinhua College of Sun Yat-sen University since 2005 and is responsible for information service management for all faculties and students. He also is the leader of Computer Application & Technology program in Guangdong Polytechnic College and is responsible for major IT planning and management of the College since 2015. In 2017, he is appointed as a technology expert in Guangzhou City, providing technology consults and projects examination and verification for the information construction of Guangzhou authorities. His studies cover Network & System Safety, Image Processing, Data Mining, Business Intelligence, Big Data Management and Network Physical System. He brings to the Board deep information technology experience.

Hong Zhiwang, Director

Mr. Hong Zhiwang earned his bachelor’s degree in Automation Engineering from Beijing Institute of Technology University Zhuhai Campus, China in 2014. Mr. Hong has been the brand marketing manager at Addentax Group Corp. since 2018 and is responsible for e-commerce marketing covering design website, brand marketing, market investigation and development, and expanding marketing channels to develop new clients, designing the company’s logo and registering copyrights. In 2014, he was the PDM Software Engineer for Hongfan Computer & Technology Co., Ltd. and was responsible for developing software, on-site inspection and guidance and software maintenance, in assistance of ERP to manage the system and create brand new demands design and in charge of R&D of PLM System, surface model design and function model development, structure development and communications technology development. He brings to the Board deep brand marketing experience.

Board Committees

Our board of directors has established standing committees in connection with the discharge of its responsibilities. These committees include an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. Our board of directors has adopted written charters for each of these committees. Upon completion of this offering, copies of the charters will be available on our website. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

Audit Committee

Our Audit Committee was established on March 8, 2019 and is comprised of three of our independent directors: Ms. Ng Chung Chi (Chairperson), Ms. Yu Jiaxin and Mr. Li Weilin. Ms. Ng Chung Chi qualifies as the Audit Committee financial expert as defined in Item 407(d)(5) of Regulation S-K promulgated under the Securities Act.

2.Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.-47-
 

According to its charter, the Audit Committee consists of at least three members, each of whom shall be a non-employee director who has been determined by the Board to meet the independence requirements of NASDAQ, and also Rule 10A-3(b)(1) of the SEC, subject to the exemptions provided in Rule 10A-3(c). We do not have a website containing a copy of the Audit Committee Charter. The Audit Committee Charter describes the primary functions of the Audit Committee, including the following:

3.An order, judgment,Oversee the Company’s accounting and financial reporting processes;
Oversee audits of the Company’s financial statements;
Discuss policies with respect to risk assessment and risk management, and discuss the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures;
Review and discuss with management the Company’s audited financial statements and review with management and the Company’s independent registered public accounting firm the Company’s financial statements prior to the filing with the SEC of any report containing such financial statements.
Recommend to the board that the Company’s audited financial statements be included in its annual report on Form 10-K for the last fiscal year;
Meet separately, periodically, with management, with the Company’s internal auditors (or other personnel responsible for the internal audit function) and with the Company’s independent registered public accounting firm;
Be directly responsible for the appointment, compensation, retention and oversight of the work of any independent registered public accounting firm engaged to prepare or decree, not subsequently reversed, suspendedissue an audit report for the Company;
Take, or vacated,recommend that the board take, appropriate action to oversee and ensure the independence of the Company’s independent registered public accounting firm; and
Review major changes to the Company’s auditing and accounting principles and practices as suggested by the Company’s independent registered public accounting firm, internal auditors or management.

Compensation Committee

The Compensation Committee will be responsible for, among other matters:

reviewing and approving, or recommending to the board of directors to approve the compensation of our CEO and other executive officers and directors reviewing key employee compensation goals, policies, plans and programs;
administering incentive and equity-based compensation;
reviewing and approving employment agreements and other similar arrangements between us and our executive officers; and
appointing and overseeing any court of competent jurisdiction, permanentlycompensation consultants or temporarily enjoining, barring, suspending or otherwise limiting Mr. Tajmouati’s involvement in any type of business, securities or banking activities.advisors.

Our Compensation Committee was established on March 8, 2019 and is comprised of three of our independent directors: Ms. Ng Chung Chi, Ms. Yu Jiaxin (Chairperson) and Mr. Li Weilin.

-48-
 

Corporate Governance and Nominating Committee

The Corporate Governance and Nominating Committee will be responsible for, among other matters:

selecting or recommending for selection candidates for directorships;
evaluating the independence of directors and director nominees;
reviewing and making recommendations regarding the structure and composition of our board and the board committees;
developing and recommending to the board corporate governance principles and practices;
reviewing and monitoring the Company’s Code of Business Conduct and Ethics; and
overseeing the evaluation of the Company’s management.

Our Corporate Governance and Nominating Committee was established on March 8, 2019 and is comprised of three of our independent directors: Ms. Ng Chung Chi, Ms. Yu Jiaxin and Mr. Li Weilin (Chairperson).

Board Leadership Structure and Role in Risk Oversight

Mr. Hong Zhida holds the positions of chief executive officer and chairman of the board of the Company. The board believes that Mr. Hong Zhida’s services as both chief executive officer and chairman of the board is in the best interest of the Company and its shareholders. Mr. Hong Zhida possesses detailed and in-depth knowledge of the issues, opportunities and challenges facing the Company in its business and is thus best positioned to develop agendas that ensure that the Board’s time and attention are focused on the most critical matters relating to the business of the Company. His combined role enables decisive leadership, ensures clear accountability, and enhances the Company’s ability to communicate its message and strategy clearly and consistently to the Company’s shareholders, employees and customers.

The board has not designated a lead director. Given the limited number of directors comprising the Board, the independent directors call and plan their executive sessions collaboratively and, between meetings of the Board, communicate with management and one another directly. Under these circumstances, the directors believe designating a lead director to take on responsibility for functions in which they all currently participate might detract from rather than enhance performance of their responsibilities as directors.

Management is responsible for assessing and managing risk, subject to oversight by the board of directors. The board oversees our risk management policies and risk appetite, including operational risks and risks relating to our business strategy and transactions. Various committees of the board assist the board in this oversight responsibility in their respective areas of expertise.

Code of Ethics

In September 2018, we adopted a Code of Ethical Business Conduct that applies to, among other persons, members of our board of directors, our Company’s officers including our Chief Executive Officer, employees, consultants and advisors. As adopted, our Code of Business Conduct and Ethics sets forth written standards that are designed to deter wrongdoing and to promote:

1.honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
2.full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the SEC and in other public communications made by us;
3.compliance with applicable governmental laws, rules and regulations;
4.Found by a courtthe prompt internal reporting of competent jurisdiction (in a civil action),violations of the SecuritiesCode of Ethical Business Conduct to an appropriate person or persons identified in the Code of Ethical Business Conduct; and Exchange Commission or
5.accountability for adherence to the Commodity Future Trading Commission to violate a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.Code of Ethical Business Conduct.

Our Code of Code of Ethical Business Conduct requires, among other things, that all of our company’s senior officers commit to timely, accurate and consistent disclosure of information; that they maintain confidential information; and that they act with honesty and integrity.

In addition, our Code of Ethical Business Conduct emphasizes that all employees, and particularly senior officers, have a responsibility for maintaining financial integrity within our company, consistent with generally accepted accounting principles, and federal and state securities laws. Any senior officer, who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether by witnessing the incident or being told of it, must report it to our Company. Any failure to report such inappropriate or irregular conduct of others is to be treated as a severe disciplinary matter. It is against our Company policy to retaliate against any individual who reports in good faith the violation or potential violation of our company’s Code of Ethical Business Conduct by another.

Family Relationships

Mr. Hong Zhida, an executive officer of the Company, and Mr. Hong Zhiwang, a director of the Company, are brothers. Apart from this, there are no family relationships between any director or executive officer of the Company.

-49-
 5.Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;
18

6.Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
7.Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
i.Any Federal or State securities or commodities law or regulation; or
ii.Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
iii.Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
8.Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
TERM OF OFFICE
Each of our directors is appointed to hold office until the next annual meeting of our stockholders or until his respective successor is elected and qualified, or until he resigns or is removed in accordance with the provisions of the Nevada Revised Statues.  Our officers are appointed by our Board of Directors and hold office until removed by the Board or until their resignation.

DIRECTOR INDEPENDENCE
We intend to have our securities quoted on the OTC Bulletin Board or other quotation service, which do not have any director independence requirements. Once we engage additional directors and officers, however, we plan to develop a definition of independence and scrutinize our Board of Directors with regard to this definition.  At that time we intend to use the NASDAQ definition of independence as a model.  This definition includes a series of objective tests, for example, that the director cannot be, and has not been for at least three years, one of our employees and that neither the director, nor any of his or her family members has engaged in various types of business dealings with us.

EXECUTIVE COMPENSATION

MANAGEMENT COMPENSATION

The following tables set forth certain information about compensation paid, earned or accrued for services by our Executive Officer from inception on October 28, 2014 untilsole officer for the fiscal years ended March 31, 2015:


2018 and March 31, 2017:

Summary Compensation Table


Name and
Principal
Position
 Period 
Salary
($)
  
Bonus
($)
  
Stock
Awards
($)
  
Option
Awards
($)
  
Non-Equity
Incentive Plan
Compensation
($)
  
All Other
Compensation
($)
  
All Other
Compensation
($)
  
Total
($)
 
                           
Otmane Tajmouati,
President,
Secretary and
Treasurer
 
October 28,
2014 to
March 31,
2015
  -0-   -0-   -0-   -0-   -0-   -0-   -0-   -0- 

There are no current employment agreements between the Company and its officer.

Summary
Compensation
Table Name
and
Principal
Position
 Year  Salary
($)
  Bonus
($)
  Stock
Awards
($)
  Option
Awards
($)
  Non-Equity Incentive Plan Compensation ($)  Non-Qualified Deferred Compensation Earnings
($)
  All Other Compensation ($)  Totals
($)
 
Hong Zhida  2018  $    0        0   0        0          0          0           0  $    0 
CEO  2017  $0   0   0   0   0   0   0  $0 

Mr. TajmouatiHong Zhida currently devotes approximately 75% per week of his time to manage the affairs of the Company. He has agreed to work with no remuneration until such time as the Company receives significant revenues necessary to provide management salaries. At this time, we cannot accurately estimate when significant revenues will occur to implement this compensation, or what the amount of the compensation will be.


Narrative Disclosure to Summary Compensation Table

There are no annuity,arrangements or plans in which we provide pension, retirement or retirementsimilar benefits proposedfor directors or executive officers. Our directors and executive officers may receive share options at the discretion of our Board of Directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that share options may be granted at the officerdiscretion of our Board of Directors.

Stock Option Plan

Currently, we do not have an equity incentive plan in place.

Grants of Plan-Based Awards

To date, there have been no grants or plan-based awards.

Outstanding Equity Awards

To date, there have been no outstanding equity awards.

Option Exercises and Stock Vested

To date, there have been no options exercised by our named officers.

Compensation of Directors

Each independent director or employees inhas entered into an Independent Director Agreement with the event of retirement at normal retirement dateCompany, pursuant to any presently existing plan providedwhich Ms. Ng Chung Chi, Ms. Yu Jiaxin and Mr. Li Weilin will receive $88,000, $15,000 and $15,000 per year, respectively, in equal monthly installments of $7,333, $1,250 and $1,250, respectively, at the end of each month.

Pension, Retirement or contributedSimilar Benefit Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to bywhich cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the Companydiscretion of the board of directors or any of its subsidiaries, if any.


a committee thereof.

-50-
19


Director Compensation

The following table sets forth director compensation from inception on October 28, 2014 until March 31, 2015:

Name 
Fees
Earned
or Paid
in Cash
($)
  
Stock
Awards
($)
  
Option
Awards
($)
  
Non-Equity
Incentive Plan
Compensation
($)
  
Nonqualified
Deferred
Compensation
Earnings
($)
  
All Other
Compensation
($)
  
Total
($)
 
                      
Otmane Tajmouati  -0-   -0-   -0-   -0-   -0-   -0-   -0- 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Otmane Tajmouati will

During the years ended March 31, 2018 and 2017, and from the period from April 2018, to the date of this prospectus, we have not be paidentered into any transactions with our officers or directors, or persons nominated for any underwriting services that he performs onthese positions, beneficial owners of 5% or more of our behalf with respect to this offering.  


common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets, except as set forth below:

On December 26, 2014, weApril 18, 2017, the Company issued a total of 3,000,000500,000,000 restricted shares of restrictedcommon stock as follows:

Hengtian Group Co., Ltd.: (Beneficial Owner: Ma Huizhu) 215,000,000 shares of common stock;
Hong Zhida (current Chief Executive Officer, President, Secretary, Treasurer and Chairman of the Company): 30,000,000 shares of common stock; and
Hui Lian Group Ltd.: (Beneficial Owner: Ma Huijun) 255,000,000 shares of common stock.

The 500,000,000 shares of common stock were issued pursuant to a Sale & Purchase Agreement (“S&P”) for the acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd., a company incorporated under the laws of the Republic of Seychelles. The Company agreed to issue five hundred million (500,000,000) shares of common stock to Otmane Tajmouati, our sole officerYingxi Industrial Chain Group Co., Ltd. to acquire its shares and director in considerationassets for a cost of $3,000. AsUS$0.30 per share or a total cost of March 31, 2015, Mr. Tajmouati had advanced us $8,100 under verbal conditions. Mr. Tajmouati has agreed to loan $30,000 to us pursuant to the terms of the Loan Agreement. (See Exhibit 10.1 to the Registration Statement of which this Prospectus forms a part.) In order to implement our plan of operations for the next twelve months period, we require a minimum of $30,000 of funding from this offering. If we generate less that minimum needed amount from this offering, less than one third of the offered shares will be sold, we will utilize funds from Mr. Tajmouati. He will not be repaid from the proceeds of this offering. There is no due date for the repayment of the funds advanced by Mr. Tajmouati. Mr. Tajmouati will be repaid from revenues of operations if and when we generate significant revenues to pay the obligation. The Company will conduct the repayment of director’s loans in accordance to the sequence of loans in full amount. There is no assurance that we will ever generate significant revenues from our operations. The obligation to Mr. Tajmouati does not bear interest.US$150,000,000.

-51-

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth, certain information as of March 31, 20152019, certain information concerning the beneficial ownership of our common stock by (i) each stockholder known by us to own beneficially five percent or more of our outstanding common stock or series a common stock; (ii) each director; (iii) each named executive officer; and (iv) all of our executive officers and directors as a group, and their percentage ownership and voting power. The column entitled “Percentage of Shares Beneficially Owned—Before Offering” is based on a total of 25,346,004 shares of our issued and outstanding common stock. The columns entitled “Percentage of Shares Beneficially Owned — After Offering” also include (i) 1,000,000 shares of common stock outstanding after completion of this offering, assuming the closing of the minimum offering amount, or (ii) 4,000,000 shares of common stock outstanding after completion of this offering, assuming the closing of the maximum offering amount.

The information presented below regarding beneficial ownership of our voting securities has been presented in accordance with the rules of the Securities and Exchange Commission and is not necessarily indicative of ownership for any other purpose. Under these rules, a person is deemed to be a “beneficial owner” of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within sixty (60) days through the conversion or exercise of any convertible security, warrant, option, or other right. More than one (1) person may be deemed to be a beneficial owner of the same securities. The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number of shares beneficially owned by such person, which includes the number of shares as to which such person has the right to acquire voting or investment power within sixty (60) days, by the sum of the number of shares outstanding as of such date. Consequently, the denominator used for calculating such percentage may be different for each beneficial owner. Except as otherwise indicated below and under applicable community property laws, we believe that the beneficial owners of our common stock beneficially owned by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) our director, and or (iii) our officer.  Unless otherwise indicated, the stockholder listed possessesbelow have sole voting and investment power with respect to the shares shown.

Name and Address (1) Number of
Shares
Beneficially
Owned
  Percentage
Ownership of
Shares of
Common Stock
Before the
Offering
  Percentage
Ownership of
Shares of
Common Stock
After the
Offering
(assuming closing
of the minimum
offering amount)
  Percentage
Ownership of
Shares of
Common Stock
After the Offering
(assuming closing
of the maximum
offering amount)
 
Directors and Officers                
                 
Hong Zhida  1,507,950   5.95%  5.72%  5.14%
                 
Hong Zhiwang  501,171   1.98%  1.90%  1.71%
                 
Huang Chao  25,720   0.1%  0.10%  0.09%
                 
Ng Chung chi  -   -   -   - 
                 
Yu Jiaxin  -   -   -   - 
                 
Li Weilin  -   -   -   - 
                 
All Officers and Directors (six persons)  2,034,841   8.03%  7.72%  6.93%
                 
Owner of more than 5% of Class  -   -   -   - 

(1)Except as otherwise set forth below, the address of each beneficial owner is c/o Addentax Group Corp., Kingkey 100, Block A, Room 5403, Luohu District, Shenzhen City, China 518000.


-52-
Title of
Class
Name and Address of
Beneficial Owner (1)
Amount and Nature of
Beneficial Ownership
Percentage 

DESCRIPTION OF CAPITAL STOCK

We have authorized capital stock consisting of 50,000,000 shares of common stock, $0.001 par value per share.

As of the date of this prospectus, we have 25,346,004 shares of our common stock outstanding.

The following description of our capital stock is a summary only and is subject to and qualified in its entirety by reference to the applicable provisions of the Nevada Revised Statutes, and our charter and Bylaws, copies of which have been filed as exhibits to the registration statement of which this prospectus is part. You should refer to, and read this summary together with, our Articles of Incorporation and Bylaws, each as amended and restated to date, to review all of the terms of our capital stock. Our Articles of Incorporation and amendments thereto are incorporated by reference as exhibits to the registration statement of which this prospectus is a part.

Common Stock

Each share of our common stock is entitled to equal dividends and distributions per share with respect to the common stock when, as and if declared by our Board of Directors. No holder of any shares of our common stock has a preemptive right to subscribe for any of our securities, nor are any shares of our common stock subject to redemption or convertible into other securities. Upon liquidation, dissolution or winding-up of the Company, and after payment to our creditors and preferred stockholders, if any, our assets will be divided pro rata on a share-for-share basis among the holders of our common stock. Each share of our common stock is entitled to one vote on all stockholder matters. Shares of our common stock do not possess any cumulative voting rights.

The presence of the persons entitled to vote a majority of the outstanding voting shares on a matter before the stockholders constitute the quorum necessary for the consideration of the matter at a stockholders’ meeting.

Except as otherwise required by law, the Articles of Incorporation, or any certificate of designations, (i) at all meetings of stockholders for the election of directors, a plurality of votes cast are sufficient to elect such directors; (ii) any other action taken by stockholders are be valid and binding upon the Company if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action, at a meeting at which a quorum is present, except that adoption, amendment or repeal of the Bylaws by stockholders requires the vote of a majority of the shares entitled to vote; and (iii) broker non-votes and abstentions are considered for purposes of establishing a quorum but not considered as votes cast for or against a proposal or director nominee. Each stockholder has one vote for every share of stock having voting rights registered in his or her name, except as otherwise provided in any preferred stock designation setting forth the right of preferred stock stockholders.

The common stock does not have cumulative voting rights, which means that the holders of 51% of the common stock voting for election of directors can elect 100% of our directors if they choose to do so.

Anti-Takeover Provisions Under The Nevada Revised Statutes

Certain provisions of Nevada law, and our Articles of Incorporation and our Bylaws (subject, where applicable as described below, our opting out of certain provisions of Nevada law), contain provisions that could make the following transactions more difficult: acquisition of us by means of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.

These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our Board of Directors. We believe that the benefits of increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement of their terms.

Common Stock
Otmane Tajmouati
70, Av Allal Ben Abdellah, Fes, Morocco 30000
3,000,000 shares of common stock (direct)100%-53-
(1) A beneficial owner

Business Combinations

Sections 78.411 to 78.444 of the Nevada revised statues (the “NRS”) prohibit a security includes anyNevada corporation from engaging in a “combination” with an “interested stockholder” for three years following the date that such person who, directlybecomes an interested stockholder and place certain restrictions on such combinations even after the expiration of the three-year period. With certain exceptions, an interested stockholder is a person or indirectly, through any contract, arrangement, understanding, relationship,group that owns 10% or otherwise has or shares: (i)more of the corporation’s outstanding voting power which includes the power(including stock with respect to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares).  In addition, shares are deemed to be beneficially owned by a person if the person has the rightvoting rights and any rights to acquire stock pursuant to an option, warrant, agreement, arrangement, or understanding or upon the exercise of conversion or exchange rights) or is an affiliate or associate of the corporation and was the owner of 10% or more of such voting stock at any time within the previous three years.

A Nevada corporation may elect not to be governed by Sections 78.411 to 78.444 by a provision in its Articles of Incorporation. We do not have such a provision in our Articles of Incorporation, as amended, pursuant to which we have elected to opt out of Sections 78.411 to 78.444; therefore, these sections apply to us.

Control Shares

Nevada law also seeks to impede “unfriendly” corporate takeovers by providing in Sections 78.378 to 78.3793 of the NRS that an “acquiring person” shall only obtain voting rights in the “control shares” purchased by such person to the extent approved by the other stockholders at a meeting. With certain exceptions, an acquiring person is one who acquires or offers to acquire a “controlling interest” in the corporation, defined as one-fifth or more of the voting power. Control shares (for example,include not only shares acquired or offered to be acquired in connection with the acquisition of a controlling interest, but also all shares acquired by the acquiring person within the preceding 90 days. The statute covers not only the acquiring person but also any persons acting in association with the acquiring person.

A Nevada corporation may elect to opt out of the provisions of Sections 78.378 to 78.3793 of the NRS. We do not have a provision in our Articles of Incorporation pursuant to which we have elected to opt out of Sections 78.378 to 78.3793; therefore, these sections apply to us.

Removal of Directors

Section 78.335 of the NRS provides that 2/3rds of the voting power of the issued and outstanding shares of the Company are required to remove a Director from office. As such, it may be more difficult for stockholders to remove Directors due to the fact the NRS requires greater than majority approval of the stockholders for such removal.

-54-

SHARES ELIGIBLE FOR FUTURE SALE

Prior to this offering, only a limited public market for our common stock existed on the OTCQB. Future sales of substantial amounts of our common stock in the public market, including shares issued upon exercise of an option) within 60 daysoutstanding warrants, or the anticipation of such sales, could adversely affect prevailing market prices of our common stock from time to time and could impair our ability to raise equity capital in the date asfuture.

Upon the closing of which the information is provided.  In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.  As of March 31, 2015, there were 3,000,000this offering, we will have 26,346,004 shares of our common stock issued and outstanding.


Future sales by existing stockholders

A total of 3,000,000outstanding assuming the minimum offering amount is sold and 29,346,004 shares of common stock were issued to our sole officer and director Mr. Tajmouati, all of which are restricted securities, as defined in Rule 144 of the Rules and Regulations of the SEC promulgated under the Securities Act. As we are a “shell company” as that term is defined by the applicable federal securities laws, because of the nature and amount of our assets and our very limited operations, applicable provisions of Rule 144 specify that during that time that we are a “shell company” and for a period of one year thereafter, holders of our restricted securities can not sell those securities in reliance on Rule 144. As result, one year after we cease being a shell company, assuming we are current in our reporting requirements with the Securities and Exchange Commission, holders of our restricted securities may then sell those securities in reliance on Rule 144 (provided, however, those holders satisfy all of the applicable requirements of that rule). For us to cease being a “shell company” we must have more than nominal operations and more that nominal assets or assets which do not consist solely of cash or cash equivalents. Shares purchased in this offering, which will be immediately resalable, and sales of all of our other shares after applicable restrictions expire, could have a depressive effect on the market price, if any, of our common stock and the shares we are offering.
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There is no public trading market for our common stock. There are no outstanding options or warrants to purchase, or securities convertible into, our common stock. There is one holder of record for our common stock. The record holder is our sole officer and director who owns 3,000,000 restricted shares of our common stock.

PLAN OF DISTRIBUTION
Addentax Group Corp. has 3,000,000 shares of common stock issued and outstanding assuming the maximum offering amount is sold. In addition, we will have outstanding 26,446,004 shares of common stock issuable upon the exercise of the Placement Agents’ Warrants assuming the minimum offering amount is sold and 29,746,004 shares of our common stock issued and outstanding assuming the maximum offering amount is sold.

Lock-Up

For further details on the lock-up agreements, see the section entitled “Plan of Distribution – Lock Up Agreements.”

Rule 144

In general, under Rule 144 of the Securities Act, as ofin effect on the date of this prospectus.  The Companyprospectus, any person who is registeringnot our affiliate at any time during the preceding three months, and who has beneficially owned their shares for at least six months, including the holding period of any prior owner other than one of our affiliates, would be entitled to sell an additionalunlimited number of 3,000,000 shares of itsour common stock provided current public information about us is available, and, after owning such shares for at least one year, including the holding period of any prior owner other than one of our affiliates, would be entitled to sell an unlimited number of shares of our common stock without restriction.

A person who is our affiliate or who was our affiliate at any time during the preceding three months, and who has beneficially owned restricted securities for at least six months, including the holding period of any prior owner other than one of our affiliates, is entitled to sell within any three-month period a number of shares that does not exceed the greater of:

1% of the number of shares of our common stock then outstanding, which will equal approximately 263,460 shares assuming the minimum offering amount is sold and 293,460 shares assuming the maximum offering amount is sold , or
the average weekly trading volume of our common stock during the four calendar weeks preceding the filing of a Notice of Proposed Sale of Securities pursuant to Rule 144 with respect to the sale.

Sales under Rule 144 by our affiliates are also subject to manner of sale atprovisions and notice requirements and to the priceavailability of $0.03 per share. There is no arrangement to address the possible effect of the offering on the price of the stock. Our sole officer and director Mr. Tajmouati will offer the shares to his friends and family. We will not utilize advertising or make a general solicitation for our offering, but rather, Mr. Tajmouati will personally and individually contact each investor. Mr. Tajmouati has no experience in selling securities to investors. Mr. Tajmouati will not purchase securities in this offering.current public information about us.

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PLAN OF DISTRIBUTION

In connection with this offering, we will enter into a placement agency agreement with Network 1 Financial Securities, Inc., which we sometimes refer to herein as the Company’sPlacement Agent. The Placement Agent is not purchasing or selling effortsany securities offered by this prospectus but will assist us in thethis offering Otmane Tajmouati will not register ason a broker-dealer pursuant“best efforts” basis. The Placement Agent is no obligation to Section 15buy any of the Exchange Act, but rather will rely uponcommon stock from us nor are they required to arrange the “safe harbor” provisionspurchase or sale of SEC Rule 3a4-1, promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Generally speaking, Rule 3a4-1 provides an exemption from the broker-dealer registration requirementsany specific number or dollar amount of the Exchange Actcommon stock, but have agreed to use their “best efforts” to arrange for persons associated with an issuer that participate in an offering of the issuer’s securities. Mr. Tajmouati is not subject to any statutory disqualification, as that term is defined in Section 3(a)(39) of the Exchange Act. Mr. Tajmouati will not be compensated in connection with his participation in the offering by the payment of commissions or other remuneration based either directly or indirectly on transactions in our securities. Mr. Tajmouati is not, nor has he been within the past twelve months, a broker or dealer, and he is not, nor has he been within the past twelve months, an associated person of a broker or dealer. At the end of the offering, Mr. Tajmouati will continue to primarily perform substantial duties for the Company or on its behalf otherwise than in connection with transactions in securities. Mr. Tajmouati will not participate in selling an offering of securities for any issuer more than once every twelve months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii).  


Addentax Group Corp. will receive all proceeds from the sale of the 3,000,000 shares being offered. The price per share is fixed at $0.03 for the durationa minimum of this offering.  Although our common stock is not listed on a public exchange or quoted over-the-counter, we intend to seek to have our1,000,000 shares of common stock quotedand a maximum of 4,000,000 shares of common stock. The Placement Agent may retain other brokers or dealers to act as sub-agents on its behalf in connection with this offering and may pay any sub-agent a solicitation fee with respect to any securities placed by it. Affiliates of the company and affiliates and associated persons of the Placement Agent may invest in this offering on the Over-the Counter Bulletin Board. In order to be quoted onsame terms and conditions as the OTC Bulletin Boardor other quotation service,public investors participating in this offering, and any common stock purchased will make up a market maker must file an application on our behalf in order to make a market for our common stock. There can be no assurance that a market maker will agree to file the necessary documents with FINRA, nor can there be any assurance that such an application for quotation will be approved.  However, sales by the Company must be made at the fixed price of $0.03 for up to 240 days from the effective date of this prospectus.

The Company’s shares may be sold to purchasers from time to time directly by and subject to the discretionportion of the Company. Further, the Company will not offer its shares for sale through underwriters, dealers, agents or anyone who may receive compensation in the form of underwriting discounts, concessions or commissions from the Company and/or the purchasers of the shares for whom they may act as agents. minimum offering needed to complete this offering.

The shares of common stock are being offered on a “best efforts” basis, meaning that the Placement Agent is not obligated to purchase any common stock. No common stock will be sold unless at least a minimum of 1,000,000 shares of common stock have been sold no later than _____________ , 2019 . All monies collected for subscriptions will be held in a separate escrowed bank account at Continental Stock Transfer & Trust, New York, NY , which is serving as escrow agent, until the total amount of a minimum of 1,000,000 shares of common stock have been sold. Any checks for the purchase of shares should be made payable to “CST&T as agent for Addentax Group Corp. 2019 Escrow” The Placement Agent will instruct their customers to transfer funds from their respective accounts directly to the escrow agent by wire transfer and will instruct other purchasers of the shares to make checks payable to “ CST&T as agent for Addentax Group Corp. 2019 Escrow ” Upon receipt of funds sufficient for the sale of 1,000,000 shares and satisfaction of all other closing conditions, the funds may be transferred to our business account. In the event the minimum total of 1,000,000 shares is not sold prior to ________ , 2019 , all monies will be returned to investors, without interest or deduction, within one business day.

Fees and Expenses

The following table shows the public offering price, placement agent commissions and proceeds, before expenses, to us.

  Price
per Share
  Commission
per Share
  Proceeds to
Addentax
 
Minimum Offering ( 1,000,000 shares) $5.00  $0.30  $4,700,000 
Maximum Offering ( 4,000,000 shares) $5.00  $0.30  $18,800,000 

We and the placement agent have agreed to pay commissions of 6.0% per share (or $ 0.30 per share) on the offering proceeds. We have agreed to pay to the placement agent upon the consummation of the offering, a non-accountable expense allowance equal to 1.5% of the gross proceeds of the offering. We have also agreed to pay the placement agent reasonable out-of-pocket expenses including but not limited to, (i) reasonable travel and out-of-pocket expenses, including clearing charges; (ii) reasonable fees of legal counsel incurred by the placement agent in connection with the offering. The total accountable expenses shall not exceed $150,000. We have paid an advance of $75,000 to the placement agents to be applied to the placement agent’ anticipated out-of-pocket expenses. The advance will be returned to us to the extent such out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(f)(2)(C).

Placement Agent Warrants

In addition, we have agreed to grant the placement agent non-redeemable warrants to purchase an amount equal to ten percent (10%) of the shares of common stock sold in the offering, which warrants will be exercisable six months after the commencement of the offering, have a five ( 5 ) year term after the effective date of the offering and cashless exercise options. Such warrants are exercisable at a price of 120% of the public offering price of the shares of common stock offered pursuant to this offering. We will register the shares underlying the Placement Agent Warrants and will file all necessary undertakings in connection therewith. The Placement Agent Warrants may not be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the commencement of the offering, of which this prospectus forms a part (in accordance with FINRA Rule 5110), except that they may be assigned, in whole or in part, to any member participating in the offering and the officers or partners thereof, and that all securities so transferred remain subject to the lock-up restriction for the remainder of the time period. The Placement Agent Warrants may be exercised as to all or a lesser number of shares, will provide for cashless exercise.

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Terms of the Offering

We are offering, on a best efforts basis, a minimum of US$5,000,000 and a maximum of US$20,000,000. The offering is being made without a firm commitment by the placement agent, which has no obligation or commitment to purchase any securities. The placement agent is not required to sell any specific number of dollar amount of the common stock but will use its best efforts to sell of the common stock offered. The common stock is being offered for a period not to exceed 180 days. If the minimum offering amount is not raised prior to _________ , 2019 , all subscription funds from the escrow account will be returned to investors promptly without interest (since the funds are being held in a non-interest bearing account) or deduction of fees. The offering may terminate on the earlier of (i) any time after the minimum offering amount of our common stock is raised, or (ii) 180 days from the date of this prospectus, unless extended by our board of directors for an additional 90 days. Reasons the board may consider in determining whether to extend or terminate the offering may include, but are not limited to: amount of funds raised, potential to raise additional capital, and response to the offering as of that date. If we can successfully raise the minimum offering amount within the offering period, the proceeds from the offering will be released to us.

Escrow Agent and Deposit of Offering Proceeds

The placement agent and the Company have agreed in accordance with the provisions of SEC Rule 15c2-4 to cause all funds received by the placement agent for the sale of the common stock to be promptly deposited in a non-interest bearing escrow account (“Escrow Account”) maintained by Continental Stock Transfer & Trust (the “Escrow Agent”) , as escrow agent for the investors in the offering. The purpose of the Escrow Account is for (i) the deposit of all subscription monies (checks or wire transfers) which are received by the placement agent from prospective purchasers of our offered common stock and are delivered by the placement agent to the Escrow Agent, (ii) the holding of amounts of subscription monies which are collected through the banking system, and (iii) the disbursement of collected funds. The Escrow Agent will exercise signature control on the escrow account and will act based on joint instructions from our Company and the placement agent. On the closing date for the offering, and presuming that all conditions to closing have been satisfied (such as NASDAQ approval and other conditions described herein), proceeds in the escrow account maintained by the Escrow Agent will be delivered to our company.

The placement agent shall promptly deliver to the Escrow Agent all funds in the form of checks or wire transfers which it receives from prospective purchasers of our common stock by noon of the next business day following receipt where internal supervisory review is conducted at the same location at which subscription documents and funds are received. Simultaneously with each deposit to the Escrow Account, the placement agent shall inform the Escrow Agent about the subscription information for each prospective purchaser. Upon the Escrow Agent’s receipt of such monies, they shall be credited to the Escrow Account. All checks delivered to the Escrow Agent shall be made payable to “ CST&T as agent for Addentax Group Corp. 2019 Escrow ” The Escrow Agent shall not be required to accept for credit to the Escrow Account or for deposit into the Escrow Account checks which are not accompanied by the appropriate subscription information. Wire transfers representing payments by prospective purchasers shall not be deemed deposited in the Escrow Account until the Escrow Agent has received in writing the subscription information required with respect to such payments.

No interest will be available for payment to either us or the investors (since the funds are being held in a non-interest bearing account). All subscription funds will be held in trust pending the raising of the minimum offering amount and no funds will be released to us until the completion of the offering. Release of the funds to us is based upon the Escrow Agent reviewing the records of the depository institution holding the escrow to verify that the funds received have cleared the banking system prior to releasing the funds to us. All subscription information and subscription funds through checks or wire transfers should be delivered to the Escrow Agent. Failure to do so will result in subscription funds being returned to the investor. In event that the offering is terminated, all subscription funds from the escrow account will be returned to investors.

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If we terminate this offering, all amounts will be promptly returned to the investors as described below. In the event of any dispute between us and the placement agent, including whether and how funds are to be reimbursed, the Escrow Agent is entitled to petition a court of competent jurisdiction to resolve any such dispute.

Investors must pay in full for the common stock at the time of investment. Payment for the shares may be made (i) by check, bank draft or money order made payable to “ CST&T as agent for Addentax Group Corp. 2019 Escrow ” and delivered to the placement agent no less than four business days before the date of closing, or (ii) by wire made payable to “ CST&T as agent for Addentax Group Corp. 2019 Escrow ” . The checks, bank drafts and money orders will be forwarded/returned by the placement agent and their dealers to the Escrow Agent by noon of the following business day. The placement agent will inform prospective purchasers of the anticipated date of closing.

Proceeds deposited in escrow with the Escrow Agent may not be withdrawn by investors prior to the earlier of the closing of the offering or the date the offering is terminated. If the offering is withdrawn or canceled or terminated and proceeds therefrom are not received by us on or prior to the date the offering is terminated, all proceeds will be promptly returned by the Escrow Agent without interest or deduction to the persons from which they are received (within one business day) in accordance with applicable securities laws. All such proceeds will be placed in a non-interest bearing account pending such time.

Electronic Offer, Sale and Distribution of Common Stock

A prospectus in electronic format may be made available on the websites maintained by the placement agent. In addition, the common stock may be sold by the Company mayplacement agent to securities dealers who resell the common stock to online brokerage account holders. Other than the prospectus in electronic format, the information on the placement agent’s website and any information contained in any other website maintained by the placement agent is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the placement agent in its capacity as placement agent and should not be occasionally sold in onerelied upon by investors.

Lock-up Agreements

We, each of our directors and officers and holders of ten percent or more transactions; all shares sold underof our common stock on a fully diluted basis immediately prior to the consummation of this offering have agreed or are otherwise contractually restricted for a period of 180 days after the date of this prospectus, will be sold at a fixed pricewithout the prior written consent of $0.03 per share.the placement agent not to directly or indirectly:

issue (in the case of us), offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any shares of our common stock or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital stock;
 in the case of us, file or cause the filing of any registration statement under the Securities Act with respect to any shares of our common stock or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital stock, other than registration statements on Form S-8 filed with the SEC after the closing date of this offering; or
enter into any swap or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic consequences of ownership of our common stock or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital stock,

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In order to comply with the applicable securities laws of certain states, the securities will be offered or sold

whether any transaction described in those only if they have been registered or qualified for sale; an exemption from such registration or if qualification requirement is available and with which Addentax Group Corp. has complied.


In addition and without limitingany of the foregoing bullet points is to be settled by delivery of our common stock or other capital stock, other securities, in cash or otherwise, or publicly announce an intention to do any of the Companyforegoing.

There are no existing agreements between the placement agent and any person who will be subject to applicable provisions, rules and regulations under the Exchange Actexecute a lock-up agreement in connection with regard to security transactions during the period of time when this Registration Statement is effective.


Addentax Group Corp. will pay all expenses incidentaloffering providing consent to the registrationsale of shares prior to the expiration of the lock-up period. The lock up does not apply to the issuance of shares (including registrationupon the exercise of rights to acquire shares of common stock pursuant to any existing stock option or the securities lawsconversion of certain states), which we expect to be $7,000.
any of our preferred convertible stock.

Procedures and Requirements for Subscribing


Subscription

If you decide to subscribe for any shares in this offering, you must


- Executemust:

execute and deliver a subscription agreement; and
deliver the subscription price to the Company by cashier’s check or wire transfer of immediately available funds.

The subscription agreement requires you to disclose your name, address, social security number, telephone number, email address, number of shares you are purchasing, and the price you are paying for your shares.

Upon the Company’s acceptance of a subscription agreement; and


- Deliver a check or certified funds to us for acceptance or rejection.

All checks for subscriptions must be made payable to “Addentax Group Corp.” The Company will deliver stock certificates attributable to shares receipt of common stock purchased directlyfull payment, and subject to the purchasers. 

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Right to Reject Subscriptions

timing qualification set forth above, the Company shall countersign the subscription agreement and issue a stock certificate along with a copy of the subscription agreement.

We have the right to accept or reject subscriptions in whole or in part, for any reason or for no reason. We will return allAll monies from rejected subscriptions will be returned immediately by us to the subscriber, without interest or deductions. Subscriptions for securities will be accepted or rejected with letter by mail within 48 hoursthree (3) business days after we receive them.


Penny Stock Regulations

You should note that our stock is a penny stock. The SEC has adopted Rule 15g-9 which generally defines "penny stock" to be any equity security that has a market price (as defined) less

Offer Restrictions outside the United States

Other than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors". The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC, which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provideUnited States, no action has been taken by us or the customer with current bid and offer quotations for the penny stock, the compensationplacement agent that would permit a public offering of the broker-dealer and its salespersonsecurities offered by this prospectus in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.any jurisdiction where action for that purpose is required. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.


STATE SECURITIES - BLUE SKY LAWS

There is no established public market for our common stock, and there can be no assurance that any market will develop in the foreseeable future. Transfer of our common stock may also be restricted under the securities or securities regulations laws promulgatedoffered by various states and foreign jurisdictions, commonly referred to as "Blue Sky" laws. Absent compliance with such individual state laws, our common stockthis prospectus may not be tradedoffered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in such jurisdictions.  Becauseconnection with the securities registered hereunder have not been registered for resale under the blue sky lawsoffer and sale of any state, the holders of such shares and persons who desire to purchase themsecurities be distributed or published in any trading marketjurisdiction, except under circumstances that might developwill result in compliance with the future, should be aware that there may be significant state blue-sky law restrictions upon the ability of investors to sell the securities and of purchasers to purchase the securities. Accordingly, investors may not be able to liquidate their investments and should be prepared to hold the common stock for an indefinite period of time.

In addition and without limiting the foregoing, the Company will be subject to applicable provisions, rules and regulations underof that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the Exchange Act with regardoffering and the distribution of this prospectus. This prospectus does not constitute an offer to security transactions during the periodsell or a solicitation of time whenan offer to buy any securities offered by this Registration Statementprospectus in any jurisdiction in which such an offer or a solicitation is effective.

DESCRIPTIONunlawful.

China

THIS DOCUMENT HAS NOT BEEN AND WILL NOT BE CIRCULATED OR DISTRIBUTED IN THE PRC AND THE SHARES MAY NOT BE OFFERED OR SOLD TO ANY PERSON FOR RE-OFFERING OR RESALE, DIRECTLY OR INDIRECTLY, TO ANY RESIDENT OF THE PRC EXCEPT PURSUANT TO APPLICABLE LAWS AND REGULATIONS OF THE PRC. FOR THE PURPOSE OF THIS SECTION ONLY, THE PRC DOES NOT INCLUDE TAIWAN AND THE SPECIAL ADMINISTRATIVE REGIONS OF HONG KONG AND MACAU. THIS DOCUMENT HAS NOT BEEN NOR WILL IT BE APPROVED BY OR REGISTERED WITH THE RELEVANT CHINESE GOVERNMENTAL AUTHORITIES, AND IT DOES NOT CONSTITUTE NOR IS IT INTENDED TO CONSTITUTE AN OFFER OF SECURITIES WITHIN THE MEANING PRESCRIBED UNDER THE PRC SECURITIES LAW OR OTHER LAWS AND REGULATIONS OF THE PRC. ACCORDINGLY, THIS DOCUMENT SHALL NOT BE OFFERED OR MADE AVAILABLE, NOR MAY THE COMMON STOCK BE MARKETED OR OFFERED FOR SALE TO THE GENERAL PUBLIC, DIRECTLY OR INDIRECTLY, IN THE PRC. THE COMMON STOCK SHALL ONLY BE OFFERED OR SOLD TO PRC INVESTORS THAT ARE AUTHORIZED OR QUALIFIED TO BE ENGAGED IN THE PURCHASE OF THE COMMON STOCK BEING OFFERED. POTENTIAL INVESTORS IN THE PRC ARE RESPONSIBLE FOR OBTAINING ALL THE RELEVANT REGULATORY APPROVALS/LICENSES FROM THE CHINESE GOVERNMENT BY THEMSELVES, INCLUDING, WITHOUT LIMITATION, THOSE THAT MAY BE REQUIRED FROM THE STATE ADMINISTRATION OF FOREIGN EXCHANGE, THE CHINA BANKING REGULATORY COMMISSION, THE MINISTRY OF COMMERCE AND THE NATIONAL DEVELOPMENT AND REFORM COMMISSION, WHERE APPROPRIATE, AND FOR COMPLYING WITH ALL THE RELEVANT PRC LAWS AND REGULATIONS IN SUBSCRIBING FOR COMMON STOCK.

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GENERAL

Hong Kong

THESE SECURITIES HAVE NOT BEEN DELIVERED FOR REGISTRATION TO THE REGISTRAR OF COMPANIES IN HONG KONG AND, ACCORDINGLY, MUST NOT BE ISSUED, CIRCULATED OR DISTRIBUTED IN HONG KONG OTHER THAN TO PERSONS WHOSE ORDINARY BUSINESS IT IS TO BUY OR SELL SHARES OR DEBENTURES, WHETHER AS PRINCIPAL OR AGENT, WITHIN THE MEANING OF THE HONG KONG COMPANIES ORDINANCE (THE “ORDINANCE”) OR IN CIRCUMSTANCES WHICH DO NOT CONSTITUTE AN OFFER TO THE PUBLIC FOR THE PURPOSES OF THE ORDINANCE. UNLESS PERMITTED BY THE SECURITIES LAWS OF HONG KONG, NO PERSON MAY ISSUE OR CAUSE TO BE ISSUED IN HONG KONG THIS SECURITIES OR ANY OR OTHER INVITATION, ADVERTISEMENT OR DOCUMENT RELATING TO THE SECURITIES TO ANYONE OTHER THAN A PERSON WHOSE BUSINESS INVOLVES THE ACQUISITION, DISPOSAL OR HOLDING OF SECURITIES, WHETHER AS PRINCIPAL OR AGENT.

Singapore

THE SECURITIES REPRESENTED MAY NOT BE OFFERED OR SOLD, NOR MAY ANY DOCUMENT OR OTHER MATERIAL IN CONNECTION WITH SUCH SECURITIES BE DISTRIBUTED, EITHER DIRECTLY OR INDIRECTLY, (I) TO PERSONS IN SINGAPORE OTHER THAN UNDER CIRCUMSTANCES IN WHICH SUCH OFFER OR SALE DOES NOT CONSTITUTE AN OFFER OR SALE OF SUCH SECURITIES TO THE PUBLIC IN SINGAPORE OR (II) TO THE PUBLIC OR ANY MEMBER OF THE PUBLIC IN SINGAPORE OTHER THAN PURSUANT TO, AND IN ACCORDANCE WITH THE CONDITIONS OF, AN EXEMPTION INVOKED UNDER DIVISION 5A OR PART IV OF THE COMPANIES ACT, CHAPTER 50 OF SINGAPORE AND TO PERSONS TO WHOM THE SECURITIES MAY BE OFFERED OR SOLD UNDER SUCH EXEMPTION.

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Our authorized capital stock consists

LEGAL MATTERS

The validity of 75,000,000 shares of common stock, par value $0.001 per share. As of March 31, 2015, there were 3,000,000the shares of our common stock issued and outstanding those were heldoffered hereby has been passed upon for us by one registered stockholder of record and no shares of preferred stock issued and outstanding. Our sole officer and director, Otmane Tajmouati owns 3,000,000.


COMMON STOCK
The followingLoeb & Loeb LLP, New York, New York. Mei Mark LLP, is a summary of the material rights and restrictions associated with our common stock.
The holders of our common stock currently have (i) equal ratable rights to dividends from funds legally available therefore, when,acting as and if declared by the Board of Directors of the Company; (ii) are entitled to share ratably in all of the assets of the Company available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of the Company (iii) do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights applicable thereto; and (iv) are entitled to one non-cumulative vote per share on all matters on which stock holders may vote. Please refercounsel to the Company’s Articles of Incorporation and Bylaws for a more complete description of the rights and liabilities of holders of the Company’s securities.

22


PREFERRED STOCK

We do not have an authorized class of preferred stock.

WARRANTS

We have not issued and do not have any outstanding warrants to purchase shares of our common stock.

OPTIONS

We have not issued and do not have any outstanding options to purchase shares of our common stock.

CONVERTIBLE SECURITIES

We have not issued and do not have any outstanding securities convertible into shares of our common stock or any rights convertible or exchangeable into shares of our common stock.

DIVIDEND POLICY
We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.

INDEMNIFICATION

Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada.

Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.

INTERESTS OF NAMED EXPERTS AND COUNSEL
No expert or counsel named in this prospectus as having prepared or certified any part of this Prospectus or having given an opinion upon the validity of the securities being registered or upon other legal mattersplacement agent in connection with the registration or offering of the common stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest exceeding $90,000, directly or indirectly, in the Company or any of its parents or subsidiaries.  Nor was any such person connected with Addentax Group Corp. or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.
securities offered hereby.

EXPERTS

Cutler & Co., LLC, our

Pan-China Singapore PAC, independent registered public accounting firm, has audited our financial statements included in this prospectusat March 31, 2018 and registration statement to the extent2017 and for each of the periodsyears ended March 31, 2018 and 2017 as set forth in their audit report. Cutler & Co., LLC has presented its report with respect to our audited financial statements.

LEGAL MATTERS

Law Offices of Stepp Law Corporation has opined on the validity of the shares of common stock being offered hereby.

AVAILABLE

WHERE YOU CAN FIND MORE INFORMATION

We have not previously been required to comply with the reporting requirements of the Securities Exchange Act.

We have filed with the SEC a registration statement on Form S-1 under the Securities Act, with respect to register the securitiesshares of common stock being offered by this prospectus. This prospectus does not contain all of the information in the registration statement and its exhibits. For futurefurther information aboutwith respect to us and the securitiescommon stock offered underby this prospectus, we refer you may refer to the registration statement and its exhibits. Statements contained in this prospectus as to the exhibitscontents of any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as a part ofan exhibit to the registration statement. In addition, afterEach of these statements is qualified in all respects by this reference.

You can read our SEC filings, including the effective date of this prospectus, we will be required to file annual, quarterly and current reports, or other information withregistration statement, over the SEC as provided byInternet at the Securities Exchange Act.SEC’s website at www.sec.gov. You may also read and copy any reports, statements or other informationdocument we file with the SEC at the SEC’sits public reference facility maintainedfacilities at 100 F Street NE, Washington, D.C. 20549. You may also obtain copies of these documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street N.E.,NE, Washington, D.C. 20549. OurPlease call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference facilities. You may also request a copy of these filings, at no cost, by writing us at Addentax Group Corp., Kingkey 100, Block A, Room 5403, Luohu District, Shenzhen City, China 518000.

We are subject to the information reporting requirements of the Exchange Act, and file reports, proxy statements and other information with the SEC. These reports, proxy statements and other information are available for inspection and copying at the public reference room and web site of the SEC referred to above. We also maintain a website at www.hyjf.com, at which, following the closing of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the public through the SEC Internet site at www.sec.gov.


23


CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
We have had no changesSEC. The information contained in, or disagreements withthat can be accessed through, our independent registered public accountant.

FINANCIAL STATEMENTS

Our fiscal year endwebsite incorporated by reference in, and is March 31. We will provide audited financial statements to our stockholders on an annual basis; the statements will be prepared by us and audited by Cutler & Co., LLC.
not part of, this prospectus.


Our financial statements from inception to March 31, 2015, immediately follow:

24


ADDENTAX GROUP CORP.

(A DEVELOPMENT STAGE COMPANY)

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH 31, 2015

TABLE OF CONTENTS

-61-
Report

FINANCIAL STATEMENTS

Index to Consolidated Financial StatementsPage
Reports of Independent Registered Public Accounting FirmFirmsF-1
Balance Sheet as of March 31, 2015F-2
StatementConsolidated Balance Sheets as of Operations for the period from October 28, 2014 (inception) toDecember 31, 2018 (unaudited), March 31, 20152018 (audited) and 2017 (audited)F-3
StatementConsolidated Statements of Changes in Stockholder’s EquityIncome (Loss) and Comprehensive Income (Loss) for the period from October 28, 2014 (inception) tonine months ended December 31, 2018 and 2017 (unaudited), and the years ended March 31, 20152018, 2017 (audited)F-4
StatementConsolidated Statements of Stockholders’ Equity (Deficit) for the nine months ended December 31, 2018 and 2017 (unaudited), and the years ended March 31, 2018 and 2017 (audited)F-5
Consolidated Statements of Cash Flows for the period from October 28, 2014 (inception) tonine months ended December 31, 2018 and 2017 (unaudited), and the years ended March 31, 20152018, 2017 (audited)F-5
Notes to the Audited Financial StatementsF-6
Notes to Consolidated Financial StatementsF-7 – F-21

25



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors

and Stockholders of Addentax Group Corp.

:

Opinion on the Financial Statements

We have audited the accompanying balance sheet of Addentax Group Corp. (a development stage company)together with its subsidiaries (“the Company”) as of March 31, 20152018 and 2017, and the related statementconsolidated statements of operations, changes in shareholder’sincome and comprehensive loss, stockholders’ equity, and cash flowflows for the period from October 28, 2014 (Inception)year then ended, and the related notes (collectively referred to March 31, 2015. These as the “financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States)”). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Addentax Group Corp.the Company as of March 31, 20152018 and 2017, and the related statementresults of its operations and its cash flowflows for the period from October 28, 2014 (Inception) to March 31, 2015year then ended, in conformity with accounting principles generally accepted in the United States of America.

States.

Going concern uncertainty

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has nominal incomeincurred recurring losses from operations, since Inception (October 28, 2014)has net current liabilities and currently does not have sufficient available funding to fully implement its business plan. These factorsan accumulated deficit that raise substantial doubt about its ability to continue as a going concern. Management'sManagement’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Emphasis of Matter

The Company has significant transactions with related parties, which are described in Note 7 to the financial statements. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis, as the requisite conditions of competitive, free market dealings may not exist.

/s/ Pan-China Singapore PAC

We have served as the Company’s auditor since 2018.

Singapore

July 16, 2018, except for the effects of the reverse stock split discussed in Note 17 to the consolidated financial statements, as to which the date is April 18, 2019.



Cutler & Co., LLC
F-2
 

ADDENTAX GROUP CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars, except share data or otherwise stated)

AS OF DECEMBER 31, 2018 (UNAUDITED) AND

MARCH 31, 2018 and 2017 (AUDITED)

  December 31, 2018  March 31, 2018  March 31, 2017 
ASSETS            
             
CURRENT ASSETS            
Cash and cash equivalents $356,969  $264,806  $176,905 
Accounts receivables, net  1,887,702   3,416,618   4,776,878 
Inventories, net  391,646   239,229   445,442 
Other receivables  195,740   2,005,112   1,105,320 
Advances to suppliers  221,843   266,377   322,556 
Amounts due from related parties  80,149   202,426   127,552 
Total current assets  3,134,049   6,394,568   6,954,653 
             
NON-CURRENT ASSETS            
Plant and equipment, net  651,353   648,540   663,203 
Goodwill  475,003   475,003   929,662 
Total non-current assets  1,126,356   1,123,543   1,592,865 
TOTAL ASSETS $4,260,405  $7,518,111   8,547,518 
             
LIABILITIES AND EQUITY            
             
CURRENT LIABILITIES            
Accounts payable $1,211,121  $1,549,847   1,610,643 
Amount due to related parties  4,060,259   5,319,418   2,907,283 
Advances from customers  121,188   1,561,861   1,047,817 
Accrued expenses and other payables  256,700   185,855   199,283 
Bank borrowings  159,922   -   3,025,751 
Income tax payable  2,113   6,064   723 
Total current liabilities  5,811,303   8,623,045   8,791,500 
TOTAL LIABILITIES $5,811,303  $8,623,045   8,791,500 
             
COMMITMENTS AND CONTINGENCIES            
             
EQUITY (DEFICIT)            
Common stock ($0.001 par value, 506,920,000 shares issued and outstanding as of September 30, 2018 and March 31, 2018, 500,000,000 shares issued and outstanding for the year ended March 31, 2017)) $506,920  $506,920  $500,000 
Additional paid-in capital  (420,524)  (420,524)  (413,604)
Retained earnings (losses)  (1,650,784)  (1,081,198)  (371,802)
Statutory reserve  21,539   21,539   21,539 
Accumulated other comprehensive income (loss)  (8,049)  (131,671)  19,884 
Total equity (deficit)  (1,550,898)  (1,104,934)  (243,983)
TOTAL LIABILITIES AND EQUITY (DEFICIT) $4,260,405  $7,518,111   8,547,517 

See accompany notes to the condensed consolidated financial statements.

F-3
Wheat Ridge, Colorado
July 21, 2015
 


F-1


ADDENTAX GROUP CORP.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEET
AS OFIn U.S. Dollars, except share data or otherwise stated)

FOR THE NINE MONTHS ENDED DECEMBER 31, 2018 AND 2017 (UNAUDITED), AND

THE YEARS ENDED MARCH 31, 2015



  March 31, 2015 
 ASSETS   
Current Assets   
Cash and cash equivalents $6,990 
Prepaid expenses  950 
Total Current Assets  7,940 
Fixed Assets, net of accumulated depreciation of $267  3,349 
     
Total Assets $11,289 
     
LIABILITIES AND STOCKHOLDER'S EQUITY    
     
Current Liabilities    
Tax payable $28 
Loans from director  8,100 
Total Current Liabilities  8,128 
     
Total Liabilities  8,128 
     
Stockholder’s Equity    
Common stock, par value $0.001; 75,000,000 shares authorized, 3,000,000 shares issued and outstanding  3,000 
Earnings accumulated during the development stage  161 
Total Stockholder’s Equity  3,161 
     
Total Liabilities and Stockholder’s Equity $11,289 




2018 AND 2017 (AUDITED)

  

March 31,

2018

  

March 31,

2017

  

December 31, 2018

  

December 31, 2017

 
REVENUES $13,437,569  $5,335,501   8,108,408   10,677,416 
                 
COST OF REVENUES  (11,995,947)  (5,079,483)  (7,086,149)  (9,472,377)
                 
GROSS PROFIT  1,441,622   256,018   1,022,259   1,205,039 
                 
OPERATING EXPENSES                
Selling and marketing  (25,428)  (7,696)  (14,480)  (21,643)
General and administrative  (1,672,148)  (622,543)  (1,589,906)  (1,216,486)
Total operating expenses  (1,697,576)  (630,239)  (1,604,386)  (1,238,129)
                 
LOSS FROM OPERATIONS  (255,954)  (374,221)  (582,127)  (33,090)
                 
IMPAIRMENT LOSS ON GOODWILL  (454,659)  -   -   - 
                 
OTHER INCOME, NET  20,559   15,996   19,132   5,621 
                 
LOSS BEFORE INCOME TAX EXPENSE  (690,054)  (358,225)  (562,995)  (27,469)
                 
INCOME TAX EXPENSE  (19,342)  (13,577)  (6,591)  (13,713)
                 
NET LOSS  (709,396)  (371,802)  (569,586)  (41,182)
Foreign currency translation gain (loss)  (151,555)  19,884   123,622   (99,407)
TOTAL COMPREHENSIVE LOSS  (860,951) $(351,918)  (445,964)  (140,589)
                 
EARNINGS PER SHARE                
Basic and diluted  0.00   0.00   0.00   0.00 
Weighted average number of shares outstanding – Basic and diluted  506,920,000   500,000,000   506,920,000   506,920,000 

See accompanyingaccompany notes to these auditedthe consolidated financial statements.


F-4
F-2


ADDENTAX GROUP CORP.

(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH 31, 2015


  
For the period from
October 28, 2014
(Inception) to
March 31, 2015
 
    
REVENUES $1,080 
     
OPERATING EXPENSES    
General and administrative expenses  891 
TOTAL OPERATING EXPENSES  891 
     
NET INCOME FROM OPERATIONS  189 
     
PROVISION FOR INCOME TAXES  (28)
     
NET INCOME $161 
     
     
NET INCOME PER SHARE: BASIC AND DILUTED $0.00*
     
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED  1,850,649 


* denotes income of less than $0.01 per share.




See accompanying notes to these audited financial statements.

F-3


ADDENTAX GROUP CORP.
 (A DEVELOPMENT STAGE COMPANY)
STATEMENT AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY

(In U.S. Dollars, except share data or otherwise stated)

FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TONINE MONTHS ENDED DECEMBER 31, 2018 AND 2017 (UNAUDITED), AND

THE YEARS ENDED MARCH 31, 2015


  Common Stock  
Earnings
Accumulated
during the
Development
  
Total
Stockholders’
 
  Shares  Amount  Stage  Equity 
             
Inception, October 28, 2014  -  $-  $-  $- 
                 
Shares issued for cash at $0.001 per share on December 26, 2014  3,000,000   3,000   -   3,000 
                 
Net income for the period ended March 31, 2015  -   -   161   161 
                 
Balance, March 31, 2015  3,000,000  $3,000  $161  $3,161 



2018 AND 2017 (AUDITED)

  Common Stock  Additional  Retained Earnings  Accumulated    
  Shares  Amount  paid-in
capital
  Unrestricted  Statutory reserve  

comprehensive
income

  

Total

Equity

 
BALANCE AT AUGUST 4, 2016 (i)  500,000,000  $500,000  $(413,604) $-  $21,539  $-  $107,935 
Foreign currency translation  -   -   -   -   -   19,884   19,884 
Net income for the year  -   -   -   (371,802)  -   -   (371,802)
BALANCE AT MARCH 31, 2017  500,000,000  $500,000  $(413,604) $(371,802) $21,539  $19,884  $(243,983)
Recapitalization  6,920,000   6,920   (6,920)  -   -   -   - 
Foreign currency translation  -   -   -   -   -   (99,407)  (99,407)
Net income for the nine months  -   -   -   (41,182)  -   -   (41,182)
BALANCE AT DECEMBER 31, 2017  56,920,000  $506,920  $(420,524) $(412,984) $21,539  $(79,523) $(384,572)
                             
BALANCE AT MARCH 31, 2017  500,000,000  $500,000  $(413,604) $(371,802) $21,539  $19,884  $(243,983)
Recapitalization  6,920,000   6,920   (6,920)  -   -   -   - 
Foreign currency translation  -   -   -   -   -   (151,555)  (151,555)
Net income for the year  -   -   -   (709,396)  -   -   (709,396)
BALANCE AT MARCH 31, 2018  506,920,000  $506,920  $(420,524) $(1,081,198) $21,539  $(131,671) $(1,104,934)
Foreign currency translation  -   -   -   -   -   123,622   123,062 
Net loss for the nine months  -   -   -   (569,586)  -   -   (569,586)
BALANCE AT DECMBER 31, 2018  506,920,000  $506,920  $(420,524) $(1,650,784) $21,539  $(8,049) $(1,550,898)

(i)Yingxi Industrial Chain Group Co., Ltd was incorporated on August 4, 2016.

See accompanyingaccompany notes to these auditedthe consolidated financial statements.


F-5
F-4


ADDENTAX GROUP CORP.

(A DEVELOPMENT STAGE COMPANY)
STATEMENT AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. Dollars, except share data or otherwise stated)

FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TONINE MONTHS ENDED DECEMBER 31, 2018 AND 2017 (UNAUDITED) AND

THE YEARS ENDED MARCH 31, 2015



  
For the period from
October 28, 2014
(Inception) to
March 31, 2015
 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income for the period $161 
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation  267 
Changes in operating assets and liabilities:    
Increase in the prepaid expenses  (950)
Increase in taxes payable  28 
CASH FLOWS USED IN OPERATING ACTIVITIES  (494)
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of fixed assets  (3,616)
CASH FLOWS USED IN INVESTING ACTIVITIES  (3,616)
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from sale of common stock  3,000 
Loans from director  8,100 
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES  11,100 
     
NET INCREASE IN CASH  6,990 
     
Cash, beginning of period  - 
     
Cash, end of period $6,990 
     
SUPPLEMENTAL CASH FLOW INFORMATION:    
Interest paid $- 
Income taxes paid $- 




2018 AND 2017 (AUDITED)

  

March 31,

2018

  

March 31,

2017

  

December 31,

2018

  

December 31,

2017

 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss $(709,396) $(371,802) $(569,586) $(41,182)
Adjustments to reconcile net income to net cash used in operating activities:                
Depreciation  111,740   34,905   88,434   84,535 
Loss from disposal of plant and equipment  -   6,129   -   - 
Allowance for obsolete inventories  -   155,722   -   - 
Impairment loss on goodwill  454,659   -   -   - 
Changes in operating assets and liabilities:                
(Increase) decrease in:                
Accounts receivable  1,360,260   (780,593)  1,528,916   150,665 
Inventories  206,213   21,398   (152,416)  (20,147)
Advances to suppliers  56,179   361,143   44,533   (617,048)
Amounts due from related parties  (74,879)  24,253   -   - 
Other receivables  (181,528)  (20,713)  1,809,372   (822,090)
Increase (decrease) in:                
Accounts payables  (60,796)  216,185   (338,726)  1,857,974 
Amounts due to related parties  186,451   392,296   -   - 
Accrued expenses and other payables ��11,879   (69,400)  117,169   385,254 
Advances from customers  514,044   569,673   (1,440,672)  (226,836)
Taxes payable  5,341   22,262   (3,950)  5,385 
Net cash provided by operating activities  1,880,166   561,458   1,083,074   756,510 
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchase of plant and equipment  (97,077)  -   (91,246)  (76,788)
Proceeds from sale of plant and equipment  -   5,871   -   - 
Payment for acquisition of subsidiaries  (3,025,751)  -   -   (3,025,751)
Acquisition of businesses net of cash acquired  -   221,840   -   - 
Net cash (used in) provided by investing activities  (3,122,828)  227,711   (91,246)  (3,102,539)
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from related party borrowings  2,893,065   -   4,251,157)  4,778,063 
Repayment of related party borrowings  (797,422)  (28,998)  (5,388,040)  (2,770,201)
Proceeds from third party borrowings  1,618,813   696,816   3,596,628   829,081 
Repayment of third party borrowings  (2,391,411)  (1,280,172)  (3,507,077)  (525,978)
Proceeds from bank borrowings          159,922   - 
Net cash provided by (used in) financing activities  1,323,045   (612,354)  (887,410)  2,310,965 
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS  80,383   176,815   104,418   (35,064)
Effect of exchange rate changes on cash and cash equivalents  7,581   90   (12,255)  4,524 
Cash and cash equivalents, beginning of year  176,905   -   264,806   176,905 
CASH AND CASH EQUIVALENTS, END OF YEAR $264,806  $176,905  $356,969  $146,365 

See accompanyingaccompany notes to these auditedthe condensed consolidated financial statements.


F-6
F-5


ADDENTAX GROUP CORP.

 (A DEVELOPMENT STAGE COMPANY)
AND SUBSIDIARIES

NOTES TO THE AUDITEDCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TOYEARS ENDED MARCH 31, 2015



NOTE 1 – ORGANIZATION2018 AND NATURE OF BUSINESS

2017 (AUDITED) AND

THE NINE MONTHS ENDED DECEMBER 31, 2018 AND 2017 (UNAUDITED)

1.ORGANIZATION AND BUSINESS ACQUISITIONS

Addentax Group Corp. (“the Company”, “we”, “us” or “our”ATXG) was incorporated in Nevada on October 28, 2014, and before the Company is workingtransaction described below, ATXG was engaged in the field of producing images on multiple surfaces using heat transfer technology.


NOTE 2 – GOING CONCERN

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. 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 beneficially owned approximately ninety-nine (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 prospectus 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”) operates primarily in the People’s Republic of China (“PRC” or “China”) and is engaged in the business of garments manufacturing and providing logistic services.

On December 15, 2016, Yingxi entered into an equity transfer agreement with the shareholder of Yingxi Industrial Chain Investment Co., Ltd (“Yingxi HK”) under which Yingxi agreed to pay total consideration of Chinese Renminbi (RMB) 21,008,886 (approximately $3,048,936) in cash in exchange for a 100% ownership interest in Yingxi HK. Yingxi HK was incorporated in Hong Kong in 2016. Yingxi HK is a holding company with no assets other than a 100% equity interest of the following subsidiaries:

Qianhai Yingxi Textile & Garments Co., Ltd (“QYTG”), a wholly-owned subsidiary of Yingxi HK, was incorporated in PRC in 2016.

Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), a wholly-owned subsidiary of QYTG, was incorporated in PRC in 2016.

Xin Kuai Jie Transport Co., Ltd (“XKJ”), a wholly-owned subsidiary of YX, was incorporated in PRC in 2001. XKJ is engaged in the provision of logistic services.

Shenzhen Hua Peng Fa Logistics Co., Ltd (“HPF”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2006. HPF is engaged in the provision of logistic services.

Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2009. HSW is a garment manufacturer.

Shantou Chenghai Dai Tou Garments Co., Ltd (“DT”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2009. DT is a garment manufacturer.

2.BASIS OF PRESENTATION, LIQUIDITY

The accompanying consolidated financial statements have beenof the Company and its subsidiaries are prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles which assumein the U.S. (“US GAAP”). All material inter-company accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements are presented on the basis that the Company will be able to realize itsis a going concern. The going concern assumption contemplates the realization of assets and discharge itsthe satisfaction of liabilities in the normal course of businessbusiness.

The Company incurred net loss of $709,396, $371,802 for the foreseeable future. However,years ended March 31, 2018 and 2017, respectively. The Company incurred net loss of $569,586 and $41,182, during the nine months ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and March 31, 2018 and 2017, the Company has generated only limited revenueshad net current liability of $1,550,898, $1,104,934 and nominal net income since Inception (October 28, 2014) through March 31, 2015.  The Company currently has nominal working capital, has not completed its efforts to establish$243,983, respectively, and a stabilized sourcedeficit on total equity of revenues sufficient to cover operating costs over an extended period of time$1,550,898 and currently does not have the funding to fully implement its business-plan. Therefore there is substantial doubt about the Company’s ability to continue as a going concern.


$1,104,934 and $243,983, respectively

The Company's ability to continue as a going concern is dependent upon the CompanyCompany’s profit generating sustainable profitable operations in the future and, and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come duebecome 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 implementation of its business plan.


Management anticipatesCEO. In the event that the Company will berequires 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.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent foron the near future, onCompany’s ability to meet obligations as they become due and to obtain additional investment capitalequity or alternative financing required to fund operating expenses The Company intends to position itself so that it willoperations until sufficient sources of recurring revenues can be able to raise additional funds through the capital markets. In light of management’s efforts, there aregenerated. There can be no assurancesassurance that the Company will be successful in thisits plans described above or any of its endeavorsin attracting equity or become financially viable and continue as a going concern.


NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

Basis of presentation
alternative financing on acceptable terms, or if at all. The accompanyingconsolidated financial statements have been prepared in accordance with generally accepted accounting principlesdo not include any adjustments that might result from the outcome of this uncertainty.

3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)Economic and Political Risks

The Company’s operations are conducted in the United StatesPRC. Accordingly, the Company’s business, financial condition and results of America. 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 yearend is March 31.


Development Stage Company
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 is a development stage company as definedCompany’s results may be adversely affected by section 915-10-20 ofchanges in the FASB Accounting Standards Codificationpolitical and amongsocial conditions in the additional disclosures required as a development stage company are that its financial statements were identified as those of a development stage company,PRC, and that the statements of operations, stockholders' deficit and cash flows disclosed activity since the date of its inception (October 28, 2014) as a development stage company. All losses accumulated since Inception (October 28, 2014) have been considered as part of the Company's development stage activities. Effective June 10, 2014 FASB changed its regulationsby changes in governmental policies with respect to Development Stage Entitieslaws and these additional disclosuresregulations, 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 no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. The Company hasRMB, all assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not elected to early adopt these provisions and consequently these additional disclosuresincluded in determining net income but are included in these financial statements.


Useforeign exchange adjustment to other comprehensive income, a component of Estimates
equity.

(c)Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principlesUS 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 amountamounts of revenues and expenses during the reporting period.  Actualperiods. 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.


F-6


ADDENTAX GROUP CORP.
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE AUDITED FINANCIAL STATEMENTS
FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH

(d)Fair Value Measurement

Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset.

This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

At March 31, 2015



NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (CONTINUED)

Cash2018, the Company has no financial assets or liabilities subject to recurring fair value measurements.

The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, accounts payable, other payables, taxes payables and Cash Equivalents

related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions.

(e)Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with the original maturities of threenine months or less to be cash equivalents. The Company had $6,990 ofno cash as ofequivalents at December 31, 2018, March 31, 2015.


Fair Value2018 and 2017.

(f)Accounts Receivable

Financial instruments that potentially subject the Company to concentrations of Financial Instruments

AS topic 820 "Fair Value Measurementscredit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and Disclosures" establishes a three-tier fair value hierarchy, which prioritizesgenerally does not require collateral. The Company’s credit terms are dependent upon the inputs in measuring fair value.segment, and the customer. The hierarchy prioritizesCompany assesses the inputs into three levelsprobability of collection from each customer at the outset of the arrangement based on a number of factors, including the extentcustomer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed.

Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which inputs usedwould reduce profitability.

Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made for the years ended March 31, 2018 and 2017 and the period ended December 31, 2018.

The following customers had an accounts receivable balance greater than 10% of total accounts receivable at December 31, 2018, March 31, 2018 and 2017.

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Customer A  nil%  56%  25%
Customer B  22%  21%  15%
Customer C  nil%  12%  nil%
Customer D  12%  2%  10%
Customer E  14%  nil%  31%

(g)Inventories

Manufacturing segment inventories consist of raw materials, work in measuring fairprogress and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value are observableis the estimated selling price in the market.


These tiers include:

Level 1:defined as observable inputs such as quoted prices in active markets;
Level 2:defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3:defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The carrying valueordinary course of cash, prepaid expenses, taxes payablebusiness less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. The Company made allowance for obsolete finished goods of $nil and $155,722 for the years ended March 31, 2018 and 2017. No allowance for obsolete finished goods was made for the nine months ended December 31, 2018 and 2017, respectively.

During the years ended March 31, 2018 and 2017, approximately 45% and 81% of total inventory purchases were from the Company’s loanfive 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 on comparable terms.

During the nine months ended December 31, 2018 and 2017, approximately 51% and 57% of total inventory purchases were from director approximatesthe Company’s five largest suppliers, respectively. Management believes that should the Company lose any one of its fair value duemajor suppliers, other suppliers are available that could provide similar products to their short-term maturity.


Fixed Assets
Propertythe Company on comparable terms.

(h)Plant and Equipment

Plant and equipment are statedcarried at cost and depreciated onless accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method over the estimated lifemethod. Estimated useful lives of the asset, which is 5 years.


Expenditures for maintenanceplant and repairsequipment are charged to expense as incurred. Additions, major renewalsfollows:

Production plant5-10 years
Motor vehicles10-15 years
Office equipment5-10 years

The cost and replacements that increase the property's useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removedof assets sold or otherwise retired are eliminated from the appropriated accounts and the resultantany gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized.

(i)Goodwill

Goodwill represents the excess of the purchase price over the net income.


Income Taxes
fair value of the identifiable tangible and intangible assets acquired and the fair value of liabilities assumed in acquisitions. ASC 350-30-50 “Goodwill and Other Intangible Assets”, requires the testing of goodwill and indefinite-lived intangible assets for impairment at least annually. The Company tests goodwill for impairment in the fourth quarter of each years.

Under applicable accounting guidance, the goodwill impairment analysis is a two-step test. The first step of the goodwill impairment test involves comparing the fair value of each reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step must be performed to measure potential impairment.

The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated possible impairment. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess.

The Company tested goodwill for impairment as of March 31, 2018 and it was determined that recoverable amount of one of the Company’s reporting units was lower than the carrying amount of the goodwill recorded. Therefore it was concluded that carrying amount of goodwill of $454,659 was impaired.

(j)Accounting for the Impairment of Long-Lived Assets

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

There was no impairment of long-lived assets as of December 31, 2018, March 31, 2018 and 2017.

(k)Revenue Recognition

Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:

(i)identification of the promised goods and services in the contract;
(ii)determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract;
(iii)measurement of the transaction price, including the constraint on variable consideration;
(iv)allocation of the transaction price to the performance obligations; and
(v)recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules

Cost of revenues for manufacturing segment includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of for service segment includes gasoline and diesel fuel, toll charges and subcontracting fees.

(l)Earnings Per Share

The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure.

The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s shares of common stock outstanding. Diluted earnings per share reflects the amount of net income available to each share of common stock outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive shares of common stock as of December 31, 2018, March 31, 2018 and 2017.

(m)Income Taxes

The Company accounts for income taxes are computed using the asset and liability method.method prescribed by ASC 740 “Income Taxes”. Under the asset and liabilitythis method, deferred income tax assets and liabilities are determined based on the differencesdifference between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.  Athat will be in effect in the years in which the differences are expected to reverse. The Company records a valuation allowance is provided for the amount ofto offset deferred tax assets that,if based on the weight of available evidence, are not expected to be realized.


Revenue Recognition
The Company will recognize revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requiresit is more-likely-than-not that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed naturesome portion, or all, of the selling pricesdeferred tax assets will not be realized. The effect on deferred taxes of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided fora change in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered ortax rates is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

F-7


ADDENTAX GROUP CORP.
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE AUDITED FINANCIAL STATEMENTS
FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH 31, 2015


NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (CONTINUED)

Advertising Costs
The Company’s policy regarding advertising is to expense advertising when incurred. The Company did not incur any advertising expenses during the period from October 28, 2014 to March 31, 2015.

Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718.  To date, the Company has not adopted a stock option plan and has not granted any stock options.

Basic Income (Loss) Per Share
The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the period from October 28, 2014 (inception) to March 31, 2015 there were no potentially dilutive debt or equity instruments issued or outstanding.

Comprehensive Income
Comprehensive income is definedrecognized as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. For the period from October 28, 2014 (inception) to March 31, 2015 were no differences between our comprehensive loss and net loss.

Recent Accounting Pronouncements
We have reviewed allthat includes the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to Development Stage Entities as discussed above.

NOTE 3 – FIXED ASSETS

  Equipment  Website  Totals 
Cost         
As at October 28, 2014 $-  $-  $- 
Additions  2,916   700   3,616 
Disposals  -   -   - 
As at March 31, 2015  2,916   700   3,616 
             
Depreciation  -   -   - 
As at October 28, 2014  -   -   - 
Change for the period  267   -   267 
As at March 31, 2015  267   -   267 
             
Net book value $2,649  $700  $3,349 

We recognized depreciation expense of $267 in respect of equipment during the period from October 28, 2014 to March 31, 2015.

No depreciation was recognized in respect of the website during the period from October 28, 2014 to March 31, 2015, as the website was not yet operational during the period.

F-8


ADDENTAX GROUP CORP.
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE AUDITED FINANCIAL STATEMENTS
FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH 31, 2015


NOTE 5 – LOAN FROM DIRECTOR

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

During the period from October 28, 2014 (Inception) to March 31, 2015, our sole director had loaned to the Company $8,100.This loan is unsecured, non-interest bearing and due on demand.

Effective March 2, 2015, the Company entered into a Loan Agreement with Otmane Tajmouati, the Company’s sole office and director. Under the terms of the Loan Agreement, Mr. Tajmouati has agreed to loan up to $30,000 to the Company to fund ongoing expenses operational needs. No funds under this Loan Agreement were advanced to the Company during the period October 28, 2014 (inception) to March 31, 2015. The balance of $8,100 that had been loaned to the Company by Mr. Tajmouati as of March 31, 2015 was not advanced under the terms of this loan agreement.

NOTE 6 – SHAREHOLDER'S EQUITY

enactment date.

The Company has 75,000,000, $0.001 par value shares of common stock authorized.


On December 26, 2014, the Company issued 3,000,000 shares of common stock to a director for cash proceeds of $3,000 at $0.001 per share.

There were 3,000,000 shares of common stock issued and outstanding as of March 31, 2015.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Lease agreement

Company has entered in a six months rental agreement, signed on December 15, 2015, starting on March 1, 2015 and terminating on August 31, 2015. The Company is renting 30 square meters of office space for $190 per month. The Company prepaid all six months and a prepaid balance of $950 is reflected in the financial statements at March 31, 2015.

Litigation

We were not subject to any legal proceedings during the period from October 28, 2014 to March 31, 2015 and we know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation.  There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

F-9


ADDENTAX GROUP CORP.
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE AUDITED FINANCIAL STATEMENTS
FOR THE PERIOD FROM OCTOBER 28, 2014 (INCEPTION) TO MARCH 31, 2015


NOTE 8 – INCOME TAXES

During the period from October 28, 2014 to March 31, 2015, the Company generated taxable income of $189 and accrued a tax liability of $28, based on an effective rate of taxation of 15%.

NOTE 9 – SUBSEQUENT EVENTS

In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to March 31, 2015 to the date these financial statements were issued, and has determined that it does not have any material subsequent eventsunrecognized tax benefits.

The Company is governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25%. The Company files income tax returns with the relevant government authorities in the PRC. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months.

The Company’s policy is to discloserecognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the nine months ended December 31, 2018 and 2017, the years ended March 31, 2018 and 2017. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatment.

New U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transaction tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in thesea single lump-sum payment. The Company measured the current and deferred taxes based on the provisions of the Tax legislation. After the Company’s measurement, no deferred tax benefit nor expense relating to the Tax Act changes for the nine months ended December 31,2018 and the year ended March 31, 2018.

(n)Related party balances and transactions

A related party is generally defined as:

(i) any person that holds the Company’s securities including such person’s immediate families,

(ii) the Company’s management,

(iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or

(iv) anyone who can significantly influence the financial and operating decisions of the Company.

A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

(o)Interest Rate Risk

In September 2018, we entered into a credit agreement that provides for an approximately $218,000 (RMB1,500,000) credit facility. The pricing on the credit facility is based on LIBOR, as defined by the credit agreement. The floating interest rate may affect the ability of repayment of existing debts and viability of securing future debt instruments within the PRC. As of December 31, 2018, the Company has drawn down credit amount for $218,000 (RMB 1,100,000) at fix rate 5.8%.

(p)Recently issued and adopted accounting pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework – Change to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. This standard will be effective for the Company on September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its financial statements.


F-10


PROSPECTUS

3,000,000 SHARES OF COMMON STOCK

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 September 1, 2020. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” (“ASU 2014-09”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 supersedes most existing revenue recognition guidance in US GAAP. In August 2015, the FASB issued ASU 2015-14,Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date (“ASU 2015-14”), which deferred the effective date of ASU 2014-09 to January 1, 2018 for the Company. Early adoption was permitted. The Company adopted ASU 2014-09 utilizing the modified retrospective method. The Company evaluated the impact of adopting the new standard and concluded that there was no material impact on the Company’s revenue recognition policy.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”)”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company evaluated the impact of adopting the new standard and concluded that there was no material impact to its consolidated financial statement.

In February 2016, the FASB issued ASU 2016-02,“Lease (Topic 842)”, which amends recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. This standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently assessing the impact of this new standard on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash flows -—Classification of Certain Cash Receipts and Cash Payment”, effective for the fiscal years beginning after December 15, 2017, and interim periods within that fiscal year. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company evaluated the impact of adopting the new standard on its consolidated financial statements and concluded that there was no material impact to the Company’s consolidated financial statements.

In January 2017, the FASB issued 2017-01 “Business Combinations”, effective for the annual reporting period beginning after December 15, 2017, and interim periods within that period. This Update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or business. The Company evaluated the impact of adopting the new standard on its consolidated financial statements and concluded that there was no material impact to the Company’s consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05 “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)”, effective for the annual reporting period beginning after December 15, 2017, including the interim reporting period within that period. This update provides guidance on the recognition of gains and losses on transfers of nonfinancial assets and in substance nonfinancial assets to counterparties that are not customers. The Company evaluated the impact of adopting the new standard on its consolidated financial statements and concluded that there was no material impact to the Company’s 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.

4.BUSINESS ACQUISITION

On December 10, 2016, the Company entered into an equity transfer agreement relating to the acquisition of 100% of the equity of Yingxi Industrial Chain Investment Co., Ltd (“Yingxi HK”) and subsidiaries. The acquisition was financed with proceeds from the Company’s borrowings from a third party. The acquisition closed on December 15, 2016. The results of operations of Yingxi HK are included in the Company’s consolidated financial statements beginning on December 15, 2016.

The following represents the purchase price allocation at the dates of the acquisition:

Cash and cash equivalents $230,390 
Other current assets  6,373,688 
Plant and equipment  710,829 
Goodwill  929,662 
Current liabilities  (5,174,094)
Statutory reserves  (21,539)
Total purchase price $3,048,936 

5.ACCOUNTS RECEIVABLES

The receivables and allowance balances at December 31, 2018, March 31, 2018 and 2017 are as follows:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Accounts receivable $1,887,702  $3,416,618  $4,776,878 
Less: allowance for doubtful accounts      -   - 
Accounts receivable, net $1,887,702  $3,416,618  $4,776,878 

No allowance for doubtful accounts was made for the nine months ended December 31, 2018 and 2017, the years ended March 31, 2018 and 2017.

6.OTHER RECEIVABLES

Other receivables primarily represent rental deposit; refundable security deposits to customers for quality assurance on the provision of logistic service; and unsecured and non-interest bearing short-term advances that the Company makes from time-to-time to employees and third-party entities. These advances are unsecured and due on demand.

7.RELATED PARTY TRANSACTIONS

Name of Related PartiesRelationship with the Company
Zhida HongPresident, CEO, CFO and a director of the Company
Zhongpeng ChenA legal representative of HPF
Bihua YangA legal representative of XKJ
Dewu HuangA legal representative of DT
Qiuying ChenA spouse of legal representative of DT
Yingping DingA legal representative of HSW
Jinlong HuangA spouse of legal representative of HSW
Shenzhen Qianhai Bitun Investment Fund Management Co., LtdHuizhu Ma is a legal representative and principal shareholder, Huizhu Ma ceased to be the principal shareholder since November 2018
Shenzhen Bitun Textile Co., Ltd.Huizhu Ma is a legal representative and principal shareholder, Huizhu Ma ceased to be the principal shareholder since November 2018
Shenzhen Yingxi Investment & Development Co., Ltd.Sister of Huizhu Ma is a legal representative, Huizhu Ma ceased to be the principal shareholder since November 2018
Shenzhen Bitun Yihao Fund Partnership (Limited Partnership)Shenzhen Qianhai Bitun Investment Fund Management Co., Ltd is a legal representative and principal shareholder, which is no longer related party since November 2018
Bitun Apparel (Shenzhen) Co., LtdHuijun Ma is a legal representative, Huizhu Ma ceased to be the principal shareholder since November 2018
Huizhu MaA director and principal shareholder of the Company’s principal shareholder, Huizhu Ma ceased to be the principal shareholder since November 2018
Xijuan HuangA spouse of legal representative of HPF

The Company leases office space for XKJ rent-free from Bihua Yang.

The Company had the following related party balances at December 31, 2018, March 31, 2018 and 2017:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Amounts due from related parties            
Dewu Huang $80,149  $-  $- 
Zhida Hong -  -  9,190 
Bihua Yang  -   -   118,358 
Shenzhen Bitun Textile Co., Ltd.  -   39,883   - 
Shenzhen Yingxi Investment & Development Co., Ltd.  -   162,543   4 
  $80,149  $202,426  $127,552 

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Amounts due to related parties            
Zhida Hong $3,828,202  $38,196  $- 
Zhongpeng Chen  165,127   739,317   554,158 
Dewu Huang  -   248,031   121,794 
Yinping Ding  -   118,952   983,452 
Jinlong Huang  66,930   338,115   1,218,846 
Shenzhen Qianhai Bitun Investment Fund Management Co., Ltd.  -   3,665,347   - 
Shenzhen Bitun Yihao Fund Partnership (Limited Partnership)  -   159,356   - 
Huizhu Ma  -   12,104   - 
Bitun Apparel (Shenzhen) Co., Ltd  -   -   29,033 
  $4,060,259  $5,319,418  $2,878,250 
  

March 31,

2018

  

March 31,

2018

  

March 31,

2017

 
Payables for acquisition of subsidiaries            
Bitun Apparel (Shenzhen) Co., Ltd $     -  $     -  $1,584,247 
Shenzhen Yingxi Investment & Development Co., Ltd.  -   -   1,440,224 
  $-  $-  $3,024,471 

The balances with related parties are unsecured, non-interest bearing and repayable on demand.

8.INVENTORIES

Inventories consist of the following as of December 31, 2018, March 31, 2018 and 2017:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Raw materials $256,128  $126,079  $300,592 
Work in progress  30,821   113,150   340,330 
Finished goods  104,697   -   261,060 
Total  391,646   239,229   601,982 
Less: allowance for obsolete inventories  -   -   (156,540)
Inventories, net $391,646  $239,229  $445,442 

9.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.

10.PLANT AND EQUIPMENT

Plant and equipment consists of the following as of December 31, 2018, March 31, 2018 and 2017:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Production plant $141,892  $155,529  $141,680 
Motor vehicles  1,006,932   944,539   877,015 
Office equipment  11,396   12,491   11,378 
   1,160,220   1,112,559   1,030,073 
Less: accumulated depreciation  (508,867)  (464,019)  (366,870)
Plant and equipment, net $651,353  $648,540  $663,203 

Depreciation expense for the years ended March 31, 2018 was $111,740 and $34,905, respectively.

Depreciation expense for the nine months ended December 31, 2018 and 2017 was $88,434 and $84,535, respectively.

11.BANK LOANS

In September 2018, HSW entered into a bank loan agreement with Dongguan Agricultural Commercial Bank to borrow approximately $160,168 (RMB1,100,000) for daily operations with an annual interest rate of 5.8% and a due date in September 2019.

In September 2018, HSW entered into a entered into a revolving line of credit agreement with Dongguan Agricultural Commercial Bank, which allows the company to borrow up to approximately $218,000 (RMB1,500,000). The line of credit is guaranteed by Ding Yinping & Huang Jinlong. As of December 31, 2018, approximately $218,000 was unused and available under this line of credit.

12.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 tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the years ended March 31, 2018 and 2017. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the nine months ended December 31, 2018 and 2017.

YX were incorporated in the PRC and is subject to the PRC federal statutory tax rate is 25%. No provision for income taxes in the PRC has been made as YX had no taxable income for the years ended March 31, 2018 and 2017. No provision for income taxes in the PRC has been made as YX had no taxable income for the nine months ended December 31, 2018 and 2017.

The Company is governed by the Income Tax Laws of the PRC. Yingxi’s operating companies, QYTG, HSW, HPF and DT were subject to an EIT rate of 25% in 2018 and 2017. XKJ enjoyed preferential tax benefits and its EIT rate was 15% in 2018 and 2017.

Addentax Group Corp. is a U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the years ended March 31, 2018 and 2017. No provision for income taxes in the United States has been made as the Company had no United States taxable income for the nine months ended December 31, 2018 and 2017.

No deferred taxes were recognized for the years ended March 31, 2018 and 2017.

No deferred taxes were recognized for the nine months ended December 31, 2018 and 2017.

The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable to the PRC, to income tax expenses are as follows:

  

March 31,

2018

  

March 31,

2017

 
PRC statutory tax rate  25%  25%
Temporary differences  (19)%  (4)%
Tax losses not recognized  (72)%  (25)%
Income tax expense $(66)% $(4)%
  For the nine month ended December 31,  

For the years ended

March 31,

 
  2018  2017  2018  2017 
PRC statutory tax rate  25   25   25%  25%
Computed expected benefits $(140,748) $(6,867) $(172,514) $(89,556)
Temporary differences  147,339   26,034   (20,389)  48,309 
Tax losses not recognized  -   (5,454)  212,245   54,824 
Income tax expense $6,591  $13,713  $19,342  $13,577 

(b)Value Added Tax (“VAT”)

In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 17%, which is levied on the invoiced value of sales and is payable by the purchaser. The Company is required to remit the VAT it collects 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 11% under the relevant tax category for our logistic companies, except the branch of HPF enjoyed the preferential VAT rate of 3% in 2018 and 2017. 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.

13.CONSOLIDATED SEGMENT DATA

Segment information is consistent with how management 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 two segments:

(a)Manufacturing of garments (the “Manufacturing segment”); and
(b)Providing logistic services (the “Service segment”).

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 nine months ended December 31, 2018 and 2017, and the years ended March 31, 2018 and 2017 are as follows:

  For the nine months ended  For the years ended 
  December 31,  March 31, 
  2018  2017  2018  2017 
Revenues            
Manufacturing segment $2,760,966  $3,779,595  $5,069,699  $2,750,210 
Service segment  5,347,442   6,897,821   8,367,870   2,585,291 
  $8,108,408  $10,677,416  $13,437,569  $5,335,501 

Income from operations by segment for the nine months ended December 31, 2018 and 2017, and the years ended March 31, 2018 and 2017 are as follows:

  For the nine months ended  For the years ended 
  December 31,  March 31, 
  2018  2017  2018  2017 
Operating income (loss)            
Manufacturing segment $(12,458) $(6,027) $61,145  $(134,100)
Service segment  37,292   116,644   10,406   (203,110)
Corporate and other  (606,961)  (143,707)  (327,505)  (37,010)
Loss from operations $(582,127) $(33,090) $(255,954) $(374,220)
Manufacturing segment  13,358   2,722   13,481   (2,916)
Service segment  2,726   2,866   6,824   (5,231)
Corporate and other  3,048   33   (454,405   13,681 
Loss before income tax  (562,995)  (27,469)  (690,054)  (358,225)
Income tax expense  (6,591)  (13,713)  (19,342)  (13,577)
Net loss $(569,586) $(41,182) $(709,396) $(371,802)

Depreciation and amortization by segment for the nine months ended December 31, 2018 and 2017, and the years ended March 31, 2018 are as follows:

  For the nine months ended  For the years ended 
  December 31,  March 31, 
  2018  2017  2018  2017 
Depreciation            
Manufacturing segment  18,987   23,745   28,657   8,614 
Service segment  69,447   60,790   83,083   26,291 
  $88,434  $84,535  $111,740  $34,905 

Total assets by segment at December 31, 2018, March 31, 2018 and 2017 are as follows:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Total assets            
Manufacturing segment $1,803,939  $3,775,765  $5,328,211 
Service segment  2,338,491   3,391,945   3,099,276 
Corporate and other  117,975   350,400   120,031 
  $4,260,405  $7,518,111  $8,547,518 

Goodwill by segment at March 31, 2018 and 2017 is as follows:

  September 30, 2018  

March 31,

2018

  

March 31,

2017

 
Goodwill            
Manufacturing segment $475,003  $475,003  $475,003 
Service segment  -   -   454,659 
  $475,003  $475,003  $929,662 

The recoverable amounts of reporting units are determined based on discounted cash flow calculations. The calculations use budget for the first year and cash flow projections based on financial forecasts prepared by management covering the remaining 4-year operating period. The key assumptions include revenue, cost of sales and operating expenses which were determined by management based on the past performance and its expectations on market development. Based on the impairment test of goodwill, the recoverable amount was lower than the carrying amount of the goodwill recorded and it was concluded that carrying amount of goodwill of $454,659 was impaired.

14.ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consist of the following as of December 31, 2018, March 31, 2018 and 2017:

  December 31, 2018  

March 31,

2018

  

March 31,

2017

 
Loan from third parties (i) $-  $56,739  $104,040 
Employee advances  558   1,073   987 
Accrued wages and welfare  80,290   66,972   91,441 
Other payables  175,851   61,071   2,815 
  $976,699  $185,855  $199,283 

(i)Loan from third parties represent unsecured and non-interest bearing short-term advances that the Company receives from time-to-time from third-party entities. These advances are unsecured and due on demand.

15.RESERVES

(a)Statutory reserve

In accordance with the relevant laws and regulations of the PRC, the subsidiary of the Company established in the PRC is required to transfer 10% of its profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the subsidiary’s paid-up capital. Such reserve may be used to offset accumulated losses or increase the registered capital of the subsidiary, subject to the approval from the PRC authorities, and are not available for dividend distribution to the shareholders. At December 31, 2018, March 31, 2018 and 2017, the paid-up statutory reserve was RMB 148,418 or $21,539.

(b)Currency translation reserve

The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s functional currency.

16.COMMITMENTS AND CONTINGENCIES

Leases

The Company leased offices in various cities in the PRC and leases its headquarters in Shenzhen, the PRC, under operating leases expiring on various dates through the Company’s year end of 2021. Rent expense for the nine months ended December 31, 2018 and 2017 was approximately $77,664 and $70,034, respectively. Rent expense for the years ended March 31, 2018 and 2017 was approximately $97,634 and $30,405, respectively.

Future minimum lease payments for leases with initial or remaining non-cancelable lease terms in excess of one year are as follows:

2019 $75,302 
2020  274,579 
2021  136,080 
   485,961 

17.SUBSEQUENT EVENTS

On January 24, 2019, the Board of Directors approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), at a ratio of 1-for-20 (the “Reverse Stock Split”). The Reverse Stock Split was effected by the Company filing a Certificate of Change pursuant to NRS Section 78.209 with the Secretary of State of the State of Nevada on February 27, 2019 (the “Effective Date”). On the Effective Date, the number of shares of the authorized Common Stock was reduced from 1,000,000,000 shares to 50,000,000 shares and the issued and outstanding number of shares of Common Stock was correspondingly decreased to 25,346,004. The par value of the Common Stock did not change.

ADDENTAX GROUP CORP.

_______________

MINIMUM OFFERING: 1,000,000 Shares of Common Stock


Dealer Prospectus Delivery Obligation

MAXIMUM OFFERING: 4,000,000 Shares of Common Stock

PROSPECTUS

You should rely only on the information contained in this prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus. This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is correct only as of the date of this prospectus, regardless of the time of the delivery of this prospectus or the sale of these securities.

Until            _____________ ___, 2015,, 2019, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters andunderwriter or placement agent with respect to their unsold allotmentssubscriptions.

The date of this prospectus is              , 2019

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or subscriptions.


sale is not permitted.

SUBJECT TO COMPLETION, DATED MAY 13 , 2019

PRELIMINARY PROSPECTUS

Addentax Group Corp.

2,364,837Shares of Common Stock

This prospectus relates to the resale of 2,364,837 shares of our common stock by the selling stockholders named in this prospectus.

We are a reporting company under Section 15(d) of the Securities Exchange Act of 1934, as amended. Our common stock is currently quoted on the OTCQB Marketplace (the “OTCQB”) under the symbol “ATXG.” The closing price for our common stock on May 10 , 2019, was $89.75 per share. There is a limited public trading market for our common stock. We are applying to list our common stock on the Nasdaq Capital Market under the symbol “ATXG.”

Investing in our securities involves risks. You should carefully consider the risk factors beginning on page 8 of this prospectus and set forth in the documents incorporated by reference herein before making any decision to invest in our securities.

Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this registration statement. Any representation to the contrary is a criminal offense.

The date of this prospectus is       , 2019

THE OFFERING

Common stock offered by us:0 shares
Common Stock offered by the selling stockholders2,364,837 shares
Common stock outstanding before the offering:25,346,004 shares as of May 13 , 2019
Common stock to be outstanding after the offering:

25,346,004 shares(1)

Use of proceeds:We will not receive any of the proceeds from the sale of the common stock by the selling stockholders named in this prospectus.

(1) Assumes no issuance by us of our common stock pursuant to the public offering prospectus filed contemporaneously herewith.

SS-1

USE OF PROCEEDS

We will not receive any of the proceeds from the sale of the shares of common stock by the selling stockholders.

SS-2

SELLING STOCKHOLDERS

The following table sets forth the names of the selling stockholders, the number of shares of common stock owned by each selling stockholder immediately prior to the date of this prospectus and the number of shares to be offered by the selling stockholder pursuant to this prospectus. The table also provides information regarding the beneficial ownership of our common stock by the Selling Stockholder as adjusted to reflect the assumed sale of all of the minimum and maximum shares offered under this prospectus.

Percentage of beneficial ownership before this offering is based on 25,346,004 shares of our common stock outstanding as May 13 , 2019. Beneficial ownership is based on information furnished by the selling stockholders. Unless otherwise indicated and subject to community property laws where applicable, the selling stockholder named in the following table has, to our knowledge, sole voting and investment power with respect to the shares beneficially owned by him.

None of the selling stockholders has had any position, office or other material relationship within past three years with the Company. None of the selling stockholders is a broker dealer or an affiliate of a broker dealer. None of the selling stockholders has an agreement or understanding to distribute any of the shares being registered. Each selling stockholder may offer for sale from time to time any or all of the shares, subject to the lock up agreements described in the “Plan of Distribution.” The table below assumes that the selling shareholders will sell all of the shares offered for sale hereby. A selling stockholder is under no obligation to sell any shares pursuant to this prospectus.

Name of Selling

Stockholder

 

Shares Beneficially Owned Prior

to Offering

  Maximum Number of Shares to be Sold  Number of Shares Owned After Offering  

Percentage Ownership After

Offering (Minimum Offering)

  

Percentage Ownership After

Offering (Maximum Offering)

 
SHI Hongjian  665,000   665,000   -   0.00%  0.00%
Ding Yinping  336,515   10,000   326,515   1.24%  1.11%
Yang Bihua  262,531   10,000   252,531   0.96%  0.86%
Zhou Zhiyong  262,531   10,000   252,531   0.96%  0.86%
Huang Jinlong  209,344   10,000   199,344   0.76%  0.68%
Wu Bo  123,000   10,000   113,000   0.43%  0.39%
Chen Zhongpeng  107,778   10,000   97,778   0.37%  0.33%
Huang Xijuan  103,542   10,000   93,542   0.36%  0.32%
Liu Miaozhi  91,930   5,000   86,930   0.33%  0.30%
Lin Zhanhong  29,600   14,800   14,800   0.06%  0.05%
Chen Weibin  19,000   19,000   -   0.00%  0.00%
CHEN Chujuan  18,415   18,415   -   0.00%  0.00%

SS-3

Huang Shengan  18,125   18,125   -   0.00%  0.00%
Zhu Rongchun  17,650   17,650   -   0.00%  0.00%
Li Shuqin  17,500   17,500   -   0.00%  0.00%
Lu Zhaodi  17,500   17,500   -   0.00%  0.00%
Tong Weifang  17,500   17,500   -   0.00%  0.00%
Yu Fanghong  17,500   17,500   -   0.00%  0.00%
Lan Shunhao  15,800   15,800   -   0.00%  0.00%
Ma Huizhuang  15,800   15,800   -   0.00%  0.00%
Xu Miaoqi  15,765   15,765   -   0.00%  0.00%
Chen Haiping  15,625   15,625   -   0.00%  0.00%
Chen Xinfeng  15,000   15,000   -   0.00%  0.00%
Huang Yuxuan  15,000   15,000   -   0.00%  0.00%
Lai Tingru  15,000   15,000   -   0.00%  0.00%
Lu Qiuzhe  15,000   15,000   -   0.00%  0.00%
Pan Xiuxian  15,000   15,000   -   0.00%  0.00%
Shao Mingjin  15,000   15,000   -   0.00%  0.00%
Wu Xiaorong  15,000   15,000   -   0.00%  0.00%
Xiong Wei  15,000   15,000   -   0.00%  0.00%
Xu Zewei  15,000   15,000   -   0.00%  0.00%
Yang Lijun  15,000   15,000   -   0.00%  0.00%
Ye Yaoxian  15,000   15,000   -   0.00%  0.00%
Zhou Guicheng  15,000   15,000   -   0.00%  0.00%
Zhou Xiaoe  15,000   15,000   -   0.00%  0.00%
Xue Jianli  14,000   14,000   -   0.00%  0.00%

SS-4

Zhan Hejiang  14,000   14,000   -   0.00%  0.00%
Tong Huilian  13,720   13,720   -   0.00%  0.00%
Luo Ting  13,000   13,000   -   0.00%  0.00%
Song Jianguo  13,000   6,500   6,500   0.02%  0.02%
Chen Shengqian  12,550   12,550   -   0.00%  0.00%
Lai Xiaodong  12,500   12,500   -   0.00%  0.00%
Liao Shuhao  12,500   12,500   -   0.00%  0.00%
Liu Sikun  12,500   5,000   7,500   0.03%  0.03%
Lu Yanxiang  12,500   12,500   -   0.00%  0.00%
Xu Weike  12,500   12,500   -   0.00%  0.00%
Zhou Lifang  12,250   12,250   -   0.00%  0.00%
Xu Hailiang  12,000   12,000   -   0.00%  0.00%
Ye Luzhi  11,745   11,745   -   0.00%  0.00%
Quan Liling  11,650   11,650   -   0.00%  0.00%
Hu Meiqin  11,500   11,500   -   0.00%  0.00%
Ding Yunfeng  11,365   11,365   -   0.00%  0.00%
Liu Fengying  11,070   11,070   -   0.00%  0.00%
Dai Yi  11,000   11,000   -   0.00%  0.00%
Deng Anlie  11,000   5,500   5,500   0.02%  0.02%
Zhao Zhiming  10,500   10,500   -   0.00%  0.00%
Chen Yousong  10,000   5,000   5,000   0.02%  0.02%
Fang Zhuhua  10,000   10,000   -   0.00%  0.00%
Gan Chao  10,000   5,000   5,000   0.02%  0.02%
He Yinzhi  10,000   10,000   -   0.00%  0.00%

SS-5

Hu Caiyu  10,000   10,000   -   0.00%  0.00%
Hu Min  10,000   10,000   -   0.00%  0.00%
Hu Shunsheng  10,000   10,000   -   0.00%  0.00%
Li Hai  10,000   10,000   -   0.00%  0.00%
Ma Jianfeng  10,000   5,000   5,000   0.02%  0.02%
Ou Xinzhen  10,000   10,000   -   0.00%  0.00%
Pei Weihong  10,000   10,000   -   0.00%  0.00%
Shi Liqun  10,000   10,000   -   0.00%  0.00%
Su Binbin  10,000   10,000   -   0.00%  0.00%
Tan Haiying  10,000   10,000   -   0.00%  0.00%
TANG Lujun  10,000   10,000   -   0.00%  0.00%
Wang Xuanzhen  10,000   10,000   -   0.00%  0.00%
Wu Sihua  10,000   10,000   -   0.00%  0.00%
Xu Youxuan  10,000   10,000   -   0.00%  0.00%
Zhang Chen  10,000   10,000   -   0.00%  0.00%
Zhang Ping  10,000   10,000   -   0.00%  0.00%
Zhang Yongli  10,000   10,000   -   0.00%  0.00%
Zheng Aming  10,000   3,000   7,000   0.03%  0.02%
Chen Yinghong  9,100   9,100   -   0.00%  0.00%
Shangguan Wangsun  9,000   4,500   4,500   0.02%  0.02%
Tian Qinhong  9,000   9,000   -   0.00%  0.00%
Liang Guixin  8,750   8,750   -   0.00%  0.00%
Yan Lijuan  8,750   8,750   -   0.00%  0.00%
Jin Yinfu  8,615   8,615   -   0.00%  0.00%

SS-6

Chen Suidi  8,500   8,500   -   0.00%  0.00%
Dong Aimiao  8,500   8,500   -   0.00%  0.00%
Gao Minghuai  8,500   8,500   -   0.00%  0.00%
Zheng Shude  8,500   8,500   -   0.00%  0.00%
Zeng Qinggan  8,295   8,295   -   0.00%  0.00%
Xu Xiaocheng  8,000   8,000   -   0.00%  0.00%
Xu Qunfang  7,850   7,850   -   0.00%  0.00%
Lin Zerun  7,800   7,800   -   0.00%  0.00%
Wu Hanyan  7,800   7,800   -   0.00%  0.00%
Chen Hansong  7,500   7,500   -   0.00%  0.00%
Chen Peng  7,500   7,500   -   0.00%  0.00%
Dong Xiaolu  7,500   7,500   -   0.00%  0.00%
Hong Woshen  7,500   7,500   -   0.00%  0.00%
Lai Musheng  7,500   7,500   -   0.00%  0.00%
Li Xiaomei  7,500   7,500   -   0.00%  0.00%
Lin Chunyan  7,500   7,500   -   0.00%  0.00%
Ou Jiechan  7,500   7,500   -   0.00%  0.00%
Peng Miao  7,500   7,500   -   0.00%  0.00%
Yang Meisheng  7,500   7,500   -   0.00%  0.00%
Yang Shangcheng  7,500   7,500   -   0.00%  0.00%
Zhang Gehong  7,500   7,500   -   0.00%  0.00%
Huang Xiyou  6,500   6,500   -   0.00%  0.00%
Cai Hongwen  6,000   6,000   -   0.00%  0.00%
Lin Shaoqin  6,000   6,000   -   0.00%  0.00%

SS-7

Liu Chengzuo  6,000   6,000   -   0.00%  0.00%
Liu Yong  6,000   6,000   -   0.00%  0.00%
Luo Kefeng  6,000   6,000   -   0.00%  0.00%
Ma Yaonan  6,000   6,000   -   0.00%  0.00%
Qi Guifeng  6,000   6,000   -   0.00%  0.00%
Song Chaohui  6,000   6,000   -   0.00%  0.00%
Song Chunming  6,000   6,000   -   0.00%  0.00%
Wen Jiali  6,000   6,000   -   0.00%  0.00%
Yu Miaofang  6,000   6,000   -   0.00%  0.00%
Yu Yueguo  6,000   6,000   -   0.00%  0.00%
Zhang Jiuhua  6,000   6,000   -   0.00%  0.00%
Zhang Renyi  6,000   6,000   -   0.00%  0.00%
Luo Yubin  5,980   5,980   -   0.00%  0.00%
Li Junrong  5,850   5,850   -   0.00%  0.00%
Ren Li  5,850   5,850   -   0.00%  0.00%
CHEN Chunxiang  5,815   5,815   -   0.00%  0.00%
Su Lianjiang  5,810   5,810   -   0.00%  0.00%
Zhang Beibei  5,810   5,810   -   0.00%  0.00%
He Jingjing  5,720   5,720   -   0.00%  0.00%
Cheng Wei  5,500   5,500   -   0.00%  0.00%
Zhang Bohan  5,500   2,750   2,750   0.01%  0.01%
Xu Xiaosheng  5,475   5,475   -   0.00%  0.00%
Cai Ruihong  5,000   5,000   -   0.00%  0.00%
Chen Jifang  5,000   5,000   -   0.00%  0.00%

SS-8

Chen Ke  5,000   5,000   -   0.00%  0.00%
Chen Shuying  5,000   5,000   -   0.00%  0.00%
Guan Zhixin  5,000   5,000   -   0.00%  0.00%
Hong Yongxin  5,000   5,000   -   0.00%  0.00%
Huang Baoquan  5,000   5,000   -   0.00%  0.00%
Huang Jiancheng  5,000   5,000   -   0.00%  0.00%
Huang Kexin  5,000   5,000   -   0.00%  0.00%
Huang Lifeng  5,000   5,000   -   0.00%  0.00%
Jiang Jingzhen  5,000   5,000   -   0.00%  0.00%
Jin Cha  5,000   5,000   -   0.00%  0.00%
Lai Jinpeng  5,000   5,000   -   0.00%  0.00%
Lao Xianhua  5,000   5,000   -   0.00%  0.00%
Li Jian  5,000   5,000   -   0.00%  0.00%
Liu Bowen  5,000   5,000   -   0.00%  0.00%
Lou Huiqian  5,000   5,000   -   0.00%  0.00%
Lu Lianchun  5,000   5,000   -   0.00%  0.00%
Sun Zewen  5,000   5,000   -   0.00%  0.00%
Tang Minyi  5,000   5,000   -   0.00%  0.00%
Wang Saijun  5,000   5,000   -   0.00%  0.00%
Wei Lin  5,000   5,000   -   0.00%  0.00%
Wu Weiqing  5,000   5,000   -   0.00%  0.00%
Wu Xiaoqin  5,000   5,000   -   0.00%  0.00%
Xu Jinkun  5,000   5,000   -   0.00%  0.00%
Yan Xiaodan  5,000   5,000   -   0.00%  0.00%

SS-9

Ying Binman  5,000   5,000   -   0.00%  0.00%
Yuan Qiong  5,000   1,500   3,500   0.01%  0.01%
Zhang Dianchun  5,000   5,000   -   0.00%  0.00%
Zhang Li  5,000   5,000   -   0.00%  0.00%
Zhang Shuicheng  5,000   5,000   -   0.00%  0.00%
Zhang Zhixin  5,000   5,000   -   0.00%  0.00%
Zheng Wenjie  5,000   5,000   -   0.00%  0.00%
Zhou Jing  5,000   5,000   -   0.00%  0.00%
Zhu Tong  5,000   5,000   -   0.00%  0.00%
Liao Qiaoxi  4,500   4,500   -   0.00%  0.00%
Huang Shaojie  4,155   4,155   -   0.00%  0.00%
Cao Lubin  4,000   2,000   2,000   0.01%  0.01%
Guo Puhong  4,000   2,000   2,000   0.01%  0.01%
Huang Lizhen  4,000   4,000   -   0.00%  0.00%
Lan Lanjing  4,000   4,000   -   0.00%  0.00%
Li Jianghong  4,000   4,000   -   0.00%  0.00%
Li Peishan  4,000   2,000   2,000   0.01%  0.01%
Li Ruixiong  4,000   4,000   -   0.00%  0.00%
Tong Xiaojun  4,000   4,000   -   0.00%  0.00%
Wu Qizong  4,000   4,000   -   0.00%  0.00%
Cai Xiaoyan  3,750   3,750   -   0.00%  0.00%
He Longchi  3,750   3,750   -   0.00%  0.00%
Li Jiayi  3,500   3,500   -   0.00%  0.00%
Li Weifa  3,500   3,500   -   0.00%  0.00%

SS-10

Liu Dan  3,500   3,500   -   0.00%  0.00%
Liu Liping  3,500   3,500   -   0.00%  0.00%
Shang Juxian  3,500   3,500   -   0.00%  0.00%
Wang Xiaoying  3,500   3,500   -   0.00%  0.00%
Wu Jintu  3,500   3,500   -   0.00%  0.00%
Xu Xiaoliang  3,500   3,500   -   0.00%  0.00%
Cai Shuxing  3,460   3,460   -   0.00%  0.00%
Jin Tianfeng  3,325   1,663   1,662   0.01%  0.01%
Ma Shinan  3,160   3,160   -   0.00%  0.00%
Bin Xiaohong  3,000   3,000   -   0.00%  0.00%
Chen Shijiang  3,000   3,000   -   0.00%  0.00%
Cheng Zhifei  3,000   3,000   -   0.00%  0.00%
Li Min  3,000   3,000   -   0.00%  0.00%
Liang Zhuoquan  3,000   3,000   -   0.00%  0.00%
Zheng Bingping  3,000   3,000   -   0.00%  0.00%
Guo Meiqin  2,915   2,915   -   0.00%  0.00%
Shen Guixian  2,915   2,915   -   0.00%  0.00%
Ma Mingfu  2,875   2,875   -   0.00%  0.00%
Cai Lijuan  2,500   2,500   -   0.00%  0.00%
Deng Yingping  2,500   2,500   -   0.00%  0.00%
Du Ju  2,500   2,500   -   0.00%  0.00%
Fang Aifei  2,500   2,500   -   0.00%  0.00%
Fang Weirong  2,500   2,500   -   0.00%  0.00%
Fang Yinmao  2,500   2,500   -   0.00%  0.00%

SS-11

Fang Zhanpeng  2,500   2,500   -   0.00%  0.00%
He Xiangyang  2,500   2,500   -   0.00%  0.00%
He Yanru  2,500   2,500   -   0.00%  0.00%
Huang Changli  2,500   2,500   -   0.00%  0.00%
Jiang Lin  2,500   2,500   -   0.00%  0.00%
Lai Hongjun  2,500   2,500   -   0.00%  0.00%
Li Chan  2,500   2,500   -   0.00%  0.00%
Lin Zhiming  2,500   2,500   -   0.00%  0.00%
Liu Chaoli  2,500   2,500   -   0.00%  0.00%
Liu Ping  2,500   1,250   1,250   0.00%  0.00%
Wang Zongjun  2,500   2,500   -   0.00%  0.00%
Yang Mingyan  2,500   2,500   -   0.00%  0.00%
Ye Maonan  2,500   2,500   -   0.00%  0.00%
Yu Wenwei  2,500   2,500   -   0.00%  0.00%
Zhang Junjie  2,500   2,500   -   0.00%  0.00%
Zhong Saiqin  2,500   2,500   -   0.00%  0.00%
Feng Xiaomin  2,335   2,335   -   0.00%  0.00%
Liu Qilan  2,250   2,250   -   0.00%  0.00%
Cheng Xiuqing  2,000   2,000   -   0.00%  0.00%
He Yulin  2,000   2,000   -   0.00%  0.00%
Ke Lijun  2,000   1,000   1,000   0.00%  0.00%
Peng Daqi  2,000   1,000   1,000   0.00%  0.00%
Su Pinrong  2,000   2,000   -   0.00%  0.00%
Wang Bin  2,000   2,000   -   0.00%  0.00%

SS-12

Wu Wenzhi  2,000   2,000   -   0.00%  0.00%
Xu Huanding  2,000   2,000   -   0.00%  0.00%
Zhu Liuyang  2,000   2,000   -   0.00%  0.00%
Zuo Xiaojun  2,000   1,000   1,000   0.00%  0.00%
Peng Can  1,700   1,700   -   0.00%  0.00%
Wu Sien  1,620   1,620   -   0.00%  0.00%
Ning Bihua  1,525   1,525   -   0.00%  0.00%
Chen Qinyun  1,500   1,500   -   0.00%  0.00%
Chen Weibo  1,500   750   750   0.00%  0.00%
Chen Zongze  1,500   1,500   -   0.00%  0.00%
Huang Peina  1,500   1,500   -   0.00%  0.00%
Jiang Jianjun  1,500   1,500   -   0.00%  0.00%
Jin Hongwei  1,500   1,500   -   0.00%  0.00%
Lin Wu  1,500   1,500   -   0.00%  0.00%
Meng Xiaohua  1,500   1,500   -   0.00%  0.00%
Xiong Qian  1,500   1,500   -   0.00%  0.00%
Yang Ruijian  1,500   1,500   -   0.00%  0.00%
Zhou Fang  1,500   1,500   -   0.00%  0.00%
Pan Changsheng  1,335   1,335   -   0.00%  0.00%
Du Xiaodong  1,250   1,250   -   0.00%  0.00%
Li Hongxia  1,250   1,250   -   0.00%  0.00%
Lin Xiaowen  1,250   1,250   -   0.00%  0.00%
Qin Chuyi  1,250   1,250   -   0.00%  0.00%
Zeng Chunnian  1,250   1,250   -   0.00%  0.00%

SS-13

Chen Yongkun  1,000   1,000   -   0.00%  0.00%
Hu Yao  1,000   1,000   -   0.00%  0.00%
Hu Yonggang  1,000   300   700   0.00%  0.00%
Huang Changshuang  1,000   1,000   -   0.00%  0.00%
Huang Panpan  1,000   1,000   -   0.00%  0.00%
Lai Jinsong  1,000   1,000   -   0.00%  0.00%
Liao Meining  1,000   500   500   0.00%  0.00%
Liao Yejun  1,000   500   500   0.00%  0.00%
Lin Nan  1,000   500   500   0.00%  0.00%
Shao Xueling  1,000   500   500   0.00%  0.00%
Wang Fengying  1,000   300   700   0.00%  0.00%
Wang Jun  1,000   1,000   -   0.00%  0.00%
Wang Yuan Chai  1,000   1,000   -   0.00%  0.00%
Xie Qixia  1,000   1,000   -   0.00%  0.00%
Xu Shuai  1,000   1,000   -   0.00%  0.00%
Yang Chengjiu  1,000   1,000   -   0.00%  0.00%
Yang Siyuan  1,000   1,000   -   0.00%  0.00%
Zhou Xuelian  1,000   1,000   -   0.00%  0.00%
Huang Shenfang  750   750   -   0.00%  0.00%
Pan Yihong  750   750   -   0.00%  0.00%
Yang Weijun  750   750   -   0.00%  0.00%
Liu Huan  600   600   -   0.00%  0.00%
Ning Yanxia  565   565   -   0.00%  0.00%
Guo Huiping  500   500   -   0.00%  0.00%

SS-14

Huang Lanfen  500   500   -   0.00%  0.00%
Huang Li Qihong  500   500   -   0.00%  0.00%
Huang Ting  500   500   -   0.00%  0.00%
Jiang Yingjiao  500   500   -   0.00%  0.00%
Lei Quanbing  500   500   -   0.00%  0.00%
Li Xiuling  500   500   -   0.00%  0.00%
Liu Baoneng  500   500   -   0.00%  0.00%
Liu Weijun  500   500   -   0.00%  0.00%
Ming Shenqing  500   500   -   0.00%  0.00%
Peng Conghai  500   500   -   0.00%  0.00%
Qiu Xiulian  500   500   -   0.00%  0.00%
Ruan Jianfei  500   500   -   0.00%  0.00%
Tan Hongwei  500   500   -   0.00%  0.00%
Xu Jianxiong  500   500   -   0.00%  0.00%
Yang Chanyu  500   500   -   0.00%  0.00%
Yue Peng  500   500   -   0.00%  0.00%
Zhang Jintian  500   500   -   0.00%  0.00%
Zhang Liping  500   500   -   0.00%  0.00%
Zhang Xigen  500   500   -   0.00%  0.00%
Zhang Yan  500   500   -   0.00%  0.00%
Zhao Qingyu  500   500   -   0.00%  0.00%
Zheng Jinlin  500   500   -   0.00%  0.00%
Zhou Deli  500   500   -   0.00%  0.00%
Zhou Pinghui  500   500   -   0.00%  0.00%
Zhuang Shunhua  500   500   -   0.00%  0.00%
Ma Hua  464   464   -   0.00%  0.00%
Huang Changlin  250   250   -   0.00%  0.00%
Lin Jingzai  250   250   -   0.00%  0.00%
Zhou Yiwen  250   250   -   0.00%  0.00%
Pi Xiaozhong  200   200   -   0.00%  0.00%
Total      2,364,837             

(1) Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, securities that are currently convertible or exercisable into shares of our common stock, or convertible or exercisable into shares of our common stock within 60 days of the date hereof are deemed outstanding. Such shares, however, are not deemed outstanding for the purposes of computing the percentage ownership of any other person. Except as indicated in the footnotes to the following table, each stockholder named in the table has sole voting and investment power with respect to the shares set forth opposite such stockholder’s name.

SS-15

SELLING STOCKHOLDERS PLAN OF DISTRIBUTION

The selling stockholders and any of their pledgees, donees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock being offered under this prospectus on any stock exchange, market or trading facility on which shares of our common stock are traded or in private transactions. These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when disposing of shares:

ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
block trades in which the broker-dealer will attempt to sell the shares as agent but may position; and resell a portion of the block as principal to facilitate the transaction;
purchases by a broker-dealer as principal and resales by the broker-dealer for its account;
an exchange distribution in accordance with the rules of the applicable exchange;
privately negotiated transactions;
to cover short sales made after the date that the registration statement of which this prospectus is a part is declared effective by the SEC;
broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
a combination of any of these methods of sale; and
any other method permitted pursuant to applicable law.

The shares may also be sold under Rule 144 under the Securities Act of 1933, as amended, if available for a selling stockholder, rather than under this prospectus. The selling stockholders have the sole and absolute discretion not to accept any purchase offer or make any sale of shares if they deem the purchase price to be unsatisfactory at any particular time.

The selling stockholders may pledge their shares to their brokers under the margin provisions of customer agreements. If a selling stockholder defaults on a margin loan, the broker may, from time to time, offer and sell the pledged shares.

Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, which commissions as to a particular broker or dealer may be in excess of customary commissions to the extent permitted by applicable law.

If sales of shares offered under this prospectus are made to broker-dealers as principals, we would be required to file a post-effective amendment to the registration statement of which this prospectus is a part. In the post-effective amendment, we would be required to disclose the names of any participating broker-dealers and the compensation arrangements relating to such sales.

The selling stockholders and any broker-dealers or agents that are involved in selling the shares offered under this prospectus may be deemed to be “underwriters” within the meaning of the Securities Act in connection with these sales. Commissions received by these broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Any broker-dealers or agents that are deemed to be underwriters may not sell shares offered under this prospectus unless and until we set forth the names of the underwriters and the material details of their underwriting arrangements in a supplement to this prospectus or, if required, in a replacement prospectus included in a post-effective amendment to the registration statement of which this prospectus is a part.

The selling stockholders and any other persons participating in the sale or distribution of the shares offered under this prospectus will be subject to applicable provisions of the Exchange Act, and the rules and regulations under that act, including Regulation M. These provisions may restrict activities of, and limit the timing of purchases and sales of any of the shares by, the selling stockholders or any other person. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and other activities with respect to those securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. All of these limitations may affect the marketability of the shares.

SS-16

Rule 2710 requires members firms to satisfy the filing requirements of Rule 2710 in connection with the resale, on behalf of selling stockholders, of the securities on a principal or agency basis. NASD Notice to Members 88-101 states that in the event a Selling Stockholder intends to sell any of the shares registered for resale in this prospectus through a member of FINRA participating in a distribution of our securities, such member is responsible for insuring that a timely filing, if required, is first made with the Corporate Finance Department of FINRA and disclosing to FINRA the following:

it intends to take possession of the registered securities or to facilitate the transfer of such certificates;
the complete details of how the selling stockholders’ shares are and will be held, including location of the particular accounts;
whether the member firm or any direct or indirect affiliates thereof have entered into, will facilitate or otherwise participate in any type of payment transaction with the selling stockholders, including details regarding any such transactions; and
in the event any of the securities offered by the selling stockholders are sold, transferred, assigned or hypothecated by any Selling Stockholder in a transaction that directly or indirectly involves a member firm of FINRA or any affiliates thereof, that prior to or at the time of said transaction the member firm will timely file all relevant documents with respect to such transaction(s) with the Corporate Finance Department of FINRA for review.

No FINRA member firm may receive compensation in excess of that allowable under FINRA rules, including Rule 2710, in connection with the resale of the securities by the selling shareholders, which total compensation may not exceed 8%.

If any of the shares of common stock offered for sale pursuant to this prospectus are transferred other than pursuant to a sale under this prospectus, then subsequent holders could not use this prospectus until a post-effective amendment or prospectus supplement is filed, naming such holders. We offer no assurance as to whether any of the selling stockholders will sell all or any portion of the shares offered under this prospectus.

We have agreed to pay all fees and expenses we incur incident to the registration of the shares being offered under this prospectus. However, each selling stockholder and purchaser is responsible for paying any discounts, commissions and similar selling expenses they incur.

We and the selling stockholders have agreed to indemnify one another against certain losses, damages and liabilities arising in connection with this prospectus, including liabilities under the Securities Act.

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LEGAL MATTERS

The validity of the common stock offered in this offering and legal matters as to Nevada law will be passed upon for us by Loeb & Loeb LLP, New York, New York.

SS-18

ADDENTAX GROUP CORP.

2,364,837 Shares of Common Stock

PROSPECTUS

You should rely only on the information contained in this prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus. This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is correct only as of the date of this prospectus, regardless of the time of the delivery of this prospectus or the sale of these securities.

Until       , 2019, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriter or placement agent with respect to their unsold subscriptions.

The date of this prospectus is        , 2019

PART II

INFORMATION NOT REQUIRED IN THE PROSPECTUS


ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

.

The estimated costs (assumingfollowing table sets forth the various expenses, all sharesof which will be borne by us, in connection with the sale and distribution of the securities being registered, other than the placement agent commissions. All amounts shown are sold) of this offering are as follows:


Auditor Fees and Expenses  $2,500 
Legal Fees and Expenses  $2,500 
EDGAR fees $800 
Transfer Agent Fees  $1,200 
TOTAL $7,000 

estimates except for the Securities and Exchange Commission registration fee and the FINRA filing fee .

Description 

Amount to be

Paid

 
    
Filing Fee - Securities and Exchange Commission $28,391 
FINRA Filing Fee  

35,637

 
NASDAQ Application and Listing Fee  

75,000

 
Attorney’s fees and expenses  35 0 ,000
Accountant’s fees and expenses  17,000*
Transfer agent’s and registrar fees and expenses  5,000*
Printing and engraving expenses  7,500*
Miscellaneous expenses  2,500*
     
Total $

521,028

*

* Estimated expenses.

ITEM 14. INDEMNIFICATION OF DIRECTORDIRECTORS AND OFFICERS

.

We are a Nevada corporation and generally governed by the Nevada Private Corporations Code, Title 78 of the Nevada Revised Statutes, or NRS.

Section 78.138 of the NRS provides that, unless the corporation’s articles of incorporation provide otherwise, a director or officer will not be individually liable unless it is proven that (i) the director’s or officer’s acts or omissions constituted a breach of his or her fiduciary duties, and (ii) such breach involved intentional misconduct, fraud, or a knowing violation of the law. Our articles of incorporation provide the personal liability of our directors is eliminated to the fullest extent permitted under the NRS.

Section 78.7502 of the Nevada Corporate Law provides, in part, thatNRS permits a corporation shall have the powercompany to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or agent of another corporation or other enterprise,its directors and officers against expenses, (including attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with sucha threatened, pending, or completed action, suit, or proceeding, if hethe officer or director (i) is not liable pursuant to NRS 78.138, or (ii) acted in good faith and in a manner hethe officer or director reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to anyif a criminal action or proceeding, had no reasonable cause to believe histhe conduct was unlawful.


Similar indemnity is authorized for such persons against expenses (including attorneys’ fees) actually and reasonably incurred in defense or settlement of any threatened, pending or completed action or suit by or in the right of the corporation, if such person acted in good faith and in a manner he reasonably believed to be inofficer or not opposed to the best interestsdirector was unlawful. Section 78.7502 of the NRS requires a corporation and provided further that (unless a court of competent jurisdiction otherwise provides) such person shall not have been adjudged liable to the corporation. Any such indemnification may be made only as authorized in each specific case upon a determination by the stockholders or disinterested directors that indemnification is proper because the indemnity has met the applicable standard of conduct.  Where an officer orindemnify a director isor officer that has been successful on the merits or otherwise in the defense of any action referredor suit. Section 78.7502 of the NRS precludes indemnification by the corporation if the officer or director has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals, to above, we mustbe liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court determines that in view of all the circumstances, the person is fairly and reasonably entitled to indemnity for such expenses and requires a corporation to indemnify its officers and directors if they have been successful on the merits or otherwise in defense of any claim, issue, or matter resulting from their service as a director or officer.

Section 78.751 of the NRS permits a Nevada company to indemnify its officers and directors against expenses incurred by them in defending a civil or criminal action, suit, or proceeding as they are incurred and in advance of final disposition thereof, upon determination by the stockholders, the disinterested board members, or by independent legal counsel. If so provided in the corporation’s articles of incorporation, bylaws, or other agreement, Section 78.751 of the NRS requires a corporation to advance expenses as incurred upon receipt of an undertaking by or on behalf of the officer or director to repay the amount if it is ultimately determined by a court of competent jurisdiction that such officer or director is not entitled to be indemnified by the company. Section 78.751 of the NRS further permits the company to grant its directors and officers additional rights of indemnification under its articles of incorporation, bylaws, or other agreement.

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Section 78.752 of the NRS provides that a Nevada company may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee, or agent of the company, or is or was serving at the request of the company as a director, officer, employee, or agent of another company, partnership, joint venture, trust, or other enterprise, for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee, or agent, or arising out of his status as such, whether or not the company has the authority to indemnify him against such liability and expenses.

Neither our Bylaws nor our Articles of Incorporation include any specific indemnification provisions for our officers or directors against liability under the expenses,Securities Act. Additionally, insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES.

During January 2016, the Company sold a total of 18,500 common shares for cash contributions of $555 at $0.03 per share.

During February 2016, the Company sold a total of 74,000 common shares for cash contributions of $2,220 at $0.03 per share.

During March 2016, the Company sold a total of 333,000 common shares for cash contributions of $9,862 at $0.03 per share.

On April 18, 2017, the Company issued a total of 500,000,000 common shares as follows:

Hengtian Group Co., Ltd.: (Beneficial Owner: Ma Huizhu) 215,000,000 restricted common shares.
Hong Zhida*: 30,000,000 restricted common shares.
Hui Lian Group Ltd.: (Beneficial Owner: Ma Huijun) 255,000,000 restricted common shares.

The 500,000,000 common shares were issued pursuant to a Sale & Purchase Agreement (“S&P”) for the acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd., a company incorporated under the laws of the Republic of Seychelles. The Company agreed to issue five hundred million (500,000,000) shares of common stock to Yingxi Industrial Chain Group Co., Ltd. to acquire its shares and assets for a cost of US$0.30 per share or a total cost of US$150,000,000.

*Hong Zhida is the President, Secretary, Treasurer and a Director of the Company.

We claim an exemption from registration pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D of the Securities Act, and the rules and regulations promulgated thereunder in connection with the sales and issuances described above since the foregoing issuances and sales did not involve a public offering, the recipients were (a) “accredited investors”, and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Securities Act. With respect to the transactions described above, no general solicitation was made either by us or by any person acting on our behalf. The transactions were privately negotiated, and did not involve any kind of public solicitation. No underwriters or agents were involved in the foregoing issuances and we paid no underwriting discounts or commissions. The securities sold are subject to transfer restrictions, and the certificates evidencing the securities contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom.

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ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) Exhibits.

Pursuant to Item 601 of Regulation S-K:

A list of exhibits filed with this registration statement on Form S-1 is set forth on the Exhibit Index and is incorporated herein by reference.

ITEM 17. UNDERTAKINGS.

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to:

(i) Include any prospectus required by Section 10(a)(3) of the Securities Act;

(ii) Reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

(iii) Include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such offer,information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or director actually(b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or reasonably incurred.(x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date

(5) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.


ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
Since inception, the Registrant has sold the following securities that were not registered under the Securities Act of 1933, as amended.

Name and Address Date Shares Consideration
       
Otmane Tajmouati December 26, 2014 3,000,000 $ 3,000.00 

We issued the foregoing restricted shares of common stock to our sole officer and director pursuant to Section 4(2) of the Securities Act of 1933. He is a sophisticated investor, is our sole officer and director, and is in possession of all material information relating to us. Further, no commissions were paid to anyone in connection with the sale of the shares and general solicitation was not made to anyone.

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ITEM 16. EXHIBITS

Exhibit
Number
Description of Exhibit
3.1Articles of Incorporation of the Registrant
3.2Bylaws of the Registrant
5.1Opinion Stepp Law Corporation
10.1Loan Agreement, dated March 2, 2015
10.2Contract of the sale goods, dated February 3, 2015
10.3Lease Agreement, dated December 15, 2014
10.4Verbal Agreement, dated October 28, 2014
23.1Consent of Cutler & Co., LLC
23.2Consent of Stepp Law Corporation (contained in exhibit 5.1)
99.1Subscription Agreement

ITEM 17. UNDERTAKINGS
The undersigned Registrant hereby undertakes:

(a)(1) To file, during any period in which offers or sales of securities are being made, a post-effective amendment to this registration statement to:

(i)Include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;II-3
 

EXHIBIT INDEX

    Filed or Incorporated by Reference

Exhibit

Number

   

Furnished

Herewith

 Form Exhibit Date File No.
1.1** Form of Placement Agency Agreement         
3.1 Articles of Incorporation   S-1 3.1 8/5/2015 333-206097
3.2 Certificate of Amendment Pursuant to NRS 78.386 and 78.390, effectuating the two for one forward stock split and increasing the authorized shares of common stock of Addentax Group Corp. from 75,000,000 to 150,000,000   8-K 3.1 7/21/2016 333-206097
3.3 *** Certificate of Amendment Pursuant to NRS 78.385 and 78.390, increasing the authorized shares of common stock of Addentax Group Corp. to 1,000,000,000         
3.4 Certificate of Change Pursuant to NRS 78.209, effectuating the 20-for-1 reverse stock split and decreasing the authorized shares of common stock of Addentax Group Corp. from 1,000,000,000 to 50,000,000   8-K 3.1 3/5/2019 333-206097
3.5 Amended and Restated Bylaws   8-K 3.1 3/15/2019 333-206097
4.1** Form of Placement Agent Warrant         
5.1** Opinion of Loeb & Loeb LLP re: the legality of the securities being registered         
10.1 Loan Agreement, dated March 2, 2015   S-1 10.1 8/5/2015 333-206097
10.2 Contract of the sale goods, dated February 3, 2015   S-1 10.2 8/5/2015 333-206097
10.3 Lease Agreement, dated December 15, 2014   S-1 10.3 8/5/2015 333-206097
10.4 Verbal Agreement, dated October 28, 2014   S-1 10.4 8/5/2015 333-206097
10.5 Form of Subscription Agreement   S-1 99.1 8/5/2015 333-206097
10.6 Sale and Purchase Agreement for the Acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd.; Dated December 26, 2016   8-K 10.1 12/28/2016 333-206097
10.7 Sale and Purchase Agreement for the Acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd.; Dated March 6, 2017   8-K 10.1 3/7/2017 333-206097
10.8 Independent Director Agreement with Ms. Ng Chung Chi   8-K 10.1 3/11/2019 333-206097
10.9 Independent Director Agreement with Ms. Yu Jiaxin   8-K 10.2 3/11/2019 333-206097
10.10 Independent Director Agreement with Mr. Li Weilin   8-K 10.3 3/11/2019 333-206097
14.1 Code of Ethics  10-K/A 14.1  9/21/2018  333-206097 
16.1 Letter, dated October 27, 2015 from Cutler & Co. LLC to the Securities and Exchange Commission.   8-K 16.1 10/27/2015 333-206097
16.2 Letter from Pritchett Siler & Hardy, PC dated February 22, 2017   8-K 16.1 2/22/2017 333-206097
23.1* Consent of Pan-China Singapore PAC X        
23.2**Consent of Loeb & Loeb LLP (included in Exhibit 5.1)         
24.1*** Power of Attorney          

(ii)*Filed herewith.
**To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (§230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.by amendment.
***Previously filed

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 (iii)To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

(i)If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

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(ii)Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or our securities provided by or on behalf of the undersigned registrant; and
(iv)Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to our directors, officers and controlling persons pursuant to the provisions above, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities, other than the payment by us of expenses incurred or paid by one of our directors, officers, or controlling persons in the successful defense of any action, suit or proceeding, is asserted by one of our directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed in the Securities Act, and we will be governed by the final adjudication of such issue. 

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statementRegistration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the Fes, MoroccoCity of Luohu District, Shenzhen City, China, on August 5, 2015.


May 13 , 2019.

 ADDENTAX GROUP CORP.
  
 /s/ Hong Zhida
 By:/s/ Otmane TajmouatiHong Zhida
 Name:Otmane TajmouatiCEO, President, Secretary and Director
Title:President, Treasurer and Secretary
 (Principal Executive Financial and Accounting Officer)


In accordance with

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates stated signed this registration statement.


indicated.

Signature Title Date
     
/s/ Hong Zhida CEO, President, Secretary and Director

May 13, 2019

Hong Zhida(Principal Executive Officer)  
     
/s/ Otmane TajmouatiHuang Chao President,CFO and Treasurer Secretary and Director 
August 5, 2015
May 13, 2019
Otmane Tajmouati
Huang Chao
 (Principal Executive, Financial and Accounting Officer)

*

May 13, 2019
Ng Chung ChiIndependent Director

*

May 13, 2019
Yu JiaxinIndependent Director

*

May 13, 2019
Li WeilinIndependent Director

*

May 13, 2019
Hong ZhiwangDirector  

*/s/ Hong Zhida
Hong Zhida
Attorney-in-Fact

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