Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2021 | Aug. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 333-206097 | |
Entity Registrant Name | ADDENTAX GROUP CORP. | |
Entity Central Index Key | 0001650101 | |
Entity Tax Identification Number | 35-2521028 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Block A | |
Entity Address, Address Line Two | Room 4805 | |
Entity Address, Address Line Three | Luohu District | |
Entity Address, City or Town | Shenzhen City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 518000 | |
City Area Code | +(86) | |
Local Phone Number | 755 86961 405 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ATXG | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,093,004 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 972,171 | $ 1,845,077 |
Accounts receivables, net | 6,789,410 | 4,757,518 |
Inventories | 408,328 | 270,434 |
Prepayments and other receivables | 1,001,543 | 684,161 |
Advances to suppliers | 738,687 | 355,454 |
Amount due from related party | 238,743 | 84,838 |
Total current assets | 10,148,882 | 7,997,482 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 875,831 | 793,977 |
Operating lease right of use asset | 8,941,288 | 9,632,625 |
Total non-current assets | 9,817,119 | 10,426,602 |
TOTAL ASSETS | 19,966,001 | 18,424,084 |
CURRENT LIABILITIES | ||
Short-term loan | 154,833 | 152,607 |
Accounts payable | 4,501,868 | 3,121,373 |
Amount due to related parties | 5,636,053 | 4,913,964 |
Advances from customers | 3,029 | |
Accrued expenses and other payables | 765,027 | 681,984 |
Operating lease liability current portion | 3,666,026 | 3,555,458 |
Total current liabilities | 14,723,807 | 12,428,415 |
NON-CURRENT LIABILITIES | ||
Operating lease liability | 5,275,261 | 6,077,167 |
TOTAL LIABILITIES | 19,999,068 | 18,505,582 |
EQUITY | ||
Common stock ($0.001 par value, 50,000,000 shares authorized, 26,693,004 shares issued and outstanding at June 30, 2021 and March 31, 2021) | 26,693 | 26,693 |
Additional paid-in capital | 6,815,333 | 6,815,333 |
Retained earnings | (6,755,281) | (6,834,228) |
Statutory reserve | 13,821 | 13,821 |
Accumulated other comprehensive loss | (133,633) | (103,117) |
Total deficit | (33,067) | (81,498) |
TOTAL LIABILITIES AND EQUITY | $ 19,966,001 | $ 18,424,084 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,693,004 | 26,693,004 |
Common stock, shares outstanding | 26,693,004 | 26,693,004 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations And Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
REVENUES | $ 4,286,431 | $ 5,918,215 |
COST OF REVENUES | (3,703,026) | (5,120,576) |
GROSS PROFIT | 583,405 | 797,639 |
OPERATING EXPENSES | ||
Selling and marketing | (46,390) | (153,245) |
General and administrative | (460,315) | (455,962) |
Total operating expenses | (506,705) | (609,207) |
INCOME FROM OPERATIONS | 76,700 | 188,432 |
Interest income | 1,967 | 42 |
Interest expenses | (2,232) | (4,960) |
Other income (expense), net | 13,237 | 23,745 |
INCOME BEFORE INCOME TAX EXPENSE | 89,672 | 207,259 |
INCOME TAX EXPENSE | (10,725) | (3,359) |
NET INCOME | 78,947 | 203,900 |
Foreign currency translation loss | (30,516) | (4,455) |
TOTAL COMPREHENSIVE INCOME | $ 48,431 | $ 199,445 |
EARNING PER SHARE | ||
Basic and diluted | $ 0 | $ 0.01 |
Weighted average number of shares outstanding – Basic and diluted | 26,153,818 | 25,346,004 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutor Reserve [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Mar. 31, 2020 | $ 25,346 | $ 61,050 | $ (3,233,122) | $ 23,514 | $ 56,488 | $ (3,066,724) |
Balance, shares at Mar. 31, 2020 | 25,346,004 | |||||
Foreign currency translation | (4,455) | (4,455) | ||||
Net income for the period | 203,900 | 203,900 | ||||
Ending balance, value at Jun. 30, 2020 | $ 25,346 | 61,050 | (3,029,222) | 23,514 | 52,033 | (2,867,279) |
Shares, Outstanding, Ending Balance at Jun. 30, 2020 | 25,346,004 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 26,693 | 6,815,333 | (6,834,228) | 13,821 | (103,117) | (81,498) |
Balance, shares at Mar. 31, 2021 | 26,693,004 | |||||
Foreign currency translation | (30,516) | (30,516) | ||||
Net income for the period | 78,947 | 78,947 | ||||
Ending balance, value at Jun. 30, 2021 | $ 26,093 | $ 6,815,333 | $ (6,755,281) | $ 13,821 | $ (133,633) | $ (33,067) |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 26,693,004 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 78,947 | $ 203,900 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 33,986 | 23,473 |
Loss on disposal of plant and equipment | 4,947 | |
Changes in operating assets and liabilities, net of effects from disposal of subsidiaries: | ||
Accounts receivable | (2,031,892) | 2,823,170 |
Inventories | (137,894) | (249,262) |
Advances to suppliers | (383,233) | (168,478) |
Other receivables | (317,382) | 85,722 |
Accounts payables | 1,380,495 | (2,087,678) |
Accrued expenses and other payables | 129,338 | 17,042 |
Advances from customers | (3,029) | 145,555 |
Net cash (used in) provided by operating activities | (1,250,664) | 798,391 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment and other assets | (104,235) | (143,148) |
Net cash used in investing activities | (104,235) | (143,148) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from related party borrowings | 1,292,956 | 3,302,608 |
Repayment of related party borrowings | (806,994) | (2,942,222) |
Net cash provided by financing activities | 485,962 | 360,386 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (868,937) | 1,015,629 |
Effect of exchange rate changes on cash and cash equivalents | (3,969) | 2,099 |
Cash and cash equivalents, beginning of the period | 1,845,077 | 531,681 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 972,171 | 1,549,409 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 1,936 | 3,765 |
Cash paid during the year for income tax | 10,725 | 3,359 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 178,189 |
ORGANIZATION AND BUSINESS ACQUI
ORGANIZATION AND BUSINESS ACQUISITIONS | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BUSINESS ACQUISITIONS | 1. ORGANIZATION AND BUSINESS ACQUISITIONS ATXG and its subsidiaries (the “Company”) are engaged in the business of garments manufacturing, providing logistic services, property leasing and management service in the People’s Republic of China (“PRC” or “China”) and epidemic prevention supplies manufacturing and distribution both in China and overseas markets. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on June 29, 2021 (“2020 Form 10-K.”). GOING CONCERN UNCERTAINTY The accompanying unaudited condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net income of $ 78,947 203,900 4,574,925 4,430,933 33,067 81,498 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies for the three months ended June 30, 2021. Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS SCHEDULE OF RELATED PARTIES Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. The Company had the following related party balances as of June 30, 2021 and March 31, 2021: SCHEDULE OF RELATED PARTIES TRANSACTION Amount due from related party June 30, 2021 March 31, 2021 Hongye Financial Consulting (Shenzhen) Co., Ltd. 238,743 84,838 $ 238,743 $ 84,838 Related party borrowings June 30, 2021 March 31, 2021 Zhida Hong (1) $ 3,705,193 $ 3,727,371 Bihua Yang (2) 382,437 370,523 Dewu Huang (3) 1,420,186 712,064 Jinlong Huang 128,237 104,006 $ 5,636,053 $ 4,913,964 (1) The decrease was due to net repayment of debt due to Zhida Hong. During the three months ended June 30, 2021, the Company received financial support of $ 0.2 0.2 (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) The increase of related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. The borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consist of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF INVENTORIES June 30, 2021 March 31, 2021 Raw materials $ 365,679 $ 234,871 Work in progress 13,199 - Finished goods 29,450 35,564 Total inventories $ 408,328 $ 270,434 There is no |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 3 Months Ended |
Jun. 30, 2021 | |
Advances To Suppliers | |
ADVANCES TO SUPPLIERS | 6. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 3 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
PREPAYMENTS AND OTHER RECEIVABLES | 7. PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consist of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES June 30, 2021 March 31, 2021 Prepayment 476,453 - Deposit 48,544 155,830 Receivable of consideration on disposal of subsidiaries 263,679 258,929 Other receivables 212,867 269,402 Prepayments and other receivables $ 1,001,543 $ 684,161 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 8. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT June 30, 2021 March 31, 2021 Production plant $ 72,687 $ 71,642 Motor vehicles 1,099,061 1,020,893 Office equipment 50,673 14,073 1,222,421 1,106,608 Less: accumulated depreciation (346,590 ) (312,631 ) Plant and equipment, net $ 875,831 $ 793,977 Depreciation expense for the three months ended June 30, 2021 and 2020 was $ 29,389 23,473 |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOAN | 9. SHORT-TERM BANK LOAN In August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $ 153,172 1,000,000 154,833 1,000,000 152,607 4.84% 4.9% In August 2020, DT entered into a new facility agreement with Webank and obtained a credit facility of $ 88,358 (RMB 600,000 ) for daily operations with various annual interest rate from 16.2% to 16.29% . The loans are guaranteed at no cost by the legal representative of DT. The loan borrowing was $ 86,886 (RMB 590,000 ) as of September 30, 2020 (March 31, 2020: Nil ). The loan was transferred to the buyer with the disposal of DT on September 30, 2020. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES (a) Enterprise Income Tax (“EIT”) The Company operates in the PRC and files tax returns in the PRC jurisdictions. Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive rate of 16.5% YX were incorporated in the PRC and is subject to the EIT tax rate of 25% The Company is governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies were subject to progressive EIT rates from 5% 15% The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. The Company’s parent entity, Addentax Group Corp. is a U.S entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the three months ended June 30, 2021 and 2020. The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF RECONCILIATION OF INCOME TAXES Three months ended June 30, 2021 2020 PRC statutory tax rate 25 % 25 % Computed expected benefits 22,418 51,815 Temporary differences (39,459 ) (103,932 ) Permanent difference 1,478 - Changes in valuation allowance 26,288 55,476 Income tax expense $ 10,725 $ 3,359 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13% 13% For services, the applicable VAT rate is 9% 3% |
CONSOLIDATED SEGMENT DATA
CONSOLIDATED SEGMENT DATA | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
CONSOLIDATED SEGMENT DATA | 11. CONSOLIDATED SEGMENT DATA Segment information is consistent with how chief operating decision maker reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following four (a) Garment manufacturing (b) Logistics services (c) Epidemic prevention supplies (d) Property management and subleasing. 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: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 2,069,141 1,108,042 1,109,248 - - 4,286,431 Intersegment revenue 2,417 - - - - 2,417 Interest income 1,860 21 81 - 5 1,967 Interest expense 1,993 165 - - 74 2,232 Depreciation and amortization 659 27,240 4,597 1,490 - 33,986 Operating income (loss) 123,629 4,863 57,211 - (109,003 ) 76,700 Segment assets 6,384,543 2,559,283 9,256,608 76,691 1,688,876 19,966,001 Expenditures for segment assets - 76,650 27,585 - - 104,235 Geographical Information The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF REVENUE AND LONG-LIVED ASSETS, BY GEOGRAPHICAL LOCATION Geographic Information Revenues Long-Lived Assets China 4,286,431 9,817,118 Total 4,286,431 9,817,118 |
LEASE RIGHT-OF-USE ASSET AND LE
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 3 Months Ended |
Jun. 30, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | |
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payments as of June 30, 2021, with discounted rate of 4.75% The Company leases its head office. The lease period is 5 4.5 3 The Following table summarizes the components of lease expense: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Three months ended June 30, 2021 2020 Operating lease cost 934,666 111,706 Short-term lease cost 20,902 - Lease cost $ 955,568 $ 111,706 The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Three months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 955,568 $ 111,706 Right-of-use assets obtained in exchange for new operating leases liabilities 178,189 - Weighted average remaining lease term - Operating leases (years) 2.5 4.0 Weighted average discount rate - Operating leases 4.75 % 4.35 % The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Years ending June 30 Lease cost 2021 $ 3,840,163 2022 3,851,328 2023 2,014,865 2024 14,798 Total lease payments 9,721,154 Less: Interest (779,866 ) Total $ 8,941,288 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 3 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 13. RISKS AND UNCERTAINTIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 6.459 6.553 6.461 6.779 (c) Concentration Risks The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of June 30, 2021 and March 31, 2021. SCHEDULE OF CONCENTRATION OF RISK BY CUSTOMERS Garment manufacturing segment June 30, 2021 March 31, 2021 Customer A 98.8 % 98.4 % Customer B 1.1 % 1.6 % Customer C 0.1 % - The high concentration as of June 30, 2021 was mainly due to business development of a large distributor of garments. Logistics services segment June 30, 2021 March 31, 2021 Customer A 19.8 % 16.6 % Customer B 17.8 % 30.2 % Customer C 7.7 % 5.5 % Customer D 6.7 % 5.5 % Customer E 6.5 % 1.8 % Property management and subleasing SCHEDULE OF PROPERTY MANAGEMENT AND SUBLEASING June 30, 2021 March 31, 2021 Customer A 100 % - Epidemic prevention supplies segment No accounts receivables in this segment. For the three months ended June 30, 2021, one customer from garment segment provided more than 10% 98.8% 62.8% The high concentration in three months ended June 30, 2021 was mainly due to concentration of distributors in trading of epidemic prevention supplies. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three months ended June 30, 2021 and 2020. SCHEDULE OF INVENTORY PURCHASES FROM SUPPLIERS Three months ended June 30, 2021 2020 Garment manufacturing segment 100.0 % 97.9 % Logistics services segment 61.6 % 97.87 % Property management and subleasing 100.0 % - % Epidemic prevention supplies - % 100.0 % (d) Interest Rate Risk The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of June 30, 2021, the total outstanding borrowings amounted to $ 154,833 1,000,000 4.84% 6.96% (e) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in the last three quarters of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies for the three months ended June 30, 2021. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTIES | SCHEDULE OF RELATED PARTIES Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW |
SCHEDULE OF RELATED PARTIES TRANSACTION | The Company had the following related party balances as of June 30, 2021 and March 31, 2021: SCHEDULE OF RELATED PARTIES TRANSACTION Amount due from related party June 30, 2021 March 31, 2021 Hongye Financial Consulting (Shenzhen) Co., Ltd. 238,743 84,838 $ 238,743 $ 84,838 Related party borrowings June 30, 2021 March 31, 2021 Zhida Hong (1) $ 3,705,193 $ 3,727,371 Bihua Yang (2) 382,437 370,523 Dewu Huang (3) 1,420,186 712,064 Jinlong Huang 128,237 104,006 $ 5,636,053 $ 4,913,964 (1) The decrease was due to net repayment of debt due to Zhida Hong. During the three months ended June 30, 2021, the Company received financial support of $ 0.2 0.2 (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) The increase of related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF INVENTORIES June 30, 2021 March 31, 2021 Raw materials $ 365,679 $ 234,871 Work in progress 13,199 - Finished goods 29,450 35,564 Total inventories $ 408,328 $ 270,434 |
PREPAYMENTS AND OTHER RECEIVA_2
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES | Prepayments and other receivables consist of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES June 30, 2021 March 31, 2021 Prepayment 476,453 - Deposit 48,544 155,830 Receivable of consideration on disposal of subsidiaries 263,679 258,929 Other receivables 212,867 269,402 Prepayments and other receivables $ 1,001,543 $ 684,161 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consists of the following as of June 30, 2021 and March 31, 2021: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT June 30, 2021 March 31, 2021 Production plant $ 72,687 $ 71,642 Motor vehicles 1,099,061 1,020,893 Office equipment 50,673 14,073 1,222,421 1,106,608 Less: accumulated depreciation (346,590 ) (312,631 ) Plant and equipment, net $ 875,831 $ 793,977 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF RECONCILIATION OF INCOME TAXES | The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF RECONCILIATION OF INCOME TAXES Three months ended June 30, 2021 2020 PRC statutory tax rate 25 % 25 % Computed expected benefits 22,418 51,815 Temporary differences (39,459 ) (103,932 ) Permanent difference 1,478 - Changes in valuation allowance 26,288 55,476 Income tax expense $ 10,725 $ 3,359 |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | Selected information in the segment structure is presented in the following tables: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 2,069,141 1,108,042 1,109,248 - - 4,286,431 Intersegment revenue 2,417 - - - - 2,417 Interest income 1,860 21 81 - 5 1,967 Interest expense 1,993 165 - - 74 2,232 Depreciation and amortization 659 27,240 4,597 1,490 - 33,986 Operating income (loss) 123,629 4,863 57,211 - (109,003 ) 76,700 Segment assets 6,384,543 2,559,283 9,256,608 76,691 1,688,876 19,966,001 Expenditures for segment assets - 76,650 27,585 - - 104,235 |
SCHEDULE OF REVENUE AND LONG-LIVED ASSETS, BY GEOGRAPHICAL LOCATION | The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF REVENUE AND LONG-LIVED ASSETS, BY GEOGRAPHICAL LOCATION Geographic Information Revenues Long-Lived Assets China 4,286,431 9,817,118 Total 4,286,431 9,817,118 |
LEASE RIGHT-OF-USE ASSET AND _2
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The Following table summarizes the components of lease expense: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Three months ended June 30, 2021 2020 Operating lease cost 934,666 111,706 Short-term lease cost 20,902 - Lease cost $ 955,568 $ 111,706 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Three months ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 955,568 $ 111,706 Right-of-use assets obtained in exchange for new operating leases liabilities 178,189 - Weighted average remaining lease term - Operating leases (years) 2.5 4.0 Weighted average discount rate - Operating leases 4.75 % 4.35 % |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES | The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Years ending June 30 Lease cost 2021 $ 3,840,163 2022 3,851,328 2023 2,014,865 2024 14,798 Total lease payments 9,721,154 Less: Interest (779,866 ) Total $ 8,941,288 |
RISKS AND UNCERTAINTIES (Tables
RISKS AND UNCERTAINTIES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATION OF RISK BY CUSTOMERS | The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of June 30, 2021 and March 31, 2021. SCHEDULE OF CONCENTRATION OF RISK BY CUSTOMERS Garment manufacturing segment June 30, 2021 March 31, 2021 Customer A 98.8 % 98.4 % Customer B 1.1 % 1.6 % Customer C 0.1 % - The high concentration as of June 30, 2021 was mainly due to business development of a large distributor of garments. Logistics services segment June 30, 2021 March 31, 2021 Customer A 19.8 % 16.6 % Customer B 17.8 % 30.2 % Customer C 7.7 % 5.5 % Customer D 6.7 % 5.5 % Customer E 6.5 % 1.8 % |
SCHEDULE OF PROPERTY MANAGEMENT AND SUBLEASING | Property management and subleasing SCHEDULE OF PROPERTY MANAGEMENT AND SUBLEASING June 30, 2021 March 31, 2021 Customer A 100 % - |
SCHEDULE OF INVENTORY PURCHASES FROM SUPPLIERS | The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three months ended June 30, 2021 and 2020. SCHEDULE OF INVENTORY PURCHASES FROM SUPPLIERS Three months ended June 30, 2021 2020 Garment manufacturing segment 100.0 % 97.9 % Logistics services segment 61.6 % 97.87 % Property management and subleasing 100.0 % - % Epidemic prevention supplies - % 100.0 % |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net income | $ 78,947 | $ 203,900 | ||
Net current liability | 4,574,925 | $ 4,430,933 | ||
Deficit on total equity | $ 33,067 | $ 2,867,279 | $ 81,498 | $ 3,066,724 |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) | 3 Months Ended |
Jun. 30, 2021 | |
Zhida Hong [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Zhida Hong |
Relationship with the Company | President, CEO, and a director of the Company |
Zhongpeng Chen [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Zhongpeng Chen |
Relationship with the Company | A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 |
Bihua Yang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Bihua Yang |
Relationship with the Company | A legal representative of XKJ |
Dewu Huang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Dewu Huang |
Relationship with the Company | A legal representative of YBY |
Jinlong Huang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Jinlong Huang |
Relationship with the Company | A spouse of legal representative of HSW |
SCHEDULE OF RELATED PARTIES TRA
SCHEDULE OF RELATED PARTIES TRANSACTION (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | $ 238,743 | $ 84,838 | ||
Amounts due to related parties | 5,636,053 | 4,913,964 | ||
Proceeds related party debt | 1,292,956 | $ 3,302,608 | ||
Repayments of related party debt | 806,994 | $ 2,942,222 | ||
Hongye Financial Consulting (Shenzhen) Co., Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | 238,743 | 84,838 | ||
Zhida Hong [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | [1] | 3,705,193 | 3,727,371 | |
Proceeds related party debt | 200,000 | |||
Repayments of related party debt | 200,000 | |||
Bihua Yang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | [2] | 382,437 | 370,523 | |
Dewu Huang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | [3] | 1,420,186 | 712,064 | |
Jinlong Huang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | $ 128,237 | $ 104,006 | ||
[1] | The decrease was due to net repayment of debt due to Zhida Hong. During the three months ended June 30, 2021, the Company received financial support of $ 0.2 0.2 | |||
[2] | Being financial support from Bihua Yang for XKJ’s daily operation. | |||
[3] | The increase of related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 365,679 | $ 234,871 |
Work in progress | 13,199 | |
Finished goods | 29,450 | 35,564 |
Total inventories | $ 408,328 | $ 270,434 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory allowance | $ 0 | $ 0 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Receivables [Abstract] | ||
Prepayment | $ 476,453 | |
Deposit | 48,544 | 155,830 |
Receivable of consideration on disposal of subsidiaries | 263,679 | 258,929 |
Other receivables | 212,867 | 269,402 |
Prepayments and other receivables | $ 1,001,543 | $ 684,161 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 1,222,421 | $ 1,106,608 |
Less: accumulated depreciation | (346,590) | (312,631) |
Plant and equipment, net | 875,831 | 793,977 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 72,687 | 71,642 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 1,099,061 | 1,020,893 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 50,673 | $ 14,073 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 29,389 | $ 23,473 |
SHORT-TERM BANK LOAN (Details N
SHORT-TERM BANK LOAN (Details Narrative) | 1 Months Ended | 3 Months Ended | ||||||||
Aug. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020 | Jun. 30, 2021CNY (¥) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Aug. 31, 2020CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | |
Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 4.84% | |||||||||
Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 6.96% | |||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | $ | $ 153,172 | |||||||||
Line of credit outstanding value | $ | $ 154,833 | $ 152,607 | ||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 4.84% | |||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 4.90% | |||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | RMB [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,000,000 | |||||||||
Line of credit outstanding value | ¥ | ¥ 1,000,000 | |||||||||
Webank [Member] | Facility Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | $ | $ 88,358 | $ 86,886 | ||||||||
Webank [Member] | Facility Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 16.20% | |||||||||
Webank [Member] | Facility Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate | 16.29% | |||||||||
Webank [Member] | Facility Agreement [Member] | RMB [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 590,000 | ¥ 600,000 |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
PRC statutory tax rate | 25.00% | 25.00% |
Computed expected benefits | $ 22,418 | $ 51,815 |
Temporary differences | (39,459) | (103,932) |
Permanent difference | 1,478 | |
Changes in valuation allowance | 26,288 | 55,476 |
Income tax expense | $ 10,725 | $ 3,359 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal statutory tax rate | 25.00% | 25.00% |
Percentage of preferential tax benefits and EIT rate and term description | The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. | |
Percentage of preferential value added tax | 3.00% | |
Domestic Tax Authority [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Percentage of value added tax | 13.00% | |
Dongguan Heng Sheng Wei Garments Co., Ltd [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Percentage of preferential value added tax | 13.00% | |
Logistic Company [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Percentage of value added tax | 9.00% | |
Minimum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Percentage on enterprise income tax | 5.00% | |
Maximum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Percentage on enterprise income tax | 15.00% | |
HONG KONG | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Income tax rate | 16.50% | 16.50% |
Peoples Republic Of China [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal statutory tax rate | 25.00% | 25.00% |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,286,431 | $ 5,918,215 | $ 4,286,431 | |
Intersegment revenue | 2,417 | |||
Interest income | 1,967 | |||
Interest expense | 2,232 | 4,960 | ||
Depreciation and amortization | 33,986 | |||
Operating income (loss) | 76,700 | 188,432 | ||
Segment assets | 19,966,001 | 19,966,001 | $ 18,424,084 | |
Expenditures for segment assets | 104,235 | $ 143,148 | ||
Garment Manufacturing Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,069,141 | |||
Intersegment revenue | 2,417 | |||
Interest income | 1,860 | |||
Interest expense | 1,993 | |||
Depreciation and amortization | 659 | |||
Operating income (loss) | 123,629 | |||
Segment assets | 6,384,543 | 6,384,543 | ||
Expenditures for segment assets | ||||
Logistic Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,108,042 | |||
Intersegment revenue | ||||
Interest income | 21 | |||
Interest expense | 165 | |||
Depreciation and amortization | 27,240 | |||
Operating income (loss) | 4,863 | |||
Segment assets | 2,559,283 | 2,559,283 | ||
Expenditures for segment assets | 76,650 | |||
Property Management and Subleasing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,109,248 | |||
Intersegment revenue | ||||
Interest income | 81 | |||
Interest expense | ||||
Depreciation and amortization | 4,597 | |||
Operating income (loss) | 57,211 | |||
Segment assets | 9,256,608 | 9,256,608 | ||
Expenditures for segment assets | 27,585 | |||
Epidemic Prevention Supplies Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Intersegment revenue | ||||
Interest income | ||||
Interest expense | ||||
Depreciation and amortization | 1,490 | |||
Operating income (loss) | ||||
Segment assets | 76,691 | 76,691 | ||
Expenditures for segment assets | ||||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Intersegment revenue | ||||
Interest income | 5 | |||
Interest expense | 74 | |||
Depreciation and amortization | ||||
Operating income (loss) | (109,003) | |||
Segment assets | 1,688,876 | $ 1,688,876 | ||
Expenditures for segment assets |
SCHEDULE OF REVENUE AND LONG-LI
SCHEDULE OF REVENUE AND LONG-LIVED ASSETS, BY GEOGRAPHICAL LOCATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 4,286,431 | $ 5,918,215 | $ 4,286,431 |
Long-Lived Assets | 9,817,118 | 9,817,118 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,286,431 | ||
Long-Lived Assets | $ 9,817,118 | $ 9,817,118 |
CONSOLIDATED SEGMENT DATA (Deta
CONSOLIDATED SEGMENT DATA (Details Narrative) | 12 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Right-of-use Asset And Lease Liabilities | ||
Operating lease cost | $ 934,666 | $ 111,706 |
Short-term lease cost | 20,902 | |
Lease cost | $ 955,568 | $ 111,706 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Right-of-use Asset And Lease Liabilities | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow used in operating leases | $ 955,568 | $ 111,706 |
Right-of-use assets obtained in exchange for new operating leases liabilities | $ 178,189 | |
Weighted average remaining lease term - Operating leases (years) | 2 years 6 months | 4 years |
Weighted average discount rate - Operating leases | 4.75% | 4.35% |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES (Details) | Jun. 30, 2021USD ($) |
Lease Right-of-use Asset And Lease Liabilities | |
2021 | $ 3,840,163 |
2022 | 3,851,328 |
2023 | 2,014,865 |
2024 | 14,798 |
Total lease payments | 9,721,154 |
Less: Interest | (779,866) |
Total | $ 8,941,288 |
LEASE RIGHT-OF-USE ASSET AND _3
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Details Narrative) | Jun. 30, 2021 | Jun. 30, 2020 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted average discount rate leases | 4.75% | 4.35% |
Plant and Dormitory [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Lease period | 4 years 6 months | |
Floors in Commercial Building [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Lease period | 3 years | |
Head Office [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Lease period | 5 years |
SCHEDULE OF CONCENTRATION OF RI
SCHEDULE OF CONCENTRATION OF RISK BY CUSTOMERS (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2021 | |
Garment Manufacturing Segment [Member] | Adjustment Of Preferred Stock Issued For Services | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 98.80% | 98.40% |
Garment Manufacturing Segment [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1.10% | 1.60% |
Garment Manufacturing Segment [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 0.10% | (0.00%) |
Logistics Services Segment [Member] | Adjustment Of Preferred Stock Issued For Services | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19.80% | 16.60% |
Logistics Services Segment [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.80% | 30.20% |
Logistics Services Segment [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.70% | 5.50% |
Logistics Services Segment [Member] | Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6.70% | 5.50% |
Logistics Services Segment [Member] | Customer E [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6.50% | 1.80% |
SCHEDULE OF PROPERTY MANAGEMENT
SCHEDULE OF PROPERTY MANAGEMENT AND SUBLEASING (Details) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2021 | |
Property Management and Subleasing [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Adjustment Of Preferred Stock Issued For Services | ||
Concentration Risk [Line Items] | ||
Property management ,percentage | 100.00% |
SCHEDULE OF INVENTORY PURCHASES
SCHEDULE OF INVENTORY PURCHASES FROM SUPPLIERS (Details) - Five Largest Suppliers [Member] | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Garment Manufacturing Segment [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of inventory purchase | 100.00% | 97.90% |
Logistic Services Segment [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of inventory purchase | 61.60% | 97.87% |
Property Management and Subleasing [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of inventory purchase | 100.00% | |
Eepidemic Prevention Supplies [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of inventory purchase | 100.00% |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020 | Mar. 31, 2021 | |
Concentration Risk [Line Items] | ||||
Translated exchange rates | 0.06459 | 0.06459 | 0.06553 | |
Revenue and expenses translated average exchange rates | 0.06461 | 0.06461 | 0.06779 | |
Outstanding borrowings | $ | $ 154,833 | |||
Minimum [Member] | ||||
Concentration Risk [Line Items] | ||||
Line of credit facility, interest rate | 4.84% | 4.84% | ||
Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Line of credit facility, interest rate | 6.96% | 6.96% | ||
RMB [Member] | ||||
Concentration Risk [Line Items] | ||||
Outstanding borrowings | ¥ | ¥ 1,000,000 | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | OneCustomer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Revenue, percentage | 98.80% | 98.80% | 62.80% |