Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 333-206097 | |
Entity Registrant Name | ADDENTAX GROUP CORP. | |
Entity Central Index Key | 0001650101 | |
Entity Tax Identification Number | 35-2521028 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Kingkey 100, Block A | |
Entity Address, Address Line Two | Room 4805 | |
Entity Address, Address Line Three | Luohu District | |
Entity Address, City or Town | Shenzhen City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 518000 | |
City Area Code | (86) | |
Local Phone Number | 755 86961 405 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ATXG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,294,979 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,744,275 | $ 562,711 |
Restricted cash | 3,250,000 | |
Accounts receivables, net | 2,061,039 | 1,858,889 |
Debt securities held-to-maturity | 17,718,750 | |
Inventories | 250,373 | 285,528 |
Prepayments and other receivables | 19,239,836 | 959,196 |
Advances to suppliers | 2,097,539 | 1,281,075 |
Total current assets | 30,204,141 | 23,041,241 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 620,584 | 649,120 |
Long-term prepayments | 254,406 | 90,032 |
Restricted cash | 14,750,000 | |
Long-term receivables | 2,500,000 | 2,500,000 |
Operating lease right of use asset | 19,715,168 | 272,488 |
Total non-current assets | 23,090,158 | 18,261,640 |
TOTAL ASSETS | 53,294,299 | 41,302,881 |
CURRENT LIABILITIES | ||
Short-term loan | 129,785 | 137,468 |
Accounts payable | 320,622 | 267,501 |
Advances from customers | 74,176 | 2,152 |
Accrued expenses and other payables | 1,194,694 | 606,843 |
Operating lease liability current portion | 1,053,180 | 127,101 |
Total current liabilities | 4,911,374 | 3,525,698 |
NON-CURRENT LIABILITIES | ||
Convertible debts | 2,583,324 | 11,219,519 |
Derivative liabilities | 292,984 | 2,290,483 |
Operating lease liability | 18,661,988 | 145,387 |
Total non-current liabilities | 21,538,296 | 13,655,389 |
TOTAL LIABILITIES | 26,449,670 | 17,181,087 |
EQUITY | ||
Common stock ($0.001 par value, 250,000,000 shares authorized, 4,494,979and 35,454,670 shares issued and outstanding at September 30 and March 31, 2023, respectively) | 4,495 | 35,455 |
Additional paid-in capital | 33,558,928 | 29,528,564 |
Accumulated Deficit | (6,817,530) | (5,451,209) |
Statutory reserve | 28,457 | 28,457 |
Accumulated other comprehensive loss | 70,279 | (19,473) |
Total equity | 26,844,629 | 24,121,794 |
TOTAL LIABILITIES AND EQUITY | 53,294,299 | 41,302,881 |
Related Party [Member] | ||
CURRENT ASSETS | ||
Amount due from related party | 1,561,079 | 375,092 |
CURRENT LIABILITIES | ||
Amount due to related parties | $ 2,138,917 | $ 2,384,633 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 4,494,979 | 35,454,670 |
Common stock, shares outstanding | 4,494,979 | 35,454,670 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
REVENUES | $ 1,335,314 | $ 2,144,019 | $ 2,387,820 | $ 4,530,403 |
COST OF REVENUES | (932,427) | (1,578,858) | (1,748,024) | (3,508,558) |
GROSS PROFIT | 402,887 | 565,161 | 639,796 | 1,021,845 |
OPERATING EXPENSES | ||||
Selling and marketing | (37,212) | (30,002) | (37,212) | (35,644) |
General and administrative | (670,607) | (465,007) | (1,168,465) | (869,947) |
Total operating expenses | (707,819) | (495,009) | (1,205,677) | (905,591) |
INCOME (LOSS) FROM OPERATIONS | (304,932) | 70,152 | (565,881) | 116,254 |
Fair value gain or loss | 2,854,595 | 1,566,592 | ||
Interest income | 1,693 | 1,762 | 3,417 | 5,000 |
Interest expenses | (603,819) | (2,209) | (1,896,534) | (4,667) |
Other income, net | (581,900) | 22,973 | (469,414) | 74,056 |
INCOME BEFORE INCOME TAX EXPENSE | 1,365,637 | 92,678 | (1,361,820) | 190,643 |
INCOME TAX EXPENSE | (3,237) | (9,461) | (4,501) | (10,755) |
NET INCOME | 1,362,400 | 83,217 | (1,366,321) | 179,888 |
Foreign currency translation gain | 2,302 | 97,543 | 89,752 | 202,692 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 1,364,702 | $ 180,760 | $ (1,276,569) | $ 382,580 |
EARNINGS PER SHARE | ||||
Earnings (Loss) per share, Basic | $ 0.37 | $ 0 | $ (0.37) | $ 0 |
Earnings (Loss) per share, Diluted | $ 0.37 | $ 0 | $ (0.37) | $ 0 |
Weighted average number of shares outstanding - Basic | 3,656,442 | 26,693,004 | 3,656,442 | 26,693,004 |
Weighted average number of shares outstanding - Diluted | 3,656,442 | 26,693,004 | 3,656,442 | 26,693,004 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutory Reserve [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Mar. 31, 2022 | $ 26,693 | $ 6,815,333 | $ (6,756,230) | $ 13,821 | $ (170,984) | $ (71,367) |
Balance, shares at Mar. 31, 2022 | 26,693,004 | |||||
Issuance of new shares | $ 5,000 | 22,716,993 | 22,721,993 | |||
Issuance of new shares, shares | 5,000,000 | |||||
Foreign currency translation | 202,692 | 202,692 | ||||
Net income for the period | 179,888 | 179,888 | ||||
Ending balance, value at Sep. 30, 2022 | $ 31,693 | 29,532,326 | (6,576,342) | 13,821 | 31,708 | 23,033,206 |
Balance, shares at Sep. 30, 2022 | 31,693,004 | |||||
Beginning balance, value at Jun. 30, 2022 | $ 26,693 | 6,815,333 | (6,659,559) | 13,821 | (65,835) | (71,367) |
Balance, shares at Jun. 30, 2022 | 26,693,004 | |||||
Issuance of new shares | $ 5,000 | 22,716,993 | 22,721,993 | |||
Issuance of new shares, shares | 5,000,000 | |||||
Foreign currency translation | 97,543 | 97,543 | ||||
Net income for the period | 83,217 | 83,217 | ||||
Ending balance, value at Sep. 30, 2022 | $ 31,693 | 29,532,326 | (6,576,342) | 13,821 | 31,708 | 23,033,206 |
Balance, shares at Sep. 30, 2022 | 31,693,004 | |||||
Beginning balance, value at Mar. 31, 2023 | $ 35,455 | 29,528,564 | (5,451,209) | 28,457 | (19,473) | 24,121,794 |
Balance, shares at Mar. 31, 2023 | 35,454,670 | |||||
Foreign currency translation | 89,752 | 89,752 | ||||
Net income for the period | (1,366,321) | (1,366,321) | ||||
Additional paid-in capital from conversion of convertible debts | 3,999,404 | 3,999,404 | ||||
Issuance of new shares before reversed split | $ 1,941 | (1,941) | ||||
Issuance of new shares before reversed split, shares | 1,940,750 | |||||
Reverse stock split | $ (33,656) | 33,656 | ||||
Reverse stoc split, shares | (33,655,878) | |||||
New shares for round up of fragmental shares | $ 0 | 0 | ||||
New shares for round up of fracmental shares, shares | 39 | |||||
Issuance of new shares after reversed split | $ 755 | (755) | ||||
Issuance of new shares after reversed split, shares | 755,398 | |||||
Ending balance, value at Sep. 30, 2023 | $ 4,495 | 33,558,928 | (6,817,530) | 28,457 | 70,279 | 26,844,629 |
Balance, shares at Sep. 30, 2023 | 4,494,979 | |||||
Beginning balance, value at Jun. 30, 2023 | $ 3,740 | 32,406,317 | (8,179,930) | 28,457 | 67,977 | 24,326,561 |
Balance, shares at Jun. 30, 2023 | 3,739,581 | |||||
Issuance of new shares | $ 755 | (755) | ||||
Issuance of new shares, shares | 755,398 | |||||
Foreign currency translation | 2,302 | 2,302 | ||||
Net income for the period | 1,362,400 | 1,362,400 | ||||
Additional paid-in capital from conversion of convertible debts | 1,153,366 | 1,153,366 | ||||
Ending balance, value at Sep. 30, 2023 | $ 4,495 | $ 33,558,928 | $ (6,817,530) | $ 28,457 | $ 70,279 | $ 26,844,629 |
Balance, shares at Sep. 30, 2023 | 4,494,979 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net (loss) income | $ 1,362,400 | $ 83,217 | $ (1,366,321) | $ 179,888 | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||
Depreciation and amortization | 146,106 | 171,493 | |||
Amotization of convertible debt | 1,884,984 | ||||
Investment income | (218,750) | ||||
Fair value gain or loss | (1,566,592) | ||||
Loss on debts extinguishment | 697,318 | ||||
Gain on bargain purchase | (975) | ||||
Changes in operating assets and liabilities | |||||
Accounts receivable | (202,150) | 269,757 | |||
Inventories | 35,155 | 19,261 | |||
Advances to suppliers | (816,464) | 23,102 | |||
Other receivables | (76,100) | (1,561,056) | |||
Accounts payables | (12,460) | (1,347,677) | |||
Accrued expenses and other payables | (65,645) | 718,539 | |||
Advances from customers | (17,592) | 163 | |||
Net cash (used in) provided by operating activities | (1,579,486) | (1,526,530) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchase of property and equipment | (5,274) | ||||
Purchase of debt securities | (17,500,000) | ||||
Net cash used in investing activities | (5,274) | (17,500,000) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issue of ordinary shares | 20,221,993 | ||||
Proceeds from related party borrowings | 1,960,902 | 2,231,376 | |||
Repayment of related party borrowings | (3,112,467) | (2,803,515) | |||
Release of restricted cash | 3,850,000 | ||||
Repayment of bank borrowings | (416) | ||||
Net cash provided by financing activities | 2,698,435 | 19,649,438 | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,113,675 | 622,908 | |||
Effect of exchange rate changes on cash and cash equivalents | 67,889 | 20,858 | |||
Cash and cash equivalents, beginning of the period | 562,711 | 1,390,644 | $ 1,390,644 | ||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ 1,744,275 | $ 2,034,410 | 1,744,275 | 2,034,410 | $ 562,711 |
Supplemental disclosure of cash flow information: | |||||
Cash paid during the period for interest | |||||
Cash paid during the period for income tax | 4,501 | 10,755 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Right-of-use assets obtained in exchange for operating lease obligations | $ 19,512,400 |
ORGANIZATION AND BUSINESS ACQUI
ORGANIZATION AND BUSINESS ACQUISITIONS | 6 Months Ended |
Sep. 30, 2023 | |
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”). |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Sep. 30, 2023 | |
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 necessarily 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, 2023 filed with the Securities and Exchange Commission (“SEC”) on June 29, 2023 (“2023 Form 10-K”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2023 | |
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. Accounts receivable, net Accounts receivable, net are stated at the historical carrying amount net of allowance for doubtful accounts. Account receivables are classified as financial assets subsequently measured at amortized cost. Account receivables are recognized when the Company becomes a party to the contractual provisions of the receivables. They are measured, at initial recognition, at fair value plus transaction costs, if any and are subsequently measured at amortized cost. The amortized cost is the amount recognized on the receivable initially, minus principal repayments, plus cumulative amortization (interest) using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance. A loss allowance for expected credit losses is recognized on account receivables and is updated at each reporting date. The Company determines the expected credit losses provisions based on ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (‘‘ASC 326’’) using a modified retrospective approach which did not have a material impact on the opening balance of accumulated deficit. To determine expected credit losses on account receivables, the Company will consider the historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions, and an assessment of both the current and forecasted direction of conditions at the reporting date, including the time value of money, where appropriate. The loss allowance is calculated on a collective basis for all trade and other receivables in totality. An impairment gain or loss is recognized in profit or loss with a corresponding adjustment to the carrying amount of account receivables, through use of a loss allowance account. The impairment loss is included in operating expenses as a movement in credit loss allowance. Receivables are written off when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Receivables written off may still be subject to enforcement activities under the Company’s recovery procedures, considering legal advice where appropriate. Any recoveries made are recognized in profit or loss. There is no change in the accounting policies for the three months ended September 30, 2023. Recently issued accounting pronouncements Accounting for Convertible Instruments: In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. 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. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 6 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITION | 4. BUSINESS ACQUISITION In September 2023, the Company acquired a 100% equity interest of Dongguan Hongxiang Commercial Co., Ltd (HX), an entity engaged in property management and subleasing services in Dongguan, Guangdong Province, for cash consideration of $438,470 (RMB3.2 million). The Company recognized gain on bargain purchase of $996. The acquisition has been accounted under the acquisition method of accounting in accordance with ASC 805, “Business Combinations”. The results of HX’s operations have been included in the consolidated financial statements since its acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED September 5, 2023 Cash in bank $ 226,162 Other receivables 705,510 Fixed assets, net 58,493 Long-term prepayments 192,391 Advance from customers (89,616 ) Payroll payable (19,239 ) Other tax payable (4,633 ) Other payables (629,602 ) Net book value at acquisition date 439,466 Gain on bargain purchase (996 ) Purchase price $ 438,470 Pro forma results of operation for this acquisition have not been presented because the effects of the acquisition were not material to the Company’s consolidated financial results. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd. A company controlled by CEO, Mr. Zhida Hong Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang Management of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. The Company had the following related party balances as of September 30, 2023 and March 31, 2023: SCHEDULE OF AMOUNT DUE FROM RELATED PARTY Amount due from related party September 30, 2023 March 31, 2023 Zhida Hong (1) $ 1,045,362 $ - Bihua Yang 515,717 375,092 Amount due from related party $ 1,561,079 $ 375,092 SCHEDULE OF RELATED PARTIES BORROWINGS Related party borrowings September 30, 2023 March 31, 2023 Zhida Hong $ - $ 901,110 Hongye Financial Consulting (Shenzhen) Co., Ltd. 97,518 45,841 Dewu Huang (2) 1,925,704 1,305,758 Jinlong Huang 115,695 131,924 Total Related party borrowings $ 2,138,917 $ 2,384,633 (1) Being cash advance to Zhida Hong to pay for new brand development fee of the Company. (2) Being interest free loan as financial support from Dewu Huang to pay for daily operating expenditures of YBY. The borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand. |
DEBT SECURITIES HELD-TO-MATURIT
DEBT SECURITIES HELD-TO-MATURITY | 6 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
DEBT SECURITIES HELD-TO-MATURITY | 6. DEBT SECURITIES HELD-TO-MATURITY SCHEDULE OF DEBT SECURITIES HELD TO MATURITY September 30, 2023 March 31, 2023 Debt securities held-to-maturity $ - $ 17,718,750 The Company purchased a note issued by a third-party investment company on August 24, 2022. The principal amount of the note is $ 17,500,000 2.5 437,500 218,750 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7. INVENTORIES Inventories consist of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF INVENTORIES September 30, 2023 March 31, 2023 Raw materials $ 17,497 $ 19,484 Work in progress 1,733 9,373 Finished goods 213,143 256,671 Total inventories $ 250,373 $ 285,528 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 6 Months Ended |
Sep. 30, 2023 | |
Advances To Suppliers | |
ADVANCES TO SUPPLIERS | 8. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 6 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
PREPAYMENTS AND OTHER RECEIVABLES | 9. PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consist of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES September 30, 2023 March 31, 2023 Prepayment 43,006 10,913 Deposit 732,519 40,341 Receivable of consideration on disposal of subsidiaries 226,585 708,457 Receivable of matured debt security (Note) 17,937,500 - Other receivables 300,226 199,485 Total Prepayment $ 19,239,836 $ 959,196 Note: The debt security held-to-maturity was matured and was reclassified to Other receivables. The Company is discussing with the issuer and will determine whether to renew the note. (Note 6) |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 10. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF PLANT AND EQUIPMENT September 30, 2023 March 31, 2023 Production plant $ 104,935 $ 68,345 Motor vehicles 1,039,166 1,100,683 Office equipment 51,281 26,025 Total gross 1,195,382 1,195,053 Less: accumulated depreciation (574,798 ) (545,933 ) Plant and equipment, net $ 620,584 $ 649,120 Depreciation expense for the three and six months ended September 30, 2023 and 2022 was $ 23,019 32,948 57,002 68,832 |
LONG-TERM RECEIVABLES
LONG-TERM RECEIVABLES | 6 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LONG-TERM RECEIVABLES | 11. LONG-TERM RECEIVABLES The Company entered into a long-term loan agreement with an independent third party in September 2022. The principal to the borrower is $ 2.5 The loan is interest free and will expire in August 2025. |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOAN | 12. 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 1,000,000 129,785 944,255 137,468 4.34 4.9 |
TAXATION
TAXATION | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXATION | 13. TAXATION (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. It’s wholly owned subsidiary of Addentax Group Corp. Yingxi HK (Yingxi Industrial Chain Investment Co., Ltd.) was incorporated in Hong Kong which is indirectly wholly owned by Addentax Group Corp., and is subject to Hong Kong income tax at a progressive rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three months ended September 30, 2023 and 2022. YX, our wholly owned subsidiary, were incorporated in the PRC and is subject to the EIT tax rate of 25%. No provision for income taxes in the PRC has been made as YX had no taxable income for the three months ended September 30, 2023 and 2022. 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 2023 and the EIT rate will be 25% from year 2024. 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 September 30, 2023 and 2022. The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, 2023 2022 2023 2022 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits 341,409 23,170 (340,456 ) 47,661 Temporary differences (30,918 ) (53,206 ) (24,768 ) (93,771 ) Permanent difference (75,814 ) 5,587 6,312 3,026 Changes in valuation allowance (231,440 ) 33,910 363,413 53,839 Income tax expense $ 3,237 $ 9,461 4,501 10,755 Deferred tax assets had not been recognized in respect of any potential tax benefit that may be derived from non-capital loss carry forward and property and equipment due to past negative evidence of previous cumulative net losses and uncertainty upon restructuring. The management will continue to assess at each reporting period to determine the realizability of deferred tax assets. (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 | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
CONSOLIDATED SEGMENT DATA | 14. 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 segments: (a) Garment manufacturing (b) Logistics services (c) Property management and subleasing. The Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”. Selected information in the segment structure is presented in the following tables: Revenues by segment for the three months ended September 30, 2023 and 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR REVENUE Revenues from external customers 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, Revenues from external customers 2023 2022 2023 2022 Garments manufacturing segment 91,218 861 145,091 41,287 Logistics services segment 1,186,033 1,221,658 2,184,666 2,612,540 Property management and subleasing 58,063 920,201 58,063 1,875,036 Epidemic prevention supplies segment - 1,299 - 1,540 Total of reportable segments and consolidated revenue $ 1,335,314 $ 2,144,019 $ 2,387,820 $ 4,530,403 Intersegment revenue Garments manufacturing segment - - - - (Loss) Income from operations by segment for the three ended September 30, 2023 and 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR (LOSS) INCOME FROM OPERATION 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, 2023 2022 2023 2022 Garments manufacturing segment (18,988 ) (28,088 ) (41,143 ) (56,744 ) Logistics services segment 172,295 152,381 174,229 272,422 Property management and subleasing (13,360 ) 89,624 (13,360 ) 123,721 Epidemic prevention supplies segment - (974 ) - (974 ) Total of reportable segments $ 139,947 $ 212,943 $ 119,726 $ 338,425 Corporate and other (444,879 ) (142,791 ) (685,607 ) (222,171 ) Total consolidated income (loss) from operations (304,932 ) 70,152 (565,881 ) 116,254 Total assets by segment as of September 30, 2023 and March 31, 2023 are as follows: SCHEDULE OF SEGMENT REPORTING FOR ASSETS Total assets September 30, 2023 March 31, 2023 Garment manufacturing segment $ 2,699,573 $ 2,169,973 Logistics services segment 2,581,661 2,476,841 Property management and subleasing 20,670,159 - Total of reportable segments 25,951,393 4,646,814 Corporate and other 27,342,906 36,656,067 Consolidated total assets $ 53,294,299 $ 41,302,881 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. Geographic Information SCHEDULE OF GEOGRAPHICAL INFORMATION Three months ended Six months ended 2023 2022 2023 2022 Revenues China 1,335,314 2,144,019 2,387,820 4,530,403 Total 1,335,314 2,144,019 2,387,820 4,530,403 September 30, 2023 March 31, 2023 Long-Lived Assets China 23,090,158 3,511,640 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Sep. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | 15. FINANCIAL INSTRUMENTS On January 4, 2023, the Company entered into a series of agreements with certain accredited investors, pursuant to which the Company received a net proceed of $ 15,000,000 ● senior secured convertible notes in the aggregate original principal amount of approximately $ 16.7 5 July 4, 2024 1.25 ● warrants to purchase up to approximately 16.1 1.25 The Warrant is considered a freestanding instrument issued together with the Convertible Note and measured at its issuance date fair value. Proceeds received were first allocated to the Warrant based on its initial fair value. The initial fair value of the Warrant was $ 3.9 268,435 2.0 The Convertible Note is classified as a liability and is subsequently stated at amortized cost with any difference between the initial carrying value and the repayment amount as interest expenses using the effective interest method over the period from the issuance date to the maturity date. The embedded conversion feature should be bifurcated and separately accounted for using fair value, as this embedded feature is considered not clearly and closely related to the debt host. The bifurcated conversion feature was recorded at fair value with the changes recorded in the consolidated statements of operations and comprehensive loss. The initial fair value of the embedded conversion feature was $ 1.2 The Company determined that the other embedded features do not require bifurcation as they either are clearly and closely related to the Convertible Note or do not meet the definition of a derivative. The total proceeds of the Convertible Note and the Warrants, net of issuance cost, of $ 15.0 SCHEDULE OF FINANCIAL INSTRUMENTS As of January 4, 2023 Derivative liabilities – Fair value of the Warrants $ 3,858,521 Derivative liabilities – Embedded conversion feature 1,247,500 Convertible Note 9,893,979 $ 15,000,000 In January 2023, the Company also granted to the placement agent a warrant as partial of agent fee to purchase 0.7 five years 1.25 0.168 The movement of the Company’s convertible notes obligations were as the following for the three months ended September 30, 2023 and 2022: SCHEDULE OF CONVERTIBLE NOTES OBLIGATION 2023 2022 Three months ended September 30, 2023 2022 Carrying value – beginning balance $ 8,510,226 $ - Converted to ordinary shares (813,366 ) - Redemption (5,687,056 ) - Amortization of debt discount 423,215 - Deferred debt discount and cost of issuance (20,645 ) - Interest charge 170,950 - Carrying value – ending balance $ 2,583,324 $ - During the period, approximately $ 3.0 0.77 3.9287 On July 13, 2023, the Company entered into a Waiver and Ratification Agreement with one of the holders of the Convertible Note. According to the agreement, the holder redeemed the full amount of $ 7.5 The Company’s derivative liabilities were as the following for the three months ended September 30, 2023 and 2022: SCHEDULE OF DERIVATIVE LIABILITIES 2023 2022 Three months ended September 30, 2023 2022 Derivative liabilities –Warrants $ $ - Beginning balance 2,818,563 - Marked to the market (2,550,128 ) - Ending fair value 268,435 - Derivative liabilities – Embedded conversion feature Beginning balance 1,763,997 - Converted to ordinary shares (339,999 ) - Remeasurement on change of convertible price 20,645 - Redemption (1,115,627 ) - Marked to the market (304,467 ) - Ending fair value 24,549 - - Total Derivative fair value at end of period $ 292,984 $ - |
LEASE RIGHT-OF-USE ASSET AND LE
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 6 Months Ended |
Sep. 30, 2023 | |
Lease Right-of-use Asset And Lease Liabilities | |
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 16. 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 September 30, 2023, with discounted rate of 4.75 The Company leases its head office. The lease period is 5 4.5 16 The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2023 2022 2023 2022 Three months ended Six months ended 2023 2022 2023 2022 Operating lease cost 31,363 876,509 74,801 1,821,058 Short-term lease cost 34,493 18,971 58,050 39,416 Lease Cost $ 65,856 $ 895,480 $ 132,851 $ 1,860,474 The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2023 2022 2023 2022 Three months ended Six months ended 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 65,856 $ 895,480 132,851 1,860,474 Right-of-use assets obtained in exchange for new operating leases liabilities 19,511,181 - 19,512,400 - Weighted average remaining lease term - Operating leases (years) 14.9 1.3 14.9 1.3 Weighted average discount rate - Operating leases 4.90 % 4.75 % 4.90 % 4.75 % The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY Years ending September 30 Lease cost 2024 $ 1,104,618 2025 1,080,821 2026 987,236 2027 987,236 2028 and there after 25,877,279 Total lease payments 30,037,190 Less: Interest (10,322,022 ) Total $ 19,715,168 |
SHARE CAPITAL
SHARE CAPITAL | 6 Months Ended |
Sep. 30, 2023 | |
Share Capital | |
SHARE CAPITAL | 17. SHARE CAPITAL The Company effected the amendment and combination to the outstanding shares of our common stock into a lesser number of outstanding shares (the “Reverse Stock Split Amendment”) on a ratio of one-for-ten, with effected date on June 26, 2023. |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 6 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 18. 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 7.25 6.87 7.004 6.603 (c) Concentration Risks The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of September 30, 2023 and March 31, 2023. Garment manufacturing segment SCHEDULE OF CONCENTRATION RISKS September 30, 2023 March 31, 2023 Customer A 86.3 % 82.5 % Customer B 10.4 % 9.9 % Customer C 3.3 % 3.5 % The high concentration as of September 30, 2023 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment September 30, 2023 March 31, 2023 Customer A 21.6 % 11.4 % Customer B 13.9 % 10.2 % Customer C 9.9 % 14.1 % Customer D 8.2 % 6.4 % Customer E 5.1 % 7.3 % Property management and subleasing segment There is no account receivable for Property management and subleasing segment as for September 30, and March 31, 2023. Concentration on customers For the three months ended September 30, 2023, one customer from Logistics services segment provided more than 10% of total revenue of the Company, representing 11.0 no 23.9 no Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Concentration on suppliers The following tables summarized the purchases from five largest suppliers of each of the reportable segments for the three months ended September 30, 2023 and 2022. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Six months ended September 30, September 30, 2023 2022 2023 2021 Garment manufacturing segment Nil % Nil % Nil % Nil % Logistics services segment 100% % 100.0 % 100% % 100.0 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % (d) Interest Rate Risk The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of September 30, 2023, the total outstanding borrowings amounted to $ 129,785 944,255 4.3 4.9 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
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. |
Accounts receivable, net | Accounts receivable, net Accounts receivable, net are stated at the historical carrying amount net of allowance for doubtful accounts. Account receivables are classified as financial assets subsequently measured at amortized cost. Account receivables are recognized when the Company becomes a party to the contractual provisions of the receivables. They are measured, at initial recognition, at fair value plus transaction costs, if any and are subsequently measured at amortized cost. The amortized cost is the amount recognized on the receivable initially, minus principal repayments, plus cumulative amortization (interest) using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance. A loss allowance for expected credit losses is recognized on account receivables and is updated at each reporting date. The Company determines the expected credit losses provisions based on ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (‘‘ASC 326’’) using a modified retrospective approach which did not have a material impact on the opening balance of accumulated deficit. To determine expected credit losses on account receivables, the Company will consider the historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions, and an assessment of both the current and forecasted direction of conditions at the reporting date, including the time value of money, where appropriate. The loss allowance is calculated on a collective basis for all trade and other receivables in totality. An impairment gain or loss is recognized in profit or loss with a corresponding adjustment to the carrying amount of account receivables, through use of a loss allowance account. The impairment loss is included in operating expenses as a movement in credit loss allowance. Receivables are written off when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Receivables written off may still be subject to enforcement activities under the Company’s recovery procedures, considering legal advice where appropriate. Any recoveries made are recognized in profit or loss. There is no change in the accounting policies for the three months ended September 30, 2023. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements Accounting for Convertible Instruments: In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. 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. |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED September 5, 2023 Cash in bank $ 226,162 Other receivables 705,510 Fixed assets, net 58,493 Long-term prepayments 192,391 Advance from customers (89,616 ) Payroll payable (19,239 ) Other tax payable (4,633 ) Other payables (629,602 ) Net book value at acquisition date 439,466 Gain on bargain purchase (996 ) Purchase price $ 438,470 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL | SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd. A company controlled by CEO, Mr. Zhida Hong Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang Management of HSW |
SCHEDULE OF AMOUNT DUE FROM RELATED PARTY | The Company had the following related party balances as of September 30, 2023 and March 31, 2023: SCHEDULE OF AMOUNT DUE FROM RELATED PARTY Amount due from related party September 30, 2023 March 31, 2023 Zhida Hong (1) $ 1,045,362 $ - Bihua Yang 515,717 375,092 Amount due from related party $ 1,561,079 $ 375,092 |
SCHEDULE OF RELATED PARTIES BORROWINGS | SCHEDULE OF RELATED PARTIES BORROWINGS Related party borrowings September 30, 2023 March 31, 2023 Zhida Hong $ - $ 901,110 Hongye Financial Consulting (Shenzhen) Co., Ltd. 97,518 45,841 Dewu Huang (2) 1,925,704 1,305,758 Jinlong Huang 115,695 131,924 Total Related party borrowings $ 2,138,917 $ 2,384,633 (1) Being cash advance to Zhida Hong to pay for new brand development fee of the Company. (2) Being interest free loan as financial support from Dewu Huang to pay for daily operating expenditures of YBY. |
DEBT SECURITIES HELD-TO-MATUR_2
DEBT SECURITIES HELD-TO-MATURITY (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SCHEDULE OF DEBT SECURITIES HELD TO MATURITY | SCHEDULE OF DEBT SECURITIES HELD TO MATURITY September 30, 2023 March 31, 2023 Debt securities held-to-maturity $ - $ 17,718,750 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF INVENTORIES September 30, 2023 March 31, 2023 Raw materials $ 17,497 $ 19,484 Work in progress 1,733 9,373 Finished goods 213,143 256,671 Total inventories $ 250,373 $ 285,528 |
PREPAYMENTS AND OTHER RECEIVA_2
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES | Prepayments and other receivables consist of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES September 30, 2023 March 31, 2023 Prepayment 43,006 10,913 Deposit 732,519 40,341 Receivable of consideration on disposal of subsidiaries 226,585 708,457 Receivable of matured debt security (Note) 17,937,500 - Other receivables 300,226 199,485 Total Prepayment $ 19,239,836 $ 959,196 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PLANT AND EQUIPMENT | Property, plant and equipment consists of the following as of September 30, 2023 and March 31, 2023: SCHEDULE OF PLANT AND EQUIPMENT September 30, 2023 March 31, 2023 Production plant $ 104,935 $ 68,345 Motor vehicles 1,039,166 1,100,683 Office equipment 51,281 26,025 Total gross 1,195,382 1,195,053 Less: accumulated depreciation (574,798 ) (545,933 ) Plant and equipment, net $ 620,584 $ 649,120 |
TAXATION (Tables)
TAXATION (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, 2023 2022 2023 2022 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits 341,409 23,170 (340,456 ) 47,661 Temporary differences (30,918 ) (53,206 ) (24,768 ) (93,771 ) Permanent difference (75,814 ) 5,587 6,312 3,026 Changes in valuation allowance (231,440 ) 33,910 363,413 53,839 Income tax expense $ 3,237 $ 9,461 4,501 10,755 |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING FOR REVENUE | Revenues by segment for the three months ended September 30, 2023 and 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR REVENUE Revenues from external customers 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, Revenues from external customers 2023 2022 2023 2022 Garments manufacturing segment 91,218 861 145,091 41,287 Logistics services segment 1,186,033 1,221,658 2,184,666 2,612,540 Property management and subleasing 58,063 920,201 58,063 1,875,036 Epidemic prevention supplies segment - 1,299 - 1,540 Total of reportable segments and consolidated revenue $ 1,335,314 $ 2,144,019 $ 2,387,820 $ 4,530,403 Intersegment revenue Garments manufacturing segment - - - - |
SCHEDULE OF SEGMENT REPORTING FOR (LOSS) INCOME FROM OPERATION | (Loss) Income from operations by segment for the three ended September 30, 2023 and 2022 are as follows: SCHEDULE OF SEGMENT REPORTING FOR (LOSS) INCOME FROM OPERATION 2023 2022 2023 2022 Three months ended Six months ended September 30, September 30, 2023 2022 2023 2022 Garments manufacturing segment (18,988 ) (28,088 ) (41,143 ) (56,744 ) Logistics services segment 172,295 152,381 174,229 272,422 Property management and subleasing (13,360 ) 89,624 (13,360 ) 123,721 Epidemic prevention supplies segment - (974 ) - (974 ) Total of reportable segments $ 139,947 $ 212,943 $ 119,726 $ 338,425 Corporate and other (444,879 ) (142,791 ) (685,607 ) (222,171 ) Total consolidated income (loss) from operations (304,932 ) 70,152 (565,881 ) 116,254 |
SCHEDULE OF SEGMENT REPORTING FOR ASSETS | Total assets by segment as of September 30, 2023 and March 31, 2023 are as follows: SCHEDULE OF SEGMENT REPORTING FOR ASSETS Total assets September 30, 2023 March 31, 2023 Garment manufacturing segment $ 2,699,573 $ 2,169,973 Logistics services segment 2,581,661 2,476,841 Property management and subleasing 20,670,159 - Total of reportable segments 25,951,393 4,646,814 Corporate and other 27,342,906 36,656,067 Consolidated total assets $ 53,294,299 $ 41,302,881 |
SCHEDULE OF GEOGRAPHICAL INFORMATION | SCHEDULE OF GEOGRAPHICAL INFORMATION Three months ended Six months ended 2023 2022 2023 2022 Revenues China 1,335,314 2,144,019 2,387,820 4,530,403 Total 1,335,314 2,144,019 2,387,820 4,530,403 September 30, 2023 March 31, 2023 Long-Lived Assets China 23,090,158 3,511,640 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF FINANCIAL INSTRUMENTS | SCHEDULE OF FINANCIAL INSTRUMENTS As of January 4, 2023 Derivative liabilities – Fair value of the Warrants $ 3,858,521 Derivative liabilities – Embedded conversion feature 1,247,500 Convertible Note 9,893,979 $ 15,000,000 |
SCHEDULE OF CONVERTIBLE NOTES OBLIGATION | SCHEDULE OF CONVERTIBLE NOTES OBLIGATION 2023 2022 Three months ended September 30, 2023 2022 Carrying value – beginning balance $ 8,510,226 $ - Converted to ordinary shares (813,366 ) - Redemption (5,687,056 ) - Amortization of debt discount 423,215 - Deferred debt discount and cost of issuance (20,645 ) - Interest charge 170,950 - Carrying value – ending balance $ 2,583,324 $ - |
SCHEDULE OF DERIVATIVE LIABILITIES | The Company’s derivative liabilities were as the following for the three months ended September 30, 2023 and 2022: SCHEDULE OF DERIVATIVE LIABILITIES 2023 2022 Three months ended September 30, 2023 2022 Derivative liabilities –Warrants $ $ - Beginning balance 2,818,563 - Marked to the market (2,550,128 ) - Ending fair value 268,435 - Derivative liabilities – Embedded conversion feature Beginning balance 1,763,997 - Converted to ordinary shares (339,999 ) - Remeasurement on change of convertible price 20,645 - Redemption (1,115,627 ) - Marked to the market (304,467 ) - Ending fair value 24,549 - - Total Derivative fair value at end of period $ 292,984 $ - |
LEASE RIGHT-OF-USE ASSET AND _2
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Lease Right-of-use Asset And Lease Liabilities | |
SCHEDULE OF LEASE COST | The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2023 2022 2023 2022 Three months ended Six months ended 2023 2022 2023 2022 Operating lease cost 31,363 876,509 74,801 1,821,058 Short-term lease cost 34,493 18,971 58,050 39,416 Lease Cost $ 65,856 $ 895,480 $ 132,851 $ 1,860,474 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2023 2022 2023 2022 Three months ended Six months ended 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 65,856 $ 895,480 132,851 1,860,474 Right-of-use assets obtained in exchange for new operating leases liabilities 19,511,181 - 19,512,400 - Weighted average remaining lease term - Operating leases (years) 14.9 1.3 14.9 1.3 Weighted average discount rate - Operating leases 4.90 % 4.75 % 4.90 % 4.75 % |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY | The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY Years ending September 30 Lease cost 2024 $ 1,104,618 2025 1,080,821 2026 987,236 2027 987,236 2028 and there after 25,877,279 Total lease payments 30,037,190 Less: Interest (10,322,022 ) Total $ 19,715,168 |
RISKS AND UNCERTAINTIES (Tables
RISKS AND UNCERTAINTIES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATION RISKS | The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of September 30, 2023 and March 31, 2023. Garment manufacturing segment SCHEDULE OF CONCENTRATION RISKS September 30, 2023 March 31, 2023 Customer A 86.3 % 82.5 % Customer B 10.4 % 9.9 % Customer C 3.3 % 3.5 % The high concentration as of September 30, 2023 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment September 30, 2023 March 31, 2023 Customer A 21.6 % 11.4 % Customer B 13.9 % 10.2 % Customer C 9.9 % 14.1 % Customer D 8.2 % 6.4 % Customer E 5.1 % 7.3 % |
SCHEDULE OF PURCHASES FROM SUPPLIERS | The following tables summarized the purchases from five largest suppliers of each of the reportable segments for the three months ended September 30, 2023 and 2022. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Six months ended September 30, September 30, 2023 2022 2023 2021 Garment manufacturing segment Nil % Nil % Nil % Nil % Logistics services segment 100% % 100.0 % 100% % 100.0 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % |
SCHEDULE OF ASSETS ACQUIRED AND
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | Sep. 05, 2023 USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Cash in bank | $ 226,162 |
Other receivables | 705,510 |
Fixed assets, net | 58,493 |
Long-term prepayments | 192,391 |
Advance from customers | (89,616) |
Payroll payable | (19,239) |
Other tax payable | (4,633) |
Other payables | (629,602) |
Net book value at acquisition date | 439,466 |
Gain on bargain purchase | (996) |
Purchase price | $ 438,470 |
SUMMARY OF FINANCIAL POSITION O
SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL (Details) | 6 Months Ended |
Sep. 30, 2023 | |
Zhida Hong [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Zhida Hong |
Relationship with the Company | President, CEO, and a director of the Company |
Hongye Financial Consulting (Shenzhen) Co., Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Hongye Financial Consulting (Shenzhen) Co., Ltd. |
Relationship with the Company | A company controlled by CEO, Mr. Zhida Hong |
Bihua Yang [Member] | |
Related Party Transaction [Line Items] | |
Name of Related Parties | Bihua Yang |
Relationship with the Company | A legal representative of 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 | Management of HSW |
SCHEDULE OF AMOUNT DUE FROM REL
SCHEDULE OF AMOUNT DUE FROM RELATED PARTY (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | |
Zhida Hong [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related party | [1] | $ 1,045,362 | |
Bihua Yang [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related party | 515,717 | 375,092 | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related party | $ 1,561,079 | $ 375,092 | |
[1]Being cash advance to Zhida Hong to pay for new brand development fee of the Company. |
SCHEDULE OF RELATED PARTIES BOR
SCHEDULE OF RELATED PARTIES BORROWINGS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | ||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | $ 3,112,467 | $ 2,803,515 | ||
Zhida Hong [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | $ 901,110 | |||
Hongye Financial Consulting (Shenzhen) Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | 97,518 | 45,841 | ||
Dewu Huang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | [1] | 1,925,704 | 1,305,758 | |
Jinlong Huang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | 115,695 | 131,924 | ||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total Related party borrowings | $ 2,138,917 | $ 2,384,633 | ||
[1]Being interest free loan as financial support from Dewu Huang to pay for daily operating expenditures of YBY. |
SCHEDULE OF DEBT SECURITIES HEL
SCHEDULE OF DEBT SECURITIES HELD TO MATURITY (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | Aug. 24, 2022 |
Investments, Debt and Equity Securities [Abstract] | |||
Debt securities held-to-maturity | $ 17,718,750 | $ 17,500,000 |
DEBT SECURITIES HELD-TO-MATUR_3
DEBT SECURITIES HELD-TO-MATURITY (Details Narrative) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | Jan. 04, 2023 | Aug. 24, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||||
Debt securities | $ 17,718,750 | $ 17,500,000 | ||
Debt interest percent | 2.50% | 5% | ||
Coupon receivable | $ 437,500 | $ 218,750 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 17,497 | $ 19,484 |
Work in progress | 1,733 | 9,373 |
Finished goods | 213,143 | 256,671 |
Total inventories | $ 250,373 | $ 285,528 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Receivables [Abstract] | ||
Prepayment | $ 43,006 | $ 10,913 |
Deposit | 732,519 | 40,341 |
Receivable of consideration on disposal of subsidiaries | 226,585 | 708,457 |
Receivable of matured debt security (Note) | 17,937,500 | |
Other receivables | 300,226 | 199,485 |
Total Prepayment | $ 19,239,836 | $ 959,196 |
SCHEDULE OF PLANT AND EQUIPMENT
SCHEDULE OF PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total gross | $ 1,195,382 | $ 1,195,053 |
Less: accumulated depreciation | (574,798) | (545,933) |
Plant and equipment, net | 620,584 | 649,120 |
Production Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | 104,935 | 68,345 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | 1,039,166 | 1,100,683 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total gross | $ 51,281 | $ 26,025 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 23,019 | $ 57,002 | $ 32,948 | $ 68,832 |
LONG-TERM RECEIVABLES (Details
LONG-TERM RECEIVABLES (Details Narrative) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 13, 2023 | Jan. 31, 2023 | Jan. 04, 2023 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt Instrument face amount | $ 7.5 | $ 3 | $ 16.7 | |
Loan Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Debt Instrument face amount | $ 2.5 | |||
Debt instrument, description | The loan is interest free and will expire in August 2025. |
SHORT-TERM BANK LOAN (Details N
SHORT-TERM BANK LOAN (Details Narrative) | 6 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Aug. 31, 2019 USD ($) | Aug. 31, 2019 CNY (¥) | |
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.30% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.90% | ||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 153,172 | ¥ 1,000,000 | |||
Line of credit outstanding value | $ 129,785 | ¥ 944,255 | $ 137,468 | ||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.34% | ||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate | 4.90% |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
PRC statutory tax rate | 25% | 25% | 25% | 25% |
Computed expected benefits | $ 341,409 | $ 23,170 | $ (340,456) | $ 47,661 |
Temporary differences | (30,918) | (53,206) | (24,768) | (93,771) |
Permanent difference | (75,814) | 5,587 | 6,312 | 3,026 |
Changes in valuation allowance | (231,440) | 33,910 | 363,413 | 53,839 |
Income tax expense | $ 3,237 | $ 9,461 | $ 4,501 | $ 10,755 |
TAXATION (Details Narrative)
TAXATION (Details Narrative) | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Percentage of preferential value added tax | 3% | 3% |
HSW, DT and YS [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Percentage of preferential value added tax | 13% | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Percentage of value added tax | 13% | |
Logistic Company [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Percentage of value added tax | 9% | |
Peoples Republic of China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Percentage on enterprise income tax | 5% | 15% |
Percentage of preferential tax benefits and EIT rate and term description | The preferential tax rate will be expired at end of year 2023 and the EIT rate will be 25% from year 2024. |
SCHEDULE OF SEGMENT REPORTING F
SCHEDULE OF SEGMENT REPORTING FOR REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | $ 1,335,314 | $ 2,144,019 | $ 2,387,820 | $ 4,530,403 |
Garment Manufacturing Segment [Member] | Reportable Legal Entities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | 91,218 | 861 | 145,091 | 41,287 |
Garment Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | ||||
Logistic Services Segment [Member] | Reportable Legal Entities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | 1,186,033 | 1,221,658 | 2,184,666 | 2,612,540 |
Property Management And Subleasing [Member] | Reportable Legal Entities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | 58,063 | 920,201 | 58,063 | 1,875,036 |
Epidemic Prevention Supplies Segment [Member] | Reportable Legal Entities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Garments manufacturing segment | $ 1,299 | $ 1,540 |
SCHEDULE OF SEGMENT REPORTING_2
SCHEDULE OF SEGMENT REPORTING FOR (LOSS) INCOME FROM OPERATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | $ (304,932) | $ 70,152 | $ (565,881) | $ 116,254 |
Garment Manufacturing Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | (18,988) | (28,088) | (41,143) | (56,744) |
Logistic Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 172,295 | 152,381 | 174,229 | 272,422 |
Property Management And Subleasing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | (13,360) | 89,624 | (13,360) | 123,721 |
Epidemic Prevention Supplies Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | (974) | (974) | ||
Total Of Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | 139,947 | 212,943 | 119,726 | 338,425 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated income (loss) from operations | $ (444,879) | $ (142,791) | $ (685,607) | $ (222,171) |
SCHEDULE OF SEGMENT REPORTING_3
SCHEDULE OF SEGMENT REPORTING FOR ASSETS (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 53,294,299 | $ 41,302,881 |
Reportable Legal Entities [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 25,951,393 | 4,646,814 |
Reportable Legal Entities [Member] | Garment Manufacturing Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 2,699,573 | 2,169,973 |
Reportable Legal Entities [Member] | Logistic Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 2,581,661 | 2,476,841 |
Reportable Legal Entities [Member] | Property Management And Subleasing [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 20,670,159 | |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 27,342,906 | $ 36,656,067 |
SCHEDULE OF GEOGRAPHICAL INFORM
SCHEDULE OF GEOGRAPHICAL INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,335,314 | $ 2,144,019 | $ 2,387,820 | $ 4,530,403 | |
CHINA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 1,335,314 | $ 2,144,019 | 2,387,820 | $ 4,530,403 | |
Long-Lived Assets | $ 23,090,158 | $ 23,090,158 | $ 3,511,640 |
SCHEDULE OF FINANCIAL INSTRUMEN
SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2023 | Jan. 04, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||||||
Derivative liabilities - Fair value of the Warrants | $ 3,900,000 | $ (2,854,595) | $ (1,566,592) | |||
Derivative liabilities - Embedded conversion feature | 1,200,000 | |||||
Total | $ 15,000,000 | 15,000,000 | ||||
Derivative [Member] | ||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||||||
Derivative liabilities - Fair value of the Warrants | 3,858,521 | |||||
Derivative liabilities - Embedded conversion feature | 1,247,500 | |||||
Convertible Note | 9,893,979 | |||||
Total | $ 15,000,000 |
SCHEDULE OF CONVERTIBLE NOTES O
SCHEDULE OF CONVERTIBLE NOTES OBLIGATION (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | ||
Carrying value – beginning balance | $ 8,510,226 | |
Converted to ordinary shares | (813,366) | |
Redemption | (5,687,056) | |
Amortization of debt discount | 423,215 | |
Deferred debt discount and cost of issuance | (20,645) | |
Interest charge | 170,950 | |
Carrying value – ending balance | $ 2,583,324 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | ||
Beginning balance | $ 2,818,563 | |
Marked to the market | (2,550,128) | |
Ending fair value | 268,435 | |
Beginning balance | 1,763,997 | |
Converted to ordinary shares | (339,999) | |
Remeasurement on change of convertible price | 20,645 | |
Redemption | (1,115,627) | |
Marked to the market | (304,467) | |
Ending fair value | 24,549 | |
Total Derivative fair value at end of period | $ 292,984 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jan. 31, 2023 | Jan. 04, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 13, 2023 | Mar. 31, 2023 | |
Proceeds from issuance of convertible debt and warrants | $ 15,000,000 | $ 15,000,000 | ||||||
Convertible note principal | $ 3,000,000 | $ 16,700,000 | $ 7,500,000 | |||||
Debt interest percent | 5% | 2.50% | 2.50% | |||||
Conversion price | $ 3.9287 | $ 1.25 | ||||||
Warrant exercise price | $ 1.25 | $ 1.25 | $ 1.25 | |||||
Fair value of warrant | $ 3,900,000 | $ (2,854,595) | $ (1,566,592) | |||||
Warrants | 268,435 | 268,435 | $ 2,000,000 | |||||
Derivative liabilities, embedded conversion feature | $ 1,200,000 | |||||||
Agent fees | $ 700,000 | |||||||
Warrant term | 5 years | |||||||
Fair value of derivative liability | $ 168,000 | $ 292,984 | $ 292,984 | |||||
Convertible note into ordinary shares | 770 | |||||||
Maximum [Member] | ||||||||
Warrant outstanding | 16,100 | |||||||
Warrant [Member] | ||||||||
Maturity date | Jul. 04, 2024 |
SCHEDULE OF LEASE COST (Details
SCHEDULE OF LEASE COST (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lease Right-of-use Asset And Lease Liabilities | ||||
Operating lease cost | $ 31,363 | $ 876,509 | $ 74,801 | $ 1,821,058 |
Short-term lease cost | 34,493 | 18,971 | 58,050 | 39,416 |
Lease Cost | $ 65,856 | $ 895,480 | $ 132,851 | $ 1,860,474 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Lease Right-of-use Asset And Lease Liabilities | |||||
Operating cash flow from operating leases | $ 65,856 | $ 895,480 | $ 132,851 | $ 1,860,474 | |
Right-of-use assets obtained in exchange for new operating leases liabilities | $ 19,511,181 | $ 19,512,400 | |||
Weighted average remaining lease term - Operating leases (years) | 14 years 10 months 24 days | 1 year 3 months 18 days | 14 years 10 months 24 days | 1 year 3 months 18 days | |
Weighted average discount rate - Operating leases | 4.90% | 4.75% | 4.90% | 4.75% | 4.75% |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY (Details) | Sep. 30, 2023 USD ($) |
Lease Right-of-use Asset And Lease Liabilities | |
2024 | $ 1,104,618 |
2025 | 1,080,821 |
2026 | 987,236 |
2027 | 987,236 |
2028 and there after | 25,877,279 |
Total lease payments | 30,037,190 |
Less: Interest | (10,322,022) |
Total | $ 19,715,168 |
LEASE RIGHT-OF-USE ASSET AND _3
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Details Narrative) | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Weighted average discount rate leases | 4.90% | 4.75% | 4.75% |
Plant and Dormitory [Member] | |||
Lease period | 4 years 6 months | ||
Building [Member] | |||
Lease period | 16 years | ||
Head Office [Member] | |||
Lease period | 5 years |
SCHEDULE OF CONCENTRATION RISKS
SCHEDULE OF CONCENTRATION RISKS (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
Garment Manufacturing Segment [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 86.30% | 82.50% |
Garment Manufacturing Segment [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 10.40% | 9.90% |
Garment Manufacturing Segment [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 3.30% | 3.50% |
Logistics Services Segment [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 21.60% | 11.40% |
Logistics Services Segment [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 13.90% | 10.20% |
Logistics Services Segment [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 9.90% | 14.10% |
Logistics Services Segment [Member] | Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 8.20% | 6.40% |
Logistics Services Segment [Member] | Customer E [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risk | 5.10% | 7.30% |
SCHEDULE OF PURCHASES FROM SUPP
SCHEDULE OF PURCHASES FROM SUPPLIERS (Details) - Five Largest Suppliers [Member] | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Garment Manufacturing Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | ||||
Logistic Services Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | 100% | 100% | 100% | 100% |
Property Management And Subleasing [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of inventory purchase | 100% | 100% | 100% | 100% |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 | Mar. 31, 2023 | |
Concentration Risk [Line Items] | ||||||
Translated exchange rates | 7.25 | 7.25 | 7.25 | 6.87 | ||
Revenue and expenses translated average exchange rates | 7.004 | 6.603 | ||||
Outstanding borrowings | $ 129,785 | ¥ 944,255 | ||||
Minimum [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Interest rate percentage | 4.30% | 4.30% | ||||
Maximum [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Interest rate percentage | 4.90% | 4.90% | ||||
One Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 11% | 0% | ||||
Two Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 23.90% | 23.90% | 0% |