Cover
Cover - shares | 3 Months Ended | |
Aug. 31, 2023 | Jul. 10, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Aug. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --05-31 | |
Entity File Number | 000-56425 | |
Entity Registrant Name | CXJ GROUP CO., Limited | |
Entity Central Index Key | 0001823635 | |
Entity Tax Identification Number | 85-2041913 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | C290, DoBe E-Manor | |
Entity Address, Address Line Two | Dongning Road No. 553 | |
Entity Address, Address Line Three | Jianggan District | |
Entity Address, City or Town | Hangzhou City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 310026 | |
City Area Code | (86) | |
Local Phone Number | 18668175727 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 101,710,517 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Aug. 31, 2023 | May 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 710,885 | $ 659,451 |
Accounts receivable | 57,218 | 62,066 |
Prepayments, deposits and other receivables | 467,039 | 571,382 |
Inventories | 75,093 | 127,806 |
Total Current Assets | 1,310,535 | 1,420,705 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 6,057 | 4,342 |
Intangible assets, net | 1,252,874 | 1,312,705 |
Goodwill | 2,792,561 | 2,792,561 |
Operating lease right-of-use assets | 126,514 | 32,358 |
Total Non-current Assets | 4,178,006 | 4,141,966 |
TOTAL ASSETS | 5,488,541 | 5,562,671 |
CURRENT LIABILITIES | ||
Accounts payable | 174,414 | 302,512 |
Advanced received, accrued expenses and other payables | 3,017,631 | 2,486,125 |
Operating lease liabilities, net of current portion | 71,953 | 28,884 |
Total Current Liabilities | 3,539,849 | 3,119,612 |
NON-CURRENT LIABILITIES | ||
Operating lease liabilities, non-current portion | 54,482 | 3,712 |
TOTAL LIABILITIES | 3,594,331 | 3,123,324 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 490,000,000 and 490,000,000 shares authorized, 101,710,517 and 101,710,517 shares issued and outstanding as of August 31, 2023 and May 31, 2023 respectively | 101,711 | 101,711 |
Additional paid-in capital | 5,558,261 | 5,585,421 |
Accumulated other comprehensive income (loss) | 70,051 | 32,350 |
Accumulated deficit | (3,835,813) | (3,307,640) |
Total CXJ Group Stockholders’ Equity | 1,894,210 | 2,411,842 |
Non-controlling interest | 27,505 | |
TOTAL STOCKHOLDERS’ EQUITY | 1,894,210 | 2,439,347 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 5,488,541 | 5,562,671 |
Related Party [Member] | ||
CURRENT ASSETS | ||
Due from related party | 300 | |
CURRENT LIABILITIES | ||
Amount due to related party | 11,252 | |
Director [Member] | ||
CURRENT LIABILITIES | ||
Amount due to related party | $ 275,851 | $ 290,839 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2023 | May 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares issued | 101,710,517 | 101,710,517 |
Common stock, shares outstanding | 101,710,517 | 101,710,517 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income / (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUE | $ 504,517 | $ 982,097 |
COST OF REVENUE | (223,930) | (484,712) |
GROSS PROFIT | 280,587 | 497,385 |
OTHER INCOME | 4,582 | 5,350 |
SELLING AND DISTRIBUTION EXPENSES | (156,563) | (223,543) |
GENERAL AND ADMINISTRATIVE EXPENSES | (634,930) | (227,369) |
(LOSS)/PROFIT FROM OPERATIONS | (506,324) | 51,823 |
INTEREST INCOME | 115 | 351 |
(LOSS)/PROFIT BEFORE INCOME TAX | (506,209) | 52,174 |
INCOME TAXES EXPENSE | (3,898) | |
(LOSS)/PROFIT AFTER TAXATION | (506,209) | 48,276 |
Less: Non-controlling Interest | (3,265) | 14,263 |
(LOSS)/PROFIT ATTRIBUTABLE TO SHAREHOLDERS | (502,944) | 34,013 |
Other comprehensive income/(loss): | ||
- Foreign exchange adjustment income | (37,701) | 40,407 |
COMPREHENSIVE (LOSS)/PROFIT | $ (540,645) | $ 74,420 |
Net loss per share - basic | $ (0.01) | $ 0 |
Net loss per share - diluted | $ (0.01) | $ 0 |
Weighted average number of common shares outstanding - Basic | 101,710,517 | 101,691,082 |
Weighted average number of common shares outstanding - diluted | 101,710,517 | 101,691,082 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at May. 31, 2022 | $ 101,487 | $ 4,031,665 | $ (59,115) | $ (2,169,499) | $ 29,305 | $ 1,933,843 |
Balance, shares at May. 31, 2022 | 101,487,017 | |||||
Common Stock issued | $ 224 | 147,286 | 147,510 | |||
Common Stock issued, shares | 223,500 | |||||
Accumulated other Comprehensive Income | 40,387 | 40,387 | ||||
Net (loss)/profit | 34,013 | 34,013 | ||||
Non-controlling interest | 14,263 | 14,263 | ||||
Balance at Aug. 31, 2022 | $ 101,711 | 4,178,951 | (18,728) | (2,135,486) | 43,568 | 2,170,016 |
Balance, shares at Aug. 31, 2022 | 101,710,517 | |||||
Balance at May. 31, 2023 | $ 101,711 | 5,585,421 | 32,350 | (3,307,640) | 27,505 | 2,439,347 |
Balance, shares at May. 31, 2023 | 101,710,517 | |||||
Common Stock issued | ||||||
Common Stock issued, shares | ||||||
Disposal of Subsidiary | 6,081 | (25,229) | (24,240) | (43,388) | ||
Accumulated other Comprehensive Income | (27,160) | 31,620 | 4,460 | |||
Net (loss)/profit | (502,944) | (502,944) | ||||
Non-controlling interest | (3,265) | (3,265) | ||||
Balance at Aug. 31, 2023 | $ 101,711 | $ 5,558,261 | $ 70,051 | $ (3,835,813) | $ 1,894,210 | |
Balance, shares at Aug. 31, 2023 | 101,710,517 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (Loss)/Profit | $ (506,209) | $ 48,276 |
Adjustments to reconcile net (loss)/profit to net cash provided by/(used in) operating activities | ||
Depreciation and amortization | 488 | 272 |
Amortization of right-of-use assets | 11,164 | 15,884 |
Amortization of intangible assets | 51,266 | |
Changes in operating assets and liabilities: | ||
Accounts receivables | (1,395) | (4,211) |
Prepayments, deposits and other receivables | 81,965 | 45,375 |
Inventories | 6,971 | 195,465 |
Accounts payable | (112,781) | (106,715) |
Advanced received, accrued liabilities and other payable | 580,477 | (1,041,138) |
Operating lease liabilities | (11,483) | (16,640) |
Net cash provided by (used in) operating activities | 100,463 | (863,432) |
CASH FLOWS FROM INVESTING ACTIVITY: | ||
Purchase of property, plant and equipment | (2,301) | (2,969) |
Purchase of intangible assets | (16,495) | |
Disposal of subsidiary, net of cash disposed | (2,804) | |
Net cash used in investing activity | (21,600) | (2,969) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from share issuance | 147,510 | |
Repayment from related party | (300) | (22,255) |
Advances (from)/to directors | (13,904) | 5,000 |
Net cash (used in)/provided by financing activities | (14,204) | 130,255 |
Effect of exchange rate changes on cash and cash equivalents | (13,225) | (10,145) |
Net change in cash and cash equivalents | 51,434 | (746,291) |
Cash and cash equivalents, beginning of year | 659,451 | 827,144 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 710,885 | $ 80,853 |
Company Overview
Company Overview | 3 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Company Overview | Note 1. Company Overview CXJ Group Co., Limited (“we”, “us”, the “Company” or “ECXJ”) was originally incorporated in State of Nevada on August 20, 1998 under the name Global II, Inc and underwent several name changes prior to its current name. Until August 2019, the Company was known as Global Entertainment Corp., which was a dormant company. On March 04, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for the Company, proper notice having been given to the officers and directors of Global Entertainment Corporation. There was no opposition. On June 18, 2019, control of the Company was transferred by the entity controlled by Custodian Ventures, LLC to Xinrui Wang, our director, by selling him 10,000,000 17,700,000 175,000 On June 21, 2019, Lixin Cai was appointed act as the new President, CEO, Secretary and Chairman of the Board of Directors of the Company. On June 21, 2019, Cuiyao Luo was appointed act as the new CFO, Treasurer and Member of the Board of Directors of the Company. On September 30, 2019, the Company appointed three more members to the Board of Directors of the Company, and they are Xinrui Wang, Wenbin Mao and Baiwan Niu. Effective July 9, 2019 we changed our name from Global Entertainment Corp to CXJ Group Co., Limited. On July 12, 2019, the Company effectuated a 1 for 200 reverse stock split 500,000,000 On October 4, 2019, Xinrui Wang (the “Seller”), entered into a Stock Purchase Agreement to pursuant to which the Seller agreed to sell to Wenbin Mao and Baiwan Niu (the “Purchasers”), totaling 1,500,000 1,500 On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 100,000,000 On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited, a British Virgin Islands Corporation (“CXJ”) and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 Effective May 13, 2022, we have appointed Messrs. Tianbing Yang and Rudong Shi as members of our Board of Directors. On June 14, 2022, CXJ Group Co., Limited (“Company”) completed the issuance and sales of an aggregate of 223,500 0.66 0.001 147,510 147,510 On 15 July, 2022, Mr. Wenbin Mao, Mr. Baiwan Niu, Mr. Tianbing Yang and Ms. Cuiyao Luo tendered their resignation for personal reasons and resigned as a member of the Board of the Company with effective from 28 July, 2022. The Board accepted the resignation of Mr. Wenbin Mao, Mr. Baiwan Niu, Mr. Tianbing Yang and Ms. Cuiyao Luo, and expressed sincere gratitude for their service term as a member of the Board. On August 1, 2023, CXJ Technology (Hangzhou) Co., Ltd, a Chinese corporation and a subsidiary of CXJ Group Co., Limited (“the Company”), signed an equity transfer agreement (the “Agreement”) with Mr. Qing Wang. Under this agreement, the Company will dispose 51 1 On August 14, 2023, the Board approved the appointment of Zhen Hui Certified Public Accountant (“Zhen Hui”) as the Company’s new independent registered public accounting firm for the fiscal year ending May 31, 2022 and May 31, 2023 with effective immediately. On May 3, 2024, the Board approved the resignation of Zhen Hui Certified Public Accountant (“Zhen Hui”) as the Company’s independent registered public accounting firm with immediate effective. On May 3, 2024, the Board approved the appointment of J & S Associate Plt (“J & S”) as the Company’s new independent registered public accounting firm for the fiscal year ending May 31, 2024 with effective immediately. ECXJ, through its wholly owned subsidiary, CXJ and its subsidiaries and the VIE own and operate an active automobiles products trading and services business in the People’s Republic of China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies (a) Basis of presentation and liquidation The condensed consolidated balance Sheets as of August 31, 2023 and May 31, 2023 and the condensed consolidated statements of operations and comprehensive income (loss), shareholders’ equity, and cash flow for the three months ended August 31, 2023 and 2022 have been prepared by the Company is in conformity with generally accepted accounting principles in the United States (“US GAAP”). The Company incurred net loss of $ 506,209 48,276 3,835,813 3,307,640 100,463 As of August 31, 2023 and May 31, 2023, the Company had cash and cash equivalents of $ 710,885 659,451 3,539,849 3,119,612 The company is currently seeking to restructure the terms of our liabilities by raising funds to pay off liabilities. Our ability to continue as a going concern is dependant upon obtaining the necessary financing and negotiating the terms of the existing borrowing to meet our current and future liquidity needs. (b) Going Concern Uncertainties The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has an accumulated deficit of $ 3,835,813 3,307,640 506,209 48,276 100,463 863,432 The Company’s cash position is not significant to support the Company’s daily operation. While the Company believes in the viability of its business strategy plans such as cloud chain, wechat’s sales model and duoyin e-commerce sales model, and in its ability to raise additional funds, there can be no assurance to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to improve profitability and the ability to acquire financial support from its major shareholder. These and other factors raise substantial doubts about the Company’s ability to continue as a going concern within one year after the date that financial statements are issued. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amount and classification of liabilities that may result in the Company not being able to continue as a going concern. (c) Principles of Consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE have been eliminated upon consolidation. To comply with PRC laws and regulations, the Company provides trading of motor oil, auto parts, exhaust gas cleaners and brand name management services in China via its VIE, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through this VIE. The Company has signed various agreements with its VIE and legal shareholders of the VIE to allow the transfer of economic benefits from the VIE to the Company and to direct the activities of the VIE. The Company believes that the contractual arrangements among its subsidiaries, the VIE and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIE and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholders’ approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIE were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIE as a result of the aforementioned risks and uncertainties is remote. The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see “Note 4 VIE Structure and Arrangements”. Schedule of Ownership Interest in Subsidiaries Entity Name Date of Incorporation Parent Entity Interest % Nature of Operation Place of Incorporation CXJ Investment Group Company Ltd (BVI CXJ) 2020/2/19 US CXJ 100 Investment holding British Virgin Islands CXJ (HK) Technology Group Company Ltd (HK CXJ) 2020/3/11 BVI CXJ 100 Investment holding Hong Kong, PRC CXJ (Shenzhen) Technology Co., Ltd (SZ CXJ) 2020/5/26 HK CXJ 100 Investment holding PRC VIE: CXJ Technology (Hangzhou) Co., Ltd (HZ CXJ) 2019/3/28 SZ CXJ 100 Trading,brand name management fee and consultancy services PRC Qingdao Hong Run Kuo Ye Network Technology Co., Ltd (QD CXJ) 2019/8/19 HZ CXJ 100 Trading and consultancy services PRC Xishijie Automobile Industry Ecology Technology Co., Ltd (formerly known as Shenzhen Lanbei Ecological Technology Co., Ltd) (SZ Lanbei) 2020/10/28 HZ CXJ 51 Trading and consultancy services PRC Longkou Xianganfu Trading Co., Ltd. (Longkou CXJ) 2018/4/23 SZ CXJ 100 Trading and consultancy services PRC The Company disposed 51 (d) Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with US GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to economic lives and impairment of long-lived assets, valuation allowance for deferred tax assets, and uncertain tax position. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (e) Foreign Currency The functional currency of the Company, CXJ Group Co., Ltd, CXJ Investment Group Company Ltd and CXJ (HK) Technology Group Company Ltd is US Dollar. The VIE determined their functional currency to be Chinese Renminbi, or RMB based on the criteria of ASC 830, Foreign Currency Matters. The Company uses USD as its reporting currency. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. The Company also uses the historical exchange rate at the initial transaction date to translate the capital and various reserve items. Translation differences are recorded in accumulated other comprehensive income (loss), a component of shareholders’ deficits. Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective periods: Schedule of Exchange Rates 2023 2022 As of and for the 2023 2022 Period-end RMB: US$1 exchange rate 7.25 6.89 Period-average RMB: US$1 exchange rate 7.19 6.74 Exchange rate 7.19 6.74 (f) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. (g) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. (h) Inventories, Net Inventories, consist of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. (i) Prepayments Prepayments are mainly consisted of prepaid income tax, rental, prepayments for consulting fee and advances to supplies. (j) Intangible Assets, Net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology and land use right. The Company typically amortizes its purchased software, non-patent technology and land use right with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful Lives. The Company’s policy is to write off 100% of the in-house developed software expenses during the year incurred. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives of purchased software and non-patent technology are as follow: Schedule of Intangible Assets Estimated Useful Lives 10 (k) Impairment of Long-lived Assets Other Than Goodwill The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. (l) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim reporting periods beginning after December 15, 2022 for smaller reporting companies. The Company has early adopted ASU 2017-04 on January 1, 2020. (m) Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, amount due from/to related parties, merchant deposits, payables to merchants. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company applies ASC 820, Fair Value Measurements and Disclosures, (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. (n) Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts Revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. Product Revenue We generate revenue primarily from the sales of motor oil, auto parts and automobile exhaust cleaners directly to customers. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to our customers. Our sales arrangements for automobile exhaust cleaners and auto parts usually require a full prepayment before the delivery of products. We also generate revenue from the sales of auto parts directly to the customers, such as a business or individual engaged in auto parts businesses. We recognize revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of auto parts products, we generally require payment upon issuance of invoices. Service Revenue We also generate revenue from brand name authorization fee and brand name management service under separate contracts. Revenue from brand name authorization and management services include service fees for provision of brand name “teenage hero car” to our customers, and provision of management service. Revenue from the maintenance service to the customers is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the contracting period. (o) Sales and Distribution Expense Selling and distribution expenses amounted to $ 156,563 223,543 63,132 54,022 20,793 (p) General and Administrative Expenses General and administrative expenses amounted to $ 634,930 227,369 56,859 459,198 34,771 16,495 15,235 (q) Operating Leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. (r) Value-added Taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverables if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. (s) Income Taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. British Virgin Island Under the current tax laws of British Virgin Island, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no British Virgin Island withholding tax will be imposed. United States Under the current tax laws of United States, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no United States withholding tax will be imposed. P.R.C China The China Corporate Income Tax Law (“CIT Law”) became effective on January 1, 2008. Under the CIT Law, China’s dual tax system for domestic enterprises and foreign investment enterprises (“FIEs”) was effectively replaced by a unified system. The new law establishes a tax rate of 25 The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended August 31, 2023 and August 31, 2022, respectively: Schedule of Reconciliation PRC Statutory Rates For the three For the three PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25 )% (25 )% The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 % 16.5 % Effective income tax rate 16.5 % 16.5 % Income tax expense for the three months ended August 31, 2023 and August 31, 2022, respectively are as follows: Schedule of Income Tax Expense August 31, 2023 August 31, 2022 For the three months ended August 31, 2023 August 31, 2022 Current - (3,898 ) Deferred Income tax expense/(income) - (3,898 ) (t) Employee Benefit Expenses As stipulated by the regulations of the PRC, full-time employees of the Company are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Company is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. (u) Comprehensive Income (Loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive income (loss) includes net loss and foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss). (v) Loss Per Share Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. (w) Segment Reporting The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one single (x) Recently Issued Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Acquisition
Acquisition | 3 Months Ended |
Aug. 31, 2023 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisition | Note 3. Acquisition On March 28, 2019, Mr. Cai, Lixin (Mr. Cai), the Company’s Chairman of the Board and Chief Executive Officer and Chief Financial Officer, incorporated CXJ Technology (Hangzhou) Co., Ltd (“HZ CXJ”) in Hangzhou, China. Mr. Cai in turn incorporated CXJ Investment Group Company Ltd (“CXJ”), CXJ (HK) Technology Group Company Ltd (“HK CXJ”), and CXJ (Shenzhen) Technology Co., Ltd (“SZ CXJ”) and reorganized these entities with CXJ being a holding entity with the solely shareholder. As a result of the reorganization, CXJ owns 100 100 100 On June 18, 2019, the Company underwent a change of control as a result of the transfer of 10,000,000 17,700,000 On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited (“CXJ”), a British Virgin Islands Corporation and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 The Company accounted for above transaction as a reverse acquisition under ASC Subtopic 805-40, based on the fact that the CXJ is an accounting acquirer and the Company is the accounting acquiree. Meanwhile, the CXJ retrospectively consolidates the Company and as if it had been owned by CXJ since May 28, 2020, the date the Company was acquired by Mr. Lixin Cai, in accordance with ASC Subtopic 805-50. On August 19, 2021, CXJ Technology (Hangzhou) Co., Ltd acquired 51 On June 14, 2022, CXJ Group Co., Limited (“Company”) completed the issuance and sales of an aggregate of 223,500 0.66 0.001 147,510 147,510 On November 4, 2022, CXJ (Shenzhen) Technology Co., Ltd acquired 100 On August 1, 2023, CXJ Technology (Hangzhou) Co., Ltd, a Chinese corporation and a subsidiary of CXJ Group Co., Limited and signed an equity transfer agreement (the “Agreement”) with Mr. Qing Wang. Under this agreement, the Company will dispose 51 |
VIE Structure and Arrangements
VIE Structure and Arrangements | 3 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIE Structure and Arrangements | Note 4. VIE Structure and Arrangements The Company consolidates VIE in which it holds a variable interest and is the primary beneficiary through contractual agreements. The Company is the primary beneficiary because it has the power to direct activities that most significantly affect their economic performance and have the obligation to absorb the majority of their losses or benefits. The results of operations and financial position of the VIE are included in the Company’s consolidated financial statements. In order to operate its business in PRC and to comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provides value-added services, the Company entered into a series of contractual agreements with the VIE: CXJ Technology (Hangzhou) Co., Ltd. (“HZ CXJ”). These contractual agreements may not be terminated by the VIE, except with the consent of, or a material breach by us. Currently, the Company is still evaluating the overall operating strategy for business and does not have plan to provide any funding to the VIE. The key terms of the VIE Agreements are summarized as follows: (a) Exclusive Consulting and Services Agreement The wholly foreign owned enterprise (“WFOE”) has the exclusive right to provide technical service, marketing and management consulting service, financial support service and human resource support services to the VIE, and the VIE is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by WFOE. As compensation for providing the services, WFOE is entitled to receive service fees from the VIE equivalent to the WFOE’s cost plus certain percentage of such costs as calculated on accounting policies generally accepted in the PRC. The WFOE and the VIE agree to periodically review the service fee and make adjustments as deemed appropriate. The term of the Technical Services Agreement is perpetual, and may only be terminated upon written consent of both parties. (b) Equity Pledge Agreement The VIE’s shareholders pledged all of their equity interests in VIE (the “Collateral”) to WFOE, our wholly owned subsidiary in PRC, as security for the performance of the obligations to make all the required technical service fee payments pursuant to the Technical Services Agreement and for performance of the VIEs’ Shareholders’ obligation under the Call Option Agreement. The terms of the Equity Pledge Agreement expire upon satisfaction of all obligations under the Technical Services Agreement and Call Option Agreement. (c) Exclusive Option Agreement The VIEs’ Shareholders granted an exclusive option to WFOE, or its designee, to purchase, at any time and from time to time, to the extent permitted under PRC law, all or any portion of the VIE’s shareholders’ equity in the VIE. The exercise price of the option shall be determined by WFOE at its sole discretion, subject to any restrictions imposed by PRC law. The term of the agreement is until all of the equity interest in the VIE held by the VIEs’. Shareholders are transferred to WFOE, or its designee and may not be terminated by any part to the agreement without consent of the other parties. (d) Power of Attorney The VIE’s shareholders granted WFOE the irrevocable right, for the maximum period permitted by law, all of its voting rights as shareholders of the VIE. The VIE’s shareholders may not transfer any of its equity interest in the VIE to any party other than WFOE. The Power of Attorney agreements may not be terminated except until all of the equity in VIEs has been transferred to WFOE or its designee. |
Shareholders_ Equity
Shareholders’ Equity | 3 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 5. Shareholders’ Equity The Company has 490,000,000 0.001 Effective July 9,2019 we changed our name from Global Entertainment Corp to CXJ Group Co., Limited. On July 12, 2019, the Company effectuated a 1 for 200 reverse stock split 500,000,000 On October 4, 2019, Xinrui Wang (the “Seller”), entered into a Stock Purchase Agreement pursuant to which the Seller agreed to sell to Wenbin Mao and Baiwan Niu (the “Purchasers”), totaling 1,500,000 1,500 On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 100,000,000 On May 28, 2020, we consummated the transactions contemplated by the Share Exchange Agreement among the Company, CXJ Investment Group Company Limited, a British Virgin Islands Corporation (“CXJ”) and the shareholder of CXJ, pursuant to which we acquired all the ordinary shares of CXJ in exchange for the issuance to the shareholder of CXJ of an aggregate of 1,364,800 |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Aug. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 6. Concentration of Risk (a) Major Customers For the three months ended August 31, 2023 and 2022, there was no customers who accounted for 10 (b) Major Suppliers For the three months ended August 31, 2023 and 2022, the vendors who accounted for 10 Schedule of Major Suppliers For The Three Months Ended August 31, For The Three Months Ended August 31, 2023 2022 2023 2022 $ $ % % Foshanshi Yuansheng Blue Sea Automobile Technology Service Co., Ltd 65,326 224,479 29 % 46 % Nanjing Western Oil Co., Ltd - 111,401 - 23 % Linyi Niubang International Trading Co., Ltd - 23,460 - 5 % Wuxi Anruichi Technology Co., Ltd - 8,259 - 2 % Guangzhou Kashide Car Accessories Co., Ltd 9,771 90,309 4 % 19 % Hubei Shuqi New Technology Co., Ltd 173,666 - 78 % - Total 248,763 457,908 111 % 95 % |
Account Receivables, Net
Account Receivables, Net | 3 Months Ended |
Aug. 31, 2023 | |
Credit Loss [Abstract] | |
Account Receivables, Net | Note 7. Account Receivables, Net As of August 31, 2023 and May 31, 2023. our account receivables are $ 57,218 62,066 |
Prepayment, Deposits and Other
Prepayment, Deposits and Other Receivables | 3 Months Ended |
Aug. 31, 2023 | |
Prepayment Deposits And Other Receivables | |
Prepayment, Deposits and Other Receivables | Note 8. Prepayment, Deposits and Other Receivables Prepaid expenses and other receivables consisted of the following at August 31, 2023 and May 31, 2023: Schedule of Prepaid Expenses and Other Receivables As of Increase/ August 31, 2023 May 31, 2023 (Decrease) (unaudited) (audited) $ $ $ Prepayments 428,382 526,638 (98,256 ) Deposits paid 19,246 22,626 (3,380 ) Other receivables 19,411 22,118 (2,707 ) Total 467,039 571,382 (104,343 ) As of August 31, 2023, the prepayment balance $ 428,382 19,246 19,411 As of August 31, 2023 and May 31, 2023, the prepayments, deposits and other receivables are $ 467,039 571,382 104,343 98,256 3,380 2,707 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 9. Property, Plant and Equipment, Net Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three years Property, plant and equipment consisted of the following: Schedule of Property, Plant and Equipment As of As of August 31, 2023 May 31, 2023 (unaudited) audited $ $ Property, Plant and Equipment 8,433 6,150 Less: Accumulated Depreciation (2,244 ) (1,756 ) Foreign translation difference (132 ) (52 ) Total property, plant and equipment, net 6,057 4,342 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 10. Intangible Assets The intangible assets consist of costs incurred to develop the software and purchase costs of copyrights for business operations The in house developed software costs are written off during the year incurred, and the purchase copyrights are amortization over its estimated useful life. During the year, Lixin Cai increased the share capital of HZ CXJ to $ 1,406,470 10,000,000 For the period ended August 31, 2023 and May 31, 2023, the intangible assets balance are $ 1,252,874 1,312,705 34,771 16,495 Intangible assets and related accumulated amortization are as followed: Schedule of Intangible Assets As of As of August 31, 2023 May 31, 2023 (unaudited) audited $ $ Purchased copyrights and software 1,422,829 1,406,470 Less: Accumulated amortization (147,745 ) (96,479 ) Foreign translation difference (22,210 ) 2,714 Total purchased copyrights and software, net 1,252,874 1,312,705 |
Business Combination and Goodwi
Business Combination and Goodwill | 3 Months Ended |
Aug. 31, 2023 | |
Business Combination And Goodwill | |
Business Combination and Goodwill | Note 11 – Business Combination and Goodwill On May 28, 2020, ECXJ completed the acquisition of 100 4,094,453 1,364,800 The determination of fair values involves the use of significant judgment and estimates and in the case of HZ CXJ, this is with specific reference to acquired intangible asset. The judgments used to determine the estimated fair value assigned to assets acquired and liabilities assumed, as well as the intangible asset life and the expected future cash flows and related discount rate, can materially impact the Company’s consolidated financial statements. Significant inputs and assumptions used for the model included the amount and timing of expected future cash flows and discount rate. The Company utilized the assistance of a third-party valuation appraiser to determine the fair value as of the date of acquisition. The purchase price was allocated on the acquisition date of HZ CXJ as follows: Schedule of Purchase Price Allocated on Acquisition As of $ Cash at banks and in hand 15,588 Trade receivables 70,423 Inventory on hand 124,658 Prepayments, other receivables and deposits 2,517,125 Due from a related party 1,282 Due to directors 119,405 Due from a shareholder 51,599 Operating lease right-of-use assets 189,604 Total assets 3,089,684 $ Account Payable (156,955 ) Advanced Receipts (368,777 ) Accrued liabilities, other payable and deposits received (3,007,879 ) Due to a related company (2,000 ) Due to related parties (29,932 ) Due to directors (42 ) Operating lease liabilities, net of current portion (80,882 ) Operating lease liabilities, non current portion (111,779 ) Total liabilities (3,758,246 ) Net tangible liabilities (668,562 ) Goodwill 4,763,015 Total purchase price 4,094,453 $ Consideration in form of shares 4,094,453 Total consideration 4,094,453 The Company’s policy is to perform its annual impairment testing on goodwill for its reporting unit on May 31, of each fiscal year or more frequently if events or changes in circumstances indicate that an impairment may exist. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of CXJHZ to its carrying value. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation appraiser to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. The goodwill value $ 4,763,015 1,970,454 2,792,561 Schedule of Impaired Loss on Goodwill $ Goodwill as of May 31, 2020 4,763,015 Impaired goodwill written off - May 31, 2021 (322,972 ) Goodwill as of May 31, 2021 4,440,043 Impaired goodwill written off - May 31, 2022 (1,006,432 ) Goodwill as of May 31, 2022 3,433,611 Impaired goodwill written off - May 31, 2023 (641,050 ) Goodwill as of May 31, 2023 2,792,561 On August 1, 2023, CXJHZ disposed 51 The purchase price was allocated on the disposal date of Shenzhen Lanbei Ecological Technology Co., Ltd as follow: Schedule of Purchase Price Allocated on Acquisition As of August 1, 2023 $ Cash at banks and in hand 2,804 Trade receivables 5,086 Inventory on hand 43,907 Prepayments, other receivables and deposits 28,993 Operating lease right-of-use assets 4,135 Total assets 84,925 $ Account Payables (10,589 ) Accrued liabilities, other payables and deposits received (15,656 ) Due to a related company (11,157 ) Operating lease liabilities, net of current portion (4,135 ) Total liabilities (41,537 ) Net tangible liabilities 43,388 Share of 49% of non-controlling interest 21,260 51% of equity interest 22,128 Goodwill (22,128 ) Total purchase price - The negative goodwill value $ 22,128 |
Accounts Payable
Accounts Payable | 3 Months Ended |
Aug. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Note 12. Accounts Payable Accounts payable consists of the following: Schedule of Accounts Payable August 31, 2023 May 31, 2023 Increase/(Decrease) As of August 31, 2023 May 31, 2023 Increase/(Decrease) (unaudited) (audited) $ $ $ Accounts Payable 174,414 302,512 (128,098 ) The account payable balance of $ 174,414 |
Advanced Received, Accrued Expe
Advanced Received, Accrued Expenses and Other Payable | 3 Months Ended |
Aug. 31, 2023 | |
Payables and Accruals [Abstract] | |
Advanced Received, Accrued Expenses and Other Payable | Note 13. Advanced Received, Accrued Expenses and Other Payable Schedule of Advanced Received, Accrued Expenses and Other Payable August 31, 2023 May 31, 2023 (Decrease) As of Increase/ August 31, 2023 May 31, 2023 (Decrease) (unaudited) (audited) $ $ $ Advanced Received 2,321,776 1,987,045 334,731 Accrued Expenses 536,231 320,172 216,059 Deposit Received 63,448 64,698 (1,250 ) Other Payable 96,176 114,210 (18,034 ) Total 3,017,631 2,486,125 531,506 Advanced received balance $ 2,321,776 536,231 63,448 96,176 82,759 As of August 31, 2023 and May 31, 2023, the advanced received, accrued expenses and other payable balances are $ 3,017,631 2,486,125 531,506 334,731 216,059 1,250 18,034 Advanced Received Schedule of Advance Received Description Amount ($) Remark Brand name management fees 1,469,965 Amortized brand name management fee as per contracts’ term and period. Sales of goods and services 851,811 Delivery the goods and services as requested by customers. Total 2,321,776 Advanced received $ 2,321,776 1,469,965 851,811 |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Note 14. Related Party Transaction Amounts due from related parties as of August 31, 2023 and May 31, 2023 (as restated) are as follows: Amounts due to related parties Schedule of Related Party Transaction As of Relationship with the August 31,2023 May 31,2023 Company (unaudited) (audited) $ $ Cuiyao Luo CFO & Director 266,334 281,134 Rudong Shi Director 9,517 9,705 Shenzhen BaiWen Enterprise Management Consultancy Co., Ltd Controlled by Directors - 11,252 Total 275,851 302,091 Amounts due from related parties As of Relationship with the August 31,2023 May 31,2023 Company (unaudited) (audited) $ $ New Charles Technology Group Limited Controlled by Director 300 - As of August 31, 2023 Cuiyao Luo advanced $ 266,334 9,517 |
Operating Lease
Operating Lease | 3 Months Ended |
Aug. 31, 2023 | |
Operating Lease | |
Operating Lease | Note 15. Operating Lease The Company has operating leases for its office facilities and warehouse. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The following table provides a summary of leases as of August 31, 2023 and May 31, 2023: Summary of Operating Leases Assets and Liabilities Assets/liabilities Classification August 31, 2023 May 31, 2023 Assets Operating lease right-of-use assets Operating lease assets 126,514 32,358 Liabilities Current Operating lease liability - current Current operating lease liabilities 71,953 28,884 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities 54,482 3,712 Total lease liabilities 126,435 32,596 The operating lease expense for the three months ended August 31, 2023 and 2022 were as follows: Schedule of Operating Lease Expense Three Months Ended August 31, Lease cost Classification 2023 2022 $ $ Operating lease cost General and administrative 11,483 16,847 Maturities of operating lease liabilities as of August 31, 2023 were as follows: Schedule of Maturities of Operating Lease Liabilities Maturity of lease liabilities Operating leases Remaining of 2024 $ 76,277 2024 - 2025 55,789 2026 - 2027 - 2028 - Thereafter - Total lease payments $ 132,066 Less: interest (5,631 ) Present value of lease payments $ 126,435 Maturities of operating lease liabilities as of May 31, 2023, were as follows: Maturity of Lease Liabilities Operating Leases 2024 $ 29,659 2025 3,766 2026 - 2027 - 2028 - Thereafter - Total lease payments $ 33,425 Less: interest (829 ) Present value of lease payments $ 32,596 Supplemental information related to operating leases was as follows: Schedule of Supplemental Information Three Months Ended August 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 11,483 $ 16,640 New operating lease assets obtained in exchange for operating lease liabilities $ 109,943 $ 9,749 Weighted average remaining lease term 0.86 1.28 Weighted average discount rate 4.75 % 4.75 % Amortization expense was $ 11,164 15,883 |
Contingent Liabilities
Contingent Liabilities | 3 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Note 16: Contingent Liabilities A provision of $ 82,759 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 17: Subsequent Event In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the August 31, 2023 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and liquidation | (a) Basis of presentation and liquidation The condensed consolidated balance Sheets as of August 31, 2023 and May 31, 2023 and the condensed consolidated statements of operations and comprehensive income (loss), shareholders’ equity, and cash flow for the three months ended August 31, 2023 and 2022 have been prepared by the Company is in conformity with generally accepted accounting principles in the United States (“US GAAP”). The Company incurred net loss of $ 506,209 48,276 3,835,813 3,307,640 100,463 As of August 31, 2023 and May 31, 2023, the Company had cash and cash equivalents of $ 710,885 659,451 3,539,849 3,119,612 The company is currently seeking to restructure the terms of our liabilities by raising funds to pay off liabilities. Our ability to continue as a going concern is dependant upon obtaining the necessary financing and negotiating the terms of the existing borrowing to meet our current and future liquidity needs. |
Going Concern Uncertainties | (b) Going Concern Uncertainties The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has an accumulated deficit of $ 3,835,813 3,307,640 506,209 48,276 100,463 863,432 The Company’s cash position is not significant to support the Company’s daily operation. While the Company believes in the viability of its business strategy plans such as cloud chain, wechat’s sales model and duoyin e-commerce sales model, and in its ability to raise additional funds, there can be no assurance to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to improve profitability and the ability to acquire financial support from its major shareholder. These and other factors raise substantial doubts about the Company’s ability to continue as a going concern within one year after the date that financial statements are issued. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amount and classification of liabilities that may result in the Company not being able to continue as a going concern. |
Principles of Consolidation | (c) Principles of Consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE have been eliminated upon consolidation. To comply with PRC laws and regulations, the Company provides trading of motor oil, auto parts, exhaust gas cleaners and brand name management services in China via its VIE, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through this VIE. The Company has signed various agreements with its VIE and legal shareholders of the VIE to allow the transfer of economic benefits from the VIE to the Company and to direct the activities of the VIE. The Company believes that the contractual arrangements among its subsidiaries, the VIE and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIE and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIE also depends on the authorization by the shareholders of the VIE to exercise voting rights on all matters requiring shareholders’ approval in the VIE. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIE were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIE as a result of the aforementioned risks and uncertainties is remote. The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see “Note 4 VIE Structure and Arrangements”. Schedule of Ownership Interest in Subsidiaries Entity Name Date of Incorporation Parent Entity Interest % Nature of Operation Place of Incorporation CXJ Investment Group Company Ltd (BVI CXJ) 2020/2/19 US CXJ 100 Investment holding British Virgin Islands CXJ (HK) Technology Group Company Ltd (HK CXJ) 2020/3/11 BVI CXJ 100 Investment holding Hong Kong, PRC CXJ (Shenzhen) Technology Co., Ltd (SZ CXJ) 2020/5/26 HK CXJ 100 Investment holding PRC VIE: CXJ Technology (Hangzhou) Co., Ltd (HZ CXJ) 2019/3/28 SZ CXJ 100 Trading,brand name management fee and consultancy services PRC Qingdao Hong Run Kuo Ye Network Technology Co., Ltd (QD CXJ) 2019/8/19 HZ CXJ 100 Trading and consultancy services PRC Xishijie Automobile Industry Ecology Technology Co., Ltd (formerly known as Shenzhen Lanbei Ecological Technology Co., Ltd) (SZ Lanbei) 2020/10/28 HZ CXJ 51 Trading and consultancy services PRC Longkou Xianganfu Trading Co., Ltd. (Longkou CXJ) 2018/4/23 SZ CXJ 100 Trading and consultancy services PRC The Company disposed 51 |
Use of Estimates | (d) Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with US GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to economic lives and impairment of long-lived assets, valuation allowance for deferred tax assets, and uncertain tax position. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign Currency | (e) Foreign Currency The functional currency of the Company, CXJ Group Co., Ltd, CXJ Investment Group Company Ltd and CXJ (HK) Technology Group Company Ltd is US Dollar. The VIE determined their functional currency to be Chinese Renminbi, or RMB based on the criteria of ASC 830, Foreign Currency Matters. The Company uses USD as its reporting currency. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. The Company also uses the historical exchange rate at the initial transaction date to translate the capital and various reserve items. Translation differences are recorded in accumulated other comprehensive income (loss), a component of shareholders’ deficits. Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective periods: Schedule of Exchange Rates 2023 2022 As of and for the 2023 2022 Period-end RMB: US$1 exchange rate 7.25 6.89 Period-average RMB: US$1 exchange rate 7.19 6.74 Exchange rate 7.19 6.74 |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. |
Accounts Receivable and Allowance for Doubtful Accounts | (g) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Inventories, Net | (h) Inventories, Net Inventories, consist of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. |
Prepayments | (i) Prepayments Prepayments are mainly consisted of prepaid income tax, rental, prepayments for consulting fee and advances to supplies. |
Intangible Assets, Net | (j) Intangible Assets, Net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology and land use right. The Company typically amortizes its purchased software, non-patent technology and land use right with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful Lives. The Company’s policy is to write off 100% of the in-house developed software expenses during the year incurred. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives of purchased software and non-patent technology are as follow: Schedule of Intangible Assets Estimated Useful Lives 10 |
Impairment of Long-lived Assets Other Than Goodwill | (k) Impairment of Long-lived Assets Other Than Goodwill The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. |
Goodwill | (l) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim reporting periods beginning after December 15, 2022 for smaller reporting companies. The Company has early adopted ASU 2017-04 on January 1, 2020. |
Fair Value of Financial Instruments | (m) Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, amount due from/to related parties, merchant deposits, payables to merchants. The carrying values of these financial instruments approximate their fair values due to their short-term maturities. The Company applies ASC 820, Fair Value Measurements and Disclosures, (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Revenue Recognition | (n) Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts Revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. Product Revenue We generate revenue primarily from the sales of motor oil, auto parts and automobile exhaust cleaners directly to customers. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to our customers. Our sales arrangements for automobile exhaust cleaners and auto parts usually require a full prepayment before the delivery of products. We also generate revenue from the sales of auto parts directly to the customers, such as a business or individual engaged in auto parts businesses. We recognize revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of auto parts products, we generally require payment upon issuance of invoices. Service Revenue We also generate revenue from brand name authorization fee and brand name management service under separate contracts. Revenue from brand name authorization and management services include service fees for provision of brand name “teenage hero car” to our customers, and provision of management service. Revenue from the maintenance service to the customers is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the contracting period. |
Sales and Distribution Expense | (o) Sales and Distribution Expense Selling and distribution expenses amounted to $ 156,563 223,543 63,132 54,022 20,793 |
General and Administrative Expenses | (p) General and Administrative Expenses General and administrative expenses amounted to $ 634,930 227,369 56,859 459,198 34,771 16,495 15,235 |
Operating Leases | (q) Operating Leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. |
Value-added Taxes | (r) Value-added Taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverables if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. |
Income Taxes | (s) Income Taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. British Virgin Island Under the current tax laws of British Virgin Island, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no British Virgin Island withholding tax will be imposed. United States Under the current tax laws of United States, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no United States withholding tax will be imposed. P.R.C China The China Corporate Income Tax Law (“CIT Law”) became effective on January 1, 2008. Under the CIT Law, China’s dual tax system for domestic enterprises and foreign investment enterprises (“FIEs”) was effectively replaced by a unified system. The new law establishes a tax rate of 25 The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended August 31, 2023 and August 31, 2022, respectively: Schedule of Reconciliation PRC Statutory Rates For the three For the three PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25 )% (25 )% The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 % 16.5 % Effective income tax rate 16.5 % 16.5 % Income tax expense for the three months ended August 31, 2023 and August 31, 2022, respectively are as follows: Schedule of Income Tax Expense August 31, 2023 August 31, 2022 For the three months ended August 31, 2023 August 31, 2022 Current - (3,898 ) Deferred Income tax expense/(income) - (3,898 ) |
Employee Benefit Expenses | (t) Employee Benefit Expenses As stipulated by the regulations of the PRC, full-time employees of the Company are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Company is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. |
Comprehensive Income (Loss) | (u) Comprehensive Income (Loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive income (loss) includes net loss and foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss). |
Loss Per Share | (v) Loss Per Share Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (w) Segment Reporting The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one single |
Recently Issued Accounting Standards | (x) Recently Issued Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Ownership Interest in Subsidiaries | The following table sets forth its subsidiaries and the VIE, including their country of incorporation or residence and our ownership interest in such subsidiaries. Please see “Note 4 VIE Structure and Arrangements”. Schedule of Ownership Interest in Subsidiaries Entity Name Date of Incorporation Parent Entity Interest % Nature of Operation Place of Incorporation CXJ Investment Group Company Ltd (BVI CXJ) 2020/2/19 US CXJ 100 Investment holding British Virgin Islands CXJ (HK) Technology Group Company Ltd (HK CXJ) 2020/3/11 BVI CXJ 100 Investment holding Hong Kong, PRC CXJ (Shenzhen) Technology Co., Ltd (SZ CXJ) 2020/5/26 HK CXJ 100 Investment holding PRC VIE: CXJ Technology (Hangzhou) Co., Ltd (HZ CXJ) 2019/3/28 SZ CXJ 100 Trading,brand name management fee and consultancy services PRC Qingdao Hong Run Kuo Ye Network Technology Co., Ltd (QD CXJ) 2019/8/19 HZ CXJ 100 Trading and consultancy services PRC Xishijie Automobile Industry Ecology Technology Co., Ltd (formerly known as Shenzhen Lanbei Ecological Technology Co., Ltd) (SZ Lanbei) 2020/10/28 HZ CXJ 51 Trading and consultancy services PRC Longkou Xianganfu Trading Co., Ltd. (Longkou CXJ) 2018/4/23 SZ CXJ 100 Trading and consultancy services PRC |
Schedule of Exchange Rates | Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective periods: Schedule of Exchange Rates 2023 2022 As of and for the 2023 2022 Period-end RMB: US$1 exchange rate 7.25 6.89 Period-average RMB: US$1 exchange rate 7.19 6.74 Exchange rate 7.19 6.74 |
Schedule of Intangible Assets Estimated Useful Lives | The estimated useful lives of purchased software and non-patent technology are as follow: Schedule of Intangible Assets Estimated Useful Lives 10 |
Schedule of Reconciliation PRC Statutory Rates | The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended August 31, 2023 and August 31, 2022, respectively: Schedule of Reconciliation PRC Statutory Rates For the three For the three PRC statutory rate 25 % 25 % Net operating losses for which no deferred tax assets was recognized (25 )% (25 )% The Company’s expense is out of limit than that of PRC statutory tax policy allowed 16.5 % 16.5 % Effective income tax rate 16.5 % 16.5 % |
Schedule of Income Tax Expense | Income tax expense for the three months ended August 31, 2023 and August 31, 2022, respectively are as follows: Schedule of Income Tax Expense August 31, 2023 August 31, 2022 For the three months ended August 31, 2023 August 31, 2022 Current - (3,898 ) Deferred Income tax expense/(income) - (3,898 ) |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Major Suppliers | Schedule of Major Suppliers For The Three Months Ended August 31, For The Three Months Ended August 31, 2023 2022 2023 2022 $ $ % % Foshanshi Yuansheng Blue Sea Automobile Technology Service Co., Ltd 65,326 224,479 29 % 46 % Nanjing Western Oil Co., Ltd - 111,401 - 23 % Linyi Niubang International Trading Co., Ltd - 23,460 - 5 % Wuxi Anruichi Technology Co., Ltd - 8,259 - 2 % Guangzhou Kashide Car Accessories Co., Ltd 9,771 90,309 4 % 19 % Hubei Shuqi New Technology Co., Ltd 173,666 - 78 % - Total 248,763 457,908 111 % 95 % |
Prepayment, Deposits and Othe_2
Prepayment, Deposits and Other Receivables (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Prepayment Deposits And Other Receivables | |
Schedule of Prepaid Expenses and Other Receivables | Prepaid expenses and other receivables consisted of the following at August 31, 2023 and May 31, 2023: Schedule of Prepaid Expenses and Other Receivables As of Increase/ August 31, 2023 May 31, 2023 (Decrease) (unaudited) (audited) $ $ $ Prepayments 428,382 526,638 (98,256 ) Deposits paid 19,246 22,626 (3,380 ) Other receivables 19,411 22,118 (2,707 ) Total 467,039 571,382 (104,343 ) |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: Schedule of Property, Plant and Equipment As of As of August 31, 2023 May 31, 2023 (unaudited) audited $ $ Property, Plant and Equipment 8,433 6,150 Less: Accumulated Depreciation (2,244 ) (1,756 ) Foreign translation difference (132 ) (52 ) Total property, plant and equipment, net 6,057 4,342 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets and related accumulated amortization are as followed: Schedule of Intangible Assets As of As of August 31, 2023 May 31, 2023 (unaudited) audited $ $ Purchased copyrights and software 1,422,829 1,406,470 Less: Accumulated amortization (147,745 ) (96,479 ) Foreign translation difference (22,210 ) 2,714 Total purchased copyrights and software, net 1,252,874 1,312,705 |
Business Combination and Good_2
Business Combination and Goodwill (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Impaired Loss on Goodwill | Schedule of Impaired Loss on Goodwill $ Goodwill as of May 31, 2020 4,763,015 Impaired goodwill written off - May 31, 2021 (322,972 ) Goodwill as of May 31, 2021 4,440,043 Impaired goodwill written off - May 31, 2022 (1,006,432 ) Goodwill as of May 31, 2022 3,433,611 Impaired goodwill written off - May 31, 2023 (641,050 ) Goodwill as of May 31, 2023 2,792,561 |
CXJ Technology Hangzhou Co Ltd [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Purchase Price Allocated on Acquisition | The purchase price was allocated on the acquisition date of HZ CXJ as follows: Schedule of Purchase Price Allocated on Acquisition As of $ Cash at banks and in hand 15,588 Trade receivables 70,423 Inventory on hand 124,658 Prepayments, other receivables and deposits 2,517,125 Due from a related party 1,282 Due to directors 119,405 Due from a shareholder 51,599 Operating lease right-of-use assets 189,604 Total assets 3,089,684 $ Account Payable (156,955 ) Advanced Receipts (368,777 ) Accrued liabilities, other payable and deposits received (3,007,879 ) Due to a related company (2,000 ) Due to related parties (29,932 ) Due to directors (42 ) Operating lease liabilities, net of current portion (80,882 ) Operating lease liabilities, non current portion (111,779 ) Total liabilities (3,758,246 ) Net tangible liabilities (668,562 ) Goodwill 4,763,015 Total purchase price 4,094,453 $ Consideration in form of shares 4,094,453 Total consideration 4,094,453 |
Shenzhen Lanbei Ecological Technology Co Ltd [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Purchase Price Allocated on Acquisition | The purchase price was allocated on the disposal date of Shenzhen Lanbei Ecological Technology Co., Ltd as follow: Schedule of Purchase Price Allocated on Acquisition As of August 1, 2023 $ Cash at banks and in hand 2,804 Trade receivables 5,086 Inventory on hand 43,907 Prepayments, other receivables and deposits 28,993 Operating lease right-of-use assets 4,135 Total assets 84,925 $ Account Payables (10,589 ) Accrued liabilities, other payables and deposits received (15,656 ) Due to a related company (11,157 ) Operating lease liabilities, net of current portion (4,135 ) Total liabilities (41,537 ) Net tangible liabilities 43,388 Share of 49% of non-controlling interest 21,260 51% of equity interest 22,128 Goodwill (22,128 ) Total purchase price - |
Accounts Payable (Tables)
Accounts Payable (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable consists of the following: Schedule of Accounts Payable August 31, 2023 May 31, 2023 Increase/(Decrease) As of August 31, 2023 May 31, 2023 Increase/(Decrease) (unaudited) (audited) $ $ $ Accounts Payable 174,414 302,512 (128,098 ) |
Advanced Received, Accrued Ex_2
Advanced Received, Accrued Expenses and Other Payable (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Advanced Received, Accrued Expenses and Other Payable | Schedule of Advanced Received, Accrued Expenses and Other Payable August 31, 2023 May 31, 2023 (Decrease) As of Increase/ August 31, 2023 May 31, 2023 (Decrease) (unaudited) (audited) $ $ $ Advanced Received 2,321,776 1,987,045 334,731 Accrued Expenses 536,231 320,172 216,059 Deposit Received 63,448 64,698 (1,250 ) Other Payable 96,176 114,210 (18,034 ) Total 3,017,631 2,486,125 531,506 |
Schedule of Advance Received | Advanced Received Schedule of Advance Received Description Amount ($) Remark Brand name management fees 1,469,965 Amortized brand name management fee as per contracts’ term and period. Sales of goods and services 851,811 Delivery the goods and services as requested by customers. Total 2,321,776 |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction | Schedule of Related Party Transaction As of Relationship with the August 31,2023 May 31,2023 Company (unaudited) (audited) $ $ Cuiyao Luo CFO & Director 266,334 281,134 Rudong Shi Director 9,517 9,705 Shenzhen BaiWen Enterprise Management Consultancy Co., Ltd Controlled by Directors - 11,252 Total 275,851 302,091 Amounts due from related parties As of Relationship with the August 31,2023 May 31,2023 Company (unaudited) (audited) $ $ New Charles Technology Group Limited Controlled by Director 300 - |
Operating Lease (Tables)
Operating Lease (Tables) | 3 Months Ended |
Aug. 31, 2023 | |
Operating Lease | |
Summary of Operating Leases Assets and Liabilities | The following table provides a summary of leases as of August 31, 2023 and May 31, 2023: Summary of Operating Leases Assets and Liabilities Assets/liabilities Classification August 31, 2023 May 31, 2023 Assets Operating lease right-of-use assets Operating lease assets 126,514 32,358 Liabilities Current Operating lease liability - current Current operating lease liabilities 71,953 28,884 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities 54,482 3,712 Total lease liabilities 126,435 32,596 |
Schedule of Operating Lease Expense | The operating lease expense for the three months ended August 31, 2023 and 2022 were as follows: Schedule of Operating Lease Expense Three Months Ended August 31, Lease cost Classification 2023 2022 $ $ Operating lease cost General and administrative 11,483 16,847 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of August 31, 2023 were as follows: Schedule of Maturities of Operating Lease Liabilities Maturity of lease liabilities Operating leases Remaining of 2024 $ 76,277 2024 - 2025 55,789 2026 - 2027 - 2028 - Thereafter - Total lease payments $ 132,066 Less: interest (5,631 ) Present value of lease payments $ 126,435 Maturities of operating lease liabilities as of May 31, 2023, were as follows: Maturity of Lease Liabilities Operating Leases 2024 $ 29,659 2025 3,766 2026 - 2027 - 2028 - Thereafter - Total lease payments $ 33,425 Less: interest (829 ) Present value of lease payments $ 32,596 |
Schedule of Supplemental Information | Supplemental information related to operating leases was as follows: Schedule of Supplemental Information Three Months Ended August 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 11,483 $ 16,640 New operating lease assets obtained in exchange for operating lease liabilities $ 109,943 $ 9,749 Weighted average remaining lease term 0.86 1.28 Weighted average discount rate 4.75 % 4.75 % |
Company Overview (Details Narra
Company Overview (Details Narrative) | 3 Months Ended | |||||||||
Aug. 01, 2023 CNY (¥) | Jun. 14, 2022 USD ($) $ / shares shares | May 28, 2020 shares | Oct. 08, 2019 shares | Oct. 04, 2019 USD ($) shares | Jul. 12, 2019 shares | Jun. 18, 2019 USD ($) shares | Aug. 31, 2023 USD ($) $ / shares shares | Aug. 31, 2022 USD ($) shares | May 31, 2023 $ / shares shares | |
Value of stock sold | $ | $ 147,510 | |||||||||
Reverse stock split | 1 for 200 reverse stock split | |||||||||
Preferred stock, shares authorized | 500,000,000 | |||||||||
Common stock, shares authorized | 500,000,000 | 490,000,000 | 490,000,000 | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Net proceeds | $ | $ 147,510 | |||||||||
Xishijie Automobile Industry Ecological Technology Co Ltd [Member] | ||||||||||
Equity interest | 51% | 51% | ||||||||
Purhcase price of equity interest | ¥ | ¥ 1 | |||||||||
Share Exchange Agreement [Member] | ||||||||||
Issuance of shares | 1,364,800 | |||||||||
Common Stock [Member] | ||||||||||
Issuance of shares | 223,500 | |||||||||
Value of stock sold | $ | $ 224 | |||||||||
Common Stock [Member] | Minaggang Qian [Member] | ||||||||||
Issuance of shares | 223,500 | |||||||||
Share price | $ / shares | $ 0.66 | |||||||||
Common stock, par value | $ / shares | $ 0.001 | |||||||||
Net proceeds | $ | $ 147,510 | |||||||||
Proceeds used as working capital | $ | $ 147,510 | |||||||||
Xinrui Wang [Member] | ||||||||||
Value of stock sold | $ | $ 175,000 | |||||||||
Xinrui Wang [Member] | Common Stock [Member] | ||||||||||
Issuance of shares | 17,700,000 | |||||||||
Wenbin Mao and Baiwan Niu [Member] | Stock Purchase Agreement [Member] | ||||||||||
Sale of stock | 1,500,000 | |||||||||
Wenbin Mao and Baiwan Niu [Member] | Preferred Stock [Member] | Stock Purchase Agreement [Member] | ||||||||||
Value of stock sold | $ | $ 1,500 | |||||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | ||||||||||
Conversion of Stock, Description | On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019 | |||||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | Common Stock [Member] | ||||||||||
Conversion of stock, shares issued upon conversion | 100,000,000 | |||||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | Preferred Stock [Member] | ||||||||||
Conversion of stock, shares converted | 10,000,000 | |||||||||
Series A Preferred Stock [Member] | Xinrui Wang [Member] | ||||||||||
Issuance of shares | 10,000,000 |
Schedule of Ownership Interest
Schedule of Ownership Interest in Subsidiaries (Details) | 3 Months Ended | |||
Aug. 31, 2023 | Aug. 01, 2023 | Nov. 04, 2022 | Mar. 28, 2019 | |
CXJ Investment Group Company Ltd [Member] | ||||
Date of incorporation | Feb. 19, 2020 | |||
Interest percentage | 100% | 100% | ||
Nature of operation | Investment holding | |||
Place of incorporation | British Virgin Islands | |||
CXJ Technology Group Company Ltd [Member] | ||||
Date of incorporation | Mar. 11, 2020 | |||
Interest percentage | 100% | |||
Nature of operation | Investment holding | |||
Place of incorporation | Hong Kong, PRC | |||
CXJ Technology Co Ltd [Member] | ||||
Date of incorporation | May 26, 2020 | |||
Interest percentage | 100% | |||
Nature of operation | Investment holding | |||
Place of incorporation | PRC | |||
CXJ Technology Co Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Date of incorporation | Mar. 28, 2019 | |||
Interest percentage | 100% | |||
Nature of operation | Trading,brand name management fee and consultancy services | |||
Place of incorporation | PRC | |||
Qingdao Hong Run Kuo Yr Network Technology Co Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Date of incorporation | Aug. 19, 2019 | |||
Interest percentage | 100% | |||
Nature of operation | Trading and consultancy services | |||
Place of incorporation | PRC | |||
Xishijie Automobile Industry Ecological Technology Co Ltd [Member] | ||||
Interest percentage | 51% | 51% | ||
Xishijie Automobile Industry Ecological Technology Co Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Date of incorporation | Oct. 28, 2020 | |||
Interest percentage | 51% | |||
Nature of operation | Trading and consultancy services | |||
Place of incorporation | PRC | |||
Longkou Xianganfu Trading Co Ltd [Member] | ||||
Interest percentage | 100% | |||
Longkou Xianganfu Trading Co Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Date of incorporation | Apr. 23, 2018 | |||
Interest percentage | 100% | |||
Nature of operation | Trading and consultancy services | |||
Place of incorporation | PRC |
Schedule of Exchange Rates (Det
Schedule of Exchange Rates (Details) | Aug. 31, 2023 | Aug. 31, 2022 |
Period End Chinese Yuan Renminbi [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exchange rate | 7.25 | 6.89 |
Period Average Chinese Yuan Renminbi [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exchange rate | 7.19 | 6.74 |
Schedule of Intangible Assets E
Schedule of Intangible Assets Estimated Useful Lives (Details) | Aug. 31, 2023 |
Purchased Software and Copyrights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset estimated useful lives | 10 years |
Schedule of Reconciliation PRC
Schedule of Reconciliation PRC Statutory Rates (Details) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Accounting Policies [Abstract] | ||
PRC statutory rate | 25% | 25% |
Net operating losses for which no deferred tax assets was recognized | (25.00%) | (25.00%) |
The Company’s expense is out of limit than that of PRC statutory tax policy allowed | 16.50% | 16.50% |
Effective income tax rate | 16.50% | 16.50% |
Schedule of Income Tax Expense
Schedule of Income Tax Expense (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Accounting Policies [Abstract] | ||
Current | $ (3,898) | |
Income tax expense/(income) | $ (3,898) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | |||
Aug. 31, 2023 USD ($) Segment | Aug. 31, 2022 USD ($) | Aug. 01, 2023 | May 31, 2023 USD ($) | |
Net profit | $ (506,209) | $ 48,276 | ||
Accumulated deficit | 3,835,813 | $ 3,307,640 | ||
Net cash outflow | 100,463 | (863,432) | ||
Cash and cash equivalents | 710,885 | 659,451 | ||
Current liability | 3,539,849 | $ 3,119,612 | ||
Selling and distribution expenses | 156,563 | 223,543 | ||
General and administrative expenses | 634,930 | 227,369 | ||
Amortization of intangible assets | 51,266 | |||
Software development cost write off | $ 16,495 | |||
Value added taxes description | The VAT is based on gross sales price and VAT rates applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverables if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. | |||
Foreign income tax rate | 25% | |||
Number of reportable segments | Segment | 1 | |||
Number of operating segments | Segment | 1 | |||
Selling and Marketing Expense [Member] | ||||
Salary expense | $ 63,132 | |||
Advertising expense | 54,022 | |||
Sale related consultancy expense | 20,793 | |||
General and Administrative Expense [Member] | ||||
Salary | 56,859 | |||
Consultancy fees | 459,198 | |||
Amortization of intangible assets | 34,771 | |||
Software development cost write off | 16,495 | |||
Rental expenses | $ 15,235 | |||
Xishijie Automobile Industry Ecological Technology Co Ltd [Member] | ||||
Interest | 51% | 51% |
Acquisition (Details Narrative)
Acquisition (Details Narrative) - USD ($) | 3 Months Ended | |||||||||
Jun. 14, 2022 | May 28, 2020 | Jun. 18, 2019 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 01, 2023 | May 31, 2023 | Nov. 04, 2022 | Aug. 19, 2021 | Mar. 28, 2019 | |
Business Acquisition [Line Items] | ||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||
Net proceeds | $ 147,510 | |||||||||
Share Exchange Agreement [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of shares | 1,364,800 | |||||||||
Common Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of shares | 223,500 | |||||||||
Common Stock [Member] | Minaggang Qian [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of shares | 223,500 | |||||||||
Share price | $ 0.66 | |||||||||
Common stock, par value | $ 0.001 | |||||||||
Net proceeds | $ 147,510 | |||||||||
Proceeds used as working capital | $ 147,510 | |||||||||
Xinrui Wang [Member] | Common Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of shares | 17,700,000 | |||||||||
Series A Preferred Stock [Member] | Xinrui Wang [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Issuance of shares | 10,000,000 | |||||||||
CXJ Investment Group Company Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 100% | 100% | ||||||||
CXJ HK Technology Group Company Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 100% | |||||||||
CXJ Shenzhen Technology Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 100% | |||||||||
Shenzhen Lanbei Ecological Technology Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 51% | |||||||||
Longkou Xianganfu Trading Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 100% | |||||||||
Xishijie Automobile Industry Ecological Technology Co Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest | 51% | 51% |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | ||||||
May 28, 2020 | Oct. 08, 2019 | Oct. 04, 2019 | Jul. 12, 2019 | Aug. 31, 2023 | Aug. 31, 2022 | May 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, authorized | 500,000,000 | 490,000,000 | 490,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||
Reverse stock split | 1 for 200 reverse stock split | ||||||
Shares authorized | 500,000,000 | ||||||
Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Number of shares issued | 223,500 | ||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock conversion description | On October 8, 2019, Xinrui Wang, Wenbin Mao and Baiwan Niu effectuated a 1 for 10 conversion to convert all their preferred stock totaling 10,000,000 to 100,000,000 common shares. As a result of the conversion, there was no preferred stock outstanding of the Company as of October 8, 2019 | ||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | Preferred Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Conversion of stock, shares converted | 10,000,000 | ||||||
Xinrui Wang Wenbin Mao and Baiwan Niu [Member] | Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Conversion of stock, shares issued upon conversion | 100,000,000 | ||||||
Stock Purchase Agreement [Member] | Wenbin Mao and Baiwan Niu [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Sale of stock transaction | 1,500,000 | ||||||
Sale of stock, consideration received on transaction | $ 1,500 | ||||||
Share Exchange Agreement [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Number of shares issued | 1,364,800 |
Schedule of Major Suppliers (De
Schedule of Major Suppliers (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Concentration Risk [Line Items] | ||
Revenues | $ 223,930 | $ 484,712 |
Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | Suppliers [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 248,763 | $ 457,908 |
Concentration of credit risk, percentage | 111% | 95% |
Foshanshi Yuansheng Blue Sea Automobile Technology Service Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 65,326 | $ 224,479 |
Concentration of credit risk, percentage | 29% | 46% |
Nanjing Western Oil Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 111,401 | |
Concentration of credit risk, percentage | 23% | |
Linyi Niubang International Trading Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 23,460 | |
Concentration of credit risk, percentage | 5% | |
Wuxi Anruichi Techonology Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 8,259 | |
Concentration of credit risk, percentage | 2% | |
Guangzhou Kashide Car Accessories Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 9,771 | $ 90,309 |
Concentration of credit risk, percentage | 4% | 19% |
Hubei Shuqi New Technology Co Ltd [Member] | Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 173,666 | |
Concentration of credit risk, percentage | 78% |
Concentration of Risk (Details
Concentration of Risk (Details Narrative) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customers [Member] | ||
Concentration Risk [Line Items] | ||
Revenue percentage | 10% | 10% |
Cost of Goods and Service, Segment Benchmark [Member] | Supplier Concentration Risk [Member] | Vendors [Member] | ||
Concentration Risk [Line Items] | ||
Revenue percentage | 10% | 10% |
Account Receivables, Net (Detai
Account Receivables, Net (Details Narrative) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Credit Loss [Abstract] | ||
Account receivables | $ 57,218 | $ 62,066 |
Schedule of Prepaid Expenses an
Schedule of Prepaid Expenses and Other Receivables (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Prepayment Deposits And Other Receivables | ||
Prepayments | $ 428,382 | $ 526,638 |
Increase/ (Decrease) in Prepayments | (98,256) | |
Deposits paid | 19,246 | 22,626 |
Increase/ (Decrease) in Deposit paid | (3,380) | |
Other receivables | 19,411 | 22,118 |
Increase/ (Decrease) in Other receivables | (2,707) | |
Total | 467,039 | $ 571,382 |
Increase/ (Decrease) in Prepaid expenses and other receivables | $ (104,343) |
Prepayment, Deposits and Othe_3
Prepayment, Deposits and Other Receivables (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Prepayments | $ 428,382 | $ 526,638 |
Deposits paid | 19,246 | 22,626 |
Other receivables | 19,411 | 22,118 |
Prepayments, deposits paid and other receivables | 467,039 | $ 571,382 |
Increase decrease in prepayments, deposits paid and other receivables | (104,343) | |
Prepayments | 98,256 | |
Deposits paid | 3,380 | |
Other receviables | 2,707 | |
Revision of Prior Period, Adjustment [Member] | ||
Increase decrease in prepayments, deposits paid and other receivables | $ 104,343 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment | $ 8,433 | $ 6,150 |
Less: Accumulated Depreciation | (2,244) | (1,756) |
Foreign translation difference | (132) | (52) |
Total property, plant and equipment, net | $ 6,057 | $ 4,342 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details Narrative) | Aug. 31, 2023 |
Property, Plant and Equipment [Abstract] | |
Property plant and equipment, useful lives | 3 years |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Purchased copyrights and software | $ 1,422,829 | $ 1,406,470 |
Less: Accumulated amortization | (147,745) | (96,479) |
Foreign translation difference | (22,210) | 2,714 |
Total purchased copyrights and software, net | $ 1,252,874 | $ 1,312,705 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 3 Months Ended | ||
Aug. 31, 2023 USD ($) | Aug. 31, 2023 CNY (¥) | May 31, 2023 USD ($) | |
Balance of intangible asset | $ 1,252,874 | $ 1,312,705 | |
Amortization of intangible assets | 34,771 | ||
Software development cost write off | 16,495 | ||
CXJ Technology Hangzhou Co Ltd [Member] | |||
Increased share capital | $ 1,406,470 | ¥ 10,000,000 |
Schedule of Purchase Price Allo
Schedule of Purchase Price Allocated on Acquisition (Details) - USD ($) | May 28, 2020 | Aug. 31, 2023 | Aug. 01, 2023 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 |
Restructuring Cost and Reserve [Line Items] | |||||||
Goodwill | $ 2,792,561 | $ 2,792,561 | $ 3,433,611 | $ 4,440,043 | $ 4,763,015 | ||
CXJ Technology Hangzhou Co Ltd [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash at banks and in hand | $ 15,588 | ||||||
Trade receivables | 70,423 | ||||||
Inventory on hand | 124,658 | ||||||
Prepayments, other receivables and deposits | 2,517,125 | ||||||
Due from a related party | 1,282 | ||||||
Due to directors | 119,405 | ||||||
Due from a shareholder | 51,599 | ||||||
Operating lease right-of-use assets | 189,604 | ||||||
Total assets | 3,089,684 | ||||||
Account Payables | (156,955) | ||||||
Advanced Receipts | (368,777) | ||||||
Accrued liabilities, other payables and deposits received | (3,007,879) | ||||||
Due to a related company | (2,000) | ||||||
Due to related parties | (29,932) | ||||||
Due to directors | (42) | ||||||
Operating lease liabilities, net of current portion | (80,882) | ||||||
Operating lease liabilities, non current portion | (111,779) | ||||||
Total liabilities | (3,758,246) | ||||||
Net tangible liabilities | (668,562) | ||||||
Goodwill | 4,763,015 | ||||||
Net tangible liabilities | 4,094,453 | ||||||
Consideration in form of shares | 4,094,453 | ||||||
Total consideration | $ 4,094,453 | ||||||
Shenzhen Lanbei Ecological Technology Co Ltd [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash at banks and in hand | $ 2,804 | ||||||
Trade receivables | 5,086 | ||||||
Inventory on hand | 43,907 | ||||||
Prepayments, other receivables and deposits | 28,993 | ||||||
Operating lease right-of-use assets | 4,135 | ||||||
Total assets | 84,925 | ||||||
Account Payables | (10,589) | ||||||
Accrued liabilities, other payables and deposits received | (15,656) | ||||||
Due to a related company | (11,157) | ||||||
Operating lease liabilities, net of current portion | (4,135) | ||||||
Total liabilities | (41,537) | ||||||
Goodwill | $ 22,128 | 22,128 | |||||
Net tangible liabilities | 43,388 | ||||||
Share of 49% of non-controlling interest | 21,260 | ||||||
51% of equity interest | 22,128 | ||||||
Total purchase price |
Schedule of Impaired Loss on Go
Schedule of Impaired Loss on Goodwill (Details) - USD ($) | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Business Combination And Goodwill | |||
Goodwill as of May 31, 2022 | $ 3,433,611 | $ 4,440,043 | $ 4,763,015 |
Impaired goodwill written off - May 31, 2023 | (641,050) | (1,006,432) | (322,972) |
Goodwill as of May 31, 2023 | $ 2,792,561 | $ 3,433,611 | $ 4,440,043 |
Business Combination and Good_3
Business Combination and Goodwill (Details Narrative) - USD ($) | May 28, 2020 | Aug. 31, 2023 | Aug. 01, 2023 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 |
Restructuring Cost and Reserve [Line Items] | |||||||
Goodwill | $ 2,792,561 | $ 2,792,561 | $ 3,433,611 | $ 4,440,043 | $ 4,763,015 | ||
Impairment loss on goodwill | $ 1,970,454 | ||||||
CXJ Technology Hangzhou Co Ltd [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Percentage of equity interest acquired | 100% | ||||||
Purchase consideration | $ 4,094,453 | ||||||
Shares issued in acquisition | 1,364,800 | ||||||
Goodwill | $ 4,763,015 | ||||||
Shenzhen Lanbei Ecological Technology Co Ltd [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Percentage of equity interest acquired | 51% | ||||||
Goodwill | $ 22,128 | $ 22,128 |
Schedule of Accounts Payable (D
Schedule of Accounts Payable (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Payables and Accruals [Abstract] | ||
Accounts Payable | $ 174,414 | $ 302,512 |
Increase/ (Decrease) in Accounts Payable | $ (128,098) |
Schedule of Advanced Received,
Schedule of Advanced Received, Accrued Expenses and Other Payable (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Payables and Accruals [Abstract] | ||
Advanced Received | $ 2,321,776 | $ 1,987,045 |
Increase/ (Decrease) in Advanced Received | 334,731 | |
Accrued Expenses | 536,231 | 320,172 |
Increase/ (Decrease) in Accrued Expenses | 216,059 | |
Deposit Received | 63,448 | 64,698 |
Increase/ (Decrease) in Deposit Received | (1,250) | |
Other Payable | 96,176 | 114,210 |
Increase/ (Decrease) in Other Payable | (18,034) | |
Total | 3,017,631 | $ 2,486,125 |
Increase/ (Decrease) Total | $ 531,506 |
Accounts Payable (Details Narra
Accounts Payable (Details Narrative) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 174,414 | $ 302,512 |
Schedule of Advance Received (D
Schedule of Advance Received (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Advanced Received Total | $ 2,321,776 | $ 1,987,045 |
Brand Name Management Fees [Member] | ||
Advanced Received Total | 1,469,965 | |
Sales of Goods and Services [Member] | ||
Advanced Received Total | $ 851,811 |
Advanced Received, Accrued Ex_3
Advanced Received, Accrued Expenses and Other Payable (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | May 31, 2023 | |
Brand name management fees customer | $ 2,321,776 | $ 1,987,045 |
Accrued expenses | 536,231 | 320,172 |
Deposit received | 63,448 | 64,698 |
Other payable | 96,176 | 114,210 |
Advanced received, accrued expenses and other payable | 3,017,631 | $ 2,486,125 |
Decrease in advanced received, accrued expenses and other payable | 531,506 | |
Decrease in advanced received | 334,731 | |
Increase/ (Decrease) in Accrued Expenses | 216,059 | |
Increase decrease in deposit received | 1,250 | |
Increase decrease in other payable | 18,034 | |
Brand Name Management Fees [Member] | ||
Brand name management fees customer | 1,469,965 | |
Sales of Goods and Services [Member] | ||
Brand name management fees customer | 851,811 | |
Customer [Member] | ||
Other payable | $ 82,759 |
Schedule of Related Party Trans
Schedule of Related Party Transaction (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 19,411 | $ 22,118 |
Cuiyao Luo [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 266,334 | 281,134 |
Rudong Shi [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 9,517 | 9,705 |
Shenzhen Bai Wen Enterprise Management Consultancy Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 11,252 | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 275,851 | 302,091 |
New Charles Technology Group Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related parties | $ 300 |
Related Party Transaction (Deta
Related Party Transaction (Details Narrative) | Aug. 31, 2023 USD ($) |
Cuiyao Luo [Member] | |
Related Party Transaction [Line Items] | |
Amounts due to related parties | $ 266,334 |
Rudong Shi [Member] | |
Related Party Transaction [Line Items] | |
Amounts due to related parties | $ 9,517 |
Summary of Operating Leases Ass
Summary of Operating Leases Assets and Liabilities (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Operating Lease | ||
Operating lease right-of-use assets | $ 126,514 | $ 32,358 |
Operating lease liability - current | 71,953 | 28,884 |
Operating lease liability – net of current portion | 54,482 | 3,712 |
Total lease liabilities | $ 126,435 | $ 32,596 |
Schedule of Operating Lease Exp
Schedule of Operating Lease Expense (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Operating Lease | ||
Operating lease cost | $ 11,483 | $ 16,847 |
Schedule of Maturities of Opera
Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) | Aug. 31, 2023 | May 31, 2023 |
Operating Lease | ||
Remaining of 2024 | $ 76,277 | |
2024 | $ 29,659 | |
2025 | 55,789 | 3,766 |
2026 | ||
2027 | ||
2028 | ||
Thereafter | ||
Total lease payments | 132,066 | 33,425 |
Less: interest | (5,631) | (829) |
Present value of lease payments | $ 126,435 | $ 32,596 |
Schedule of Supplemental Inform
Schedule of Supplemental Information (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Operating Lease | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 11,483 | $ 16,640 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 109,943 | $ 9,749 |
Weighted average remaining lease term (in years) | 10 months 9 days | 1 year 3 months 10 days |
Weighted average discount rate | 4.75% | 4.75% |
Operating Lease (Details Narrat
Operating Lease (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Operating Lease | ||
Amortization expense | $ 11,164 | $ 15,883 |
Contingent Liabilities (Details
Contingent Liabilities (Details Narrative) | 3 Months Ended |
Aug. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Provision for business dispute | $ 82,759 |