| Discontinued operation |
20. Discontinued operation
In February 2023, the Company entered into a sale
and purchase agreement with Yang Xu and Liqing Zheng (the “acquirer”) to dispose 100% equity interest in Hangzhou Dacheng
and Hangzhou Longyun (collectively, the “disposal group”) at a total consideration of US$1.00. The disposal was completed
on March 31, 2023, the date on which the control of Hangzhou Dacheng and Hangzhou Longyun was passed to the acquirer.
| |
(a) |
Details of the disposal of discontinued operation |
The carrying amounts of assets
and liabilities in relation to the discontinued operation as of March 31, 2023, the date of disposal, were:
| | |
As of
March 31,
2023 | |
| | |
US$ | |
| Assets | |
| |
| Non-current assets | |
| |
| Property and equipment | |
| 204,519 | |
| Right-of-use assets, net | |
| 184,970 | |
| Total non-current assets | |
| 389,489 | |
| | |
| | |
| Current assets | |
| | |
| Other receivables | |
| 95,174 | |
| Cash and cash equivalents | |
| 70,736 | |
| Total current assets | |
| 165,910 | |
| Total assets | |
| 555,399 | |
| | |
| | |
| Liabilities | |
| | |
| Non-current liabilities | |
| | |
| Lease liabilities | |
| (94,313 | ) |
| Total non-current liabilities | |
| (94,313 | ) |
| | |
| | |
| Current liabilities | |
| | |
| Other payables | |
| (612,770 | ) |
| Amount due to related company | |
| (1,892,200 | ) |
| Lease liabilities | |
| (40,652 | ) |
| Total current liabilities | |
| (2,545,622 | ) |
| Total liabilities | |
| (2,639,935 | ) |
| | |
| | |
| Net liabilities of the disposal group | |
| (2,084,536 | ) |
| | (b) | Calculation of gain or loss of the disposal of discontinued operation |
| | |
As of
March 31,
2023 | |
| | |
US$ | |
| Gain on disposal of discontinued operation: | |
| |
| Consideration | |
| 1 | |
| Carrying amount of net liabilities sold | |
| 2,084,536 | |
| Derecognition of non-controlling interests | |
| (569,360 | ) |
| Gain on disposal of discontinued operation | |
| 1,515,177 | |
| | |
For the year
ended
March 31,
2023 | |
| Net cash inflow (outflow) arising on disposal group: | |
US$ | |
| | |
| |
| Net cash used in operating activities | |
| (374,683 | ) |
| Net cash generated from investing activities | |
| 35,548 | |
| Net cash (used in) generated from financing activities | |
| (126,787 | ) |
| Net cash outflow from discontinued operation | |
| (465,922 | ) |
| | (c) | Cash flows from discontinued operation |
| | |
For the year
ended
March 31,
2023 | |
| Net cash outflow arising from the disposal group: | |
US$ | |
| Cash consideration received | |
| — | |
| Cash and cash equivalents | |
| (70,736 | ) |
| Net cash outflow from the disposal group | |
| (70,736 | ) |
| |
(d) |
Financial performance and cash flow information of discontinued operation |
The information related to the consolidated
income statements of profit or loss and comprehensive loss of the disposal group for the years ended March 31, 2025, 2024 and 2023
is presented below:
| | |
For the years ended
March 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
US$ | | |
US$ | | |
US$ | |
| Revenue | |
| — | | |
| — | | |
| 374,409 | |
| | |
| | | |
| | | |
| | |
| Cost of revenue | |
| — | | |
| — | | |
| (270,232 | ) |
| Selling and promotion | |
| — | | |
| — | | |
| (606,081 | ) |
| General and administrative | |
| — | | |
| — | | |
| (607,315 | ) |
| Operating loss | |
| — | | |
| — | | |
| (1,109,219 | ) |
| Other income | |
| — | | |
| — | | |
| 192,168 | |
| Other expense | |
| — | | |
| — | | |
| (8,847,133 | ) |
| Interest income | |
| — | | |
| — | | |
| 999 | |
| Finance costs | |
| — | | |
| — | | |
| — | ) |
| Loss before income tax | |
| — | | |
| — | | |
| (9,763,185 | ) |
| Income tax expenses | |
| — | | |
| — | | |
| (5 | ) |
| Loss for the year from discontinued operation | |
| — | | |
| — | | |
| (9,763,190 | ) |
| | |
| | | |
| | | |
| | |
| Other comprehensive (loss) income | |
| | | |
| | | |
| | |
| Foreign operations – foreign currency translation differences | |
| — | | |
| — | | |
| (919 | ) |
| | |
| — | | |
| — | | |
| | |
| Total comprehensive loss for the year from discontinued operation | |
| — | | |
| — | | |
| (9,764,109 | ) |
| | |
| | | |
| | | |
| | |
| Total comprehensive loss for the year attributable to owners of the Company | |
| | | |
| | | |
| | |
| Total comprehensive loss from discontinued operation | |
| — | | |
| — | | |
| (9,764,109 | ) |
| | |
| | | |
| | | |
| | |
| Total comprehensive loss for the year attributable to non-controlling interests | |
| | | |
| | | |
| | |
| Total comprehensive loss from discontinued operation | |
| — | | |
| — | | |
| — | |
| | |
| | | |
| | | |
| | |
| Total comprehensive loss for the year from discontinued operation | |
| — | | |
| — | | |
| (9,764,109 | ) |
|