The Company disposed of its subsidiary Dongguan Aotesi Garments Co., Ltd., (“AOT”) a PRC company, a manufacturing company in the garment manufacturing segment, in May 2025 to the local management of AOT. After the disposition, AOT became a third party to the Company. The Company does not conduct any business with AOT. The Company carries on the garment manufacturing segment business through other subsidiaries. The disposition of AOT did not qualify as discontinued operations.

The consideration was $13,829, resulting in a loss of $12,137 recognized on the disposal. The difference between AOT’s net assets of $26,179 and the consideration received was $12,350, which was reduced by the related foreign currency translation difference of $213.

The Company disposed of its subsidiary Dongguan Hongxiang Commercial Co., Ltd., (“HX”) a PRC company, a company engaged in property management and subleasing business, on July 1, 2025 to the local management of HX. After the disposition, HX became a third party to the Company. The Company does not conduct any business with HX. The Company no longer carries on the property management and subleasing business through HX or any other subsidiary. The disposition of HX qualified as discontinued operations.

Financial position of HX at disposal date and gain on disposal:

Property management Segment

Financial position of HX	July 1, 2025, date of disposal
Current assets	$	1,227,389
Noncurrent assets		354,622
Current liabilities		(1,588,983	)
Net liabilities	$	(6,972	)

The consideration was $13,829, resulting in a gain of $20,801 recognized on the disposal.

Disposition of YBY

The Company disposed of its subsidiary Shantou Yi Bai Yi Garment Co., Ltd, a PRC Company (“YBY”), a manufacturing company in garment manufacturing segment at end of August 2024 to the local management of YBY. After disposition, YBY became third party to the Company. The Company does not conduct any businesses with YBY. The Company carries on the garment manufacturing segment business through other subsidiaries. The disposition of YBY did not qualify as discontinued operations.

Financial position of the entities at disposal date and gain or loss on disposal:

Garment Manufacturing Segment

Financial position of YBY	August 31, 2024, date of disposal
Current assets	$	1,165,329
Noncurrent assets		134
Current liabilities		(863,205	)
Net assets	$	302,258

The consideration was Nil, with the reversal of related foreign currency translation reserve brought forward, resulting in a loss of $334,135 recognized on the disposal. The difference between YBY’s net assets of $302,258 and the consideration received was $302,258, which was increased by the related foreign currency translation difference of $31,877.