As a lessee

Right-of-use asset and lease liabilities

The Company implemented ASC 842, Leases, on April 1, 2019 using the modified retrospective approach and did not restate comparative periods. Under ASC 842, lease liabilities are recognized at the present value of future lease payments, with a corresponding right-of-use asset recognized for leases other than short-term leases. A single lease cost is recognized over the lease term on a generally straight-line basis. Cash payments for operating leases are classified as operating activities in the consolidated statements of cash flows.

Prior to the disposal of HX on July 1, 2025, the Company leased its head office, plant, and dormitory under operating lease arrangements. The Company also leased several floors in a commercial building for its subleasing and property management services business. Certain leases included options to extend the lease term.

The following table summarizes the components of lease expense:

 SCHEDULE OF LEASE EXPENSES

The following table summarizes supplemental information related to leases:

 SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

As a result of the disposal of HX on July 1, 2025, the Company had no operating lease liabilities as of March 31, 2026.

As a lessor

Prior to the disposal of HX on July 1, 2025, the Company subleased its leased commercial building to third-party garment wholesalers and retailers under operating lease arrangements. These leases were negotiated for terms ranging from one to five years and generally included provisions for annual rental adjustments based on prevailing market conditions.

Rental income from subleasing is disclosed in Note 15, Segment Data.

Following the disposal of HX on July 1, 2025, the Company no longer generates rental income from subleasing activities.