The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which are 6.91 and 7.26 at March 31, 2026 and March 31, 2025, respectively. Revenue and expenses are translated at the average yearly exchange rates, which are 7.10 and 7.22 for the two years ended March 31, 2026 and 2025, respectively. The equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity.

The following are the percentages of accounts receivable balance of the top five customers over accounts receivable for each segment as of March 31, 2026 and 2025.

Garment manufacturing segment

 SCHEDULE OF CONCENTRATION RISKS

The high concentration as of March 31, 2026 was mainly due to business development of a large distributor of garments.

Logistics services segment

Consulting services segment

The Company did not generate consulting service revenue during the year ended March 31, 2025 and had no accounts receivable for the consulting service segment as of March 31, 2025.

Property management and subleasing

There was no account receivable for Property management and subleasing segment as of March 31, 2026 and 2025.

Concentration on customers

For the year ended March 31, 2026, four customers accounted for more than 10% of total consolidated revenue of the Company, representing approximately 21.0%, 13.7%, 12.4% and 10.6% of total consolidated revenue, respectively. These customers were from the consulting service segment and logistics services segment. For the year ended March 31, 2025, two customers accounted for more than 10% of total consolidated revenue of the Company, representing approximately 15.9% and 15.5% of total consolidated revenue, respectively. 

Concentration on suppliers

The following tables summarized the percentages of purchases from five largest suppliers of each of the reportable segment purchase for the years ended March 31, 2026 and 2025.

 SCHEDULE OF PURCHASES FROM SUPPLIERS

Two and Nil suppliers provided more than 10% of our raw materials purchases for the years ended March 31, 2026 and 2025, respectively. Two suppliers provided more than 10% of purchases of our logistics services segment for the years ended March 31, 2026 and 2025. Two suppliers provided more than 10% of services purchases of our Consulting service segment for the year ended March 31, 2026.

The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of March 31, 2026, the total outstanding borrowings amounted to $671,824 (RMB4.6 million) with various interest rate from 4.34% to 8.244% p.a.(Note 13).