{"url_path":"/sec/ecxj/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 “Business” and Item 1A “Risk Factor” included elsewhere in this annual report.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-09-11","source_url":"https://www.sec.gov/Archives/edgar/data/1823635/0001493152-26-042301-index.html","accession_number":"0001493152-26-042301","cik":"0001823635","ticker":"ECXJ","issuer_name":"CXJ GROUP CO., Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1823635/0001493152-26-042301-index.html","primary_entity_key":"0001823635","primary_entity_name":"CXJ GROUP CO., Ltd"},"word_count":12102,"has_tables":true,"body_markdown":"Item 1 “Business” and Item 1A “Risk Factor” included elsewhere in this annual report.\n\n \n\n**Summary\nof Consolidated Balance Sheet as of May 31, 2026 and 2025**\n\n** **SCHEDULE\nOF CONSOLIDATED BALANCE SHEETS\n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2026\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nCash and cash equivalents \n 770  \n 4,126  \n 67,156  \n    \n 72,052 \n\nIntercompany balances - Receivable \n 270,380  \n 56,016  \n 144,734  \n (471,130) \n - \n\nOther current assets \n 300  \n 6,665  \n 213,829  \n    \n 220,794 \n\nTotal Current Assets \n 271,450  \n 66,807  \n 425,719  \n (471,130) \n 292,846 \n\n  \n    \n    \n    \n    \n   \n\nInvestment in subsidiaries and VIEs and VIEs’ subsidiaries \n 4,194,338  \n -  \n -  \n (4,194,338) \n - \n\nOther non-current assets \n -  \n 172  \n 33,423  \n    \n 33,595 \n\nTotal Non-current Assets \n 4,194,338  \n 172  \n 33,423  \n (4,194,338) \n 33,595 \n\n  \n    \n    \n    \n    \n   \n\nTotal Assets \n 4,465,788  \n 66,979  \n 459,142  \n (4,665,468) \n 326,441 \n\n  \n    \n    \n    \n    \n   \n\nIntercompany balances - Payable \n 329,181  \n 141,285  \n 369  \n (470,835) \n - \n\nOther Current Liabilities \n 529,286  \n 140,944  \n 1,271,377  \n -  \n 1,941,607 \n\nOther non-current liabilities \n -  \n -  \n 8,852  \n -  \n 8,852 \n\nTotal Liabilities \n 858,467  \n 282,229  \n 1,280,598  \n (470,835) \n 1,950,459 \n\n  \n    \n    \n    \n    \n   \n\nTotal Equity \n 3,607,321  \n (215,250) \n (821,456) \n (4,194,633) \n (1,624,018)\n\n  \n    \n    \n    \n    \n   \n\nTotal Liabilities and Total Equity \n 4,465,788  \n 66,979  \n 459,142  \n (4,665,468) \n 326,441 \n\n** **\n\n \n***\n*Intercompany\nbalances resulted from regular transactions in the business operations of the entities, and no service fees were charged by SZ CXJ.*\n\n \n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2025\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nCash and cash equivalents \n (7) \n 5,761  \n 4,283  \n -  \n 10,037 \n\nIntercompany balances - Receivable \n 175,777  \n 57,194  \n 128,741  \n (361,712) \n - \n\nOther current assets \n 300  \n 22,287  \n 251,679  \n -  \n 274,266 \n\nTotal Current Assets \n 176,070  \n 85,242  \n 384,703  \n (361,712) \n 284,303 \n\nInvestment in subsidiaries and VIEs and VIEs’ subsidiaries \n 4,194,338  \n -  \n -  \n (4,194,338) \n - \n\nOther non-current assets \n -  \n 2,658  \n 13,214  \n -  \n 15,872 \n\nTotal Non-current Assets \n 4,194,338  \n 2,658  \n 13,214  \n (4,194,338) \n 15,872 \n\nTotal Assets \n 4,370,408  \n 87,900  \n 397,917  \n (4,556,050) \n 300,175 \n\n  \n    \n    \n    \n    \n   \n\nIntercompany balances - Payable \n 234,578  \n 129,944  \n 348  \n (364,870) \n - \n\nOther Current Liabilities \n 733,713  \n 144,522  \n 977,051  \n -  \n 1,855,286 \n\nOther non-current liabilities \n -  \n -  \n -  \n -  \n - \n\nTotal Liabilities \n 968,291  \n 274,466  \n 977,399  \n (364,870) \n 1,855,286 \n\nTotal Equity \n 3,402,117  \n (186,566) \n (579,482) \n (4,191,180) \n (1,555,111)\n\nTotal Liabilities and Total Equity \n 4,370,408  \n 87,900  \n 397,917  \n (4,556,050) \n 300,175 \n\n \n\n**\n*\n*Intercompany\nbalances resulted from regular transactions in the business operations of the entities, and no service fees were charged by SZ CXJ.*\n\n \n\nF-8\n\n \n\n \n\n**Summary\nof Consolidated Statement of Income for the year ended May 31, 2026 and 2025**\n\nSCHEDULE\nOF CONSOLIDATED STATEMENT OF INCOME\n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2026\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nNet revenue \n -  \n 33,544  \n 498,062  \n -  \n 531,606 \n\nTotal operating costs and expenses \n 214,222  \n (50,025) \n (696,481) \n -  \n (532,284)\n\nProfit/(Loss) from operations \n 214,222  \n (16,481) \n (198,419) \n -  \n (678)\n\nInterest income \n -  \n 2  \n 14  \n -  \n 16 \n\nNet loss before income tax \n 214,222  \n (16,479) \n (198,405) \n -  \n (662)\n\nIncome tax expense \n (9,018) \n -  \n -  \n -  \n (9,018)\n\nNet loss before non-controlling interest \n    \n    \n    \n    \n   \n\nLess: non-controlling interest \n    \n    \n    \n    \n   \n\nNet loss after tax \n 205,204  \n (16,479) \n (198,405) \n -  \n (9,680)\n\nEquity in earnings of subsidiaries and VIEs and VIEs’ subsidiaries \n (214,884) \n (198,405) \n -  \n 413,289  \n - \n\nNet loss for the year \n (9,680) \n (214,884) \n (198,405) \n 413,289  \n (9,680)\n\n \n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2025\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nNet revenue \n -  \n -  \n 458,632  \n -  \n 458,632 \n\nTotal operating costs and expenses \n (2,131,522) \n (50,923) \n (525,761) \n -  \n (2,708,206)\n\nLoss from operations \n (2,131,522) \n (50,923) \n (67,129) \n -  \n (2,249,574)\n\nInterest income \n -  \n 2  \n 8  \n -  \n 10 \n\nNet loss before income tax \n (2,131,522) \n (50,921) \n (67,121) \n -  \n (2,249,564)\n\nIncome tax expense \n (36,777) \n -  \n 2,316  \n -  \n (34,461)\n\nNet loss before non-controlling interest \n (2,168,299) \n (50,921) \n (64,805) \n -  \n (2,284,025)\n\nLess: non-controlling interest \n -  \n -  \n -  \n -  \n - \n\nNet loss after non-controlling interest \n (2,168,299) \n (50,921) \n (64,805) \n -  \n (2,284,025)\n\nEquity in earnings of subsidiaries and VIEs and VIEs’ subsidiaries \n (115,726) \n (64,805) \n -  \n 180,531  \n - \n\nNet loss for the year \n (2,284,025) \n (115,726) \n (64,805) \n 180,531  \n (2,284,025)\n\n \n\nF-9\n\n \n\n \n\n**Summary\nof Consolidated Statement of Cash Flow for the year ended May 31, 2026 and 2025**\n\n** **SCHEDULE\nOF CONSOLIDATED STATEMENTS OF CASH FLOW\n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2026\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nCash Flows (Used In)/Provided By Operating Activities \n (22,272) \n (10,235) \n 107,528  \n 1,462  \n 76,483 \n\nCash Flows (Used In)/Provided By Investing Activities \n -  \n 607  \n 844  \n (1,451) \n - \n\nCash Flows Provided By/(Used In) Financing Activities. \n 23,049  \n 7,710  \n (48,080) \n -  \n (17,321)\n\nEffects On Change In Foreign Exchange Rate \n -  \n 283  \n 2,581  \n (11) \n 2,853 \n\nNet Change In Cash During The Year \n 777  \n (1,635) \n 62,873  \n -  \n 62,015 \n\n** **\n\n  \n    \n    \n    \n    \n   \n\nFor the year ended May 31, 2025\n\n  \nParent  \nWFOE and subsidiaries  \nVIE and subsidiaries  \nElimination  \nConsolidated Total \n\n  \n$  \n$  \n$  \n$  \n$ \n\nCash Flows (Used In)/Provided By Operating Activities \n (445,973) \n 1,603  \n 26,491  \n (646) \n (418,525)\n\nCash Flows (Used In)/Provided By Investing Activities \n -  \n 591  \n 1,585  \n (2,176) \n - \n\nCash Flows Provided By/(Used In) Financing Activities \n 445,168  \n 3,255  \n (25,251) \n -  \n 423,172 \n\nEffects On Change In Foreign Exchange Rate \n -  \n 24  \n 23  \n 2,822  \n 2,869 \n\nNet Change In Cash During The Year \n (805) \n 5,473  \n 2,848  \n -  \n 7,516 \n\n** **\n\n**Variable\nInterest Entities “VIE” Arrangements**\n\n \n\nOn\nMay 28, 2020, CXJ (Shenzhen) Technology Co., Ltd. (“SZ CXJ”) entered into a series of contractual arrangements with CXJ Technology\n(Hangzhou) Co., Ltd. (“HZ CXJ”) and its shareholders. As a result of the contractual arrangements, the Company classified\nHZ CXJ as a Variable Interest Entity “VIE.”\n\n \n\nHZ\nCXJ was incorporated as a limited liability company in Hangzhou, Zhejiang Province in the People’s Republic of China on March 28,\n2019, with a registered capital of approximately $1.5 million (RMB 10 million). It is 100% owned by Mr. Lixin Cai prior to its acquisition\nby the Company.\n\n \n\nThe\nVIE Agreements are as follows:\n\n \n\n(1)\nConsulting\nService Agreement\n\n(2)\nBusiness\nOperation Agreement\n\n(3)\nAgency\nAgreement\n\n(4)\nEquity\nPledge Agreement\n\n(5)\nOption\nAgreement\n\n \n\nF-10\n\n \n\n \n\n**(1)**\n**Consulting\nService Agreement**\n\n \n\nPursuant\nto the terms of certain Consulting Service Agreement dated May 28, 2020, between SZ CXJ and HZ CXJ (the “**Consulting Service\nAgreement**”), SZ CXJ is the exclusive consulting service provider to HZ CXJ to provide business-related software research and\ndevelopment services; design, installation, and testing services; network equipment support, upgrade, maintenance, monitor, and problem-solving\nservices; employees technical training services; technology development and sublicensing services; public relations services; market\ninvestigation, research, and consultation services; short to medium term marketing plan-making services; compliance consultation services;\nmarketing events and membership related activities organizing services; intellectual property permits; equipment and rental services;\nand business-related management consulting services. Pursuant to the Consulting Service Agreement, the service fee is the remaining amount\nafter HZ CXJ’s profit before tax in the corresponding year deducts HZ CXJ’s losses, if any, in the previous year, the necessary\ncosts, expenses, taxes, and fees incurred in the corresponding year, and the withdraws of the statutory provident fund. HZ CXJ agreed\nnot to transfer its rights and obligations under the Consulting Service Agreement to any third party without prior written consent from\nSZ CXJ. In addition, SZ CXJ may transfer its rights and obligations under the Consulting Service Agreement to SZ CXJ’s affiliates\nwithout HZ CXJ’s consent, but SZ CXJ shall notify HZ CXJ of such transfer.\n\n \n\n**(2)**\n**Business\nOperation Agreement**\n\n \n\nPursuant\nto the terms of certain Business Operation Agreement dated on May 28, 2020, among SZ CXJ, HZ CXJ and Mr. Lixin Cai (the\n“**Business Operation Agreement**”), HZ CXJ and Lixin Cai have agreed to subject the operations and management of its\nbusiness to the control of SZ CXJ. According to the Business Operation Agreement, HZ CXJ and Lixin Cai are not allowed to conduct\nany transactions that has substantial impact upon its operations, assets, rights, obligations and personnel without the SZ\nCXJ’s written approval. The HZ CXJ and Lixin Cai will take SZ CXJ’s advice on appointment or dismissal of directors,\nemployment of HZ CXJ’s employees, regular operation, and financial management of HZ CXJ. The HZ CXJ and Lixin Cai has agreed\nto transfer any dividends, distributions or any other profits that its’ receive to SZ CXJ without consideration. The Business\nOperation Agreement is valid for a term of 10 years or longer upon the request of SZ CXJ prior to the expiration thereof. The\nBusiness Operation Agreement might be terminated earlier by SZ CXJ with a 30-day written notice.\n\n \n\n**(3)**\n**Agency\nAgreement**\n\n \n\nPursuant\nto the terms of the Agency Agreement dated on May 28, 2020, between SZ CXJ and Lixin Cai (the “**Agency Agreement**”),\nthe Lixin Cai have entrusted his vote rights to SZ CXJ for the longest duration permitted by PRC law. The Agency Agreement can be terminated\nby mutual consents of Lixin Cai and SZ CXJ or upon a 30-day notice of SZ CXJ.\n\n \n\n**(4)**\n**Equity\nPledge Agreement**\n\n \n\nPursuant\nto the terms of certain Equity Pledge Agreement dated on May 28, 2020, among SZ CXJ, HZ CXJ and Lixin Cai (the “**Pledge Agreement**”),\nthe HZ CXJ pledged all of its equity interests to SZ CXJ, including the proceeds thereof, to guarantee HZ CXJ’s performance of\nits obligations under the Business Operation Agreement, the Consulting Service Agreement and Agency Agreement (each, a “**Agreement**”,\ncollectively, the “**Agreements**”). If HZ CXJ breach its respective contractual obligations under any Agreement, or cause\nto occur one of the events regards as an event of default under any Agreement, SZ CXJ, as pledgee, will be entitled to certain rights,\nincluding the right to dispose of the pledged equity interest in HZ CXJ. During the term of the Pledge Agreement, the pledged equity\ninterests cannot be transferred without SZ CXJ’s prior written consent. The Pledge Agreements is valid until all the obligations\ndue under the Agreements have been fulfilled.\n\n \n\n**(5)**\n**Option\nAgreement**\n\n \n\nPursuant\nto the terms of the Option Agreement dated on May 28, 2020, among SZ CXJ, HZ CXJ and Lixin Cai (the “**Option Agreement**”),\nLixin Cai granted SZ CXJ or its designees an irrevocable and exclusive purchase option (the “Option”) to purchase HZ CXJ’s\nall or partial equity interests and/or assets at the lowest purchase price permitted by PRC laws and regulations. The option is exercisable\nat any time at SZ CXJ’s discretion in full or in part, to the extent permitted by PRC law. Lixin Cai agreed to give HZ CXJ the\ntotal amount of the exercise price as a gift, or in other methods upon SZ CXJ’s written consent to transfer the exercise price\nto HZ CXJ. The Option Agreement is valid for a term of 10 years or longer upon the request of SZ CXJ.\n\n \n\nF-11\n\n \n\n \n\nA\nVIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without\nadditional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such\nas voting rights and the right to receive the expected residual returns of the entity or the obligation to absorb the expected losses\nof the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary\nand must consolidate the VIE. SZ CXJ is deemed to have a controlling financial interest and be the primary beneficiary of HZ CXJ because\nit has both of the following characteristics:\n\n \n\n \na)\nThe\npower to direct activities of HZ CXJ that most significantly impact such entity’s economic performance, and\n\n \nb)\nThe\nobligation to absorb losses of, or the right to receive benefits from, HZ CXJ that could potentially be significant to such entity.\n\n \n\nPursuant\nto the Contractual Arrangements, HZ CXJ have agreed to transfer any dividends, distributions or any other profits that its’ receive\nto SZ CXJ. HZ CXJ pays service fees equal to all of its net profit after tax to SZ CXJ.\n\n \n\nThe\nContractual Arrangements are designed so that HZ CXJ operates for the benefit of SZ CXJ and ultimately the Company.\n\n \n\nMoreover,\nHZ CXJ has agreed to subject the operations and management of its business to the full control under SZ CXJ and HZ CXJ will take SZ CXJ’s\nadvice on the appointment of dismissal of directors and employment, regular operation and financial management. Accordingly, the Company\nconsolidates the accounts of HZ CXJ and its subsidiaries for the periods presented herein, in accordance with Accounting Standards Codification,\nor ASC, 810-10, Consolidation.\n\n \n\nAccordingly,\nthe accounts of HZ CXJ are consolidated in the accompanying financial statements pursuant to ASC 810-10, Consolidation. In addition,\ntheir financial positions and results of operations are included in the Company’s financial statements.\n\n \n\nAssets\nof the VIEs can only be used to settle their obligation and creditors of the VIEs have no recourse to the Company’s or WFOE’s\ngeneral credit. The Company consolidated its VIE as of May 31, 2026 and 2025. The carrying amounts and classification of the VIE’s\nassets and liabilities included in the consolidated balance sheets are as follows:\n\n SCHEDULE\nOF VARIABLE INTEREST ENTITIES\n\n  \n    \n   \n\n  \nMay 31, \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\nCurrent assets \n 425,719  \n 384,703 \n\nNoncurrent assets \n 33,423  \n 13,214 \n\nTotal assets \n 459,142  \n 397,917 \n\nTotal liabilities \n 1,280,598  \n 977,399 \n\nNet liabilities \n (821,456) \n (579,482)\n\n \n\nF-12\n\n \n\n \n\nThe\nVIE’s liabilities consisted of the following as of May 31, 2026 and 2025:\n\n \n\n  \n    \n   \n\n  \nMay 31, \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\nCurrent liabilities \n    \n   \n\nIntercompany balances - Payable \n 369  \n 348 \n\nAccount Payable \n 11,229  \n 34,571 \n\nContract liabilities \n 1,070,405  \n 581,310 \n\nAccrued liabilities, other payables and deposits received \n 166,464  \n 349,969 \n\nOperating lease obligations, currents \n 23,279  \n 11,201 \n\nTotal current liabilities \n 1,271,746  \n 977,399 \n\nTotal noncurrent liabilities \n    \n   \n\nOperating lease obligations, net of current portion \n 8,852  \n - \n\nTotal noncurrent liabilities \n 8,852  \n - \n\nTotal liabilities \n 1,280,598  \n 977,399 \n\n \n\nThe\noperating results of the VIE were as follows:\n\n \n\n  \n    \n   \n\n  \nMay 31, \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\nRevenue \n 498,062  \n 458,632 \n\nTotal operating costs and expenses \n (696,481) \n (525,761)\n\nLoss from operations \n (198,419) \n (67,129)\n\nInterest income & income tax expenses \n 14  \n 2,324 \n\nNet loss for the year \n (198,405) \n (64,805)\n\n \n\nThe\ncash flows of VIE were as below:\n\n \n\n  \n    \n   \n\n  \nMay 31, \n\n  \n2026  \n2025 \n\nCash Flows Provided By Operating Activities \n 107,528  \n 26,491 \n\nCash Flows Provided By Investing Activities \n 844  \n 1,585 \n\nCash Flows Used In Financing Activities. \n (48,080) \n (25,251)\n\nEffects On Change In Foreign Exchange Rate \n 2,581  \n 23 \n\nNet Change In Cash During The Year \n 62,873  \n 2,848 \n\n \n\nF-13\n\n \n\n \n\n**Risks\nand Uncertainties**\n\n** **\n\n**Risks\nof Operation in China**\n\n \n\nThe\nmain operation of the Company, through the WFOE, the VIE and VIE’s subsidiaries, is located in the PRC. Accordingly, the Company,\nits subsidiaries, the VIE and VIE’s subsidiaries’ business, financial condition, and results of operations may be influenced\nby political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company, its subsidiaries,\nthe VIE and VIE’s subsidiaries’ results may be adversely affected by changes in the political, regulatory and social conditions\nin the PRC. Although the Company, its subsidiaries, the VIE and VIE’s subsidiaries’ have not experienced losses from these\nsituations and believes that it is in compliance with existing laws and regulations including risk factor disclosed in “Item 1A\nRisk Factors”, this may not be indicative of future results.\n\n \n\n**Risks\nin relation to the VIE structure**\n\n \n\nThe\nCompany is incorporated in the State of Nevada, USA. As a holding company with no material operations, the Company conducts its operations\nChina through the variable interest entities, SZ CXJ and its subsidiaries. The Company receives the economic benefits of SZ CXJ and its\nsubsidiaries’ business operation through a series of contractual arrangements, or the VIE Agreements, which have not been tested\nin court. As a result of the Company’s indirect ownership in the HZ CXJ and the VIE Agreements, the Company is regarded as the\nprimary beneficiary of its VIE. The VIE structure is used to replicate foreign investment in Chinese-based companies where Chinese law\nprohibits direct foreign investment in the operating companies. The Company relies on contractual arrangements with the VIE and its subsidiaries\nin China for the business operation companies, and that investors may never directly hold equity interests in the Chinese operating entities.\ns, which may not be as effective in providing operational control or enabling the Company to derive economic benefits as through ownership\nof controlling equity interests, and the VIE’s shareholders may fail to perform their obligations under the contractual arrangements.\nIf the PRC government deems that the VIE Agreements in relation to the VIE do not comply with PRC regulatory restrictions on foreign\ninvestment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, the\nCompany may have difficulty in enforcing any rights the Company may have under the VIE Agreements in PRC and the Company could be subject\nto severe penalties or be forced to relinquish the Company’s interests in those operations.\n\n \n\nTechnology\nInnovation and Commodity Risks\n\n \n\nThe\nCompany, its subsidiaries, the VIE and VIE’s subsidiaries’ business faces fast growing electric vehicles (EV) in China, in\nthe year 2026, the number of EV has exceeded 50% of total motor vehicles in China. This will harm our motor oil and auto parts market\nand subsequently will seriously affect our financial condition and the ability to expand our business in future.\n\nFor\nthe more information of risks and uncertainties, please see “Item 1A. Risk Factors”.\n\n \n\n**Use\nof estimates**\n\n \n\nThe\npreparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires\nmanagement to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent\nassets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for\ncertain revenues and expenses during the reporting period. Certain significant accounting policies that contain subjective management\nestimates and assumptions include those related to going concern, current expected credit loss, allowance of deferred tax asset and valuation\nof inventories. Actual results may materially differ from these estimates.\n\n \n\nF-14\n\n \n\n \n\n**Foreign\ncurrency translation and re-measurement**\n\n \n\nThe\nCompany translates its foreign operations to the U.S. dollar in accordance with ASC 830, “*Foreign Currency Matters*”.\n\n \n\nThe\nreporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, BVI CXJ and HK CXJ’s functional currency\nis the U.S. dollar; SZ CXJ and their VIEs and subsidiary which are incorporated in PRC use the Chinese Renminbi (“RMB”) as\ntheir functional currency.\n\n \n\nThe\nCompany’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records\ninto their functional currency as follows:\n\n \n\n \n●\nMonetary\nassets and liabilities at exchange rates in effect at the end of each period\n\n \n●\nNonmonetary\nassets and liabilities at historical rates\n\n \n●\nRevenue\nand expense items at the average rate of exchange prevailing during the period\n\n \n\nGains\nand losses from these re-measurements were not significant and have been included in the Company’s results of operations.\n\n \n\nThe\nCompany’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows:\n\n \n\n \n●\nAssets\nand liabilities at the rate of exchange in effect at the balance sheet date\n\n \n●\nEquities\nat the historical rate\n\n \n●\nRevenue\nand expense items at the average rate of exchange prevailing during the period\n\n \n\nAdjustments\narising from such translations are included in accumulated other comprehensive income in shareholders’ equity.\n\n SCHEDULE\nOF EXCHANGE RATES\n\n  \n**May 31, 2026**  \n**May 31, 2025** \n\nPeriod-end RMB: US$1 exchange rate \n 6.77  \n 7.19 \n\nPeriod-average RMB: US$1 exchange rate \n 7.03  \n 7.22 \n\nExchange rate \n 7.03  \n 7.22 \n\n \n\nThe\nRMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions.\nNo representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation.\n\n \n\n**Cash\nand cash equivalents**\n\n \n\nCash\nand cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities\nof less than three months. The Company’s primary bank deposits are located in the USA, Hong Kong and the PRC.\n\n \n\n**Accounts\nreceivables and allowance for doubtful accounts**\n\n \n\nAccounts\nreceivable is presented net of allowance for doubtful accounts. Our accounts receivable consists mainly of trade receivables derived\nfrom selling of motor oil and auto parts with contractual payment terms. The provision for doubtful accounts reflects the current estimate\nof credit losses expected to be incurred over the life of the financial asset, based on historical experience, current conditions and\nreasonable forecasts of future economic conditions. Further, we evaluate the collectability of our accounts receivable and if there is\ndoubt that we will collect the full amount, we will record a reserve specific to that customer’s receivable balance. There was\nno provision for doubtful accounts as of May 31, 2026 and 2025.\n\n \n\n**Inventories**\n\n \n\nInventories\nconsisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of\naccounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or\nin excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined\nthe product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The\nCompany’s primary products are engine oil and auto parts.\n\n \n\nF-15\n\n \n\n \n\n**Property,\nplant and equipment**\n\n \n\nProperty,\nplant and equipment are stated at cost, less depreciation, amortization and impairments. Depreciation and amortization of property, plant\nand equipment are provided using the straight-line method. The estimated useful lives for computer equipment, computer software, engineering\nand test equipment and furniture and fixtures are generally three to five years. Leasehold improvements are amortized over the lesser\nof their estimated useful lives or their respective lease terms, which are generally 5five to ten years. Buildings are being depreciated\nover 25twenty-five years. Expenditures for major improvements and betterments are capitalized, while minor repairs and maintenance are\ncharged to expense as incurred. Upon the retirement or disposition of property, plant and equipment, the related cost and accumulated\ndepreciation or amortization are removed, and a gain or loss is recorded.\n\n \n\n**Operating\nleases**\n\n \n\nThe\nCompany recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets\nand liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent\nour right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising\nfrom the lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s\nincremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it\nis reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease\nliability plus any initial direct costs and prepayments, less any lease incentives. The Company elected the short-term lease exemption\nfor contracts with lease terms of 12 months or less. The Company accounts for the lease and non-lease components of its leases as a single\nlease component. Lease expense is recognized on a straight-line basis over the lease term.\n\n \n\n**Impairment\nof long-lived assets other than goodwill**\n\n \n\nThe\nCompany reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of\nassets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment\nis present if the carrying amount of an asset is less than its undiscounted cash flows to be generated.\n\n \n\nIf\nan asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value\nof the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.\n\n \n\nF-16\n\n \n\n \n\n**Goodwill**\n\n \n\nGoodwill\nrepresents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination.\nIn accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual\nassessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a\nfair-value based test. Fair value is generally determined using a discounted cash flow analysis. The goodwill are impaired due to\nuncertainty of recoverability in the future. The goodwill $1,742,577 were fully impaired during the year ended May 31,\n2025.\n\n \n\nIn\nJanuary 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the\nTest for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity\nshould recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the\namount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim reporting periods beginning after\nDecember 15, 2022 for smaller reporting companies. The Company has early adopted ASU 2017-04 on June1, 2020.\n\n \n\n**Revenue\nrecognition**\n\n \n\nIn\naccordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic\n606, *Revenue from Contracts*. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the\nterms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations\nin the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance\nobligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to\ncontracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers\nto its clients.\n\n \n\nUnder\nTopic 606, revenues are recognized when the promised products have been confirmed and when delivery of goods and services have been transferred\nto the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those goods and services.\nThe Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added\ntaxes (“VAT”) and relevant charges.\n\n \n\n**Sales\nof automotive products**\n\n \n\nWe\ngenerate revenue primarily from the sales of automotive products such as motor oil, auto parts, exhaust gas cleaners and fuel additive\ncleaners directly to customers. For the years ended June 30, 2026 and 2025, revenue of $342,212 and $143,904, respectively, was recognized\nfrom the sale of automotive products.\n\n \n\nThe\nCompany may receive payment in advance from customers for automotive products. The Company fulfills customer orders by delivering the\nspecified automotive products to customers. The performance obligation is satisfied at a point in time when control of the products transfers\nto the customer, generally upon delivery and acknowledgement by the customer. Contract liabilities are recorded when the amounts received\nbefore the goods delivered to customers. Contract liabilities are recognized as revenue when the products are transferred to and accepted\nby the customers. The Company’s arrangements generally do not contain significant variable consideration.\n\n \n\n**Brand\nname management fees and services**\n\n \n\nBrand\nname management fees are generated from providing members with access to and use of the Company’s “Teenage Hero Car”\nbrand name and related signage. For the years ended June 30, 2026 and 2025, revenue of $189,394 and $314,728, respectively, was recognized\nfrom brand name management fees.\n\n \n\nThe\nCompany generally receives payment in advance for brand name management fees and related services. The Company satisfies its performance\nobligations by providing brand name management services throughout the contractual service period. Performance obligations relating to\nbrand name management services are satisfied over the contractual service period, and the Company recognizes revenue over time as the\ncustomer simultaneously receives and consumes the benefits of the services. The Company’s arrangements generally do not contain\nsignificant variable consideration.\n\n \n\n**Sales\nand distribution expenses**\n\n \n\nSales\nand distribution expenses consist of payroll related costs, promotion expenses, transportation costs, conference expenses, office expenses,\ntravelling and entertainment expenses.\n\n \n\nF-17\n\n \n\n \n\n**General\nand administrative expenses**\n\n \n\nGeneral\nand administrative expenses consist of payroll related costs, consultancy expenses, impairment of goodwill, rental expenses, office\nexpense, travelling and entertainment expenses.\n\n \n\n**Value-added\ntaxes**\n\n \n\nRevenue\nis recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company\nis 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,\nand changed to 13% from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers\nagainst their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger\nthan 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\nsubsidiaries in China, have been and remain subject to examination by the tax authorities.\n\n \n\n**Income\ntaxes**\n\n \n\nThe\nCompany followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this\nmethod, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets\nand liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company\nrecorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not\nthat 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\nin tax expense in the period that includes the enactment date of the change in tax rate.\n\n \n\nThe\nCompany accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit\nrecognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.\n\n \n\n**Statutory\nreserves**\n\n \n\nStatutory\nreserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover\nlosses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise\noperating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is\nnecessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital. As of May 31, 2026\nthe Company’s WFOE and its VIEs did not make the provision for the statutory reserves.\n\n \n\n**Earnings\nper share**\n\n \n\nThe\nCompany computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS\nis measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the\nperiod. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible\nsecurities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.\nPotential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are\nexcluded from the calculation of diluted EPS.\n\n \n\n**Financial\ninstruments**\n\n \n\nThe\nCompany accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which\nrequires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,”\nwhich defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure\nrequirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities,\nwhich primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts\npayable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short\nperiod of time between the origination of such instruments and their expected realization and their current market rate of interest.\nThe three levels of valuation hierarchy are defined as follows:\n\n \n\nF-18\n\n \n\n \n\n●\nLevel 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.\n\n \n\n●\nLevel 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that\nare observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.\n\n \n\n●\nLevel 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.\n\n \n\n**Commitments\nand contingencies**\n\n \n\nLiabilities\nfor loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable\nthat a liability has been incurred and the amount of the assessment can be reasonably estimated.\n\n \n\n**Comprehensive\nincome**\n\n \n\nComprehensive\nincome is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.\nAmong other disclosures, all items that are required to be recognized under current accounting standards as components of\ncomprehensive income are required to be reported in a financial statement that is presented with the same prominence as other\nfinancial statements. The Company’s current component of other comprehensive income includes the foreign currency translation\nadjustment.\n\n** **\n\n**Segment\nreporting**\n\n \n\nThe\nCompany reports each material operating segment in accordance with ASC 280, “Segment Reporting”. Operating segments are defined\nas components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating\ndecision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s chief operating\ndecision maker is the chief executive officer. The Company has determined that it has two operating segments.\n\n \n\n**Significant\nrisk**\n\n \n\n**a)**\n**VIE\nStructure Risk**\n\n** **\n\nPRC\nlaws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, value added telecommunications,\nand certain other businesses in which we are engaged or could be deemed to be engaged. Consequently, our operations and business in the\nPRC are conducted through contractual arrangements (“VIE Agreements”) with SZ CXJ VIE. If the Chinese government should disallow\nor limit the use of the VIE, it could materially and adversely affect our business, which could result in your shares significantly declining\nin value or becoming worthless.\n\n \n\nAlthough\nwe have been advised by our PRC counsel that the ownership structures of our PRC subsidiary and SZ CXJ VIE in China do not violate any\napplicable PRC law, regulation, or rule currently in effect and that the VIE Agreements are valid, binding, and enforceable in accordance\nwith their terms and applicable PRC laws and regulations currently in effect, but that such ownership structures have not been tested\nin court, ECXJ faces uncertainty with respect to future actions by the PRC government that could significantly affect the enforceability\nof the VIE Agreements, SZ CXJ VIE’s financial performance, and the value of a shareholder’s ECXJ shares.\n\n \n\nAlthough\nthe PRC’s Ministry of Commerce and its National Development and Reform Commission have announced new edicts regarding the use of\nVIEs for new overseas offerings, they have indicated that such new requirements will not affect the foreign ownership of companies already\nlisted overseas. Nonetheless, there can be no assurance that such new rules and regulations will not be applied retroactively which may\n\nhave\na substantial negative impact on ECXJ’s business and consequently on the value of ECXJ’s securities.\n\n \n\nF-19\n\n \n\n \n\nOn\nMarch 15, 2019, the National People’s Congress promulgated the Foreign Investment Law, which took effect on January 1, 2020. Since\nit is relatively new, substantial uncertainties exist in relation to its interpretation and implementation including future laws, administrative\nregulations, or provisions of the State Council to provide for contractual arrangements as a form of foreign investment. Therefore, it\nis uncertain whether our contractual arrangements would be deemed to be in violation of the market access requirements for foreign investment\nin the PRC, and if they are deemed to be in violation, how our contractual arrangements should be dealt with.\n\n \n\nNeither\nthe Company nor its shareholders have a direct equity ownership interest in SZ CXJ VIE. The Company’s relationship to the VIE\nis defined by the VIE Agreements. Therefore, should the Chinese government disallow or limit the use of the VIE, it could result in\nyour shares significantly declining in value or becoming worthless.\n\n \n\n**b)**\n**Liquidity\nRisk**\n\n** **\n\nFor\nthe year ended May 31, 2026 and 2025, we had positive cash flows $76,483 and negative cash flow $418,525 from operating activities respectively,\nand incurred net loss of $9,680 and $2,284,025 incurred for the financial year ended May 31, 2026 and 2025. These conditions raise substantial\ndoubt about our ability to continue as a going concern.\n\n \n\n**c)**\n**Currency\nrisk**\n\n \n\nA\nmajority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’\nassets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange\ntransactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s\nBank of China (“PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the\nPBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.\n\n \n\nThe\nCompany maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect,\npursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance\nfor deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete\nprotection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000\nfor one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon\nin the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents and short-term investments\nare financially sound based on public available information.\n\n \n\nOther\nthan the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit\nInsurance Corporation insurance or other insurance.\n\n \n\n**d)**\n**Concentration\nof risk**\n\n \n\n**credit\nrisk**\n\n \n\nFinancial\ninstruments that potentially subject the Company to the concentration of credit risks consist of cash. The maximum exposures of such\nassets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with\nfinancial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk\nexists as these financial institutions have high credit quality.\n\n \n\nThe\nCompany’s also exposure to credit risk associated with its trading and other activities is measured on an individual counterparty\nbasis, as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes\nin political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires customers\nto make payment in advance before delivery of the goods and services, and special approval is required for credit sales to specific customers.\n\n \n\nF-20\n\n \n\n \n\n \n**Major\nCustomers**\n\n \n\nFor\nthe year ended May 31, 2026, the Company did not have any customer that accounted for more than 10% of total revenue. For the year ended\nMay 31, 2025, the Company had a customer that accounted for $48,999 or 10.68% of total revenue.\n\n \n\n \n**Major\nVendors**\n\n \n\nA\nsignificant amount of the purchase costs is derived from the major vendors. For the year ended May 31, 2026, the Company had a vendor\nthat accounted for $145,125 or 92% of total purchase costs. For the year ended May 31, 2025, the Company had two vendors that accounted\nfor $95,324 or 69% and $39,695 or 29% of total purchase costs, respectively.\n\n \n\n**e)**\n**Interest\nrate risk**\n\n \n\nFluctuations\nin market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating\ninterest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The\nCompany has not used any derivative financial instruments to manage our interest risk exposure.\n\n \n\n**Related\nparty transaction**\n\n \n\nA\nrelated party is generally defined as (i) any person that holds 5% or more of the Company’s securities and their immediate families,\n(ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control\nwith the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction\nis considered to be a related party transaction when there is a transfer of resources or obligations between related parties.\n\n \n\nTransactions\ninvolving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive,\nfree market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related\nparty transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations\ncan be substantiated.\n\n \n\n**Business\ncombination**\n\n \n\nThe\npurchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred. The purchase price\nis allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill.\nThese fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price\nallocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary\nto identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period\nin which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred.\n\n \n\n**Recent\naccounting pronouncements**\n\n \n\nF-21\n\n \n\n \n\nRecently\nIssued Accounting Pronouncements. - *ASU 2023-09*, *Improvements to Income Tax Disclosures,*requires improved disclosures\nrelated to the rate reconciliation and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable\nto continuing operations to the U.S. statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally,\nthis ASU requires companies to disclose the total amount of income taxes paid during the period. This ASU is effective for annual periods\nbeginning after December 15, 2024, with early adoption permitted. The guidance is required to be applied on a prospective basis with\nthe option to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company is adopted this\naccounting guidance in 2026. The adoption of the standard did not have a material impact on the Company’s consolidated financial\nstatements.\n\n \n\n*ASU\n2024-03, Disaggregation of Income Statement Expenses,* as clarified by *ASU 2025-01*, requires disaggregated disclosures in the\nnotes to the consolidated financial statements of certain categories of expenses that are included in expense line items on the Consolidated\nStatement of Income. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting\nperiods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating\nthe impact of this guidance on its consolidated financial statements and related disclosures.\n\n \n\n*ASU\nNo. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition\nof a Variable Interest Entity*. The standard revises current guidance for determining the accounting acquirer for a transaction effected\nprimarily by exchanging equity interests in which the legal acquiree is a variable interest entity (“VIE”) that meets the\ndefinition of a business. The amendments differ from current U.S. GAAP because, for certain transactions, they replace the requirement\nthat the primary beneficiary of a VIE is always the acquirer with an assessment that requires an entity to consider the factors to determine\nwhich entity is the accounting acquirer. Under the amendments, acquisition transactions in which the legal acquiree is a VIE will, in\nmore instances, result in the same accounting outcomes as economically similar transactions in which the legal acquiree is a voting interest\nentity. The ASU does not change the accounting for a transaction determined to be a reverse acquisition or a transaction in which the\nlegal acquirer is not a business and is determined to be the accounting acquiree. The new guidance will become effective for interim\nand annual reporting periods beginning on January 1, 2027, will require a prospective transition method for business combinations that\noccur after the initial adoption date, and early adoption is permitted. Management is currently evaluating the impact of the new standard\non the Company’s unaudited condensed financial statements.\n\n \n\n*ASU\nNo. 2025-12, Codification Improvements.* This ASU contains 33 technical corrections and clarification to various topics of the FASB\nAccounting Standards Codification. The amendments are effective for annual reporting periods beginning after December 15, 2026, including\ninterim periods within those fiscal years. Early adoption is permitted on an issue-by-issue basis. The Company is currently evaluating\nthe impact of this ASU on its consolidated financial statements and disclosures.\n\n* *\n\nThe\nother recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) are not expected to have\na significant impact on the Company’s consolidated financial statements and related disclosures.\n\n \n\n**NOTE\n3 GOING CONCERN**\n\n \n\nThe\naccompanying financial statements have been prepared in conformity with U.S. GAAP which contemplates continuation of the Company as a\ngoing-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of\nbusiness at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon its\nability to market and sell its products to generate positive operating cash flows. The Company incurred a net loss of $9,680 for the\nfinancial year ended May 31, 2026, and had an accumulated deficit of $7,657,185 and negative net assets of $1,624,018 as of May 31, 2026.\n\n \n\nThe\nCompany’s cash position is not significant to support the Company’s daily operation. While the Company believes in the viability\nof its business strategy plans such as Tik Tok’s short videos e-commerce sales model, and its ability to raise additional funds,\nthere can be no assurance to that effect.\n\n \n\nThe\nCompany’s ability to continue as a going concern is dependent upon its ability to improve profitability and increase of market\nshare, our business plan is to extend our market share through acquiring quality businesses in the automotive aftermarket industries,\nin order to increase our customer base and supply channels, as well as to acquire more skilled employees and business connections in\nthe industries.\n\n \n\nWe\nplan to diversify our existing product portfolio strategically, and thereby provide our customers with a wider range of choices and broaden\nour existing customer base.\n\n \n\nIn\naddition, major shareholder and director agree to provide financial support to the Company. However, management cannot provide any assurances\nthat the Company will be successful in accomplishing any of its plans. The accompanying financial statements do not include any adjustments\nthat might result from the outcome of this uncertainty.\n\n \n\nF-22\n\n \n\n** **\n\n**NOTE\n4 ACCOUNTS RECEIVABLE**\n\n \n\nAs\nof May 31, 2026 and 2025, there are no allowance for expected credit loss, our accounts receivables are $3,156 and $2,972, respectively.\nThe accounts receivables are subjected to normal credit term and interest free.\n\n SCHEDULE\nOF ACCOUNTS RECEIVABLE\n\n  \n   \n   \n  \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nAccounts Receivable \n 3,156  \n 2,972  \n 184 \n\n \n\nAs\ncompared, that is an increase of $184. The increment is mainly due to the effect of forex exchange.\n\n** **\n\n**NOTE\n5 PREPAYMENTS**\n\n** **\n\nAs\nof May 31, 2026 and 2025, prepayments are $5,971and $37,520 respectively.\n\n SCHEDULE OF PREPAID EXPENSES\n\n  \n   \n   \n  \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nPrepayments \n 5,971  \n 37,520  \n (31,549)\n\n \n\nPrepayments\nbalance $5,971 consist of prepayment of expenses to third parties. As of May 31, 2026 and 2025, the prepayments balances are $5,971 and\n$37,520 respectively, as compared that is a decrease of $31,549. The decrement is mainly due to decrease of prepayment to supplier $26,334\nand expenses $5,215, whereas the Company imposed strict control on prepayment to suppliers.\n\n \n\n**Note\n6 DEPOSITS PAID AND OTHER RECEIVABLES**\n\n \n\nDeposit\npaid and other receivable consisted of the following as of May 31, 2026 and 2025:\n\n SCHEDULE\nOF DEPOSITS AND OTHER RECEIVABLES\n\n  \n    \n    \n   \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nDeposits paid \n 12,695  \n 13,329  \n (634)\n\nOther receivables \n 31,080  \n 68,683  \n (37,603)\n\nTotal \n 43,775  \n 82,012  \n (38,237)\n\n \n\nDeposits\npaid balance $12,695 is deposits paid to landlord for renting office and warehouse. Other receivables balance $31,080 is the advances\nto staff for business conference and function, travelling expenses, office expenses and others.\n\n \n\nAs\nof May 31, 2026 and 2025, the deposit paid and other receivables balances are $43,775 and $82,012 respectively, as compared that is a\ndecrease of $38,237. The decrement is mainly due to the impairment loss $38,562 of other receivable Hangzhou Sanyuan Cultural Creative\nCo., Ltd., foreign exchange differences $1,481, deposit paid $634 and offset increase in staff advances $2,440.\n\n \n\nF-23\n\n \n\n \n\n**NOTE\n7 INVENTORIES, NET**\n\n \n\nInventories\nconsisting principally of product held for sale, is stated at the lower of average cost and net realizable value. For the year ended\nMay 31, 2026 and 2025, the written-down values of slow movement stock were $16,721 and nil respectively, the inventory consists as of\nfollowing:\n\n SCHEDULE\nOF INVENTORY NET\n\n  \n    \n    \n   \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nInventories \n 55,767  \n 69,291  \n (13,524)\n\nInventories written down \n (16,721) \n -  \n (16,721)\n\nForeign translation difference \n (643) \n -  \n (643)\n\nInventories, net \n 38,403  \n 69,291  \n (30,888)\n\n \n\n**NOTE\n8 PROPERTY, PLANT AND EQUIPMENT**\n\n** **\n\nProperty,\nplant and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of 3three\nto five years.\n\n \n\nProperty,\nplant and equipment consisted of the following:\n\n SCHEDULE\nOF PROPERTY AND EQUIPMENT\n\n  \n    \n   \n\n  \nAs of May 31, \n\n  \n2026  \n2025 \n\n  \naudited  \naudited \n\n  \n**$**  \n**$** \n\nProperty, Plant and Equipment \n 9,071  \n 9,071 \n\nLess: Accumulated depreciation \n (7,630) \n (6,179)\n\nForeign translation difference \n 23  \n (95)\n\nTotal property, plant and equipment, net \n 1,464  \n 2,797 \n\n \n\nAs\nof May 31, 2026 and 2025, the depreciation expenses are $1,451 and $2,176 respectively.\n\n \n\nF-24\n\n \n\n \n\n**NOTE\n9 BUSINESS COMBINATION AND GOODWILL**\n\n \n\nOn\nMay 28, 2020, ECXJ completed the acquisition of 100% equity interest of HZ CXJ. The Company is an automobile aftermarket products wholesaler,\nas well as an auto detailing store consultancy company in Hangzhou City, Zhejiang Province through this acquisition. The purchase consideration\nwas $4,094,453, consists of 1,364,800 shares of the Company’s common stock issued to HZ CXJ’s original owner fair valued\nat the acquisition date. These shares were issued on May 28, 2020. The Company accounted for the acquisition using the purchase method\nof accounting for business combination under ASC 805. The total purchase price was allocated to the tangible and identifiable intangible\nassets acquired and liabilities based on their estimated fair values as of the acquisition date.\n\n \n\nThe\ndetermination of fair values involves the use of significant judgment and estimates and in the case of HZ CXJ, this is with specific\nreference to acquired intangible asset. The judgments used to determine the estimated fair value assigned to assets acquired and liabilities\nassumed, as well as the intangible asset life and the expected future cash flows and related discount rate, can materially impact the\nCompany’s consolidated financial statements. Significant inputs and assumptions used for the model included the amount and timing\nof expected future cash flows and discount rate. The Company utilized the assistance of a third-party valuation appraiser to determine\nthe fair value as of the date of acquisition.\n\n \n\nThe\npurchase price was allocated on the acquisition date of HZ CXJ as follows:\n\n SCHEDULE OF PURCHASE PRICE ALLOCATED ON ACQUISITION\n\n  \n**As of May 28, 2020** \n\n  \n**$** \n\nCash at banks and in hand \n 15,588 \n\nTrade receivables \n 70,423 \n\nInventory on hand \n 124,658 \n\nPrepayments, other receivables and deposits \n 2,517,125 \n\nDue from a related party \n 1,282 \n\nDue to directors \n 119,405 \n\nDue from a shareholder \n 51,599 \n\nOperating lease right-of-use assets \n 189,604 \n\nTotal assets \n 3,089,684 \n\n \n\n  \n**$** \n\nAccount payables \n (156,955)\n\nContract liabilities \n (368,777)\n\nAccrued liabilities, other payables and deposits received \n (3,007,879)\n\nDue to a related company \n (2,000)\n\nDue to related parties \n (29,932)\n\nDue to directors \n (42)\n\nOperating lease liabilities, current portion \n (80,882)\n\nOperating lease liabilities, non current portion \n (111,779)\n\nTotal liabilities \n (3,758,246)\n\n  \n   \n\nNet tangible liabilities \n (668,562)\n\nGoodwill \n 4,763,015 \n\nTotal purchase price \n 4,094,453 \n\n \n\n  \n**$** \n\nConsideration in form of shares \n 4,094,453 \n\nTotal consideration \n 4,094,453 \n\n \n\nGoodwill\nis tested for impairment annually as of the first day of fiscal May or more frequently when events or changes in circumstances indicate\nthat impairment may have occurred. The Company performed its fourth quarter 2024 annual goodwill impairment test using a quantitative\nassessment for its HZ CXJ reporting unit. The quantitative assessment for HZ CXJ reporting unit indicated that its carrying amount exceeded\nits fair value, and resulted the fully impairment of $1,742,577 in the fourth quarter of 2025. This non-cash impairment charge is presented\nwithin the General & Administrative Expenses line for 2025 in the accompanying Consolidated Statements of Operations. As at May 31,\n2025 and 2026, the goodwill balance is $0.\n\n \n\nF-25\n\n \n\n \n\nThe\nfair value estimate for the HZ CXJ reporting unit was based on a blended analysis of the present value of future discounted cash flows\nand market value approach. The significant estimates used in the discounted cash flow model included the Company’s weighted average\ncost of capital, projected cash flows and the long-term rate of growth. Significant estimates in the market approach model included identifying\nsimilar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable\nrevenue and earnings multiples in estimating the fair value of the reporting unit.\n\n \n\nThe\ndecline in the fair value of the HZ CXJ’s reporting unit has mainly resulted from changes to its projected revenue growth rates\nand timeline, which were finalized during the Company’s annual long-term planning process in the fourth quarter of 2025. The HZ\nCXJ reporting unit has been in operation since June 2019, therefore the Company has less experience estimating the operating performance\nof this reporting unit. The Company’s expected revenue increase has been slower than anticipated due to the time required to ramp\nup activity for new customers. In addition, during its long-term planning process performed, the Company made adjustments to reduce its\nforecasted spend on HZ CXJ in 2025 and beyond, which further impacted expected revenue growth rate and their timing. These changes in\ncritical assumptions related to the reporting unit resulted in a reduction in its estimated fair value.\n\n \n\nThe\ngoodwill value $4,763,015 was recognised on the acquisition. The impairment loss on goodwill of $0 and $1,742,577, were recognized during\nthe year ended May 31, 2026 and 2025 respectively. As of May 31, 2026, the balance of goodwill is $0.\n\n \n\nThe\nsummary of impairment loss on goodwill is as below:\n\n SCHEDULE OF IMPAIRED LOSS ON GOODWILL\n\n  \n**$** \n\nGoodwill as of May 31, 2020 \n 4,763,015 \n\nImpaired goodwill written off - May 31, 2021 \n (322,972)\n\nGoodwill as of May 31, 2021 \n 4,440,043 \n\nImpaired goodwill written off - May 31, 2022 \n (1,006,432)\n\nGoodwill as of May 31, 2022 \n 3,433,611 \n\nImpaired goodwill written off - May 31, 2023 \n (641,050)\n\nGoodwill as of May 31, 2023 \n 2,792,561 \n\nImpaired goodwill written off - May 31, 2024 \n (1,049,984)\n\nGoodwill as of May 31, 2024 \n 1,742,577 \n\nImpaired goodwill written off - May 31, 2025 \n (1,742,577)\n\nGoodwill as of May 31, 2025 \n - \n\n \n\nF-26\n\n \n\n \n\n**NOTE\n10 ACCOUNTS PAYABLE**\n\n** **\n\nAccount\npayable is in normal trade term and interest free. Accounts payable consists of the following:\n\n SCHEDULE OF ACCOUNTS PAYABLE\n\n  \n   \n   \n  \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nAccounts Payable \n 47,288  \n 68,524  \n (21,236)\n\n \n\nThe\naccounts payable balance of $47,288 includes payable to vendors for motor oil and auto parts.\n\n \n\n**NOTE\n11 CONTRACT LIABILITIES**\n\n SCHEDULE OF CONTRACT LIABILITIES \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nContract Liabilities \n 1,070,405  \n 595,108  \n 475,297 \n\n** **\n\nContract\nliabilities balance $1,070,405 consists of advances from customer for brand name management fees and providing of goods and services.\n\n \n\nAs\nof May 31, 2026 and 2025, contract liabilities balances were $1,070,405 and $595,108 respectively, representing an increase of $475,297.\nThe increase was primarily attributable to a $$609,599 increase in contract liabilities related to goods and services, mainly due to\nthe introduction of a new product, fuel additive cleaner. In addition, increases in supplier purchase costs amid the recent geopolitical\nconflict in the Gulf region resulted in negotiations with suppliers regarding purchase prices, which extended the procurement process\nand delayed the delivery of certain goods, contributing to the increase in contract liabilities. The increase was partially offset by\na $134,302 decrease in brand name management fees.\n\n \n\nThe\nbreakdown as below:\n\nSCHEDULE\nOF BREAKDOWN OF CONTRACT LIABILITIES \n\nContract Liabilities \nMay 31, 2026  \nMay 31, 2025 \n\n  \n**$**  \n**$** \n\nOpening balance \n 595,108  \n 607,617 \n\nClosing balance \n 1,070,405  \n 595,108 \n\n \n\nRevenue\nrecognized during the years ended May 31, 2026 and 2025 that was included in the contract liability balance at the beginning of each\nrespective year amounted to $299,976 and $379,147 respectively.\n\n \n\nF-27\n\n \n\n \n\n**NOTE\n12 ACCRUED EXPENSES AND OTHER PAYABLE**\n\n SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLE\n\n  \n    \n    \n   \n\n  \nAs of May 31,  \n  \n\n  \n2026  \n2025  \n**Increase/** \n\n  \n(audited)  \n(audited)  \n**(Decrease)** \n\n  \n$  \n$  \n$ \n\nAccrued Expenses \n 234,527  \n 626,573  \n (392,046)\n\nDeposit Received \n 71,639  \n 67,455  \n 4,184 \n\nOther Payable \n 101,566  \n 114,756  \n (13,190)\n\nTotal \n 407,732  \n 808,784  \n (401,052)\n\n** **\n\nAccrued\nexpenses balance $234,527 consists payroll related costs, audit fee and VAT payable. Deposit received balance $71,639 is the warranty\nfor usage of brand name. Other payable balance $101,566 includes short term borrowing from third party $92,703 for working capital, which\nis one year term, unsecured and interest-free, and others $8,863.\n\n \n\nAs\nof May 31, 2026 and 2025, the accrued expenses and other payable balances are $407,732 and $808,784 respectively, as compared that is\na decrease of $401,052. The decrement is mainly due to decrease in accrued legal fee $300,000, payroll related costs $92,046, other payable\n$13,190 of short term borrowing from third party, and offset increase in deposit received $4,184.\n\n \n\n**NOTE\n13 RELATED PARTY TRANSACTIONS**\n\n \n\nAmounts\ndue from and due to related parties as of May 31, 2026 and 2025 are as follows:\n\nSCHEDULE OF RELATED PARTY TRANSACTION \n\nAmounts Due From Related Parties \n  \nAs of May 31, \n\n  \n  \n**2026**  \n**2025** \n\nName of Related Parties \nRelationship with the Company \n(audited)  \n(audited) \n\n  \n  \n**$**  \n**$** \n\nNew Charles Technology Group Limited \nControlled by Lixin Cai \n 300  \n 300 \n\nHangzhou Xieli Internet Technology Co., Ltd \nControlled by Cuiyao Luo \n 129,189  \n 82,171 \n\nTotal \n  \n 129,489  \n 82,471 \n\n \n\nAs\nof May 31, 2026, the Company paid expenses $300 on behalf of New Charles Technology Group Limited and advanced a short term loan $129,189\nto Hangzhou Xielie Internet Technology Co., Limited to pay administrative expenses, which is unsecured, interest-free and repayable on\ndemand.\n\n \n\nAmounts Due To Related Parties \n  \nAs of May 31, \n\n  \n  \n**2026**  \n**2025** \n\nName of Related Parties \nRelationship with the Company \n(audited)  \n(audited) \n\n  \n  \n**$**  \n**$** \n\nCuiyao Luo \nCFO & major shareholder \n 382,211  \n 359,662 \n\nLixin Cai \nCEO & director \n 500  \n - \n\nRudong Shi \nDirector \n 10,192  \n 9,597 \n\nTotal \n  \n 392,903  \n 369,259 \n\n \n\nAs\nof May 31, 2026, Cuiyao Luo, Lixin Cai and Rudong Shi advanced $392,903 to the company as working capital and to pay administrative expenses,\nwhich is unsecured, interest-free with no fixed payment term, for working capital purpose.\n\n \n\nF-28\n\n \n\n \n\n**Business\nTransaction With Related Parties**\n\n \n\nAs\nof May 31, 2026 and 2025, minority shareholders have business transactions with the Company, below are the detail:\n\nSCHEDULE OF BUSINESS TRANSACTION WITH RELATED PARTIES \n\nName of Related  \nRelationship with the  \nNature of  \nAs of May 31, 2026  \nAs of May 31, 2025 \n\n**Parties**** **\n**Company**** **\n**Revenue**** **\n**$**** **** **\n**$**** **\n\n  \n  \n  \n 22,366  \n 46,821 \n\nJinan Jieshun Vehicle Service Co., Ltd. and Jinan Jiehuiya Vehicle Service Co., Ltd.**(1)** \nControlled by ShenJie Guo, who owing 0.015% of Company equity \nBrand name management fee \n 22,366  \n 46,821 \n\nSuzhou Tongxuan Vehicle Service Co., Ltd. **(2)** \nControlled by GenRong Zhang, who owing 0.015% of Company equity \nBrand name management fee \n 16,774  \n 48,999 \n\nZhenzhou Maozuo Vehicle Service Co., Ltd. **(3)** \nControlled by WenZhen Guo, who owing 0.015% of Company equity \nBrand name management fee \n 22,366  \n 43,555 \n\nChangsha Shengqun Vehicle Service Co., Ltd.and Shaoyang Hengchao Vehicle Co., Ltd.**(4)** \nControlled by Zhongxin Lei, who owing 0.176% of Company equity \nBrand name management fee \n 22,366  \n 56,704 \n\nLixuan Hongda Vehicle Service Co., Ltd. **(5)** \nControlled by Shiguo Wang, who owing 0.42% of Company equity \nBrand name management fee \n -  \n 4,965 \n\n \n\n(1)\nThe\noriginal contract value is $96,953 or RMB700,000, consist of three contracts and contract term is one year. The contract periods\nare (a) Contract value RMB100,000, from May 2023 to May 2024; (b) Contract value RMB100,000, from August 2023 to August 2024 and\n(c) Contract value RMB500,000, from September 2024 to September 2025.\n\n(2)\nThe\noriginal contract value is $69,252 or RMB500,000, the contract term is one year. The contract period is from August 2024 to August\n2025.\n\n(3)\nThe\noriginal contract value is $69,252 or RMB500,000, the contract term is one year. The contract period is from September 2024 to September\n2025.\n\n(4)\nThe\noriginal contract value is $83,102 or RMB600,000, consist of two contracts and contract term is one year. The contract periods are\n(a) Contract value RMB500,000, from September 2024 to September 2025 and (b) Contract value RMB100,000, from September 2023 to September\n2024.\n\n(5)\nThe\noriginal contract value is $60,665 or RMB438,000, consist of three contract and contract term is from one year to three years. The\ncontract periods are (a) Contract value RMB100,000, from June 2021 to June 2024; (b) Contact value RMB300,000, from May 2023 to May\n2024 and (c) Contract value RMB38,000, form March 2024 to March 2025.\n\n \n\nF-29\n\n \n\n \n\n**NOTE\n14 OPERATING LEASES**\n\n \n\nAs of May 31, 2026, the Company has total two separate operating lease agreements for an office space and a warehouse in PRC with remaining lease terms of from 3 month to 22 months.” Leases with an initial term of 12 months or less are not recorded on the balance sheet; Short-term lease expense was $15,941 and nil for the year ended May 31, 2026 and 2025. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.\n\n \n\nThe\nfollowing table provides a summary of leases as of May 31, 2026 and May 31, 2025:\n\nSUMMARY OF OPERATING LEASES ASSETS AND LIABILITIES \n\nAssets/liabilities \nClassification \n\n**May 31, 2026**\n\n**$**\n  \n\n**May 31, 2025**\n\n**$**\n \n\nAssets \n  \n   \n  \n\nOperating lease right-of-use assets \nOperating lease assets \n 32,131  \n 13,075 \n\n  \n  \n    \n   \n\nLiabilities Current \n  \n    \n   \n\nOperating lease liability - current \nCurrent operating lease liabilities \n 23,279  \n 13,611 \n\n  \n  \n    \n   \n\nLong-term \n  \n    \n   \n\nOperating lease liability – net of current portion \nLong-term operating lease liabilities \n 8,852  \n - \n\n  \n  \n    \n   \n\nTotal lease liabilities \n  \n 32,131  \n 13,611 \n\n \n\nThe\noperating lease expense for the year ended May 31, 2026 and 2025 were as follows:\n\nSCHEDULE OF OPERATING LEASE EXPENSE \n\n  \n  \nAs of May 31, \n\nLease cost \nClassification \n2026  \n2025 \n\n  \n  \n$  \n$ \n\nOperating lease cost \nGeneral and administrative Expenses \n 52,281  \n 77,837 \n\n \n\nMaturities\nof operating lease liabilities as of May 31, 2026 were as follows:\n\nSCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES \n\nMaturity of Lease Liabilities \n\n**Operating Leases**\n\n**$**\n \n\n2027 \n 23,816 \n\n2028 \n 8,978 \n\nTotal lease payments \n 32,794 \n\nLess: interest \n (663)\n\nPresent value of lease payments \n 32,131 \n\n \n\nMaturities\nof operating lease liabilities as of May 31, 2025, were as follows:\n\n \n\nMaturity of Lease Liabilities \n\n**Operating\nLeases**\n\n**$**\n \n\nRemaining of 2026 \n 13,707 \n\nYear One \n 13,707 \n\n2027 \n - \n\nYear Two \n - \n\nTotal lease payments \n 13,707 \n\nLess: interest \n (96)\n\nPresent value of lease payments \n 13,611 \n\n \n\nF-30\n\n \n\n \n\nSupplemental\ninformation related to operating leases was as follows:\n\nSCHEDULE\nOF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES \n\n  \n\n**For The Year Ended**\n\n**May 31,**\n \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\nCash paid for amounts included in the measurement of lease liabilities \n 52,566  \n 73,690 \n\nNew operating lease assets obtained in exchange for operating lease liabilities \n 70,801  \n 17,463 \n\nWeighted average remaining lease term \n 0.72 year  \n 0.29 year \n\nWeighted average discount rate \n 3.00% \n 4.75%\n\n \n\nFor\nthe year ended May 31, 2026 and 2025, the amortization of the operating lease right of use assets are $51,745 and $75,432 respectively.\n\n \n\n**NOTE\n15 INCOME TAXES**\n\n \n\n**United\nStates of America**\n\n \n\nThe\nCompany is registered in the State of Nevada and is subject to United States of America tax law. The U.S federal income tax rate is 21%.\n\n \n\n**British\nVirgin Islands**\n\n \n\nUnder\nthe current laws of the British Virgin Islands, the international business company which governed by the International Business Companies\nAct of British Virgin Islands and there is no income tax charged in British Virgin Islands.\n\n \n\n**Hong\nKong**\n\n \n\nFrom\nyear of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000 (approximately\n$289,855), and 16.5% on any part of assessable profits over HK$2,000,000. For the years ended May 31, 2026 and 2025, the Company did\nnot have any assessable profits arising in or derived from Hong Kong, therefore no provision for Hong Kong profits tax was made in the\nyear.\n\n \n\nF-31\n\n \n\n \n\n**The\nPRC**\n\n \n\nThe\nCompany’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”)\nwith the statutory income tax rate of 25% with the following exceptions.\n\n \n\nOn\nAugust 2, 2023, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential\npolicies of the Ministry of Finance and the State Administration of Taxation, [2023] No. 12 for small-scale and low-profit enterprises\nwhose annual taxable income is less than RMB3,000,000 (including RMB3,000,000), approximately $426,743, their income is reduced by 25%\nto the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate\nof 5%. While for the portion of annual taxable income exceeding RMB3,000,000, approximately $426,743, then the income tax rate of 25%\nis applied.\n\n \n\nThe\ncriterion to qualify as a small-scale and low-profit enterprises are as below:\n\n \n\n●The\nenterprise is engaged in industries not restricted or prohibited by the PRC\n\n●Its\nannual taxable income does not exceed RMB3,000,000.\n\n●The\naverage number of employees is not more than 300 persons (including regular employees and\ndispatched labour workers)\n\n●The\ntotal amount of assets is not more than RMB50,000,000.\n\n \n\nThe\nqualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau.\n\n \n\n*The\ncomponents of the income tax provision are as follows:*\n\nSCHEDULE\nOF COMPONENTS OF INCOME TAX PROVISION \n\n  \n    \n   \n\n  \nAs of May 31, \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\nCurrent \n    \n   \n\n- United States of America \n 9,018  \n - \n\n- British Virgin Islands \n -  \n - \n\n- Hong Kong \n -  \n - \n\n- The PRC \n -  \n 1,448 \n\nCurrent Income Tax Provision \n 9,018  \n 1,448 \n\n  \n    \n   \n\nDeferred \n    \n   \n\n- United States of America \n -  \n 36,777 \n\n- British Virgin Islands \n -  \n - \n\n- Hong Kong \n -  \n - \n\n- The PRC \n -  \n - \n\nDeferred Income Tax Provision \n -  \n 36,777 \n\n  \n    \n   \n\nTax Refund - The PRC \n -  \n (3,764)\n\n  \n    \n   \n\nTotal \n 9,018  \n 34,461 \n\n \n\nF-32\n\n \n\n \n\nThe\ncomponents of deferred tax assets are summarized as follows:\n\nSCHEDULE\nOF DEFERRED TAX ASSETS \n\n  \nMay 31, 2026  \nMay 31, 2025 \n\n  \n**$**  \n**$** \n\nDeferred tax assets - US NOLs \n 189,983  \n 226,056 \n\nDeferred tax assets - PRC NOLs \n 180,660  \n 111,325 \n\nGross deferred tax assets \n 370,643  \n 337,381 \n\nValuation allowance \n (370,643) \n (337,381)\n\nDeferred tax assets – U.S. NOLs \n -  \n - \n\n \n\nThe\nnet operating loss carryforwards of the entities in the U.S., and the PRC were $189,983 and $180,660, respectively, as of May 31, 2026.\nAs of May 31, 2025, the net operating loss carryforwards of the entities in the U.S. and the PRC were $226,056 and $111,325, respectively.\nThe net operating losses of the entities in the U.S. can be carried forward indefinitely, while the net operating losses of the PRC entity\ncan be carried forward for five years. The deferred tax assets related to these net operating losses carryforwards were fully offset\nby a valuation allowance, as the Group does not expect to generate sufficient future taxable income to realize these net operating loss\ncarryforwards.\n\n \n\nA\nreconciliation of income tax expense, net determined at U.S federal statutory income tax rate to the Company’s actual income tax\nexpense is as follows:\n\n SCHEDULE\nOF RECONCILIATION OF INCOME TAX EXPENSE\n\n  \nMay 31, 2026  \nMay 31, 2025 \n\n  \n$  \n$ \n\nLoss before tax \n (662) \n (2,249,564)\n\nStatutory income tax rate \n 21% \n 21%\n\nIncome tax expense (benefit) at statutory rate \n (139) \n (472,407)\n\nForeign tax differential \n (8,531) \n (74,425)\n\nNon-deductible expenses \n 88,606  \n - \n\nNet operating loss utilised \n (37,656) \n - \n\nChange in valuation allowance \n (33,262) \n 581,293 \n\nIncome tax expense \n 9,018  \n 34,461 \n\n \n\nF-33\n\n \n\n \n\nThe\nreconciliation of the U.S federal statutory income tax rate to the Company’s effective tax rate is as follows:\n\n \n\n  \nMay 31, 2026  \nMay 31, 2025 \n\n  \n%  \n% \n\nU.S. Federal statutory income tax rate \n 21  \n 21 \n\nForeign tax differential \n 1,289  \n 3 \n\nNon deductible expenses \n (13,385) \n - \n\nNet operating loss utilised \n 5,688  \n - \n\nChange in valuation allowance \n 5,024  \n (26)\n\nEffective income tax rate \n (1,363) \n (2)\n\n \n\n**NOTE\n16 SEGMENT INFORMATION**\n\n** **\n\nASC\nTopic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about\noperating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise\nthat engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information\nis available that is regularly evaluated by the Company’s chief operating decision maker, who is the CEO in deciding how to allocate\nresources and assess performance.\n\n \n\nCurrently,\nthe Company has two reportable business segments:\n\n \n\n(1)\nBrand\nName Management Fees and Services, mainly provided brand name “Chejiangling/Teenage Hero Car” to the customers. Customers\nare authorized to operate their workshop under the brand name of “Chejiangling/Teenage Hero Car”.\n\n(2)\nSales\nof Automotive Products (including Motor Oil, Auto Parts, Fuel Additive Cleaner, Exhaust Gas Cleaner and others).\n\n \n\nIn\nthe following table, revenue is disaggregated by reportable segments:\n\nSCHEDULE\nOF DISAGGREGATED BY REPORTABLE SEGMENTS \n\n  \n    \n    \n   \n\n  \nFor The Year Ended May 31, 2026 \n\n  \nBrand Name Management Fees and Services Segment  \nAutomotive Products  \nTotal \n\n  \n$  \n$  \n$ \n\nRevenue \n    \n    \n   \n\nBrand Name Management Fees and Services \n 189,394  \n -  \n 189,394 \n\nAutomotive Products \n -  \n 342,212  \n 342,212 \n\nTotal Revenue \n 189,394  \n 342,212  \n 531,606 \n\n  \n    \n    \n   \n\nCost of Goods Sold \n    \n    \n   \n\nBrand Name Management Fees and Services \n -  \n -  \n - \n\nAutomotive Products \n -  \n (175,396) \n (175,396)\n\nTotal Cost of Goods Sold \n -  \n (175,396) \n (175,396)\n\n  \n    \n    \n   \n\nGross Profit \n 189,394  \n 166,816  \n 356,210 \n\n  \n    \n    \n   \n\nOther Income \n 106,834  \n 193,036  \n 299,870 \n\n  \n    \n    \n   \n\nOperating Expenses \n    \n    \n   \n\nSelling and Distribution \n (87,931) \n (158,881) \n (246,812)\n\nGeneral and Administrative \n (146,050) \n (263,896) \n (409,946)\n\nTotal Operating Expenses \n (233,981) \n (422,777) \n (656,758)\n\n  \n    \n    \n   \n\nSegment Profit/(Loss) from Operation \n 62,247  \n (62,925) \n (678)\n\n \n\nF-34\n\n \n\n \n\n  \n    \n    \n   \n\n  \nFor The Year Ended May 31, 2025 \n\n  \nBrand Name Management Fees and Services Segment  \nAutomotive Products  \nTotal \n\n  \n$  \n$  \n$ \n\nRevenue \n    \n    \n   \n\nBrand Name Management Fees and Services \n 314,728  \n -  \n 314,728 \n\nAutomotive Products \n -  \n 143,904  \n 143,904 \n\nTotal Revenue \n 314,728  \n 143,904  \n 458,632 \n\n  \n    \n    \n   \n\nCost of Goods Sold \n    \n    \n   \n\nBrand Name Management Fees and Services \n -  \n -  \n - \n\nAutomotive Products \n -  \n (85,975) \n (85,975)\n\nTotal Cost of Goods Sold \n -  \n (85,975) \n (85,975)\n\n  \n    \n    \n   \n\nGross Profit \n 314,728  \n 57,929  \n 372,657 \n\n  \n    \n    \n   \n\nOther Expenses \n (349) \n (159) \n (508)\n\n  \n    \n    \n   \n\nOperating Expenses \n    \n    \n   \n\nSelling and Distribution \n (134,018) \n (61,277) \n (195,295)\n\nGeneral and Administrative \n (1,665,093) \n (761,335) \n (2,426,428)\n\nTotal Operating Expenses \n (1,799,111) \n (822,612) \n (2,621,723)\n\n  \n    \n    \n   \n\nSegment Loss from Operation \n (1,484,732) \n (764,842) \n (2,249,574)\n\n \n\nF-35\n\n \n\n \n\n**NOTE\n17 SHAREHOLDER EQUITY**\n\n** **\n\nThe\nCompany has authorized 490,000,000 common shares, par value $0.001. Each common share entitles the holder to one vote, in person or proxy,\non any matter on which action of the stockholders of the corporation is sought. As of May 31, 2026 and 2025, there were 102,270,517 and\n102,270,517, respectively, common shares issued and outstanding. There were no shares of preferred stock issued and outstanding as of\nMay 31, 2026 and 2025.\n\n \n\nAll\noutstanding Series A Preferred Stock was converted into common shares on October 8, 2019.\n\n** **\n\n**NOTE\n18 RISK OF CONCENTRATION**\n\n** **\n\n**(a)\nMajor Customers**\n\n \n\nFor\nthe year ended May 31, 2026 there was no customers who accounted 10% of total revenue, and a customer is accounted 10.68% of total revenue\nfor the year ended May 31, 2025.\n\n \n\n**(b)\nMajor Suppliers**\n\n \n\nFor\nthe year ended May 31, 2026 and 2025, the vendors who accounted for 10% or more of the Company’s total purchase are presented as\nfollows:\n\nSCHEDULE\nOF MAJOR SUPPLIERS \n\n  \nFor The Year Ended May 31,  \nFor The Year Ended May 31, \n\n  \n2026  \n2025  \n2026  \n2025 \n\n  \n**$**  \n**$**  \n**%**  \n**%** \n\nFoshanshi Yuansheng Blue Sea Automobile Technology Service Co., Ltd \n 145,125  \n 95,324  \n 92% \n 69%\n\nGuangzhou Kangtu Ecological Technology Co., Ltd. \n 6,099  \n 39,695  \n 4% \n 29%\n\nTotal \n 151,224  \n 135,019  \n 96% \n 98%\n\n \n\n**NOTE\n19 COMMITMENTS AND CONTIGENCIES**\n\n \n\nFrom\ntime to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. The Company currently\nis not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect\non its business, financial condition, operating results, or cash flows.\n\n \n\nAs\nof May 31, 2026 and May 31, 2025, the Company did not have any significant commitments and contingencies involved.\n\n \n\n**NOTE\n20 SUBSEQUENT EVENTS**\n\n \n\nIn\naccordance with ASC 855-10, the Company has analyzed its operations subsequent to the May 31, 2026 to the date these financial statements\nwere issued and has determined that there is no other matter or circumstance arisen since May 31 2026, which has significantly affected\nthe operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years.\n\n \n\nF-36"}