{"url_path":"/sec/svmb/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-20","source_url":"https://www.sec.gov/Archives/edgar/data/1647822/0001493152-26-033861-index.html","accession_number":"0001493152-26-033861","cik":"0001647822","ticker":"SVMB","issuer_name":"Jingbo Technology, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1647822/0001493152-26-033861-index.html","primary_entity_key":"0001647822","primary_entity_name":"Jingbo Technology, Inc."},"word_count":20414,"has_tables":true,"body_markdown":"**Item\n7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.**\n\n \n\n*The\nfollowing management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto\nand the other financial information appearing elsewhere in this report. Our financial statements are prepared in U.S. dollars and in\naccordance with U.S. GAAP.*\n\n \n\n37\n\n \n\n** **\n\n**Overview**\n\n \n\nOn\nMarch 6, 2015, SavMobi Technology Inc. (“the Company”) was incorporated in the State of Nevada and established a fiscal year\nend of May 31. Initially the business platform was in providing application software to a global vendor platform to connect people to\nbusinesses and provide a new shopping experience.\n\n \n\nOn\nMay 18, 2017, Lakwinder Singh Sidhu, the Company’s former Director and CEO, completed a transaction with New Reap Global Ltd.,\nby which New Reap Global Ltd. acquired 32,500,000 shares of common stock, representing 68.4% ownership of the Company.\n\n \n\nOn\nMarch 19, 2018 New Reap Global transferred 250,000 restricted shares to Eng Wah Kung.\n\n \n\nOn\nMay 10, 2018 and May 30, 2018, 16,959,684 were transferred to Arden Wealth and Trust. 2,000,000 shares are free trading from HongLing\nShang, 559,684 restricted shares from New Reap Global, LTD and 2,400,000 each from Xuedong Zhang, Jingmei Jiang, Qianxian, Yulan Qi,\nBaoxin Song, Jianlong Wu.\n\n \n\nOn\nJune 15, 2018 New Reap Global transferred 690,316 restricted shares to EMRD Global Holdings.\n\n \n\nOn\nJune 26, 2018 New Reap Global transferred 3,000,000 restricted shares to FORTRESS ADVISORS, LLC and 3,000,000 to Baywall Inc.\n\n \n\nOn\nNovember 10, 2020, ten (10) shareholders of the Company, including affiliates Arden Wealth & Trust (Switzerland) AG and New Reap\nGlobal Limited, entered into stock purchase agreements with an aggregate of nineteen (19) non-U.S. accredited investors to sell an aggregate\nof 42,440,316 shares of common stock of the “Company, which represents approximately 68.6% of the issued and outstanding shares\nof common stock of the Company.\n\n \n\nOn\nJune 8, 2022, three (3) shareholders of the Company, including Ma Hongyu, Ye Caiyun, and Li Wenzhe entered into stock purchase agreements\nwith an aggregate of five (5) non-U.S. accredited investors (the “Purchase Agreements”) to sell an aggregate of 25,095,788\nshares of common stock of the Company, which represents approximately 40.54% of the issued and outstanding shares of common stock of\nthe Company, for consideration of $250,958.\n\n \n\nThe\nPurchase Agreements were fully executed and delivered on June 8, 2022. Zhang Yiping and Chen Xinxin acquired approximately 24.54% and\n6.46% of the issued and outstanding shares of the Company, respectively, and the remaining purchasers each acquired less than 4.99% of\nthe issued and outstanding shares. After the change of ownership, the Company’s current principal offices is located in Building\nB8, China Zhigu, Yinhu Street, Fuyang District, Hangzhou, Zhejiang, China.\n\n \n\nPurchasers \nShares acquired  \n% \n\nZhang Yiping \n 15,189,500  \n 24.54%\n\nChen Xinxin \n 4,000,000  \n 6.46%\n\nWang Yanfang \n 2,000,000  \n 3.23%\n\nLiu Chen \n 2,000,000  \n 3.23%\n\nLiu Ying \n 1,906,288  \n 3.08%\n\n \n\nOn\nDecember 15, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with\nIntellegence Parking, a Cayman Island company formed on June 29, 2022, Chen Xinxin (“Xinxin”), the officer and director,\nand control shareholder of Intelligence Parking and the shareholders of Intelligence Parking (the “Shareholders”), which\nclosed on January 5, 2023. Under the Share Exchange Agreement, one hundred percent (100%) of the ownership interest of Intellegence\nParking was exchanged for 1,000,000,000 shares of common stock of the Company issued to the Shareholders, in accordance with the\nShare Exchange Agreement. The former stockholders of Intellegence Parking acquired a majority of the issued and outstanding common\nstock as a result of the share exchange transaction. The transaction has been accounted for as a recapitalization of the Company,\nwhereby Intellegence Parking is the accounting acquirer.\n\n \n\nImmediately\nafter completion of such share exchange, the Company held a total of 200,000,000 issued and outstanding shares of Intellegence Parking. Guowei Zhang is the sole director of Intellegence Parking.\n\n \n\nConsequently,\nthe Company has ceased to fall under the definition of shell company as define in Rule 12b-2 under the Exchange Act of 1934, as amended (the\n“Exchange Act”) and Intellegence Parking is now a wholly owned subsidiary.\n\n \n\nIntellegence\nParking was incorporated on June 29, 2022 under the laws of Cayman Islands. It is controlled by Guowei Zhang. Intellegence Parking is an investment holding company.\n\n \n\nIntellegence\nParking (Hong Kong) Limited (“Intellegence HK”) was incorporated on July 20, 2022 under the laws of Hong Kong SAR. Intelligence\nHK is a wholly subsidiary of Intellegence Parking since incorporation and it is an investment holding company.\n\n \n\nHuixin\nWFOE was incorporated on October 24, 2022 under the laws of PRC. It is a wholly owned subsidiary of Intellegence HK since incorporation\nand it is an investment holding company.\n\n \n\nPursuant\nto the Business Operation Agreement entered into among Huixin WFOE and Jingbo VIE. The Company obtained\ncontrol over these PRC domestic companies by entering into a series of contractual arrangements with these PRC domestic companies and\ntheir respective nominee shareholders. These contractual agreements include power of attorney, exclusive option agreement, exclusive\nbusiness cooperation agreements, equity pledge agreements, and other operating agreements. These contractual agreements can be extended\nat the relevant PRC subsidiaries’ options prior to the expiration date. As a result, the Company maintains the ability to control\nthese PRC domestic companies, is entitled to substantially all of the economic benefits from these PRC domestic companies and is obligated\nto absorb all expected losses of these PRC domestic companies.\n\n \n\n38\n\n \n\n \n\nJingbo VIE is a PRC company which was formed on December 18, 2019 and is engaged in the business of smart parking application\nsoftware and platform operations business. Guowei Zhang has been the Chairman of Jingbo VIE\nsince December 2019.\n\n \n\nHangzhou\nZhuyi Technology Co. (“Hangzhou Zhuyi”) was incorporated under the laws of the PRC on November 13, 2017 with a capital of\nRMB 60,000,000. The majority shareholder at the time of establishment was Guowei Zhang. On April 1, 2020, Jingbo VIE became the sole shareholder of Hangzhou Zhuyi. Hangzhou Zhuyi is specialized in smart parking projects, smart parking mobile\napplications and cloud platform construction innovation.\n\n \n\nZhejiang\nLinglingyi Network Technology Co. (“Linglingyi”) was incorporated on November 17, 2018. Its sole director is Guowei Zhang.\nHangzhou Zhuyi acquired 100% of Linglingyi on April 29. 2022. Its main businesses are smart parking projects and smart parking mobile\napplications. On October 12, 2024, Linglingyi was deregistered .\n\n \n\nLiangshan\nTongfu Technology Co. (“Liangshan”) was incorporated on November 13, 2018. On September 29, 2022, Hangzhou Zhuyi entered\nin a share agreement with Hangzhou Kaai Technology Co. to purchase 26% of Liangshan’s shares. As a result, Hangzhou Zhuyi holds\n67% of Liangshan. Liangshan is into smart parking projects and smart parking mobile applications businesses. On August 27, 2024 Liangshan\nwas transferred.\n\n \n\nZhuyi\nTechnology (Anping) Co. (“Anping”) was incorporated on May 12, 2022, which is 90% owned by Hangzhou Zhuyi and it mainly focuses\non smart parking projects and smart parking mobile applications. Anping was deregistered on 27 June, 2023.\n\n \n\nHaikou\nZhuyi Technology Co. (“Haikou”) was incorporated on May 9, 2022 which is a wholly subsidiary of Hangzhou Zhuyi. It mainly\nfocuses on smart parking projects and smart parking mobile applications.On August 27， 2024, Haikou was transferred.\n\n \n\nYibin\nHuibo Technology Co. (“Yibin”) was incorporated on July 4, 2019, which is 80% owned by Hangzhou Zhuyi. It mainly focuses\non smart parking projects and smart parking mobile applications. On August 27, 2024 Yibin was transferred.\n\n \n\nXide\nZhuyi Technology Co. (“Xide”) was incorporated on October 14, 2021, which is 67% owned by Hangzhou Zhuyi. It mainly focuses\non smart parking projects and smart parking mobile applications.\n\n \n\nHubei\nTongpo Parking Management Co. (“Tongpo”) was incorporated on November 4, 2020, which is a wholly subsidiary of Hangzhou Zhuyi.\nIt mainly focuses on smart parking projects and smart parking mobile applications.\n\n \n\nZhuyi\nTechnology (Taining) Co. (“Taining”) was incorporated on May 18, 2021, which is 72% owned by Hangzhou Zhuyi. It mainly focuses\non smart parking projects and smart parking mobile applications.\n\n \n\nZhongxiang\nHuji Town Zhuyi Technology Co. (“Huji”) was incorporated on August 14, 2023, which is a wholly subsidiary of Hangzhou Zhuyi.\nIt mainly focuses on smart parking projects and smart parking mobile applications.\n\n \n\nIntellengence\nParking provides smart parking projects, smart parking mobile applications and cloud platform construction innovation through\nits consolidated subsidiaries, Jingbo VIE and is subsidiaries.\n\n \n\nOn\nMarch 8, 2023, the Company changed its name from Savmobi Technology, Inc. to Jingbo Technology, Inc.\n\n \n\nOn\nFebruary 5, 2024, the Company conducted a reverse stock split of the Company’s issued and outstanding shares of common stock, par\nvalue $0.001 per share (the “Common Stock”), at a ratio of 1-for-200 (the “Reverse Stock Split”). After the Reverse\nStock Split, the Company’s authorized capitalization is 50,000,000 common shares with a par value of $0.001 per share. The issued\nand outstanding number of shares of the Company’s Common Stock was correspondingly decreased to 5,315,412.\n\n \n\n39\n\n \n\n \n\nOn\nFebruary 28, 2024, the Company changed its fiscal year end from May 31 to the last day of February.\n\n \n\nLeshan\nZhuyi Qifeng Intelligent Technology Development Co. (“Leshan”) was incorporated on March 14, 2024, which is 65% owned by\nHangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking mobile applications.\n\n \n\nOn\nAugust 27, 2024, Hangzhou Zhuyi entered into a shares transfer agreement with Qiaofei Li and Haikou. Pursuant to the agreement, Hangzhou\nZhuyi transferred 90% of the equity interest of Haikou to Qiaofei Li and 10% to Lili Xu, for consideration of $0. Haikou has no material\noperations before the transfer, and Hangzhou Zhuyi received a valuation report from a third party before it entered into the agreement.\n\n \n\nOn\nthe same date, Hangzhou Zhuyi entered into a shares transfer agreement with Lili Xu and Yibin. Pursuant to the shares transfer agreement,\nHangzhou Zhuyi transferred all the entity interest it owned in Yibin to Lili Xu for consideration of $0. Yibin has no material operations\nbefore the transfer, and Hangzhou Zhuyi received a valuation report from a third party before it entered into the agreement.\n\n \n\nOn\nthe same date, Hangzhou Zhuyi entered into a shares transfer agreement with Changsen Chi and Liangshan. Pursuant to the shares transfer\nagreement, Hangzhou Zhuyi transferred all the equity interest it owned in Liangshan to Changsen Chi for consideration of $0. Liangshan\nhas no material operations before the transfer, and Hangzhou received a valuation report from a third party before it entered into the\nagreement.\n\n \n\nOn\nNovember 18, 2024, Jingbo Technology, Inc. the Company entered into a Shares Exchange Agreement (the “Shares Exchange Agreement”),\nXinghe and Hangdu, a British Virgin Islands company and the sole shareholder of Xinghe. Pursuant to the Share Exchange Agreement, the\nCompany issued 550,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”) of the Company to Hangdu,\nin consideration for the acquisition of all the issued and outstanding shares in Xinghe (the “Acquisition”). Hangdu will\ntransfer all the issued and outstanding shares of Xinghe at the closing of the Share Exchange Agreement. On December 9, 2024, the Acquisition\nwas completed.\n\n \n\nKeqiao\nLimited was incorporated under the laws of the Hong Kong on October 2, 2024, which was fully owned by Xinghe. Keqiao Limited is an\ninvestment holding company.\n\n \n\nKeqiao\nWFOE was incorporated under the laws of the PRC on October 22, 2024. Its sole director is Xiujuan Chen. It mainly focuses on IT system\nmaintenance, digital content creation, AI and big data solutions, software and system development.\n\n \n\nGuangzhou\nKeqiao VIE was incorporated under the laws of the PRC on August 22, 2024. Its sole director is Xiujuan Chen. It mainly focuses on IT\nsystem maintenance, digital content creation, AI and big data solutions, software and system development.\n\n \n\nShaoxing\nKeqiao was incorporated under the laws of the PRC on February 18, 2022, which was fully owned by Guangzhou Keqiao VIE. It mainly\nfocuses on intelligent parking projects.\n\n \n\nHangzhou Tianniu Information Technology Co., Ltd (“Tianniu”) was incorporated under the laws of the PRC\non April 10, 2025. Its sole director is Leilei Wu. It mainly focues on IT system and information technology services. On January 27, 2026\nTianniu was transferred.\n\n \n\nTianjin\nYuntu Internet Technology Co. (“Yuntu”) was incorporated under the laws of the PRC on February 6, 2026, which was fully\nowned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking mobile applications.\n\n \n\n40\n\n \n\n \n\n**Corporate\nStructure**\n\n \n\n \n\n**For\nthe Year Ended February 28, 2026 Compared to the Year Ended February 28, 2025**\n\n \n\n**Revenue\nfrom parking fee**\n\n \n\nThe\nCompany generated $1,369,618 in revenues from parking fees during the financial year ended February 28, 2026 compared to $1,657,057\nduring the year ended February 28, 2025. The decrease in revenue from parking fees was mainly contributed by termination of the\nXiaoshan airport project.\n\n \n\n**Revenue\nfrom winery sales**\n\n** **\n\nThe\nCompany generated $70,500 in revenues from winery sales during the financial year ended February 28, 2026 compared to $420,180\nduring the year ended February 28, 2025. The decrease in revenue from winery sales was mainly due to the demand in winery market has\ndeclined.\n\n \n\n**Cost\nof revenues for parking fee**\n\n \n\nDuring\nthe year ended February 28, 2026, the Company incurred $1,463,705 in cost of revenues for parking fee compared to $2,152,385 for the\nyear ended February 28, 2025. Cost of revenue for parking fee mainly consisted of platform maintenance expenses, depreciation,\nsalary and rental expenses. The decrease in cost of revenues for parking fee was mainly contributed by the termination of the\nXiaoshan airport project.\n\n \n\n**Cost\nof revenue for winery sales**\n\n \n\nDuring\nthe year ended February 28, 2026, the Company incurred $62,312 in cost of revenue for winery sales compared to $385,467 for the year\nended February 28, 2025. The decrease in cost of revenue for winery sales was mainly due to the market condition and the reduction\nof the winery sales.\n\n \n\n**Gross\nloss**\n\n \n\nGross\nloss was $98,999 for the year ended February 28, 2026, compared to $396,198 for the year ended February 28, 2025. The decrease in gross\nloss was mainly contributed by the decrease in cost of revenue.\n\n \n\n41\n\n \n\n \n\n**Selling\nand marketing expenses**\n\n \n\nDuring\nthe year ended February 28, 2026, we incurred selling and marketing expenses of $174,771 compared to $579,810 for the year ended\nFebruary 28, 2025. Selling and marketing expenses for the year ended February 28, 2026 and 2025 mainly included salary expenses,\ntravelling expenses and hospitality expenses. The decrease in selling and marketing expense was primarily\ndue to a decrease in hospitality expenses.\n\n \n\n**General\nand administrative expenses**\n\n \n\nDuring\nthe year ended February 28, 2026, we incurred general and administrative expenses of $2,494,948 compared to $3,173,066 incurred\nduring the year ended February 28, 2025. General and administrative expenses incurred during the year ended February 28, 2026 and\n2025 mainly consisted of salary expense, depreciation expense, professional fees and hospitality expenses. The decrease in general and administrative\nexpenses was mainly due to the decrease in salary expenses and hospitality expenses.\n\n \n\n**Research\nand development expenses**\n\n \n\nDuring\nthe year ended February 28, 2026, we incurred research and development expenses of $269,776 compared to $359,447 for the year ended February\n28, 2025. Research and development expenses mainly included salary expenses and depreciation expenses. The decrease in research and development expenses was contributed\nby an decrease in salary expense.\n\n \n\n**Impairment for credit losses**\n\n \n\nDuring\nthe year ended February 28, 2026, the Company incurred $2,714,286\nin impairment for credit losses compared to $539,954 for the year ended February 28, 2025. The increase in impairment for credit losses was mainly due to the\nincrease in allowance for bad debts for deposits.\n\n \n\n**Net\nloss**\n\n \n\nAs\nthe result of foregoing, the net loss for the years ended February 28, 2026 and 2025 was $6,706,122 and $6,016,408\nrespectively.\n\n \n\n**Liquidity\nand Capital Resources**\n\n \n\nAs\nof February 28, 2026, the Company had total assets of $7,776,342 comprising current assets of $2,212,883 and non-current assets of $5,563,459\ncompared to total assets of $12,222,816 consisting of current assets of $7,085,559 and non-current assets of $5,137,257 as of February\n28, 2025. The Company’s total liabilities as of February 28, 2026 were $39,057,898, which was comprised of current liabilities\nof $11,967,815 and non-current liabilities of $27,090,083. This compares with total liabilities of $35,231,324 as of February 28, 2025,\nwhich was comprised of current liabilities of $13,670,065 and non-current liabilities of $21,561,259.\n\n \n\nThe\nfollowing is a summary of the Company’s cash flows provided by/(used in) operating, investing, and financing activities for the\nyears ended February 28, 2026 and 2025.\n\n \n\n  \n\n**Year Ended**\n\n**February 28, 2026**\n  \n\n**Year Ended**\n\n**February 28, 2025**\n \n\nNet cash used in operating activities \n (2,136,482) \n (1,325,190)\n\nNet cash (used in)/provided by investing activities \n (171,675) \n 776,994 \n\nNet cash provided by financing activities \n 2,323,607  \n 512,117 \n\nEffect of exchange rate changes on cash and cash equivalents \n 5,671  \n 2,331 \n\nNet change in cash and cash equivalents \n 21,121  \n (33,748)\n\nCash and cash equivalents at the beginning of period \n 114,757  \n 148,505 \n\nCash and cash equivalents at the end of period \n 135,878  \n 114,757 \n\n \n\n**Cash\nFlows from Operating Activities**\n\n \n\nFor\nthe year ended February 28, 2026, net cash used in operating activities was $2,136,482, mainly comprised of a net loss of\n$6,706,122, an decrease in accounts payable and other current liabilities of $459,011 and offset by depreciation and amortization\nexpenses of $478,367, impairment for credit losses of $2,714,286, impairment\nof property and equipment of $816,802, and the decreases in prepaid expenses and other current assets of\n$673,867. For the year ended February 28, 2025, net cash used in operating activities was $1,325,190, consisting primarily of a net\nloss of $6,016,408 an increase in prepaid expenses and other current assets of $1,896,109, offset by an increase in accounts payable\nand other current liabilities of $4,321,939, depreciation and amortization expenses of $922,519, impairment of property and equipment of\n$437,477.\n\n \n\n42\n\n \n\n \n\n**Cash\nFlows from Investing Activities**\n\n \n\nNet\ncash flows used in investing activities were $171,675 mainly comprising purchase of property and equipment of $133,685 and purchase\nof other non-current assets of $38,681 for the year ended February\n28, 2026, compared to net cash flows provided by investing activities of $776,994 for the year ended February 28, 2025 mainly comprising\ngain on business acquisition of $426,680 and loss on disposal of subsidiaries of $444,554, offset by a purchase of property and equipment\nof $154,671.\n\n \n\n**Cash\nFlows from Financing Activities**\n\n \n\nFor\nthe year ended February 28, 2026, net cash provided by financing activities was $2,323,607 consisting mainly of proceed from loan\nfrom third parties of $3,587,129 and proceeds from interest-free loan from related\nparties of $418,829, offset by a\nrepayment of loan to third parties of $1,682,351. For the year ended February 28, 2025, net cash provided by financing\nactivities was $512,117 consisting mainly of proceed from interest-free loan from related parties of $1,275,534 and offset by a\nrepayment of interest-free loan to related parties of $763,417.\n\n \n\n**Going\nConcern Consideration**\n\n \n\nIn\nassessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure\ncommitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure\nobligations. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going\nconcern due to (1) the net loss of $6,706,122 for the year ended February 28, 2026; (2) accumulated deficit of $41,996,913 as of February\n28, 2026; and (3) the working capital deficit of $9,754,932 as of February 28, 2026.\n\n \n\nManagement\nhas determined there is substantial doubt about its ability to continue as a going concern. Management will implement strategies and\nplans to grow the Company’s business and generate substantial revenue, and take further measures to control operating costs. Management\nis trying to alleviate the going concern risk through the following sources:\n\n \n\n●\nEquity\nfinancing to support its working capital;\n\n●\nOther\navailable sources of financing (including debt) from banks and other financial institutions; and\n\n●\nFinancial\nsupport and credit guarantee commitments from the Company’s related parties.\n\n \n\nBased\non the above considerations, manager is of the opinion that the Company will probably not have sufficient funds to meet its working capital\nrequirements if the Company is unable to obtain additional financing. There is no assurance that the Company will be successful in implementing\nthe foregoing plans or that additional financing will be available to the Company on commercially reasonably terms, or at all.\n\n \n\nThe\nconsolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation\nof liabilities in the normal course business. The consolidated financial statements do not include any adjustments that might result\nfrom outcome of such uncertainties.\n\n \n\n43\n\n \n\n \n\n**Off-Balance\nSheet Arrangements**\n\n \n\nThe\nCompany does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the\nCompany’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital\nexpenditures or capital resources that is material to investors.\n\n \n\n**Contractual\nObligations**\n\n \n\nAs\na “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.\n\n \n\n**Critical\nAccounting Policies and Estimates**\n\n \n\nWe\nprepare our financial statements in conformity with U.S. GAAP, which requires management to make certain estimates and apply judgments.\nWe base our estimates and judgments on historical experience, current trends and other factors that management believes to be important\nat the time the condensed financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied\nand disclosed in our condensed financial statements.\n\n \n\nWhile\nwe believe that the historical experience, current trends and other factors considered support the preparation of our financial statements\nin conformity with U.S. GAAP actual results could differ from our estimates and such differences could be material\n\n \n\n**Impact\nof Inflation**\n\n \n\nIn\naccordance with the National Bureau of Statistics of China, the year-over-year percentage changes in the consumer price index for March\n2024, 2025, and 2026 were 0.2%, 0.2%, 1.0%, respectively. Inflation in China has not materially affected our profitability and operating\nresults. However, we can provide no assurance that we will be unaffected by higher inflation rates in China in the future.\n\n \n\n**Foreign\nCurrency Exchange Rates**\n\n \n\nWe\nare not materially affected by foreign currency exchange rates. However, it is difficult to predict how market forces, or PRC or U.S.\ngovernment policy, might affect our operations. There remains significant international pressure on the PRC government to adopt a substantial\nliberalization of its currency policy, which could result in a further and more significant change in the value of the RMB against the\nU.S. dollar. Limited hedging transactions are available in China to reduce our exposure to exchange rate fluctuations. So far, we have\nnot entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we potentially\nmay decide to enter into hedging transactions in the future, the availability and effectiveness of these hedging transactions may be\nlimited, and we may not be able to successfully hedge our exposure at all. Furthermore, our currency exchange losses may be magnified\nby PRC exchange control regulations that restrict our ability to convert RMB into foreign currency.\n\n \n\n44\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\nTo:\nThe Board of Directors and Stockholders of\n\nJingbo\nTechnology, Inc.\n\n \n\n**Opinion\non the Financial statements**\n\n \n\nWe\nhave audited the accompanying consolidated balance sheets of Jingbo Technology, Inc. (the Company) as of February 28, 2026 and 2025,\nand the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity (deficits), and\ncash flows for the years ended February 28, 2026 and 2025, and the related notes (collectively referred to as the financial\nstatements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the\nCompany as of February 28, 2026 and 2025, and the results of its operations and its cash flows for the years ended February 28, 2026\nand 2025, in conformity with accounting principles generally accepted in the United States of America.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nconsolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion\non the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public\nCompany Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance\nwith the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or\nfraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nprovide a reasonable basis for our opinion.\n\n \n\n**Critical\nAudit Matters**\n\n \n\nThe\ncritical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that\nwas communicated or required to be communicated to the audit committee and that: (1) related to the accounts or disclosures that are\nmaterial to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The\ncommunication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a\nwhole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matters or\non the accounts or disclosures to which they relate.\n\n \n\n**Going\nConcern Assessment**\n\n \n\nAs\ndescribed in Note 3 to the consolidated financial statements, for the fiscal years ended February 28, 2026 and 2025, the Company reported\naccumulated deficit of $41,996,913 and $35,326,578 and a working capital deficiency of $9,754,932 and $6,584,506, respectively. The Company\nprimarily funds its operation through debt instruments whose availability depends on a number of factors including its ability to generate\noperating cash flow to repay debts when due, planned expenditures and market conditions.\n\n \n\nWe\nidentified the Company’s ability to continue as a going concern as a critical audit matter as the going concern assessment is complex\nand it involves a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence in\ndetermining the reasonableness of cash flow forecasts, planned financing options and other assumptions used in the Company’s going\nconcern analysis.\n\n \n\nAddressing\nthe matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated\nfinancial statements. The primary procedures we performed to address this critical audit matter included the following:\n\n \n\n-\nReceived confirmations from the loan creditor and the Company director for their financial support and their willingness to continue\nsupporting the Company for the next twelve months.\n\n-\nTested the management’s assumptions concerning future cash flows, planned expenditures and market conditions.\n\n \n\n/s/\nGGF CPA LTD\n\n \n\nWe\nhave served as the Company’s auditor since 2024.\n\n \n\nGuangzhou,\nGuangdong, China\n\nPCAOB\nNO: 2729\n\nJuly\n20, 2026\n\n \n\n45\n\n \n\n \n\n**Jingbo\nTechnology, Inc.**\n\n**Consolidated\nBalance Sheets**\n\n**As\nof the years ended February 28, 2026 and 2025**\n\n \n\n  \n\n**February 28,**\n\n**2026**\n  \n\n**February 28,**\n\n**2025**\n \n\n  \n$  \n$ \n\nAssets \n    \n   \n\nCurrent assets \n    \n   \n\nCash and cash equivalents \n 84,087  \n 105,265 \n\nRestricted cash \n 51,791  \n 9,492 \n\nAccounts receivable \n 25,605  \n 122,614 \n\nInventories \n 150,078  \n 119,006 \n\nAmount due from related parties \n 16,000  \n 70,104 \n\nPrepaid expenses and other current assets \n 1,885,322  \n 6,659,078 \n\nTotal current assets \n 2,212,883  \n 7,085,559 \n\n  \n    \n   \n\nNon-current assets \n    \n   \n\nProperty, plant and equipment, net \n 3,974,577  \n 5,020,365 \n\nIntangible assets, net \n 7,038  \n 8,911 \n\nRight-of-use assets \n 76,474  \n 77,318 \n\nOther non-current assets \n 65,552  \n 30,663 \n\nLong-term receivable \n 1,439,818  \n - \n\nTotal non-current assets \n 5,563,459  \n 5,137,257 \n\n  \n    \n   \n\nTotal Assets \n 7,776,342  \n 12,222,816 \n\n  \n    \n   \n\nLiabilities and Stockholders’ (Deficit) Equity \n    \n   \n\nCurrent liabilities \n    \n   \n\nShort-term loan \n 72,909  \n 1,373,098 \n\nAccounts payables \n 484,252  \n 629,535 \n\nAdvances from customers \n 3,291,785  \n 3,595,420 \n\nOther current payables \n 5,186,484  \n 5,749,278 \n\nTaxes payable \n 74,968  \n 67,723 \n\nAmounts due to related parties \n 2,846,628  \n 2,245,834 \n\nOperating lease liabilities, current \n 10,789  \n 9,177 \n\nTotal current liabilities \n 11,967,815  \n 13,670,065 \n\n  \n    \n   \n\nNon-current liabilities \n    \n   \n\nLong-term borrowing \n 1,385,264  \n - \n\nOperating lease liabilities \n 62,936  \n 65,791 \n\nLong term payable \n 25,641,883  \n 21,495,468 \n\nTotal non-current liabilities \n 27,090,083  \n 21,561,259 \n\n  \n    \n   \n\nTotal Liabilities \n 39,057,898  \n 35,231,324 \n\nCommitments and Contingencies (Note 16) \n -  \n - \n\n  \n    \n   \n\nStockholders’ Deficit \n    \n   \n\nCommon stock ($0.001\npar value, 50,000,000,000 shares authorized,\n555,315,412 share issued and outstanding\nas of February 28, 2026 and 2025) \n 555,315  \n 555,315 \n\nAdditional paid-in capital \n 9,672,563  \n 9,672,563 \n\nAccumulated deficit \n (41,996,913) \n (35,326,578)\n\nAccumulated other comprehensive income \n 701,367  \n 2,264,403 \n\nNon-controlling interest \n (213,888) \n (174,211)\n\nTotal Stockholders’ Deficit \n (31,281,556) \n (23,008,508)\n\n  \n    \n   \n\nTotal Liabilities and Stockholders’ Deficit  \n 7,776,342  \n 12,222,816 \n\n \n\n46\n\n \n\n \n\n**Jingbo\nTechnology, Inc.**\n\n**Consolidated\nStatements of Operations and Comprehensive Loss**\n\n**for\nthe years ended February 28, 2026 and 2025**\n\n \n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\n  \n    \n   \n\nNet revenues \n 1,542,867  \n 2,141,654 \n\nCost of revenues \n (1,641,866) \n (2,537,852)\n\nGross loss \n (98,999) \n (396,198)\n\n  \n    \n   \n\nOperating expenses: \n    \n   \n\nSelling and marketing expenses \n (174,771) \n (579,810)\n\nGeneral and administrative expenses \n (2,494,948) \n (3,173,066)\n\nResearch and development expenses \n (269,776) \n (359,447)\n\nImpairment for credit losses \n (2,714,286) \n (539,954)\n\nImpairment of property, plant and equipment \n (816,802) \n (437,477)\n\nTotal operating expenses \n (6,470,583) \n (5,089,754)\n\n  \n    \n   \n\nOperating loss \n (6,569,582) \n (5,485,952)\n\n  \n    \n   \n\nOther income (expenses): \n    \n   \n\nInterest income \n 230  \n 803 \n\nInterest expense \n (63,964) \n (91,810)\n\nOther expense, net \n (60,845) \n (432,052)\n\nTotal other income (expenses) \n (124,579) \n (523,059)\n\n  \n    \n   \n\nLoss before taxes from operations \n (6,694,161) \n (6,009,011)\n\n  \n    \n   \n\nProvision for income taxes \n (11,961) \n (7,397)\n\n  \n    \n   \n\nNet loss \n (6,706,122) \n (6,016,408)\n\n  \n    \n   \n\nOther comprehensive income: \n    \n   \n\nForeign currency translation (loss)/income \n (1,566,926) \n 168,509 \n\nTotal comprehensive loss \n (8,273,048) \n (5,847,899)\n\n  \n    \n   \n\nNet loss attributable to : \n    \n   \n\nOwners of the Company \n (6,670,335) \n (5,992,730)\n\nNon-controlling interest \n (35,787) \n (23,678)\n\nNet loss \n (6,706,122) \n (6,016,408)\n\nTotal comprehensive loss attributable to: \n    \n   \n\nOwners of the Company \n (8,233,371) \n (5,842,795)\n\nNon-controlling interest \n (39,677) \n (5,104)\n\nTotal comprehensive loss \n (8,273,048) \n (5,847,899)\n\nLoss per common share: \n    \n   \n\nBasic and diluted \n (0.01) \n (0.05)\n\n  \n    \n   \n\nWeighted Average Number of Common Share Outstanding: \n    \n   \n\nBasic and Diluted \n 555,315,412  \n 128,877,056 \n\n \n\n47\n\n \n\n \n\n**Jingbo\nTechnology, Inc.**\n\n**Consolidated\nStatements of Stockholders’ Equity (Deficit)**\n\n**For\nthe years ended February 28, 2026 and 2025**\n\n \n\n  \nShares  \nAmount  \nCapital  \ndeficit  \nIncome/(loss)  \nEquity  \nInterest  \nEquity \n\n  \n   \nAdditional  \n   \nOther  \nTotal  \nNon  \n  \n\n  \nCommon Stock  \nPaid In  \nAccumulated  \nComprehensive  \nShareholders’  \ncontrolling  \nTotal \n\n  \nShares  \nAmount  \nCapital  \ndeficit  \nIncome/(loss)  \nEquity  \nInterest  \nEquity \n\nBalance at, February 29, 2024 \n 5,315,412  \n 5,315  \n 9,530,921  \n (29,311,229) \n 2,109,066  \n (17,665,927) \n (1,036,253) \n (18,702,180)\n\nNet loss \n -  \n -  \n -  \n (5,992,730) \n -  \n (5,992,730) \n (23,678) \n (6,016,408)\n\nForeign currency translation adjustments \n -  \n -  \n -  \n -  \n 149,935  \n 149,935  \n 18,574  \n 168,509 \n\nAcquisition of Xinghe \n -  \n -  \n 691,642  \n (22,619) \n 5,402  \n 674,425  \n -  \n 674,425 \n\nLoss on disposal of subsidiaries \n -  \n -  \n -  \n -  \n -  \n -  \n 867,146  \n 867,146 \n\nAdditional shares issued \n 550,000,000  \n 550,000  \n (550,000) \n -  \n -  \n -  \n -  \n - \n\nBalance at, February 28, 2025 \n 555,315,412  \n 555,315  \n 9,672,563  \n (35,326,578) \n 2,264,403  \n (22,834,297) \n (174,211) \n (23,008,508)\n\nBalance \n 555,315,412  \n 555,315  \n 9,672,563  \n (35,326,578) \n 2,264,403  \n (22,834,297) \n (174,211) \n (23,008,508)\n\nNet loss \n -  \n -  \n -  \n (6,670,335) \n -  \n (6,670,335) \n (35,787) \n (6,706,122)\n\nForeign currency translation adjustments \n -  \n -  \n -  \n -  \n (1,563,036) \n (1,563,036) \n (3,890) \n (1,566,926)\n\nBalance at, February 28, 2026 \n 555,315,412  \n 555,315  \n 9,672,563  \n (41,996,913) \n 701,367  \n (31,067,668) \n (213,888) \n (31,281,556)\n\nBalance  \n 555,315,412  \n 555,315  \n 9,672,563  \n (41,996,913) \n 701,367  \n (31,067,668) \n (213,888) \n (31,281,556)\n\n \n\n48\n\n \n\n \n\n**Jingbo\nTechnology, Inc.**\n\n**Consolidated\nStatements of Cash Flows**\n\n**For\nthe years ended February 28, 2026 and 2025**\n\n** **\n\n  \n2026  \n2025 \n\n  \n$  \n$ \n\n  \n   \n  \n\nNet loss \n (6,706,122) \n (6,016,408)\n\nAdjustments to reconcile net income to net cash provided by operating activities \n    \n   \n\nDepreciation and amortization \n 478,367  \n 862,051 \n\nDepreciation of right-of-use assets \n 15,952  \n 60,468 \n\nImpairment for credit losses \n 2,714,286 \n 539,954 \n\nLoss/(Gain) on disposal of fixed assets \n 85,750  \n (19,176)\n\nImpairment of property and equipment \n 816,802  \n 437,477 \n\nTransfers from construction in progress to cost of revenue \n 19,501  \n - \n\nChanges in operating assets and liabilities \n    \n   \n\nAccounts receivable \n 317,147  \n (235,172)\n\nInventories \n (65,835) \n (242,738)\n\nPrepaid expenses and other current assets \n 673,867  \n (1,896,109)\n\nOther non-current assets \n -  \n 862,524 \n\nAccounts payable and other current liabilities \n (459,011) \n 4,321,939 \n\nPayments for technical consulting services to related parties \n (27,186\n)\n \n - \n\nNet cash used in operating activities \n (2,136,482) \n (1,325,190)\n\n  \n    \n   \n\nCash flows from investing activities \n    \n   \n\nProceeds from sale of property and equipment \n 691  \n 21,082 \n\nPurchase of property and equipment \n (133,685) \n (154,671)\n\nPurchase of other non-current assets \n (38,681) \n - \n\nBusiness acquisition, net of cash acquired \n - \n 426,680 \n\nInterest-free loan lent to related parties \n - \n (56,986)\n\nInterest-free loan repaid by related parties \n -  \n 96,335 \n\nLoss on disposal of subsidiaries \n -  \n 444,554 \n\nNet cash (used in)/ provided by investing activities \n (171,675) \n 776,994 \n\n  \n    \n   \n\nCash flows from financing activities \n    \n   \n\nProceeds from interest-free loan from related parties \n 418,829  \n 1,275,534 \n\nRepayment of interest-free loan to related parties \n -  \n (763,417)\n\nProceeds of loan from third parties \n 3,587,129  \n - \n\nRepayments of loan from third parties \n (1,682,351) \n - \n\nNet cash provided by financing activities \n 2,323,607  \n 512,117 \n\n  \n    \n   \n\nEffect of exchange rate changes on cash and cash equivalents \n 5,671  \n 2,331 \n\n  \n    \n   \n\nNet increase/(decrease) of cash and cash equivalents \n 21,121  \n (33,748)\n\n  \n    \n   \n\nCash and cash equivalents–beginning of year \n 114,757  \n 148,505 \n\n  \n    \n   \n\nCash and cash equivalents–end of year \n 135,878  \n 114,757 \n\n  \n    \n   \n\nSupplementary cash flow information: \n    \n   \n\nIncome taxes \n 12,090  \n 793 \n\nInterest expense \n 63,964  \n 91,810 \n\n** **\n\n49\n\n \n\n****\n\n \n\n**1.\nOrganization and Principal Activities**\n\n \n\nOn\nMarch 6, 2015, SavMobi Technology Inc. (“the Company”), was incorporated in the State of Nevada and established a fiscal\nyear end of May 31. Initially the business platform was in providing application software to a global vendor platform to connect people\nto businesses and provide a new shopping experience.\n\n \n\nOn\nMay 18, 2017, Lakwinder Singh Sidhu, the Company’s former Director and CEO, completed a transaction with New Reap Global Ltd.,\nby which New Reap Global Ltd. acquired 32,500,000 shares of common stock, representing 68.4% ownership of the Company.\n\n \n\nOn\nMarch 19, 2018 New Reap Global transferred 250,000 restricted shares to Eng Wah Kung.\n\n \n\nOn\nMay 10, 2018 and May 30, 2018, 16,959,684 were transferred to Arden Wealth and Trust. 2,000,000 shares are free trading from HongLing\nShang, 559,684 restricted shares from New Reap Global, LTD and 2,400,000 each from Xuedong Zhang, Jingmei Jiang, Qianxian, Yulan Qi,\nBaoxin Song, Jianlong Wu. On June 15, 2018 New Reap Global transferred 690,316 restricted shares to EMRD Global Holdings.\n\n \n\nOn\nJune 26, 2018 New Reap Global transferred 3,000,000 restricted shares to FORTRESS ADVISORS, LLC and 3,000,000 to Baywall Inc.\n\n \n\nOn\nNovember 10, 2020, ten (10) shareholders of the Company, including affiliates Arden Wealth & Trust (Switzerland) AG and New Reap\nGlobal Limited, entered into stock purchase agreements with an aggregate of nineteen (19) non-U.S. accredited investors to sell an aggregate\nof 42,440,316 shares of common stock of the “Company, which represents approximately 68.6% of the issued and outstanding shares\nof common stock of the Company.\n\n \n\nOn\nJune 8, 2022, three (3) shareholders of the Company, including Ma Hongyu, Ye Caiyun, and Li Wenzhe entered into stock purchase agreements\nwith an aggregate of five (5) non-U.S. accredited investors (the “Purchase Agreements”) to sell an aggregate of 25,095,788\nshares of common stock of the Company, which represents approximately 40.54% of the issued and outstanding shares of common stock of\nthe Company, for consideration of $250,958.\n\n \n\nThe\nPurchase Agreements were fully executed and delivered on June 8, 2022. Zhang Yiping and Chen Xinxin acquired approximately 24.54% and\n6.46% of the issued and outstanding shares of the Company, respectively, and the remaining purchasers each acquired less than 4.99% of\nthe issued and outstanding shares. After the change of ownership, the Company’s current principal offices is located in Building\nB8, China Zhigu, Yinhu Street, Fuyang District, Hangzhou, Zhejiang, China.\n\nSchedule\nof Share Acquired by Purchases\n\nPurchasers \nShares acquired  \n% \n\nZhang Yiping \n 15,189,500  \n 24.54%\n\nChen Xinxin \n 4,000,000  \n 6.46%\n\nWang Yanfang \n 2,000,000  \n 3.23%\n\nLiu Chen \n 2,000,000  \n 3.23%\n\nLiu Ying \n 1,906,288  \n 3.08%\n\n \n\nOn\nDecember 15, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with\nIntellegence Parking, a Cayman Island company formed on June 29, 2022, Chen Xinxin (“Xinxin”), the officer and director,\nand control shareholder of Intelligence Parking and the shareholders of Intelligence Parking (the “Shareholders”). Under\nthe Share Exchange Agreement, One Hundred Percent (100%)\nof the ownership interest of Intellegence Parking was exchanged for 1,000,000,000\nshares of common stock of the Company issued to the Shareholders, in accordance with the Share Exchange Agreement. The former\nstockholders of Intellegence Parking acquired a majority of the issued and outstanding common stock as a result of the share\nexchange transaction. The transaction has been accounted for as a recapitalization of the Company, whereby Intellegence Parking is\nthe accounting acquirer.\n\n \n\n50\n\n \n\n \n\nImmediately\nafter completion of such share exchange, the Company will hold a total of 200,000,000\nissued and outstanding shares of Intellegence Parking. Guowei Zhang is the sole director of Intellegence Parking.\n\n \n\nConsequently,\nthe Company has ceased to fall under the definition of shell company as define in Rule 12b-2 under the Exchange Act of 1934, as amended\n(the “Exchange Act”) and Intellegence Parking is now a wholly owned subsidiary.\n\n \n\nIntellegence\nParking was incorporated on June 29, 2022 under the laws of Cayman Islands. It is controlled by Guowei Zhang. Intellegence Parking is an investment holding company.\n\n \n\nIntellegence\nHK was incorporated on July 20, 2022 under the laws of Hong Kong SAR. Intelligence HK is a wholly subsidiary of Intellegence Parking\nsince incorporation and it is an investment holding company.\n\n \n\nHuixin\nWFOE was incorporated on October 24, 2022 under the laws of PRC. It is a wholly owned subsidiary of Intellegence HK since incorporation\nand it is an investment holding company.\n\n \n\nPursuant\nto the Business Operation Agreement entered into among Huixin WFOE and Jingbo VIE between November 15\nand 11, 2022, the Company obtained control over these PRC domestic companies by entering into a series of contractual arrangements with\nthese PRC domestic companies and their respective nominee shareholders. These contractual agreements include power of attorney, exclusive\noption agreement, exclusive business cooperation agreements, equity pledge agreements, and other operating agreements. These contractual\nagreements can be extended at the relevant PRC subsidiaries’ options prior to the expiration date. As a result, the Company maintains\nthe ability to control these PRC domestic companies, is entitled to substantially all of the economic benefits from these PRC domestic\ncompanies and is obligated to absorb all expected losses of these PRC domestic companies.\n\n \n\nOn\nNovember 18, 2024, the Company entered into a Shares Exchange Agreement (the “Shares Exchange Agreement”),\nXinghe, a British Virgin Islands company and Hangdu, a British Virgin Islands company and the sole shareholder\nof Xinghe. Pursuant to the Share Exchange Agreement, the Company issued 550,000,000 shares of common stock, par value $0.001 per share\n(the “Common Stock”) of the Company to Hangdu, in consideration for the acquisition of all the issued and outstanding shares\nin Xinghe (the “Acquisition”). Hangdu will transfer all the issued and outstanding shares of Xinghe at the closing of the\nShare Exchange Agreement.\n\n \n\nOn\nDecember 9, 2024, the Acquisition was completed pursuant to the terms of the Shares Exchange Agreement dated November 18, 2024 described\nin the Company’s Form 8-K, filed with the Securities and Exchange Commission (the “SEC”) on November 18, 2024. As consideration\nfor the Acquisition, the Company issued 550,000,000 shares of Common Stock to Hangdu in exchange for the 50,000 ordinary shares, representing\nall the issued and outstanding shares of Xinghe, owned by Hangdu. After the Acquisition, Hangdu became the largest shareholder of Jingbo\nand held approximately 99.0% issued and outstanding shares of Jingbo. Xiujuan Chen, a citizen of People’s Republic of China, is\nthe sole shareholder of Hangdu.\n\n \n\nKeqiao\nLimited was incorporated under the laws of the Hong Kong on October 2, 2024, which was fully owned by Xinghe. Keqiao Limited is an\ninvestment holding company.\n\n \n\n51\n\n \n\n \n\nKeqiao\nWFOE was incorporated under the laws of the PRC on October 22, 2024. Its sole director is Xiujuan Chen. It mainly focuses on IT system\nmaintenance, digital content creation, AI and big data solutions, software and system development.\n\n \n\nKeqiao\nWFOE entered into a series of contractual arrangements, including equity pledge agreements, shareholders’ voting rights proxy\nagreement, exclusive business cooperation agreements, and exclusive call option agreements, with Guangzhou Keqiao VIE, giving Keqiao\nWFOE’s right to control and operate the business of Guangzhou Keqiao VIE.\n\n \n\nThe\nCompany consolidated its financial statements due to common control.\n\n \n\nThe\nCompany’s major subsidiaries, VIEs and VIEs’ subsidiaries are described as follows:\n\nSchedule\nof Economic Benefits Ownership Percentage\n\n  \nCountry/Place and date of \nPercentage of direct or indirect\neconomic benefits ownership \n\nCompanies \nincorporation/establishment \nFebruary 28, 2026  \nFebruary 28, 2025 \n\nMajor Subsidiaries \n  \n    \n   \n\nIntellegence Parking Group Limited \nCayman June 29, 2022 \n 100% \n 100%\n\nIntellegence Parking (Hong Kong) Limited \nHong Kong July 20, 2022 \n 100% \n 100%\n\nHuixin Zhiying (Hangzhou) Technology Co. \nPRC October 24, 2022 \n 100% \n 100%\n\nGuangzhou Keqiao Enterprise Management Consulting Co., Ltd \nPRC October 22, 2024 \n 100% \n 100%\n\nXinghe Technology Limited \nBVI September 9, 2024 \n 100% \n 100%\n\nMajor VIEs (Including VIE’s Subsidiaries) \n  \n    \n   \n\nZhejiang Jingbo Ecological Technology Co. \nPRC December 18, 2019 \n 100% \n 100%\n\nHangzhou Zhuyi Technology Co. \nPRC November 3, 2017 \n 100% \n 100%\n\nGuangzhou Keqiao Technology Co., Ltd \nPRC August 22, 2024 \n 100% \n 100%\n\n \n\n**2.\nVariable Interest Entities**\n\n \n\nPursuant\nto the Business Operation Agreement entered into among Huixin WFOE and Jingbo VIE, the Company obtained\ncontrol over these PRC domestic companies by entering into a series of contractual arrangements with these PRC domestic companies and\ntheir respective nominee shareholders. These contractual agreements include power of attorney, exclusive option agreement, exclusive\nbusiness cooperation agreements, equity pledge agreements, and other operating agreements. These contractual agreements can be extended\nat the relevant PRC subsidiaries’ options prior to the expiration date. As a result, the Company maintains the ability to control\nthese PRC domestic companies, is entitled to substantially all of the economic benefits from these PRC domestic companies and is obligated\nto absorb all expected losses of these PRC domestic companies.\n\n \n\n52\n\n \n\n \n\nJingbo VIE\nis a PRC company which was formed on December 18, 2019 and is engaged in the business of smart parking application software and\nplatform operations business. Guowei Zhang has been the Chairman of Jingbo VIE\nsince December 2019.\n\n \n\nHangzhou\nZhuyi was incorporated under the laws of the PRC on November 13, 2017 with a capital of RMB 60,000,000. The majority shareholder at the\ntime of establishment was Guowei Zhang. On April 1, 2020, Jingbo VIE became the sole shareholder of Hangzhou\nZhuyi. Hangzhou Zhuyi is specialized in smart parking projects, smart parking mobile applications and cloud platform construction innovation.\n\n \n\nLinglingyi\nwas incorporated on November 17, 2018. Its sole director is Guowei Zhang. Hangzhou Zhuyi acquired 100% of Linglingyi on April 29. 2022.\nIts main businesses are smart parking projects and smart parking mobile applications. On October 12, 2024, Linglingyi was deregistered.\n\n \n\nLiangshan\nwas incorporated on November 13, 2018. On September 29, 2022, Hangzhou Zhuyi entered in a share agreement with Hangzhou Kaai Technology\nCo. to purchase 26% of Liangshan’s shares. As a result, Hangzhou Zhuyi holds 67% of Liangshan. Liangshan is into smart parking\nprojects and smart parking mobile applications businesses. On August 27, 2024 Liangshan was transferred.\n\n \n\nAnping\nwas incorporated on May 12, 2022, which is 90% owned by Hangzhou Zhuyi and it mainly focuses on smart parking projects and smart parking\nmobile applications. Anping was deregistered on 27 June, 2023.\n\n \n\nHaikou\nwas incorporated on May 9, 2022 which is a wholly subsidiary of Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart\nparking mobile applications. On August 27, 2024, Haikou was transferred.\n\n \n\nYibin\nwas incorporated on July 4, 2019, which is 80% owned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking\nmobile applications. On August 27, 2024 Yibin was transferred.\n\n \n\nXide\nwas incorporated on October 14, 2021, which is 67% owned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking\nmobile applications.\n\n \n\nTongpo\nwas incorporated on November 4, 2020, which is a wholly subsidiary of Hangzhou Zhuyi. It mainly focuses on smart parking projects and\nsmart parking mobile applications.\n\n \n\nTaining\nwas incorporated on May 18, 2021, which is 72% owned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking\nmobile applications.\n\n \n\nHuji\nwas incorporated on August 14, 2023, which is a wholly subsidiary of Hangzhou Zhuyi. It mainly focuses on smart parking projects and\nsmart parking mobile applications.\n\n \n\nLeshan\nwas incorporated on March 14, 2024, which is 65% owned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking\nmobile applications.\n\n \n\nTianniu\nwas incorporated under the laws of the PRC on April 10, 2025. Its sole director is Leilei Wu. It mainly focues on IT system and information\ntechnology services. On January 27, 2026 Tianniu was transferred.\n\n \n\nYuntu was incorporated on February 6, 2026, which is 100% owned by Hangzhou Zhuyi. It mainly focuses on smart parking projects and smart parking\nmobile applications.\n\n \n\nIntellengence\nParking Group Limited provides smart parking projects, smart parking mobile applications and cloud platform construction innovation through\nits consolidated subsidiaries, Jingbo VIE (“VIE 1”) and its subsidiaries (Collectively, the “Group 1”).\n\n \n\n53\n\n \n\n \n\nKeqiao\nWFOE entered into a series of contractual arrangements, including equity pledge agreements, shareholders’ voting rights proxy\nagreement, exclusive cooperation agreements, and exclusive call option agreements, with Guangzhou Keqiao VIE giving Keqiao\nWFOE’s right to control and operate the business of Guangzhou Keqiao VIE.\n\n \n\nGuangzhou\nKeqiao VIE was incorporated under the laws of the PRC on August 22, 2024. Its sole director is Xiujuan Chen. It mainly focuses on IT\nsystem maintenance, digital content creation, AI and big data solutions, software and system development.\n\n \n\nShaoxing\nKeqiao was incorporated under the laws of the PRC on February 18, 2022, which was fully owned by Guangzhou Keqiao VIE. It mainly\nfocuses on intelligent parking projects.\n\n \n\nXinghe\nprovides smart parking projects, smart parking mobile applications and cloud platform construction innovation through its\nconsolidated subsidiaries, Guangzhou Keqiao VIE (“VIE 2”), and its subsidiaries (collectively, the “Group\n2”).\n\n \n\n*a.\nContractual agreements with VIEs*\n\n \n\n*Power\nof Attorney/ Shareholder’s Voting Right Proxy Agreement*\n\n \n\nPursuant\nto the power of attorney agreements among the Wholly Foreign Owned Enterprises (“WFOEs”), the VIEs and their respective nominee\nshareholders, each nominee shareholder of the VIEs irrevocably undertakes to appoint the WFOE, as the attorney-in-fact to exercise all\nof the rights as a shareholder of the VIEs, including, but not limited to, the right to convene and attend shareholders’ meeting,\nvote on any resolution that requires a shareholder vote, such as appoint or remove directors and other senior management, and other voting\nrights pursuant to the articles of association (subject to the amendments) of the VIEs. Each power of attorney agreement is irrevocable\nand remains in effect as long as the nominee shareholders continues to be a shareholder of the VIEs. Unless otherwise required by PRC\nLaws, none of the VIEs or its shareholders can unilaterally terminate this agreement.\n\n \n\n*Exclusive(Call)\nOption Agreements*\n\n \n\nPursuant\nto the exclusive option agreements among WFOEs, the VIEs and their respective nominee shareholders, the nominee shareholders granted\nWFOEs exclusive right to purchase, when and to the extent permitted under PRC law, all or part of the equity interests from shareholders\nof VIEs. The exercise price for the options to purchase all or part of the equity interests shall be the minimum amount of consideration\npermissible under then applicable PRC law. The agreement shall be valid until WFOEs or its designated party purchases all the shares\nfrom shareholders of VIEs. The terms of the exclusive option agreement are 10 years and can be automatically extended until such time\nWFOEs delivers a confirmation letter specifying the renewal term of this agreement. Unless otherwise required by PRC Laws, the VIEs or\nits shareholders shall not unilaterally terminate this agreement.\n\n \n\n*Exclusive\nBusiness Corporation Agreement*\n\n \n\nPursuant\nto the exclusive business cooperation agreements among the WFOEs and the VIEs, respectively, the WFOEs have the exclusive right to provide\nthe VIEs with services related to, among other things, comprehensive technical support, professional training, consulting services, trademark\nand copyright of system. Without prior written consent of the WFOEs, the VIEs agree not to directly or indirectly accept the same or\nany similar services provided by any others regarding the matters ascribed by the exclusive business cooperation agreements. The VIEs\nagree to pay the WFOEs services fees, which shall be determined by the WFOEs. The WFOEs have the exclusive ownership of intellectual\nproperty rights created as a result of the performance of the agreements. The agreements shall remain effective except that the WFOEs\nare entitled to terminate the agreements in writing. Unless otherwise required by PRC Laws, the VIEs shall not unilaterally terminate\nthis agreement.\n\n \n\n54\n\n \n\n \n\n*Equity\nPledge Agreement*\n\n \n\nPursuant\nto the equity pledge agreements among the WFOEs, the VIEs and their respective nominee shareholders, the nominee shareholders of the\nVIEs pledged all of their respective equity interests in the VIEs to the WFOEs as collateral for performance of the obligations of the\nVIEs and their nominee shareholders under the exclusive business cooperation agreements, the power of attorney agreements, and the exclusive\noption agreements. The nominee shareholders of the VIEs also undertake that, during the term of the equity pledge agreements, unless\notherwise approved by the WFOEs in writing, they will not transfer the pledged equity interests or create or allow any new pledge or\nother encumbrance on the pledged equity interests. These equity pledge agreements remain in force until VIEs and their respective nominee\nshareholders discharge all their obligations under the contractual agreements.\n\n \n\n*Spousal\nConsent Letter*\n\n \n\nPursuant\nto the spousal consent letters, the spouses of some of the individual nominee shareholders of the VIEs unconditionally and irrevocably\nagree that the equity interest in the VIEs held by and registered in the name of his or her respective spouse will be disposed of pursuant\nto the relevant exclusive business cooperation agreements, equity pledge agreements, the exclusive option agreements and the power of\nattorney agreements, without his or her consent. In addition, each of them agrees not to assert any rights over the equity interest in\nthe VIEs held by their respective spouses. In addition, in the event that any of them obtains any equity interest in the VIEs held by\ntheir respective spouses for any reason, such spouses agree to be bound by similar obligations and agreed to enter into similar contractual\narrangements.\n\n \n\nb.\nRisks in relation to the VIE structure\n\n \n\nOn\nMarch 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which became effective on January\n1, 2020, together with their implementation rules and ancillary regulations. The Foreign Investment Law does not explicitly classify\ncontractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign\ninvestment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations\nor other methods prescribed by the State Council. It is unclear whether the Group’s corporate structure will be seen as violating\nthe foreign investment rules as the Group is currently leveraging the contractual arrangements to operate certain business in which foreign\ninvestors are prohibited from or restricted to investing. If variable interest entities fall within the definition of foreign investment\nentities, the Group’s ability to use the contractual arrangements with its VIEs and the Group’s ability to conduct business\nthrough the VIEs could be severely limited.\n\n \n\nIf\nthe PRC government otherwise finds that the Group in violation of any existing or future PRC laws or regulations or lacks the necessary\npermits or licenses to operate the business, the Group’s relevant PRC regulatory authorities could:\n\n \n\n●\nrevoke the business licenses and/or operating licenses of the Group’s PRC entities;\n\n \n\n●\nimpose fines;\n\n \n\n●\nconfiscate any income that they deem to be obtained through illegal operations, or impose other requirements with which the Group may\nnot be able to comply;\n\n \n\n●\ndiscontinue or place restrictions or onerous conditions on the Group’s operations;\n\n \n\n●\nplace restrictions on the right to collect revenues;\n\n \n\n55\n\n \n\n \n\n●\nrequire the Group to restructure ownership structure or operations, including terminating the contractual agreements with the VIEs and\nderegistering the equity pledges of the VIEs, which in turn would affect the ability to consolidate the financial results of and derive\neconomic interests from the VIEs and their subsidiaries;\n\n \n\n●\nrestrict or prohibit the use of the proceeds from financing activities to finance the business and operations of the VIEs and their subsidiaries;\nor\n\n \n\n●\ntake other regulatory or enforcement actions that could be harmful to the Group’s business.\n\n \n\nThe\nimposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s\nbusiness. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the\nVIEs or the right to receive its economic benefits, the Group would no longer be able to consolidate the VIEs. The management believes\nthat the likelihood for the Group to lose such ability is remote based on current facts and circumstances. However, the interpretation\nand implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability\nof contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities\nwill take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual\narrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, it may lead to changes in PRC laws, regulations and\npolicies or in the interpretation and application of existing laws, regulations and policies, which may limit legal protections available\nto the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations\nunder those arrangements. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIEs\ndepend on nominee shareholders enforcing the contracts. There is a risk that nominee shareholders of VIEs, who in some cases are also\nshareholders of the Company may have conflict of interests with the Company in the future or fail to perform their contractual obligations.\nGiven the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were\nnot enforced.\n\n \n\nThe\nGroup’s operations depend on the VIEs to honor their contractual agreements with the Group. The Company’s ability to direct\nactivities of the VIEs that most significantly impact their economic performance and the Company’s right to receive the economic\nbenefits that could potentially be significant to the VIEs depend on the authorization by the shareholders of the VIEs to exercise voting\nrights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise\nshareholder’s voting power are enforceable against each party thereto in accordance with their terms and applicable PRC laws or\nregulations currently in effect and the possibility that it will no longer be able to consolidate the VIEs as a result of the aforementioned\nrisks and uncertainties is remote.\n\n \n\n*c.\nSummary of financial information of the Groups’ VIEs (inclusive of VIE’s subsidiaries)*\n\n \n\nThe\nfollowing tables set forth the financial statement balances and amounts of the VIEs and their subsidiaries included in the consolidated\nfinancial statements after the elimination of intercompany balances and transactions among VIEs and their subsidiaries within the Group.\n\n \n\n56\n\n \n\n \n\nGroup\n1\n\nSchedule\nof Variable Interest Entities Financial Statements\n\n  \n\n**February 28,**\n\n**2026**\n  \n\n**February 28,**\n\n**2025**\n \n\n  \n$  \n$ \n\nCash and cash equivalents \n 55,383  \n 96,985 \n\nRestricted cash \n 51,791  \n 9,492 \n\nAccounts receivable \n 25,605  \n 122,614 \n\nInventories \n 150,078  \n 119,006 \n\nPrepaid expenses and other current assets \n 1,848,867  \n 6,624,750 \n\nAmounts due from related parties \n 188,497  \n 157,259 \n\nProperty, plant and equipment, net \n 3,974,577  \n 5,020,365 \n\nIntangible assets, net \n 7,038  \n 8,911 \n\nRight-of-use assets \n 76,474  \n 77,318 \n\nOther non-current assets \n 65,552  \n 30,663 \n\nLong-term receivable \n 1,439,818  \n - \n\nTotal Assets of Group 1 \n 7,883,680  \n 12,267,363 \n\nShort-term Loan \n 72,909  \n 1,373,098 \n\nAccounts payables \n 484,252  \n 629,535 \n\nAdvances from customers \n 3,291,785  \n 3,595,420 \n\nOther current payables \n 4,766,990  \n 5,740,940 \n\nTaxes payable \n 74,968  \n 67,723 \n\nAmounts due to related parties \n 24,339,212  \n 22,793,389 \n\nOperating lease liabilities, current \n 10,789  \n 9,177 \n\nOperating lease liabilities, non-current \n 62,936  \n 65,791 \n\nLong-term bank borrowing \n 1,385,264  \n - \n\nLong-term payable \n 2,814,604  \n - \n\nTotal Liabilities of Group 1 \n 37,303,709  \n 34,275,073 \n\nTotal Stockholders’ Deficit of Group 1 \n (29,420,029) \n (22,007,710)\n\nTotal Liabilities and Stockholders’ Deficit of Group 1 \n 7,883,680  \n 12,267,363 \n\n \n\n  \n\n**February 28,**\n\n**2026**\n  \n\n**February 28,**\n\n**2025**\n \n\n  \n$  \n$ \n\nNet revenues \n 1,542,867  \n 2,141,654 \n\nCost of revenues \n (1,641,866) \n (2,537,765)\n\nGross loss \n (98,999) \n (396,111)\n\nTotal operating expenses \n (5,587,983) \n (4,587,175)\n\nOperating loss \n (5,686,982) \n (4,983,286)\n\nTotal other expenses \n (124,647) \n (523,105)\n\nLoss before taxes from operations \n (5,811,629) \n (5,506,391)\n\nProvision for income taxes \n (3,959) \n (7,397)\n\nNet loss \n (5,815,588) \n (5,513,788)\n\nNet loss attributable to Group 1 \n (5,779,801) \n (5,490,110)\n\n \n\n57\n\n \n\n \n\n  \n\n**February 28,**\n\n**2026**\n  \n\n**February 28,**\n\n**2025**\n \n\n  \n$  \n$ \n\nNet cash used in operating activities \n (1,732,585) \n (560,006)\n\nNet cash (used in)/provided by investing activities \n (171,675) \n 270,699 \n\nNet cash provided by financing activities \n 1,898,586 \n 250,287 \n\nEffect of exchange rate changes on cash and cash equivalents \n 6,371  \n (1,340)\n\nNet increase in cash and cash equivalents \n 697  \n (40,360)\n\nCash and cash equivalents at the beginning of period \n 106,477  \n 146,837 \n\nCash and cash equivalents at the end of period \n 107,174  \n 106,477 \n\n \n\nGroup\n2\n\n \n\n  \nFebruary 28,  \nFebruary 28, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nCash and cash equivalents \n 1,604  \n 1,574 \n\nPrepaid expenses and other current assets, net \n 36,455  \n 34,328 \n\nAmounts due from related parties \n 23,485,495  \n 22,121,347 \n\nTotal Assets of Group 2 \n 23,523,554  \n 22,157,249 \n\nOther current payables \n 34  \n 32 \n\nAmounts due to related parties \n 3,150  \n 1,812 \n\nLong term payable \n 22,827,279  \n 21,495,468 \n\nTotal Liabilities of Group 2 \n 22,830,463  \n 21,497,312 \n\nTotal Stockholders’ Equity of Group 2 \n 693,091  \n 659,937 \n\nTotal Liabilities and Stockholders’ Equity of Group 2 \n 23,523,554  \n 22,157,249 \n\n \n\n  \nFebruary 28,  \nFebruary 28, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet revenues \n -  \n - \n\nCost of revenues \n -  \n (87)\n\nGross loss \n -  \n (87)\n\nTotal operating expenses \n (7,436) \n (4,227)\n\nOperating loss \n (7,436) \n (4,314)\n\nTotal other income \n 1  \n 52 \n\nLoss before taxes from operations \n (7,435) \n (4,262)\n\nProvision for income taxes \n -  \n - \n\nNet loss \n (7,435) \n (4,262)\n\nNet loss attributable to Group 2 \n (7,435) \n (4,262)\n\nNet loss attributable to VIE \n (7,435) \n (4,262)\n\n \n\n58\n\n \n\n \n\n  \nFebruary 28,  \nFebruary 28, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet cash (used in)/provided by operating activities \n (7,435) \n 64,828 \n\nNet cash provided by/(used in) investing activities \n 6,192  \n (63,240)\n\nNet cash provided by/(used in) financing activities \n 1,178  \n - \n\nEffect of exchange rate changes on cash and cash equivalents \n 95  \n (14)\n\nNet increase in cash and cash equivalents \n 30 \n 1,574 \n\nCash and cash equivalents at the beginning of period \n 1,574  \n - \n\nCash and cash equivalents at the end of period \n 1,604  \n 1,574 \n\n \n\n**3.\nSummary of Significant Accounting Policies**\n\n \n\n**Basis\nof Presentation**\n\n \n\nThe\naccompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules\nand regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting\nprinciples in the U.S. (“US GAAP”).\n\n \n\nThe\naccompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates\nthe realization of assets and the satisfaction of liabilities in the normal course of business.\n\n \n\n**Going\nConcern**\n\n \n\nIn\nassessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure\ncommitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure\nobligations. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going\nconcern due to (1) the net loss of $6,706,122 for the year ended February 28, 2026; (2) accumulated deficit of $41,996,913 as of February 28, 2026; and\n(3) the working capital deficit of $9,754,932 as of February 28, 2026.\n\n \n\nManagement\nhas determined there is substantial doubt about its ability to continue as a going concern. Management will implement strategies and\nplans to grow the Company’s business and generate substantial revenue, and take further measures to control operating costs. Management\nis trying to alleviate the going concern risk through the following sources:\n\n \n\n \n●\nEquity\nfinancing to support its working capital;\n\n \n \n \n\n \n●\nOther\navailable sources of financing (including debt) from banks and other financial institutions; and\n\n \n \n \n\n \n●\nFinancial\nsupport and credit guarantee commitments from the Company’s related parties.\n\n \n\nBased\non the above considerations, manager is of the opinion that the Company will probably not have sufficient funds to meet its working capital\nrequirements if the Company is unable to obtain additional financing. There is no assurance that the Company will be successful in implementing\nthe foregoing plans or that additional financing will be available to the Company on commercially reasonably terms, or at all.\n\n \n\nThe\nconsolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation\nof liabilities in the normal course business. The consolidated financial statements do not include any adjustments that might result\nfrom outcome of such uncertainties.\n\n \n\n**Method\nof accounting**\n\n \n\nManagement\nhas prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in the United\nStates of America. The Company maintains its general ledger and journals with the accrual method accounting.\n\n \n\n**Use\nof estimates**\n\n \n\nThe\npreparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets\nand liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts\nof revenues and expenses during the reporting periods. Significant accounting estimates reflected in our consolidated financial statements\ninclude, but are not limited to, useful lives of plant and equipment and intangible assets, impairment of long-lived assets, allowance\nfor doubtful accounts, allowance for deferred tax assets and uncertain tax position. Management makes these estimates using the best\ninformation available at the time the estimates are made; however, actual results could differ materially from those estimates.\n\n \n\n59\n\n \n\n \n\n**Business\nCombination and Non-controlling Interests**\n\n \n\nOn\nDecember 15, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with\nIntellegence Parking, a Cayman Island company formed on June 29, 2022, Chen Xinxin (“Xinxin”), the officer and director,\nand control shareholder of Intelligence Parking and the shareholders of Intelligence Parking (the “Shareholders”). Under\nthe Share Exchange Agreement, One Hundred Percent (100%)\nof the ownership interest of Intellegence Parking was exchanged for 1,000,000,000\nshares of common stock of the Company issued to the Shareholders, in accordance with the Share Exchange Agreement. The former\nstockholders of Intellegence Parking acquired a majority of the issued and outstanding common stock as a result of the share\nexchange transaction. The transaction has been accounted for as a recapitalization of the Company, whereby Intellegence Parking is\nthe accounting acquirer.\n\n \n\nImmediately\nafter completion of such share exchange, the Company will hold a total of 200,000,000\nissued and outstanding shares of Intellegence Parking. Guowei Zhang is the sole director of Intellegence Parking.\n\n \n\nThe Company\nand Intellegence Parking consolidated the financial statements through common control. As a result, the Company measured the recognized\nassets and liabilities combined at their historical cost at the acquisition date. The difference between consideration paid and assets\nand liabilities received are presented as a component of equity and additional paid-in-capital.\n\n \n\nJingbo VIE and Hangzhou Zhuyi, Xide, Tongpo, Leshan, Huji, Taining\nand Yuntu consolidated the financial statements through acquisition.\n\n \n\nOn\nNovember 18, 2024, the Company entered into a Shares Exchange Agreement (the “Shares Exchange Agreement 2”), with Xinghe,\nand Hangdu, a British Virgin Islands company and the sole shareholder of Xinghe. Pursuant to\nthe Share Exchange Agreement 2, the Company issued 550,000,000 shares of common stock, par value $0.001 per share (the “Common\nStock”) of the Company to Hangdu, in consideration for the acquisition of all the issued and outstanding shares in Xinghe (the\n“Acquisition”). Hangdu will transfer all the issued and outstanding shares of Xinghe at the closing of the Share Exchange\nAgreement 2.\n\n \n\nOn\nDecember 9, 2024, the Acquisition was completed pursuant to the terms of the Shares Exchange Agreement 2 dated November 18, 2024. As\nconsideration for the Acquisition, the Company issued 550,000,000 shares of Common Stock to Hangdu in exchange for the 50,000 ordinary\nshares, representing all the issued and outstanding shares of Xinghe, owned by Hangdu. After the Acquisition, Hangdu became the largest\nshareholder of Jingbo and held approximately 99.0% issued and outstanding shares of Jingbo. Xiujuan Chen, a citizen of People’s\nRepublic of China, is the sole shareholder of Hangdu.\n\n \n\nThe Company\naccounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 — “Business\nCombinations”. The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred\nto the sellers, liabilities incurred by the Company and equity instruments issued by the Company. Transaction costs directly attributable to the\nacquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values\nas of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition,\nfair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over\n(ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the\nfair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive\nloss.\n\n \n\nIn\na business combination achieved in stages, the Company re-measures the previously held equity interest in the acquiree immediately before\nobtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements\nof comprehensive loss.\n\n \n\n60\n\n \n\n \n\nThe\nconsolidated financial statements include the financial statements of the Company its subsidiaries, the VIEs and VIE’s subsidiaries\nfor which the Company is considered the ultimate primary beneficiary for accounting purposes.\n\n \n\nA\nsubsidiary is an entity in which the Company directly or indirectly controls more than one half of the voting power, has the power to\nappoint or remove the majority of the members of the board of directors, to cast a majority of notes at the meeting of the board of directors\nor to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.\n\n \n\nA\nVIE is an entity in which the Company’s subsidiary, through contractual agreements, has the power to direct activities of the VIEs\nthat most significantly impact their economic performance, and has the right to receive economic benefits from the VIEs that could potentially\nbe significant to them, and therefore the Company is considered the ultimate primary beneficiary of the entity for accounting purposes.\n\n \n\nAll\ntransactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation.\nThe results of subsidiaries and VIEs acquired or disposed of during the year are recorded in the consolidated statements of comprehensive\nloss from the effective dates of acquisition or up to the effective dates of disposal, as appropriate.\n\n \n\n**Segment\nReporting**\n\n \n\nASC\n280, Disclosures about Segments, of an Enterprise and Related Information, establishes standards for reporting information about operating\nsegments. Operating segments are defined as components of an enterprise engaging in business activities from which they may earn revenues\nand incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-marker,\nor decision-making group (the “CODM”), in deciding how to allocate resources and in assessing performance. Reportable segments\nare defined as an operating segment that either (a) exceeds 10% of revenues, or (b) reported profit or loss in absolute amount exceeds\n10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments.\n\n \n\nChief\nexecutive officer is determined as the CODM of the Company. The Company has organized operations into three different areas: (1) parking\nfee, (2) winery sales, and (3) others. CODM has access them as separate operating segments.\n\n \n\n**Cash\nand cash equivalents**\n\n \n\nThe\nCompany considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank deposits\nto be cash equivalents.\n\n \n\n**Accounts\nreceivables**\n\n \n\nAccount\nreceivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An expected credit\nloss is made when collection of the full amount is no longer probable. Bad debts are written off against expected credit loss allowances.\n\n \n\n**Inventories**\n\n \n\nInventories\nsolely consist of consumable parts for sales are stated at the lower of cost or market value. Consumable parts for sales costs include:\nmaterials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the First in, first out method to its inventory.\n\n \n\n61\n\n \n\n \n\n**Property,\nplant and equipment**\n\n \n\nAn\nitem of property, plant and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease\nin value (if any).\n\n \n\nThe\ncost of an item of property plant and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after\ndeducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary\nfor it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling\nand removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item\nis acquired or as a consequence of having used the item during a particular period.\n\n \n\nThe\ncost of replacing part of property, plant and equipment is included in the carrying amount of the asset when it is probable that future\neconomic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are\ncharged to the statement of income during the financial period in which they are incurred.\n\n \n\nDepreciation\nis provided over their estimated useful lives, using the straight-line method. The estimated useful lives of the property, plant and\nequipment are as follows:\n\nSchedule\nof Estimated Useful Live \n\nFurniture, fixtures and office equipment \n 3-5 years \n\nBuilding \n 20 years \n\nVehicles \n 4-5 years \n\nProject facilities \n 2-5 years \n\n \n\nThe\ncost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss\nare included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred;\nsignificant renewals and betterments are capitalized.\n\n \n\n**Expected credit loss**\n\n \n\nASU\nNo. 2016-13, Financial Instruments — Credit\nLosses: Measurement of Credit Losses on Financial Instruments (ASC 326) requires entities to use a current lifetime expected credit loss\nmethodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than\nunder the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There\nare other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that\nexpand disclosures.\n\n \n\n**Impairment\nof long-lived assets**\n\n \n\nThe\nCompany reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of\nan asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement\nand equipment; such as evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is\nused or is expected to be used, the Company shall recognize loss on decrease in value of property, plant and equipment in the statement\nof income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the\ncarrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and\ntheir eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company\nwould recognize impairment loss based on the fair value of the assets. If an impairment is identified, the Company would reduce the carrying\namount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable\nmarket values.\n\n \n\nAs of February 28, 2026 and 2025, the accumulated impairment losses on long-lived assets were $849,553 and $433,242,\nrespectively.\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.\n\n \n\n62\n\n \n\n \n\n**Leases**\n\n \n\nLeases\nare classified at the inception date as either a finance lease or an operating lease. As the lessee, a lease is a finance lease if any\nof the following conditions exists: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase\noption, c) the lease term is at least 75% of the asset’s estimated remaining economic life, or d) the present value of the minimum\nlease payments at the beginning of the lease term is 90% or more of the fair value of the leased asset to the lessor at the inception\ndate.\n\n \n\nAll\nother leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of\ntheir respective leases. Operating leases (with an initial term of more than 12 months) are included in operating lease right-of-use\n(“ROU”) assets, operating lease liabilities (current), and operating lease liabilities (non-current) in the balance sheets.\nROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s\nobligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date\nbased on the present value of lease payments over the lease term. The Company utilizes a market-based approach to estimate the incremental\nborrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating\nlease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or\nterminate the lease when it is reasonably certain that the Company will exercise that option.\n\n \n\nThe\nCompany reviews its lease for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may\nno longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of lease; such as an evidence of\nobsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the\nCompany shall recognize loss on decrease in value of lease in the statement of income where the carrying amount of asset is higher than\nthe recoverable amount. The Company measures impairment by comparing the carrying value of the lease to the estimated discounted future\ncash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow\nis less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets\n\n \n\n**Value\nadded tax (“VAT”)**\n\n \n\nThe\nCompany is subject to value-added tax (“VAT”) for providing services and sales of products. Revenue from providing services\nand sales of products is generally subject to VAT at applicable tax rates, and subsequently paid to PRC tax authorities after netting\ninput VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports\nrevenue net of PRC’s VAT for all the periods presented in the Consolidated Statements of Operations and Comprehensive Loss.\n\n \n\n**Foreign\ncurrency translation**\n\n \n\nThe\naccompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB).\nThe Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues\nand expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange\nrates when the capital transactions occurred.\n\n \n\n63\n\n \n\nSchedule\nof Foreign Currency Translation\n\n  \n02282026  \n02282025 \n\nYear end RMB: US$ exchange rate \n 6.8579  \n 7.2828 \n\nAnnual average RMB: US$ exchange rate \n 7.1329  \n 7.2123 \n\n \n\nThe\nRMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial\ninstitutions.\n\n \n\n**Income\nrecognition**\n\n \n\n*Recognition\nof Revenue*\n\n \n\nRevenue\nis reported net of business taxes and VAT. The Company’s main income is from parking fee, winery sales and others.\n\n \n\nRevenue\nis recognized when services are rendered. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty\nof revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that\nthe Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this\namount:\n\n \n\n(i)\nidentification of the services in the contract;\n\n \n\n(ii)\ndetermination of whether the services are performance obligations, including whether they are distinct in the context of the contract;\n\n \n\n(iii)\nmeasurement of the transaction price, including the constraint on variable consideration;\n\n \n\n(iv)\nallocation of the transaction price to the performance obligations; and\n\n \n\n(v)\nrecognition of revenue when (or as) the Company satisfies each performance obligation.\n\n \n\nThe\nCompany only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled\nto in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606\nat contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which\nof these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated\nto the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s\nperformance obligations are transferred to customers at a point in time, typically upon delivery.\n\n \n\nFor\nall reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts\nwith an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules.\n\n \n\n*Other\nIncome and other expenses*\n\n \n\nOther\nincome and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements.\n\n \n\n**Advertising**\n\n \n\nAll\nadvertising costs are expensed as incurred.\n\n \n\n64\n\n \n\n \n\n**Research\nand development**\n\n \n\nAll\nresearch and development costs are expensed as incurred.\n\n \n\n**Retirement\nbenefits**\n\n \n\nRetirement\nbenefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated\nto inventory as part of overhead.\n\n \n\n**Income\ntaxes**\n\n \n\nIncome\ntax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items\nrecognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or\nequity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted\nat the reporting date, and any adjustment to tax payable with respect to previous periods.\n\n \n\nThe\nCompany accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years.\nUnder the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying\namounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance\nis provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize\ntheir benefits, or that future realization is uncertain.\n\n \n\nThe\nCompany accounts for uncertain tax positions by reporting a liability for uncertain tax positions taken or expected to be taken in a\ntax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the\ntax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes\ninterest and penalties, if any, related to unrecognized tax benefits in income tax expenses.\n\n \n\n**Comprehensive\nincome**\n\n \n\nThe\nCompany uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all\nchanges to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due\nto investments by stockholders.\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 presents the dilutive effect on a per share basis from the potential conversion of convertible securities or the\nexercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the as-if method;\nthe potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities that are potentially\nan anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted\nEPS.\n\n \n\n65\n\n \n\n \n\n**Financial\ninstruments**\n\n \n\nThe\nCompany’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued\nliabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820,\n“Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company.\nASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures\nof fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated\nbalance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair\nvalues because of the short period of time between the origination of such instruments and their expected realization and their current\nmarket rate of interest. The three levels of valuation hierarchy are defined as follows:\n\n \n\n \n●\nLevel\n1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets.\n\n \n \n \n\n \n●\nLevel\n2 - 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 \n\n \n●\nLevel\n3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.\n\n \n\nThe\nCompany analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities\nfrom Equity,” and ASC 815.\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**Recent\naccounting pronouncements**\n\n \n\nIn\nNovember 2024, the FASB issued ASU No. 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation\nDisclosures (Subtopic 220-40),*which requires disaggregated disclosure of income statement expenses for public business entities.\nThe objective of ASU 2024-03 is to “address requests from investors for more detailed information about the types of expenses .\n. . in commonly presented expense captions (such as cost of sales, selling, general, and administrative expenses, and research and development).”\nInvestors advised the FASB that “disclosure of disaggregated information about expenses is critically important in understanding\nan entity’s performance, assessing an entity’s prospects for future cash flows, and comparing an entity’s performance\nover time and with that of other entities.” ASU 2024-03 adds ASC 220-40 to require a footnote disclosure about specific expenses\nby requiring public entities to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement\nthat includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible\nasset amortization, and (5) depreciation, depletion, and amortization (DD&A) recognized as part of oil- and gas-producing activities\nor other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. The ASU does\nnot change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes\nto the financial statements. ASU 2024-03 is effective for all public entities for fiscal years beginning after December 15, 2026, and\ninterim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company does not expect the adoption\nto have a material impact on the consolidated financial statements.\n\n \n\nIn\nNovember 2024, the FASB issued ASU 2024-04, *Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions\nof Convertible Debt Instruments*. The ASU provides additional guidance on whether induced conversion or extinguishment accounting\nshould be applied to certain settlements of convertible debt instruments that do not occur in accordance with the instruments’\npreexisting terms. The ASU requires entities to apply a preexisting contract approach. To qualify for induced conversion accounting under\nthis approach, the inducement offer is required to preserve the form of consideration and result in an amount of consideration that is\nno less than that issuable pursuant to the preexisting conversion privileges. ASU 2024-04 clarifies how entities should assess the form\nand amount of consideration when applying this approach. In addition, the new ASU clarifies that induced conversion accounting can be\napplied to settlements of certain convertible debt instruments that are not currently convertible as long as the instrument contained\na substantive conversion feature as of both its issuance date and the inducement offer acceptance date. The amendments in the ASU are\neffective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting\nperiods. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the consolidated financial\nstatements.\n\n \n\nIn January\n2025, the FASB issued ASU 2025-01 Income Statement —\nReporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40). The FASB issued ASU 2024-03 on November\n4, 2024. ASU 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after\nDecember 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of ASU 2024-03, the FASB was\nasked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred\nto as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have\nconcluded that it would be required to initially adopt the disclosure requirements in ASU 2024-03 in an interim reporting period, rather\nthan in an annual reporting period. The FASB’s intent in the basis for conclusions of ASU 2024-03 is clear that all public business\nentities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and\ninterim reporting periods within annual reporting periods beginning after December 15, 2027. The Company does not expect the adoption\nto have a material impact on the consolidated financial statements.\n\n \n\n66\n\n \n\n \n\n**4.\nBusiness Combination, Significant Transaction and Sale of business** \n\n \n\nAcquisition\nof Xinghe\n\n \n\nAcquisition\nrelated costs were immaterial. Unaudited pro forma combined financial statements as of August 31, 2024 and for the year ended February\n29, 2024 were presented and filed in the 8-K with filing date December 9, 2024. The results of Xinghe’s operations have been included\nin the consolidated financial statements since December 2024.\n\n \n\nThe\nfollowing table summarizes the provisional estimated consideration for the acquisition of Xinghe:\n\nSchedule\nof Provisional Estimated Consideration for the Acquisition \n\n  \n   \n\nCash and cash equivalents \n 621,722 \n\nAmounts due from related parties \n 19,103,677 \n\nPrepaid expenses and other current assets \n 119,931 \n\nOther current payables \n (18,901,304)\n\nTotal assets acquired net of acquired cash \n 944,026 \n\n \n\nSale\nof Haikou, Yibin , and Liangshan\n\n \n\nOn\nAugust 27, 2024, Hangzhou Zhuyi entered into a shares transfer agreement with Qiaofei Li and Haikou. Pursuant to the agreement, Hangzhou\nZhuyi transferred 90% of all the equity interest of Haikou to Qiaofei Li and 10% to Lili Xu, for consideration of $0. Haikou has no material\noperations before the transfer, and Hangzhou Zhuyi received a valuation report from a third party before it entered into the agreement.\n\n \n\nOn\nthe same date, Hangzhou Zhuyi entered into a shares transfer agreement with Lili Xu and Yibin. Pursuant to the shares transfer agreement,\nHangzhou Zhuyi transferred all the entity interest it owned in Yibin to Lili Xu for consideration of $0. Yibin has no material operations\nbefore the transfer, and Hangzhou Zhuyi received a valuation report from a third party before it entered into the agreement.\n\n \n\nOn\nthe same date, Hangzhou Zhuyi entered into a shares transfer agreement with Changsen Chi and Liangshan. Pursuant to the shares transfer\nagreement, Hangzhou Zhuyi transferred all the equity interest it owned in Liangshan to Changsen Chi for consideration of $0. Liangshan\nhas no material operations before the transfer, and Hangzhou received a valuation report from a third party before it entered into the\nagreement.\n\n \n\nOn\nAugust 22, 2024, Hangzhou Zhuyi passed a shareholder resolution. Pursuant to the resolution, given that Linglingyi has no material operations,\nthe shareholder has decided to liquidate Linglingyi. The disposition process was completed on September 11, 2024, the last day of announcement\nperiod, pursuant to the applicable laws in China.\n\n \n\n67\n\n \n\n \n\nDetails\nof the entities disposed were as follows:\n\n Schedule\nof the Entities Disposed\n\n  \nHaikou  \nLiangshan  \nYibin  \nTotal \n\nTotal assets \n$-  \n$278,677  \n$77,703  \n$356,380 \n\nTotal liabilities \n -  \n 576,029  \n 130,887  \n 706,916 \n\nTotal net assets \n -  \n (297,352) \n (53,184) \n (350,536)\n\nTotal noncontrolling interest \n -  \n 784,453  \n 10,637  \n 795,090 \n\n  \n    \n    \n    \n   \n\nSubtotal \n -  \n 487,101  \n (42,547) \n 444,554 \n\nTotal consideration \n -  \n -  \n -  \n - \n\nTotal loss on disposal of subsidiaries \n$-  \n$487,101  \n$(42,547) \n$444,554 \n\n \n\n**5.\nAccount Receivables**\n\n \n\nThe\nCompany does not provide any credit terms to its customers for smart parking. Cash will be collected by the exit of parking lots. The\nCompany provides one to three months credits term for customers purchasing parking equipment.\n\n \n\nAccounts receivable consisted of the following:\n\nSchedule\nof Accounts Receivables\n\n  \nFebruary 28,\n\n2026  \nFebruary 28,\n\n2025 \n\nAccounts receivable \n$538,617  \n$817,811 \n\nAllowance for bad debts \n (513,012) \n (695,197)\n\nAccounts receivable, net \n$25,605  \n$122,614 \n\n \n\nMovements of allowance for doubtful accounts are\nas follows:\n\nSchedule\nof Movements of Allowance for Doubtful Accounts\n\n \n \nFebruary 28,\n\n2026\n \n \nFebruary 28,\n\n2025\n \n\nBeginning balance\n \n$\n695,197\n \n \n$\n177,102\n \n\nAddition\n \n \n9,698\n \n \n \n534,777\n \n\nReversal\n \n$\n(226,271\n)\n \n$\n-\n\nExchange rate effect\n \n \n34,388\n \n \n \n(16,682\n)\n\nEnding balance\n \n$\n513,012\n \n \n$\n695,197\n \n\n \n\n**6.\nPrepaid Expenses and Other Current Assets**\n\n \n\nSchedule\nof Prepaid Expenses and Other Current Assets\n\n  \nFebruary 28,\n2026  \nFebruary 28,\n2025 \n\nPrepayment \n 935,381  \n 1,885,404 \n\nPrepayment for rental \n 115  \n 107 \n\nDeposit(a) \n 3,188,237  \n 1,018,681 \n\nRent receivable(b) \n -  \n 1,592,794 \n\nLoan receivable(c) \n 389,262  \n 1,531,383 \n\nAdvances to employees \n 180,875  \n 474,517 \n\nOther \n 380,771  \n 293,719 \n\nVAT \n 18,251  \n 12,379 \n\nTotal \n 5,092,892  \n 6,808,984 \n\nAllowance for doubtful debt(a) \n (3,207,570) \n (149,906)\n\nTotal \n 1,885,322  \n 6,659,078 \n\n \n\nFor the years ended February 28, 2026 and 2025, the Company recorded\nallowance for credit loss of $2,930,859 and $5,177, respectively, for prepaid expenses and other current assets. \n\n \n\n(a)\n\nDeposit and allowance for doubtful debt primarily consisted of deposits of RMB20,000,000 (US$2,916,345) paid to a\nthird party under an agreement to establish a subsidiary in Zhejiang Province engaged in data security testing, certification, and technical\nconsulting for intelligent connected vehicles. Under the agreement, the third party was required to complete the Company's due diligence\nassessment by February 15, 2025 and obtain approval to establish the subsidiary by September 5, 2025, failing which the deposits were\nrefundable. As the third party did not complete the due diligence assessment by the required date, the agreement was suspended. To date,\nno refund had been received, and the Company recorded a full allowance for doubtful debt of US$2,916,345.\n\n \n \n\n(b)\nAs\nof the reporting date, the Xiaoshan airport project has been suspended. Rental fee in relation with the project was refunded.\nAs of the year ended February 28, 2026, the balance in rental fees amounted as nil.\n\n \n \n\n(c)\nLoan\nreceivables are loans lent to third parties. All loans are interest free and will be repaid on demand.\n\n \n\n68\n\n \n\n \n\n**7.\nProperty, Plant and Equipment**\n\n****\n\n****\n\nSchedule of Property and Equipment \n\n  \nFurniture, fixtures and office equipment  \nBuilding\n(a)  \nVehicles  \nProject Facilities  \nConstruction in progress  \nTotal \n\nCost \n    \n    \n    \n    \n    \n   \n\nAt February 29, 2024 \n 929,598  \n 4,383,002  \n 136,454  \n 2,558,909  \n 988,118  \n 8,996,081 \n\nAdditions during the year \n 2,384  \n -  \n 26,568  \n 507,966  \n 517,577  \n 1,054,495 \n\nDisposals during the year \n (283,912) \n (28,077) \n (115,682) \n (755,499) \n (570,857) \n (1,754,027)\n\nEffects of currency translation \n (8,137) \n (50,944) \n (732) \n (27,506) \n (11,031) \n (98,350)\n\nAt February 28, 2025 \n 639,933  \n 4,303,981  \n 46,608  \n 2,283,870  \n 923,807  \n 8,198,199 \n\nBeginning balance, cost \n 639,933  \n 4,303,981  \n 46,608  \n 2,283,870  \n 923,807  \n 8,198,199 \n\nAdditions during the year \n 32,313  \n -  \n -  \n 162,651  \n 140,327  \n 335,291 \n\nDisposals during the year \n (91,790) \n (155,254) \n (6,833) \n (1,376,527) \n (198,986) \n (1,829,390)\n\nEffects of currency translation \n 37,264  \n 260,440  \n 2,613  \n 92,832  \n 54,885  \n 448,034 \n\nAt February 28, 2026 \n 617,720  \n 4,409,167  \n 42,388  \n 1,162,826  \n 920,033  \n 7,152,134 \n\nEnding balance, cost \n 617,720  \n 4,409,167  \n 42,388  \n 1,162,826  \n 920,033  \n 7,152,134 \n\n  \n    \n    \n    \n    \n    \n   \n\nAccumulated depreciation \n    \n    \n    \n    \n    \n   \n\nAt February 29, 2024 \n 834,821  \n 716,643  \n 115,119  \n 1,328,672  \n -  \n 2,995,255 \n\nDepreciation during the year \n 30,655  \n 207,104  \n 10,865  \n 533,675  \n -  \n 782,299 \n\nDisposals during the year \n (269,144) \n (6,779) \n (108,459) \n (615,688) \n -  \n (1,000,070)\n\nEffects of currency translation \n (7,446) \n (10,315) \n (400) \n (14,731) \n -  \n (32,892)\n\nAt February 28, 2025 \n 588,886  \n 906,653  \n 17,125  \n 1,231,928  \n -  \n 2,744,592 \n\nBeginning balance, Accumulated depreciation \n 588,886  \n 906,653  \n 17,125  \n 1,231,928  \n -  \n 2,744,592 \n\n Depreciation during the year \n 17,796  \n 201,362  \n 8,532  \n 241,382  \n -  \n 469,072 \n\nDisposals during the year \n (87,095) \n (19,051) \n (6,343) \n (920,605) \n -  \n (1,033,094)\n\nEffects of currency translation \n 33,708  \n 63,483  \n 1,149  \n 49,094  \n -  \n 147,434 \n\nAt February 28, 2026 \n 553,295  \n 1,152,447  \n 20,463  \n 601,799  \n -  \n 2,328,004 \n\nEnding balance, Accumulated depreciation \n 553,295  \n 1,152,447  \n 20,463  \n 601,799  \n -  \n 2,328,004 \n\n  \n    \n    \n    \n    \n    \n   \n\nImpairment provision \n    \n    \n    \n    \n    \n   \n\nAt February 29, 2024\n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n\nAdditions during the year\n \n \n-\n \n \n \n134,703\n \n \n \n-\n \n \n \n302,774\n \n \n \n-\n \n \n \n437,477\n \n\nDisposals during the year\n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n\nEffects of currency translation\n \n \n-\n \n \n \n(1,304\n)\n \n \n-\n \n \n \n(2,931\n)\n \n \n-\n \n \n \n(4,235\n)\n\nAt February 28, 2025 \n -  \n 133,399  \n -  \n 299,843  \n -  \n 433,242 \n\nBeginning balance, Impairment provision \n -  \n 133,399  \n -  \n 299,843  \n -  \n 433,242 \n\nAdditions during the year(b) \n -  \n -  \n -  \n -  \n 816,802  \n 816,802 \n\nDisposal during the year \n -  \n (136,203) \n -  \n (306,145) \n -  \n (442,348)\n\nEffects of currency translation \n -  \n 2,804  \n -  \n 6,302  \n 32,751  \n 41,857 \n\nAt February 28, 2026 \n -  \n -  \n -  \n -  \n 849,553  \n 849,553 \n\nEnding balance, Impairment provision \n -  \n -  \n -  \n -  \n 849,553  \n 849,553 \n\n  \n    \n    \n    \n    \n    \n   \n\nNet book value \n    \n    \n    \n    \n    \n   \n\nAt February 28, 2025 \n 51,047  \n 3,263,929  \n 29,483  \n 752,099  \n 923,807  \n 5,020,365 \n\nAt February 28, 2026 \n 64,425  \n 3,256,720  \n 21,925  \n 561,027  \n 70,480  \n 3,974,577 \n\nNet book value \n 64,425  \n 3,256,720  \n 21,925  \n 561,027  \n 70,480  \n 3,974,577 \n\n \n\n(a)\nAddress of the building is Floor 1 to 6, No. 1 to 10, Chuangyi Road, Yinhu Village, Shoujiang Town, Fuyang District, China. The Company\nis involved in a legal proceeding between Hangzhou Zhuyi and a third party. Pursuant to a Notice of Preservation Matters issued on May\n22, 2025 by the Intermediate People’s Court of Hangzhou, Zhejiang Province, floor 1 to 4 are restricted for three years.\n\n \n \n\n(b)\nImpairment provision was recognized for two projects with a local government. The Company incurred costs for equipment\nand personnel in connection with the construction of parking facilities for these projects. Both projects were suspended due to government-related\nfactors. As of February 28, 2026, the Company remained in discussions with the local government regarding reimbursement of these costs\nand had not received any refunds. Accordingly, the Company recognized a full impairment loss of $816,802 during the year ended February\n28, 2026.\n\n \n\n69\n\n \n\n \n\n**8.\nIntangible Assets**\n\n****\n\n** Schedule of Intangible Assets** \n\nCost \n  \n\nAt February 29, 2024 \n 28,181 \n\nAdditions during the year \n - \n\nDisposals during the year \n - \n\nEffects of currency translation \n (329)\n\n**At February 28, 2025**** **\n** ****27,852**** **\n\nBeginning balance, cost \n 27,852 \n\nAdditions during the year \n - \n\nDisposals during the year \n - \n\nEffects of currency translation \n 1,725 \n\n**At February 28, 2026**** **\n** ****29,577**** **\n\nEnding balance, cost \n 29,577 \n\n  \n   \n\nAccumulated depreciation \n   \n\nAt February 29, 2024 \n 14,314 \n\nDepreciation during the year \n 4,841 \n\nDisposals during the year \n - \n\nEffects of currency translation \n (214)\n\nAt February 28, 2025 \n 18,941 \n\nBeginning balance, Accumulated depreciation \n 18,941 \n\nDepreciation during the year \n 2,331 \n\nDisposals during the year \n - \n\nEffects of currency translation \n 1,267 \n\nAt February 28, 2026 \n 22,539 \n\nEnding balance, Accumulated depreciation \n 22,539 \n\n  \n   \n\nNet book value \n   \n\nAt February 28, 2025 \n 8,911 \n\nAt February 28, 2026 \n 7,038 \n\n \n\n70\n\n \n\n \n\nThe\nfollowing table presents future amortization as of February 28, 2026:\n\n** Schedule\nof Future Amortization of Intangible Assets**  \n\nYear ended February 28, 2026 \nAmount \n\n2027 \n 1,564 \n\n2028 \n 1,564 \n\n2029 \n 1,564 \n\n2030 \n 1,564 \n\n2031 and thereafter \n 782 \n\nTotal \n$7,038 \n\n \n\n**9.\nRight-of-use Assets**\n\n** **\n\nSchedule\nof Right of Use Assets\n\nCost \n   \n\nAt February 29, 2024 \n 295,874 \n\nAdditions during the year \n 64,240 \n\nWrite-off during the year \n (240,714)\n\nEffects of currency translation \n (8,162)\n\nAt February 28, 2025 \n 111,238 \n\nAdditions during the year \n 69,512 \n\nWrite-off during the year \n (84,488)\n\nEffects of currency translation \n 6,292 \n\nAt February 28, 2026 \n 102,554 \n\n  \n   \n\nAccumulated depreciation \n   \n\nAt February 29, 2024 \n 210,333 \n\nDepreciation during the year \n 58,342 \n\nWrite-off during the year \n (226,346)\n\nEffects of currency translation \n (8,409)\n\nAt February 28, 2025 \n 33,920 \n\nDepreciation during the year \n 13,278 \n\nWrite-off during the year \n (22,796)\n\nEffects of currency translation \n 1,678 \n\nAt February 28, 2026 \n 26,080 \n\n  \n   \n\nNet book value \n   \n\nAt February 28, 2025 \n 77,318 \n\nAt February 28, 2026 \n 76,474 \n\n** **\n\nRight\nof use assets consisted of 2 contracts renting offices and warehouses. Contracted terms ranged from two to fifteen\nyears with the earliest start date being April 1, 2022.\n\n \n\n**10. Long term receivable**\n\nSchedule\nof Long Term Receivable** **\n\n****\n\n  \n\nFebruary 28,\n\n2026\n  \n\nFebruary\n28,\n\n2025\n \n\n  \n$  \n$                 \n\nLong term receivable \n 1,439,818  \n - \n\nTotal \n 1,439,818  \n - \n\n \n\nLong-term\nreceivables were reclassified from prepaid expenses and other current assets based on the terms of renewed agreements executed during\nthe year ended February 28, 2026. During the year, the Company entered into three long-term receivable agreements with an aggregate lending\ncommitment of up to RMB18,000,000 (US$2,624,710).\nThe agreements have terms ranging from four4 to five\nyears. As of February 28, 2026, the long-term receivable balance represents amounts expected to be collected more than 12 months after\nthe balance sheet date.\n\n \n\n**11.\nBorrowings**\n\n \n\nOn\nSeptember 18, 2024 the Company’s subsidiary, Hangzhou Zhuyi entered into a loan agreement of $1,373,098 (RMB10,000,000) with Zhejiang\nChouzhou Commercial Bank with an annual interest rate of 4.50% and maturity date of September 17, 2025. The Company pays interest monthly,\nand the principal balance at maturity. The borrowing is secured by Floor 1 to 6, No. 1 to 10, Chuangyi Road, Yinhu Village, Shoujiang\nTown, Fuyang District, China and guaranteed by Jianqiang Liu, the vice president.\n\n \n\nOn September 12, 2025, through mediation by the\nHangzhou Banking and Insurance Industry People’s Mediation Committees, Hangzhou Zhuyi a new agreement with Zhejiang Chouzhou Commercial\nBank. Under the new agreement, Hangzhou Zhuyi will pay default interest at an annual rate of 4.5% on the outstanding balance from September\n12, 2025 until the loan is fully repaid. The first principal repayment of $72,909 (RMB500,000) will be paid on or before September 16,\n2026. The second principal repayment of the same amount will be made on or before September 16, 2027. Between September, 2025 and December,\n2027, Hangzhou Zhuyi will pay interest monthly at an annual rate of 4.5% on the outstanding balance before the 20th of each month. The\nremaining outstanding balance of 1,312,355 (RMB9,000,000) and the interest for the period between December 21, 2027 and January 10, 2028\nwill be repaid by January 10, 2028.\n\n \n\nIf the company fails to comply with any of these\nterms, the loan shall be deemed immediately due and payable. Default interest shall accrue from the date of default at an annual rate\nof 6.75%. The banker shall apply to the court for compulsory enforcement with respect to the loan principal of $1,458,172 (RMB10,000,000),\ntogether with any unpaid default interest accrued from September 12, 2025 until the date of full repayment.\n\n \n\nThe above borrowing is secured by Hangzhou Zhuyi\nTechnology Co., Ltd, and fixed asset of Floor 1 to 6, No. 1 to 10, Chuangyi Road, Yinhu Village, Shoujiang Town, Fuyang District, China,\nit was with the highest secured amounnt of $37,533,356 (RMB257,400,000). Jianqiang Liu is personally liable for the loan.\n\n \n\n71\n\n \n\n \n\n**12.\nOther payables and Accruals**\n\n** **\n\nSchedule\nof Other Payable and Accruals\n\n  \nFebruary\n28,\n2026  \nFebruary\n28,\n2025 \n\n  \n$  \n$ \n\nAccrued payroll and welfare payables \n 162,146  \n 251,172 \n\nDeposit \n 9,318  \n 8,774 \n\nLoans payable \n 859,164  \n 1,369,933 \n\nRefund (a) \n 4,082,883  \n 3,844,675 \n\nOther (b) \n 72,973  \n 274,724 \n\nTotal \n 5,186,484  \n 5,749,278 \n\n \n\n(a)\nDuring\nthe years ended February 29, 2024 and February 28, 2023, the Company entered into fourteen contracts with fourteen agents allowing\nthem to use the Company’s software application to parking lots in the cities that are specified in the contracts for collecting\nfee. These contracts were terminated by the end of February 29, 2024 by mutual agreements. The refund presents the amount will be repaid to these agents.\n\n \n \n\n(b)\nOther\nmainly included collection of parking fees on behalf of a third party.\n\n** **\n\n**13.\nRelated Party Transactions**\n\n \n\nThe\nfollowing is a list of related parties which the Company had transactions with during the years ended February 28, 2026 and 2025:\n\n \n\nSummary\nof Related Parties Name and Relationship\n\n \n**Name**\n \n**Relationship**\n\n(a)\nHongwei\nLi\n \nFormer\nshareholder\n\n(b)\nStrength\nUnion Holdings Limited\n \nShareholder\n\n(c)\nVirtue\nVictory Holdings Limited\n \nShareholder\n\n(d)\nIntellegence\nTriumph Holdings Limited\n \nShareholder\n\n(e)\nGuowei\nZhang\n \nPresident\nof the Company\n\n(f)\nChuchu\nZhang\n \nFormer\nshareholder\n\n(g)\nSichuan\nZhicheng Qifeng Technology Co., Ltd\n \nMinority\nshareholder\n\n(h)\nShaoxing\nKeqiao Zhuyi Technology Co., Ltd\n \nFormerly\nan entity controlled by a shareholder however it is now a subsidiary due to the acquisition of Xinghe\n\n(i)\nXiujuan\nChen\n \nShareholder\n\n(j)\nBen Liu\n \nChief Executive Officer\n\n \n\nHongwei Li and Chuchu Zhang ceased to be related parties during the year. As a result, the related balances were\nreclassified from related party balances to prepaid expenses and other current assets and other current payables, respectively.\n\n \n\n72\n\n \n\n \n\n(a)\nThe Company had the following transactions with related parties:\n\n \n\nSchedule\nof Transactions with Related Parties\n\n**Name**\n \n**Nature**\n \n\n**For\nthe year ended**\n\n**February\n28, 2026**\n\nSichuan Zhicheng Qifeng Technology Co., Ltd.\n \nCost of revenues\n \n81,161 \n\n \n\n**Name**\n \n**Nature**\n \n\n**For the year ended**\n\n**February 28, 2025**\n\nXiujuan Chen\n \nRevenue\n \n331,504 \n\n \n\n(b)\nAt February 28, 2026 and 2025, the Company owned funds from the following related parties:\n\n \n\nSchedule\nof Related Party Transactions\n\n  \n\nFebruary 28,\n\n2025\n  \nProvided  \nReceived\n\nRepayment  \nCost\nof\n\nrevenue  \n**Reclassification**  \nExchange\n\nRate\n\nTranslation  \n\nFebruary 28,\n\n2026\n \n\nIntellegence Triumph Holdings Limited \n$5,000  \n$-  \n$       -   \n$-  \n$-  \n$-   \n$5,000 \n\nVirtue Victory Holdings Limited \n 5,200  \n -   \n -   \n -   \n -   \n -   \n 5,200 \n\nStrength Union Holdings Limited \n 5,800  \n -   \n -   \n -   \n -   \n -   \n 5,800 \n\nHongwei Li \n 1,240  \n -   \n -   \n -   \n (1,266) \n 26  \n - \n\nSichuan Zhicheng Qifeng\nTechnology Co., Ltd \n 52,864  \n 27,186  \n -   \n (81,161) \n -   \n 1,111  \n - \n\nTotal amounts due from\nrelated parties \n$70,104  \n$27,186  \n$-   \n$(81,161) \n$(1,266) \n 1,137  \n$16,000 \n\n \n\n  \nFebruary 29,  \n   \nReceived  \nExchange\n\nRate  \nFebruary 28, \n\n  \n2024  \nProvided  \nRepayment  \nTranslation  \n2025 \n\nIntellegence Triumph Holdings Limited \n$             5,000  \n$-  \n$-  \n$-  \n$             5,000 \n\nVirtue Victory Holdings Limited \n 5,200  \n -  \n -  \n -  \n 5,200 \n\nStrength Union Holdings Limited \n 5,800  \n -  \n -  \n -  \n 5,800 \n\nHongwei Li \n 94,173  \n 3,605  \n (96,335) \n (203) \n 1,240 \n\nSichuan Zhicheng Qifeng\nTechnology Co., Ltd \n -  \n 53,381  \n -  \n (517) \n 52,864 \n\nTotal amounts due from\nrelated parties \n$110,173  \n$56,986  \n$(96,335) \n$(720) \n$70,104 \n\n \n\n(c)\nAt February 28, 2026 and 2025, the Company owed funds to the following related parties:\n\n \n\n  \n\n**February\n28,**\n\n**2025**\n  \nBorrowed  \nRepaid  \nReclassification  \n\n**Exchange**\n\n**Rate**\n\n**Translation**\n  \n\n**February\n28,**\n\n**2026**\n \n\nGuowei Zhang \n$      2,046,179  \n$416,614  \n$-   \n$-  \n$29,468  \n$      2,492,261 \n\nXiujuan Chen \n 172,193  \n 2,215  \n -   \n -  \n 10,758  \n 185,166 \n\nChuchu Zhang \n 27,462  \n -  \n -   \n (28,039) \n 577  \n - \n\nBen Liu \n -  \n -  \n -   \n 162,678  \n 6,523  \n 169,201 \n\nTotal amounts due to\nrelated parties \n$2,245,834  \n$418,829  \n$-   \n$134,639  \n$47,326  \n$2,846,628 \n\n \n\n  \n\n**February\n29,**\n\n**2024**\n  \nBorrowed  \nRepaid  \n\n**Business**\n\n**acquisition**\n  \n\n**Determined**\n\n**Sales\n\nIncome**\n  \n\n**Exchange**\n\n**Rate**\n\n**Translation**\n  \n\n**February\n28,**\n\n**2025**\n \n\nGuowei Zhang \n$       1,629,089  \n$423,546  \n$(832) \n$-  \n$-  \n$(5,624) \n$      2,046,179 \n\nXiujuan Chen \n 347,333  \n 851,988  \n (762,585) \n 64,278  \n (331,504) \n 2,683  \n 172,193 \n\nChuchu Zhang \n 27,787  \n -  \n -  \n -  \n -  \n (325) \n 27,462 \n\nShaoxing Keqiao Zhuyi\nTechnology Co., Ltd \n 21,955,735  \n -  \n -  \n (21,955,735) \n -  \n -  \n - \n\nTotal amounts due to\nrelated parties \n$23,959,944  \n$1,275,534  \n$(763,417) \n$(21,891,457) \n$(331,504) \n$(3,266) \n$2,245,834 \n\n \n\nAdvances from Guowei Zhang were unsecured, non-interest bearing and due on demand.\n\n \n\n73\n\n \n\n \n\n**14.\nIncome Taxes**\n\n \n\nPRC\n\n \n\nThe\nCompany’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the\ncountry.\n\n \n\nThe\nfull realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to\ngenerate taxable income during the carry forward period.\n\n \n\nIncome\ntax expense (benefits)\n\nSchedule\nof Income Tax Expenses (Benefits)\n\n \n\n  \nFebruary\n28,\n2026  \nFebruary\n28,\n2025 \n\n  \n$   \n$  \n\nLoss before tax \n (6,694,161) \n (6,009,011)\n\nTax credit calculated at statutory tax rate \n (1,673,540) \n (1,502,253)\n\nEffect of different tax rates \n 680,515  \n 18,409 \n\nDeferred tax asset not recognized during the\nyear \n 1,004,986  \n 1,491,241 \n\nTotal income tax expense \n 11,961  \n 7,397 \n\n \n\nAs\nof February 28, 2026 and 2025, the significant components of the deferred tax assets and deferred tax liabilities are summarized\nbelow:\n\n \n\nSchedule\nof Deferred Tax Assets And Deferred Tax Liabilities\n\n  \nFebruary\n28,\n2026  \nFebruary\n28,\n2025 \n\n  \n$  \n$ \n\nDeferred tax assets: \n    \n   \n\nNet operating loss carrying forward \n 5,456,466  \n 3,954,265 \n\nAllowance on doubtful accounts \n 606,227  \n 194,117 \n\nDeferred tax assets, gross \n 6,062,693  \n 4,148,382 \n\nLess: valuation allowance \n (6,062,693) \n (4,148,382)\n\nDeferred tax assets,\nnet \n -  \n - \n\n \n\nThe\nCompany accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax\nassets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities\nusing enacted tax rates that will be in effect in the period in which the differences are expected to reverse. Deferred tax assets have\nnot been recognized in respect of these items because it is not probable that future taxable profits will be available against which the\nCompany can utilize the benefits.\n\n \n\nManagement\nbelieves that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company\nprovided for a full valuation allowance against its deferred tax assets.\n\n \n\n**15.\nLeases**\n\n \n\nRight-of-use\n(“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation\nto make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the\nestimated present value of lease payments over the lease term. The Company entered into 2 agreements for renting offices, warehouses\nand parking lots. As of February 28, 2026, the Company has $76,474 of right-of-use assets, $10,789 in current operating lease liabilities\nand $62,936 in non-current operating lease liabilities.\n\n \n\nSignificant\nassumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains\na lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The\ndiscount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available\nto the Company over terms similar to the lease terms.\n\n \n\n74\n\n \n\n \n\nThe\nCompany’s future minimum payments under long-term non-cancellable operating leases are as follows:\n\n \n\nSchedule\nof Future Minimum Payments Under Long Term Non-Cancellable Operating Lease\n\n \n\n  \nFebruary 28,\n2026  \nFebruary 28,\n2025 \n\n  \n$  \n$ \n\nWithin 1 year \n 13,405  \n 11,969 \n\nAfter 1 year but within 5 years \n 26,105  \n 31,685 \n\nOver 5 years \n 52,211  \n 49,430 \n\nTotal lease payments \n 91,721  \n 93,084 \n\n  \n    \n   \n\nLess: imputed interest \n (17,996) \n (18,116)\n\nTotal lease obligations \n 73,725  \n 74,968 \n\nLess: current obligations \n (10,789) \n (9,177)\n\nLong-term lease obligations \n 62,936  \n 65,791 \n\n** **\n\n****The\ncomponents of lease cost were as follows:\n\nSchedule of Lease Cost\n\n  \nFebruary 28,\n2026  \nFebruary 28,\n2025 \n\n  \n$  \n$ \n\nOperating lease cost \n 15,952  \n 60,468 \n\nTotal lease cost \n 15,952  \n 60,468 \n\n** **\n\nA summary of supplemental information related to leases is listed as follows:\n\nSchedule of Supplemental Information Related to Leases\n\n  \nFebruary 28,\n2026  \nFebruary 28,\n2025 \n\nWeighted average remaining lease term \n    \n   \n\nOperating lease \n 12.2 years  \n 11.8 years \n\nWeighted average discount rate \n    \n   \n\nOperating lease \n 3.95% \n 4.06%\n\n** **\n\nSupplemental\ncash flow information related to leases were as follows:\n\nSchedule of Cash Flow Information Related to Leases\n\n  \nFebruary 28,\n2026  \nFebruary 28,\n2025 \n\nCash paid for amounts included in measurement of lease liabilities : \n    \n   \n\n-Operating cash flows from operating leases \n 12,725  \n 72,941 \n\n  \n    \n   \n\nNon-cash information on lease liabilities arising from obtaining ROU assets: \n    \n   \n\n-Operating leases \n 69,512  \n 64,240 \n\n** **\n\n**16.\nCommitments and contingencies**\n\n \n\nA corporate plaintiff, Zhejiang Yinpai Technology Co., Ltd., filed a claim against Hangzhou Zhuyi in connection with\na dispute arising from a technical entrustment development contract. The plaintiff was unsuccessful in the first instance and is expected\nto appeal. As of the reporting date, certain assets of Hangzhou Zhuyi, including its property located in Building B8, China Smart Valley,\nHangzhou, and three bank accounts, remain frozen.\n\n \n\n**17.\nLong term payable**\n\nSchedule\nof Long Term Payable\n\n  \nFebruary\n28,\n2026  \nFebruary\n28,\n2025 \n\n  \n$  \n$ \n\nLong term payable \n 25,641,883  \n 21,495,468 \n\nTotal \n 25,641,883  \n 21,495,468 \n\n \n\nDuring\nthe year ended February 29, 2024, the Company entered into fourteen contracts with fourteen agents allowing them to use the Company’s\nsoftware application to parking lots in the cities that are specified in the contracts for collecting fee. These contracts were terminated\nby the end of February 29, 2024 by mutual agreements.\n\n \n\n75\n\n \n\n \n\nThe\nCompany entered into a three-year loan with Zhibo on September 20, 2019. The agreement commenced on October 1, 2019. The maximum borrowing\nis RMB 300,000,000 (USD $45,028,818) with an interest rate of 3.6%. 25% of the outstanding balance should be repaid each quarter. Supplementary\ncontracted were signed between the two parties agreeing there would be no repayment of principle for the next 12 months and interest\nexpense was waived. The Company entered into a two-year interest-free agreement with Zhibo on September 1st, 2020 at which date the contracted\ncommenced. Principle was RMB 22,000,000 (USD$3,302,098). As of February 28, 2023, the outstanding balance of the two loans combined was\nRMB 215,280,227.44 (USD$31,053,765).\n\n \n\nZhibo\nextended the above contracts to September 30, 2025 when they expired in 2022. Repayments and interest expenses are not required until\nSeptember 30, 2024. Interest expenses calculated on an annual rate of 3% will be paid monthly from 1 October, 2024. Principle will be\nfully repaid upon maturity.\n\n \n\nDue\nto business restructure, Zhibo was deregistered at the beginning of 2023. Before deregistration, on January 15, 2023, Zhibo transferred\nthe debts to a number of companies/partnerships with the clauses unchanged. The table below set forth the amount transferred to each\nZhibo’s creditor as of January 15, 2023.\n\n \n\nSchedule\nof Long-Term Borrowings Amount Transferred to Creditor\n\nTransferee \n\nTransferred\n\namounts (RMB)\n  \n\nTransferred\n\namounts (USD)\n \n\nHangzhou Chiyi Enterprise Management\nPartnership (Limited Partnership) \n 30,000,000.00  \n 4,219,409 \n\nHangzhou Chuangzhu Enterprise Management Partnership\n(Limited Partnership) \n 10,097,186.49  \n 1,420,139 \n\nHangzhou HongKuo Enterprise Management Partnership\n(Limited partnership) \n 41,802,605.93  \n 5,879,410 \n\nHangzhou Hongying Enterprise Management Partnership\n(Limited Partnership) \n 10,000,000.00  \n 1,406,470 \n\nHangzhou Liujin Enterprise Management Partnership\n(Limited Partnership) \n 37,880,435.02  \n 5,327,769 \n\nHangzhou Ruiqi Enterprise Management Partnership\n(Limited Partnership) \n 43,500,000.00  \n 6,118,143 \n\nHangzhou Zhusheng Enterprise Management Partnership\n(Limited Partnership) \n 20,000,000.00  \n 2,812,940 \n\nHangzhou Zhuyuan Enterprise Management Partnership\n(Limited Partnership) \n 20,000,000.00  \n 2,812,940 \n\nHangzhou Jizhong Ecological Technology Co.,\nLtd. \n 9,450,338.82  \n 1,329,162 \n\nHangzhou Liujin Enterprise Management Partnership\nCo., Ltd. \n 2,000,000.00  \n 281,294 \n\nHangzhou Renyigou E-Commerce Co., Ltd. \n 5,100,000.00  \n 717,300 \n\nHangzhou Yixin Supply Chain Management Co.,\nLtd. \n 4,000,000.00  \n 562,588 \n\nHangzhou Zhizhu Parking Co., Ltd. \n 458,469.12  \n 64,482 \n\nTotal \n 234,289,035.38  \n 32,952,046 \n\n \n\n76\n\n \n\n \n\nFor\nhelping the Company consolidate debts and providing financial support to the Company, Shaoxing Keqiao, whose sole shareholder is Xiujuan\nChen, took over the debts from the businesses mentioned in the table. Loan transfer agreements were executed on March 16 and 17, 2023\nwith the original clauses unchanged. Xiujuan Chen is also one of the shareholders of the Company. After the loans transferred to Shaoxing\nKeqiao, outstanding balances were offset in part or in full if the transferees were our current debtors.\n\n \n\nThe\nbelow table shows the movements of loans before the transfers and the final amounts being transferred.\n\nSchedule\nof Long-Term Borrowings Amount Before Transfers and Final Amounts Being Transferred \n\nTransferor \n\nBalance as at\n\nJanuary 15, 2023\n(RMB)\n  \nOffset\n\n(RMB)  \nIncrease\n\n(RMB)  \n\nTransferred\n\namounts (RMB)\n  \n\nTransferred\n\namounts (USD)\n \n\nHangzhou Chiyi Enterprise Management\nPartnership (Limited Partnership) \n 30,000,000.00  \n -  \n -  \n 30,000,000.00  \n 4,219,409 \n\nHangzhou Chuangzhu Enterprise Management Partnership\n(Limited Partnership) \n 10,097,186.49  \n -  \n -  \n 10,097,186.49  \n 1,420,139 \n\nHangzhou HongKuo Enterprise Management Partnership\n(Limited partnership) \n 41,802,605.93  \n -  \n -  \n 41,802,605.93  \n 5,879,410 \n\nHangzhou Hongying Enterprise Management Partnership\n(Limited Partnership) \n 10,000,000.00  \n -  \n -  \n 10,000,000.00  \n 1,406,470 \n\nHangzhou Liujin Enterprise Management Partnership\n(Limited Partnership) \n 37,880,435.02  \n -  \n 8,652,951.79  \n 46,533,386.81  \n 6,544,780 \n\nHangzhou Liujin Enterprise Management Partnership\nCo., Ltd. \n 2,000,000.00  \n -  \n 6,427,428.49  \n 8,427,428.49  \n 1,185,292 \n\nHangzhou Ruiqi Enterprise Management Partnership\n(Limited Partnership) \n 43,500,000.00  \n (2,309,273.07) \n 4,734,492.66  \n 45,925,219.59  \n 6,459,243 \n\nHangzhou Zhusheng Enterprise Management Partnership\n(Limited Partnership) \n 20,000,000.00  \n -  \n -  \n 20,000,000.00  \n 2,812,940 \n\nHangzhou Zhuyuan Enterprise Management Partnership\n(Limited Partnership) \n 20,000,000.00  \n -  \n -  \n 20,000,000.00  \n 2,812,940 \n\nHangzhou Jizhong Ecological Technology Co.,\nLtd. \n 9,450,338.82  \n (9,450,338.82) \n -  \n -  \n - \n\nHangzhou Renyigou E-Commerce Co., Ltd. \n 5,100,000.00  \n (5,100,000.00) \n -  \n -  \n - \n\nHangzhou Yixin Supply Chain Management Co.,\nLtd. \n 4,000,000.00  \n (4,000,000.00) \n -  \n -  \n - \n\nHangzhou Zhizhu Parking Co., Ltd. \n 458,469.12  \n (458,469.12) \n -  \n -  \n - \n\nTotal \n 234,289,035.38  \n (21,318,081.01) \n 19,814,872.94  \n 232,785,827.31  \n 32,740,623 \n\n** **\n\n77\n\n \n\n** **\n\nBetween\nMay 19, 2023 and July 24, 2023, apart from Hangzhou Chiyi Enterprise Management Partnership and Hangzhou Ruiqi Enterprise Management\nPartnership, all other partnerships were deregistered. Prior to deregistration, these partnerships transferred loans to Hangzhou Jizhong\nEcological Technology Co., Ltd. totaling $21,966,818 with the original maturity unchanged and annual interest rate being 3%. Interest\nis payable monthly from October 1, 2024. Principle will be fully repaid upon maturity with early repayment permitted.\n\n \n\nShaoxing\nKeqiao entered into new agreements before the original loans expired.\n\n \n\nOn\nSeptember 30, 2024, Shaoxing Keqiao entered into a five-year loan agreement of $14,752,288.30\n(RMB 107,386,985.66)\nwith Hangzhou Jizhong Ecological Technology Co., Ltd. with an annual interest rate of 4%\nand a maturity date of September\n30, 2029. Interest between the date of October 1, 2024 and September 30, 2028 is waived. The Company will pay interest\nmonthly from October 1, 2028, and the principal balance at maturity.\n\n \n\nOn\nSeptember 30, 2024, Shaoxing Keqiao entered into a five-year loan agreement of $2,630,855.04\n(RMB 19,160,209.59)\nwith Hangzhou Ruiqi Enterprise Management Partnership (Limited Partnership) with an annual interest rate of 4%\nand a maturity date of September\n30, 2029. Interest between the date of October 1, 2024 and September 30, 2028 is waived. The Company will pay interest\nmonthly from October 1, 2028, and the principal balance at maturity.\n\n \n\nOn\nSeptember 30, 2024, Shaoxing Keqiao entered into a five-year loan agreement of $4,199,294\n(RMB 30,000,000)\nwith Hangzhou Chiyi Enterprise Management Partnership (Limited Partnership) with an annual interest rate of\n4% and a maturity date of September\n30, 2029. Interest between the date of October 1, 2024 and September 30, 2028 is waived. The Company will pay interest\nmonthly from October 1, 2028, and the principal balance at maturity September 30, 2029.\n\n** **\n\nOn\nJanuary 20, 2026, Hangzhou Zhuyi entered into a five-year loan agreement of $1,709,525(RMB 11,723,750)\nwith Zhejiang Renlv Technology Development Co., Ltd. with an annual interest rate of 4%\nand a maturity date of January\n19, 2031. Interest between the date of January 20, 2026 and January 19, 2030 is waived. The Company will pay interest monthly\nfrom January 20, 2030, and the principal balance at maturity.\n\n \n\nOn\nSeptember 28, 2025, Hangzhou Zhuyi entered into a five-year loan agreement of the maximum borrowing of $1,224,865(RMB 8,400,000)\nwith Hangzhou Shengquan Enterprise Management Co., Ltd. with an annual interest rate of 4%\na maturity date September\nof 27, 2030. Interest between the date of September 28, 2025 and September 27, 2029 is waived. The Company will pay interest\nmonthly from September 28, 2029, and the principal balance at maturity.\n\n** **\n\n**18.\nNon-controlling interests (NCI)**\n\n \n\nNon-controlling\ninterests (“NCI”) represent the portion of net assets in consolidated entities that are not owned by the Company.\n\nSchedule\nof Non-controlling Ownership Interest\n\n \n\n** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **\n\n  \nXide  \nTaining  \nLeshan  \nTotal \n\n** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **** **\n** ****260228**** **** **\n** ****250228**** **\n\nNCI ownership interest \n 33% \n 33% \n 28% \n 28% \n 35% \n 35% \n    \n   \n\nNCI balances \n (110,980) \n (112,686) \n (121,579) \n (105,396) \n 18,671  \n 43,871  \n (213,888) \n (174,211)\n\n \n\n78\n\n \n\n \n\nThe\nfollowing table represent the non-controlling ownership interests and non-controlling interest balances reported in stockholder’s\nequity as of February 28, 2026 and 2025 respectively.\n\n \n\nSchedule\nof Statement of Financial Positions\n\n  \n260228  \n250228  \n260228  \n250,228  \n 260228 \n250,228  \n260228 250,228 \n\n  \nXide   \nTaining   \nLeshan   \nTotal  \n\n  \n 260228  \n 250,228  \n 260228  \n 250,228  \n 260228  \n 250,228  \n 260228  \n 250,228 \n\nNon-current assets \n 5,598  \n 26,870  \n 35,021  \n 69,421  \n 419,216  \n 469,230  \n 459,835  \n 565,521 \n\nCurrent asset \n 1,142  \n 9,538  \n 23,882  \n 29,544  \n 56,177  \n 113,919  \n 81,201  \n 153,001 \n\nCurrent liabilities \n (309,058) \n (343,901) \n (150,700) \n (132,970) \n (280,532) \n (322,844) \n (740,290) \n (799,715)\n\nNon-current liabilities \n -  \n -  \n -  \n -  \n (62,936) \n (56,373) \n (62,936) \n (56,373)\n\nNet asset \n (302,318) \n (307,493) \n (91,797) \n (34,005) \n 131,925  \n 203,932  \n (262,190) \n (137,566)\n\nLess: Hangzhou Zhuyi capital and additional\npaid-in capital \n -  \n -  \n (298,228) \n (298,228) \n (84,753) \n (84,753) \n (382,981) \n (382,981)\n\nLess: OCI \n \n781\n \n (17,338) \n (19,361) \n (23,613) \n (6,288) \n 3,087  \n (24,868) \n (37,864)\n\nAccumulated Deficits \n (301,537) \n (324,831) \n (409,386) \n (355,846) \n 40,884  \n 122,266  \n (670,039) \n (558,411)\n\nAccumulated Deficits attributable to NCI \n (99,508) \n (107,194) \n (114,628) \n (99,636) \n 14,310  \n 42,791  \n (199,826) \n (164,039)\n\nPlus: OCI attributable to NCI \n (11,472) \n (5,492) \n (6,951) \n (5,760) \n 4,361  \n 1,080  \n (14,062) \n (10,172)\n\nNCI balances \n (110,980) \n (112,686) \n (121,579) \n (105,396) \n 18,671  \n 43,871  \n (213,888) \n (174,211)\n\n \n\n**19.\nReserves**\n\n \n\nStatutory\nreserve\n\n \n\nPursuant\nto the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit\nto non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of\nafter-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered\ncapital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes\nof enterprise expansion and are not distributable as cash dividends. During the year ended February 28, 2026 and 2025 the\nCompany did not accrue any statutory reserve.\n\n \n\nForeign\ncurrency translation reserve\n\n \n\nThe\nforeign currency translation reserve represents translation differences arising from translation of foreign currency financial statements\ninto the Company’s reporting currency.\n\n \n\n79\n\n \n\n \n\n**20.\nSegment Reporting**\n\n \n\nASC\n280, Disclosures about Segments, of an Enterprise and Related Information, establishes standards for reporting information about operating\nsegments. Operating segments are defined as components of an enterprise engaging in business activities from which they may earn revenues\nand incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-marker,\nor decision-making group (the “CODM”), in deciding how to allocate resources and in assessing performance. Reportable segments\nare defined as an operating segment that either (a) exceeds 10% of revenues, or (b) reported profit or loss in absolute amount exceeds\n10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments.\n\n \n\nChief\nexecutive officer is determined as the CODM of the Company. The Company has organized operations into three different areas: (1) parking\nfee, (2) winery sales, and (3) others. CODM has access them as separate operating segments.\n\n \n\nThe\nfollowing table set forth the operating segment reporting\n\nSchedule\nof Operating Segment\n\n  \n   \n   \n   \n  \n\n  \nFor the Year Ended\nFebruary 28, 2026 \n\n  \nParking fee  \nWinery sales  \nOthers  \nConsolidated \n\n  \n   \n   \n   \n  \n\nCurrent assets \n$1,443,502  \n$694,373  \n$75,008  \n$2,212,883 \n\nNon-current assets \n 5,563,459  \n -  \n -  \n 5,563,459 \n\nRevenues \n 1,369,618  \n 70,500  \n 102,749  \n 1,542,867 \n\nSegment gross profit \n (94,087) \n 8,188  \n (13,100) \n (98,999)\n\nSegment gross margin \n (6.87)% \n 11.61% \n (12.75)% \n (6.42)%\n\nSelling expenses \n 171,455  \n 1,349  \n 1,967  \n 174,771 \n\nGeneral and administrative expenses \n 2,459,827  \n 14,292  \n 20,829  \n 2,494,948 \n\nR&D expenses \n 269,776  \n -  \n -  \n 269,776 \n\nImpairment for credit losses \n 2,714,286  \n -  \n -  \n 2,714,286 \n\nImpairment of property, plant and equipment \n 816,802  \n -  \n -  \n 816,802 \n\nInterest expense, net \n 63,734  \n -  \n -  \n 63,734 \n\nOther income/expenses, net \n 60,845  \n -  \n -  \n 60,845 \n\nIncome tax expense \n 11,961  \n -  \n -  \n 11,961 \n\nNet loss \n (6,662,773) \n (7,453) \n (35,896) \n (6,706,122)\n\n \n\n  \n   \n   \n   \n  \n\n  \nFor\nthe Year Ended February 28, 2025 \n\n  \nParking\nfee  \nWinery\nsales  \nOthers  \nConsolidated \n\n  \n   \n   \n   \n  \n\nCurrent assets \n$5,226,864  \n$1,354,383  \n$504,312  \n$7,085,559 \n\nNon-current assets \n 5,137,257  \n -  \n -  \n 5,137,257 \n\nRevenues \n 1,657,057  \n 420,180  \n 64,417  \n 2,141,654 \n\nSegment gross profit \n (495,328) \n 34,713  \n 64,417  \n (396,198)\n\nSegment gross margin \n (29.89)% \n 8.26% \n 100.00% \n (18.50)%\n\nSelling expenses \n 342,993  \n 326  \n 236,491  \n 579,810 \n\nGeneral and administrative expenses \n 2,924,270  \n 215,724  \n 33,072  \n 3,173,066 \n\nR&D expenses \n 359,447  \n -  \n -  \n 359,447 \n\nImpairment for credit losses \n 539,954  \n -  \n -  \n 539,954 \n\nImpairment of property, plant and equipment \n 437,477  \n -  \n -  \n 437,477 \n\nInterest expense, net \n 86,400  \n 3,995  \n 612  \n 91,007 \n\nOther income/expenses, net \n 432,052  \n -  \n -  \n 432,052 \n\nIncome tax expense \n 7,397  \n -  \n -  \n 7,397 \n\nNet loss \n (5,625,318) \n (185,332) \n (205,758) \n (6,016,408)\n\n \n\n80\n\n \n\n \n\n**21.\nQuantitative and Qualitative Disclosure about Market Risks**\n\n \n\n \nA.\nCredit\nrisk\n\n \n \n \n\n \n \nThe\nCompany’s deposits are with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss\nif the banks become insolvent.\n\n \n \n\n \n\nAccounts\nreceivable are typically unsecured and are derived from revenues earned from customers in the PRC. The credit risk with respect to\naccount receivables is mitigated by credit control policies we carry out with respect to our customers and our ongoing monitoring\nprocess of outstanding balances.\n\n \n \n \n\n \nB.\nEconomic\nand political risks\n\n \n \n \n\n \n \nThe\nCompany’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results\nof operations may be influenced by changes in the political, economic, and legal environments in the PRC.\n\n \n \n \n\n \n \nThe\nCompany’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies\nin North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment\nand foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions\nin the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion,\nremittances abroad, and rates and methods of taxation, among other things.\n\n \n \n \n\n \nC.\n\nInterest\nrisk\n\n \n \n \n\n \n \nThe\nCompany is subject to interest rate risk when long term loans become due and require refinancing.\n\n \n \n \n\n \nD.\nSensitivity\nanalysis\n\n \n \n \n\n \n \nThe\nlong-term loans are free of interest for the first 48 months however if interest were to charge at an annual rate of 3.0%, interest\nexpense would be $769,256 per year. The Company adopts 3.0% as an annual interest rate based on the China LPR announced on\nFebruary 24, 2026 for one-year loans. If interest rate increases or decreases by 10%, it could lead to an increase or decrease in\ninterest expense of $76,926 per year.\n\n \n\n81\n\n \n\n \n\n**22.\nSubsequent Events**\n\n \n\nJinyun Tingxiang Parking Service Co., Ltd was\nincorporated on April 17, 2026, which is 100% owned by Hangzhou Zhuyi.\n\n \n\nZhejiang Yinpai Technology Co., Ltd. filed a claim against Hangzhou Zhuyi in connection with a dispute arising from\na technical entrustment development contract. The plaintiff was unsuccessful in the first instance on April 29, 2026 and is expected to\nappeal. To date, the Company has not received any notice of appeal.\n\n \n\nThe\nCompany has performed an evaluation of subsequent events through July 20, 2026, which was the date of the issuance of the consolidated\nfinancial statements, and determined that no other events would have required adjustment or disclosure in the consolidated financial\nstatements other than that discussed above."}