The following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes to those financial statements appearing elsewhere in this Report.

Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and € our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words "may," "will," "should," "anticipate," "estimate," "plan," "potential," "project," "continuing," "ongoing," "expects," "management believes," "we believe," "we intend," or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.





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Overview

We share the same business plan as that of our subsidiaries. We are engaged in the production and sale of food products, specifically dessert created and sold through various restaurants that we operate in Malaysia. We sell our goods under our brand name "Sweet Hut." We have two dessert restaurants chains and one central kitchen.





Results of Operations



Revenue



For the year ended March 31, 2022 and 2021, the Company has generated a revenue
of $127,095 and $161,132. This is a decrease of 21.12%. The breakdown of revenue
is as following:



                                     Year ended March 31
                                      2022          2021
Dine-In Revenue                    $   74,407     $ 103,404

Percentage towards Total Revenue 58.54 % 64.17 %



Delivery Revenue                   $   52,688     $  57,728

Percentage towards Total Revenue 41.46 % 35.83 %



Total Revenue                      $  127,095     $ 161,132

Total Cost of Sales                $   73,529     $  57,655

Total Gross Profit                 $   53,566     $ 103,477
Gross Profit Margin                     42.15 %       64.22 %

Dine-in revenue declined from $103,404 for the year ended March 31, 2021 to $74,407 for the year ended March 31, 2022 for a decline rate of approximately 28.04%. The decline in dine-in revenue primarily due to recurrent movement control order imposed in Malaysia and the closure of our restaurants for subsequent rebranding purpose.

Delivery revenue declined from $57,728 for the year ended March 31, 2021 to $52,688 for the year ended March 31, 2022 for a decline rate of approximately 8.73%. The decline in delivery primarily due to closure of our restaurants for subsequent rebranding purpose.





Gross Profit

The Company gross profit margin has decline from 64.22% for the year ended March 31, 2021 to 42.15% for the year ended March 31, 2022. As a combination of declining revenue and profit margin, the Company gross profit has declined from $103,477 for the year ended March 31, 2021 to $53,566 for the year ended March 31, 2022, approximately a decline of 48.23%.





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General and Administrative Expenses

For the year ended March 31, 2022 and 2021, the Company incurred a general and administrative expenses of $533,993 and $492,433 respectively. This primarily consisted of salary, lease expenses, utilities, depreciation, professional fees, repair and maintenance, compliance expenses and advertising and promotion expenses.





                                                           Year ended March 31
Primary expenses                                            2022          2021
Salary and salary related expenses                       $  233,566     $ 219,303

Percentage towards general and administrative expenses 43.90 % 44.53 %



Lease and rent expenses                                  $   76,955     $  73,865

Percentage towards general and administrative expenses 14.47 % 15.00 %



Utility expenses                                         $   29,950     $  29,738

Percentage towards general and administrative expenses 5.63 % 6.04 %



Professional expenses                                    $   59,947     $  83,599

Percentage towards general and administrative expenses 11.27 % 16.98 %



Depreciation expenses                                    $   77,861     $  34,181

Percentage towards general and administrative expenses 14.64 % 6.94 %



Repair and maintenance expenses                          $   14,509     $   8,661

Percentage towards general and administrative expenses 2.73 % 1.76 %



Compliance expenses                                      $    5,326     $   6,763

Percentage towards general and administrative expenses 1.00 % 1.37 %



Advertising and promotion expenses                       $      153     $   1,616

Percentage towards general and administrative expenses 0.03 % 0.33 %



Total primary expenses                                   $  498,267     $ 457,726

Percentage towards general and administrative expenses 93.66 % 92.95 %



Miscellaneous expenses                                   $   33,726     $  34,707

Percentage towards general and administrative expenses 6.34 % 7.05 %






Net Loss

For the year ended March 31, 2022 and 2021, the Company incurred a net loss of $443,268 and $11,862 respectively.





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Liquidity and Capital Resources

The Company's cash and cash equivalent has decreased by $326,600, from $345,161 as of March 31, 2021 to $18,561 as of March 31, 2022. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

Cash Used in Operating Activities

For the year ended March 31, 2022, the Company used $449,821 in operating activities primarily from net loss from operation, increase in account receivable, prepayment and deposits, decrease in accrued liabilities and other payables and repayment of lease liability, contra by depreciation and amortization, writing off of other receivable, decrease in inventory and increase in accounts payable.

For the year ended March 31, 2021, the Company used $251,610 in operating activities primarily from net loss from operation, gain from disposal of fixed assets, increase in prepaid expenses, decrease in account payable, repayment of lease liability and loan waiver from amount due to related parties, contra by depreciation and amortization and decrease in inventory and increase in accrued liability.

Cash Used in Investing activities

For the year ended March 31, 2022, the Company spent $50,657 in investing activity, primarily in investment in plant, equipment.

For the year ended March 31, 2021, the Company spent $211,663 in investing activity, primarily in investment in plant, equipment and renovation together with proceed from disposal of plant and equipment.

Cash Provided by Financing Activities

For the year ended March 31, 2022, the Company had net proceed from financing activity $168,299 primarily from advance from director contra by bank loan repayment.

For the year ended March 31, 2021, the Company had net proceed from financing activity $719,633 primarily from initial public offering and advance from director contra with bank loan repayment.

Off-Balance Sheet Arrangement

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of March 31, 2022 and March 31, 2021.





Contractual Obligation

As a smaller reporting company, we are not required to provide the aforementioned information.

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