18. RISKS AND UNCERTAINTIES

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

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

The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 6.80 and 6.91 as of June 30, 2026 and March 31, 2026, respectively. Revenue and expenses are translated at the average yearly exchange rates, which was 6.806 and 7.231 for the three months ended June 30, 2026 and 2025, respectively. Equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity.

The following are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of June 30, 2026 and March 31, 2026.

Garment manufacturing segment

 SCHEDULE OF CONCENTRATION RISKS

The concentration as of June 30, 2026 and March 31, 2026 was attributable to the remaining accounts receivable balance being due from a single customer. The Company did not generate revenue from its garment manufacturing business during the three months ended June 30, 2026.

Logistics services segment

Consulting services segment

Financing services segment

As of June 30, 2026, no individual borrower accounted for more than 10% of the gross loan receivables of the financing services business.

Concentration on customers

For the three months ended June 30, 2026, one customer from the consulting service segment provided more than 10% of total consolidated revenue of the Company, representing 60.8% of total revenue of the Company.

For the three months ended June 30, 2025, three customers from the logistics services segment each accounted for more than 10% of revenue from continuing operations and, in the aggregate, represented approximately 53.9% of the Company’s revenue from continuing operations for the period.

Concentration on suppliers

The following tables summarize the purchases from five largest suppliers of each of the reportable segments for the three months ended June 30, 2026 and 2025.

 SCHEDULE OF PURCHASES FROM SUPPLIERS

The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of June 30, 2026, the total outstanding bank borrowings amounted to $720,142 (RMB4,894,255) with various interest rates from 4.34% to 16.2% p.a. (Note 12)