CXJ Group Co., Limited

What they do

The company operates through a BVI/Hong Kong/Shenzhen holding chain and a variable interest entity, CXJ Technology (Hangzhou) Co., Ltd. Its PRC subsidiary Longkou Xianganfu Trading Co., Ltd. trades motor oil and auto parts to third-party agents in China, and the company also collects brand-name administrative and training fees. It reports three revenue lines: motor oil and auto parts, exhaust gas cleaner and others, and administrative fees for its brand names.

Revenue drivers

• Motor oil and auto parts — Trading of motor oil and auto parts to third-party agents in China; $110,356, or 76.0% of revenue, in the quarter ended February 28, 2026.
• Exhaust gas cleaner & others — Newly contributing line at $33,785, or 23.3% of revenue, in the quarter ended February 28, 2026, versus none in the prior-year quarter.
• Administrative fee of brand name — One-time fixed RMB fees (RMB100,000-RMB300,000 for one year, RMB90,000 for one to three years, RMB200,000 for one to five years) granting use of the 'Chejiangling / Teenage Hero Car' and 'ECXJ' names plus shares of other shops' fees; $1,126, or 0.7% of revenue, in the quarter ended February 28, 2026.

Recent performance

For the quarter ended February 28, 2026, revenue was $145,267 versus $64,541 a year earlier, an increase of $80,726. Gross profit rose to $70,143 from $62,098, but selling and distribution expenses of $94,459 and general and administrative expenses of $74,900 produced an operating loss of $99,216 and a net loss attributable to shareholders of $99,214. Full-year fiscal 2026 revenue was $531,606 and net loss was $9,680, compared with fiscal 2025 revenue of $458,632 and a net loss of $2,284,025. The revenue mix shifted sharply: brand-name administrative fees fell to $1,126 from $60,859, while motor oil and auto parts rose to $110,356 from $3,682.

Strategy

Management states the company is engaging in trading of motor oil and auto parts to third-party agents in China and earning brand-name administrative and training fees. It cites a plan to use a 'Tik Tok's short videos e-commerce sales model' and financial support from a substantial shareholder and director, backed by a financial support letter, to fund the next 12 months. The company's filings describe its operations as small with a short history and say it may be unable to achieve performance targets.

Risks

• Going concern — The independent auditors added an explanatory paragraph on going concern because the company had an accumulated deficit of $7,657,185 and negative net assets of $1,624,018 as of May 31, 2026.
• Recurring losses — The company reported net losses of $9,680 and $2,284,025 for fiscal 2026 and 2025, respectively, and says it may not return to profitability.
• Working capital and additional capital needs — The company states that its ability to continue depends on raising additional funds and on shareholder support, with no assurance that its business strategy will succeed or generate sufficient funds.
• VIE and China structure — The PRC operating entity, CXJ Technology (Hangzhou) Co., Ltd., is a variable interest entity held through a BVI/Hong Kong/Shenzhen holding chain under VIE Agreements, and the filings include foreign, regulatory and economic risks in China.

Outlook

Management says the viability of its business strategy plans, such as the Tik Tok short-video e-commerce sales model, and financial support from a substantial shareholder and director, supported by a financial support letter, will generate sufficient funds to cover the next 12 months of cash demands. However, the company states there can be no assurance that the business strategy will be successful or generate sufficient funds. The filings do not include any adjustments that might result from the outcome of this uncertainty.