10-Q
RHINO BITCOIN INC. (RHNO)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
ForThe Quarterly Period Ended ### January 31, 2024
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from _______________ to _______________
Commission
File Number 333-233778
PHOENIX
PLUS CORP.
(Exact name of registrant issuer as specified in its charter)
| Nevada | 61-1907931 |
|---|---|
| (State<br> or other jurisdiction of<br><br> <br>incorporation<br> or organization) | (I.R.S.<br> Employer<br><br> <br>Identification<br> No.) |
2-3
& 2-5 BEDFORD BUSINESS PARK, JALAN 3/137B,
BATU
5, JALAN KELANG LAMA,
58200
KUALA LUMPUR, MALAYSIA
(Address of principal executive offices, including zip code)
Registrant’s
phone number, including area code +603 7971 8168
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES
☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).
YES
☐ NO ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller reporting company ☒
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock | PXPC | The<br> OTC Market – Pink Sheets |
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has fled all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☐ No ☒
APPLICABLE
ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at January 31, 2024 |
|---|---|
| Common<br> Stock, $.0001 par value | 332,699,500 |
TABLE
OF CONTENTS
| Page | ||
|---|---|---|
| PART I | FINANCIAL INFORMATION | |
| ITEM<br> 1. | UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: | F-1 |
| Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and July 31, 2023 (audited) | F-2 | |
| Condensed Consolidated Statements of Operations and Comprehensive Losses for the Three and Six Months Ended January 31, 2024 and 2023 (unaudited) | F-3 | |
| Condensed Consolidated Statements of Changes in Equity for the Six Months Ended January 31, 2024 and 2023 (unaudited) | F-4 | |
| Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 and 2023 (unaudited) | F-5 | |
| Notes to the Condensed Consolidated Financial Statements | F-6<br> - F-18 | |
| ITEM<br> 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 3-6 |
| ITEM<br> 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 6 |
| ITEM<br> 4. | CONTROLS AND PROCEDURES | 6 |
| PART II | OTHER INFORMATION | |
| ITEM<br> 1 | LEGAL PROCEEDINGS | 7 |
| ITEM<br> 2 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 7 |
| ITEM<br> 3 | DEFAULTS UPON SENIOR SECURITIES | 7 |
| ITEM<br> 4 | MINE SAFETY DISCLOSURES | 7 |
| ITEM<br> 5 | OTHER INFORMATION | 7 |
| ITEM<br> 6 | EXHIBITS | 8 |
| SIGNATURES | 9 |
| 2 |
| --- |
PART
I FINANCIAL INFORMATION
ITEM
- UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
PHOENIX
PLUS CORP.
CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
| Page | |
|---|---|
| Condensed Consolidated Financial Statements | |
| Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and July 31, 2023 (audited) | F-2 |
| Condensed Consolidated Statements of Operations and Comprehensive Losses for the Three and Six Months Ended January 31, 2024 and 2023 (unaudited) | F-3 |
| Condensed Consolidated Statements of Changes in Equity for the Six Months Ended January 31, 2024 and 2023 (unaudited) | F-4 |
| Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 and 2023 (unaudited) | F-5 |
| Notes to the Condensed Consolidated Financial Statements | F-6<br> - F-18 |
| F-1 |
| --- |
PHOENIX
PLUS CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS
OF JANUARY 31, 2024 (UNAUDITED)AND JULY 31, 2023 (AUDITED)
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
| As of | |||||
|---|---|---|---|---|---|
| July 31, 2023<br> (Audited) | |||||
| ASSETS | |||||
| Current assets | |||||
| Trade receivables | 344,476 | $ | 12,088 | ||
| Contract assets | - | 18,723 | |||
| Other receivables, prepayment and deposits | 48,493 | 14,993 | |||
| Deferred cost | 28,881 | 324 | |||
| Retention sum receivables | 106,923 | - | |||
| Cash in hand and at bank | 740,522 | 1,108,039 | |||
| Total current assets | 1,269,295 | 1,154,167 | |||
| Non-current assets | |||||
| Plant and equipment, net | 9,880 | 9,715 | |||
| Lease right-of-use asset | 70,743 | 86,817 | |||
| Equity method investment | - | - | |||
| Total non-current<br> assets | 80,623 | 96,532 | |||
| TOTAL ASSETS | 1,349,918 | 1,250,699 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Non-current liability | |||||
| Lease liabilities, non-current | 45,250 | $ | 57,606 | ||
| Total non-current<br> liabilities | 45,250 | 57,606 | |||
| Current liabilities | |||||
| Trade payables | 227,971 | $ | 4,202 | ||
| Contract liabilities | 5,754 | - | |||
| Retention sum payables | 65,837 | - | |||
| Other payables and accrued liabilities and deposit received | 14,921 | 36,747 | |||
| Lease liabilities, current | 26,379 | 29,211 | |||
| Total current liabilities | 340,862 | 70,160 | |||
| Total liabilities | 386,112 | 127,766 | |||
| STOCKHOLDERS’ EQUITY | |||||
| Preferred stock, 0.0001 par value, 200,000,000 shares authorized; None issued and outstanding | - | - | |||
| Common stock, 0.0001 par value, 1,000,000,000 shares authorized 332,699,500 shares issued and outstanding as of January 31, 2024 and July 31, 2023 respectively | 33,270 | $ | 33,270 | ||
| Additional paid-in capital | 3,245,230 | 3,245,230 | |||
| Accumulated other comprehensive loss | (8,297 | ) | (5,917 | ) | |
| Accumulated deficit | (2,306,397 | ) | (2,149,650 | ) | |
| Total stockholders’ equity | 963,806 | 1,122,933 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ FUND | 1,349,918 | 1,250,699 |
All values are in US Dollars.
See
accompanying notes to condensed consolidated financial statements.
| F-2 |
| --- |
PHOENIX
PLUS CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND
COMPREHENSIVE LOSSES
FOR
THE THREE AND SIX MONTHS ENDED JANUARY 31, 2024 and 2023
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| Three Months Ended January 31 | Six Months Ended January 31 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 488,287 | $ | 20,456 | $ | 932,358 | $ | 35,588 | ||||
| Cost of revenue | $ | (502,181 | ) | $ | (14,575 | ) | $ | (880,491 | ) | $ | (28,357 | ) |
| Gross (loss)/profit | $ | (13,894 | ) | $ | 5,881 | $ | 51,867 | $ | 7,231 | |||
| Other income | $ | 3,739 | $ | 105,022 | $ | 18 | $ | 105,023 | ||||
| Operating expenses: | ||||||||||||
| General and administrative expenses | $ | (101,504 | ) | $ | (99,608 | ) | $ | (199,486 | ) | $ | (246,658 | ) |
| Finance cost | $ | (1,268 | ) | $ | (199 | ) | $ | (2,626 | ) | $ | (479 | ) |
| Other operating expenses | $ | - | $ | - | $ | (6,520 | ) | $ | - | |||
| (Loss)/Profit before income tax | $ | (112,927 | ) | $ | 11,096 | $ | (156,747 | ) | $ | (134,883 | ) | |
| Income tax expense | $ | - | $ | - | $ | - | $ | - | ||||
| Net (loss)/profit for the period | $ | (112,927 | ) | $ | 11,096 | $ | (156,747 | ) | $ | (134,883 | ) | |
| Other comprehensive income: | ||||||||||||
| - Foreign exchange adjustment gain/(loss) | $ | 1,459 | $ | 20,147 | $ | (2,380 | ) | $ | 6,736 | |||
| Comprehensive (loss)/income | $ | (111,468 | ) | $ | 31,243 | $ | (159,127 | ) | $ | (128,147 | ) | |
| Net (loss)/profit per share, basic and diluted: | $ | (0.0003 | ) | $ | 0.00009 | $ | (0.0005 | ) | $ | (0.0004 | ) | |
| Weighted average number of common shares outstanding – Basic and diluted | 332,699,500 | 332,699,500 | 332,699,500 | 332,699,500 |
See
accompanying notes to condensed consolidated financial statements.
| F-3 |
| --- |
PHOENIX
PLUS CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024 and 2023
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| Six Months Ended January 31, 2024<br><br> <br>(Unaudited) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of Shares | Amount | PAID-IN<br> CAPITAL | COMPREHENSIVE<br> LOSS | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| COMMON SHARES | ADDITIONAL | ACCUMULATED OTHER | |||||||||||||
| Number of Shares | Amount | PAID-IN<br> CAPITAL | COMPREHENSIVE<br> LOSS | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||
| Balance as of July 31, 2023 | 332,699,500 | $ | 33,270 | $ | 3,245,230 | $ | (5,917 | ) | $ | (2,149,650 | ) | $ | 1,122,933 | ||
| Net loss for the period | - | - | - | - | (43,820 | ) | (43,820 | ) | |||||||
| Foreign currency translation adjustment | - | - | - | (3,839 | ) | - | (3,839 | ) | |||||||
| Balance as of October 31, 2023 | 332,699,500 | 33,270 | 3,245,230 | (9,756 | ) | (2,193,470 | ) | 1,075,274 | |||||||
| Net loss for the period | - | - | - | - | (112,927 | ) | (112,927 | ) | |||||||
| Foreign currency translation adjustment | - | - | - | 1,459 | - | 1,459 | |||||||||
| Balance as of January 31, 2024 | 332,699,500 | $ | 33,270 | $ | 3,245,230 | $ | (8,297 | ) | $ | (2,306,397 | ) | $ | 963,806 | ||
| Six Months Ended January 31, 2023<br><br> <br>(Unaudited) | |||||||||||||||
| --- | |||||||||||||||
| COMMON SHARES | ADDITIONAL | ACCUMULATED OTHER | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Number of Shares | Amount | PAID-IN<br> CAPITAL | COMPREHENSIVE<br> INCOME | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||
| Balance as of July 31, 2022 | 332,699,500 | $ | 33,270 | $ | 3,245,230 | $ | (2,145 | ) | $ | (1,760,413 | ) | $ | 1,515,942 | ||
| Net loss for the period | - | - | - | - | (145,979 | ) | (145,979 | ) | |||||||
| Foreign currency translation adjustment | - | - | - | (13,411 | ) | - | (13,411 | ) | |||||||
| Balance as of October 31, 2022 | 332,699,500 | 33,270 | 3,245,230 | (15,556 | ) | (1,906,392 | ) | 1,356,552 | |||||||
| Balance | 332,699,500 | 33,270 | 3,245,230 | (15,556 | ) | (1,906,392 | ) | 1,356,552 | |||||||
| Net profit for the period | - | - | - | - | 11,096 | 11,096 | |||||||||
| Net profit (loss) for the period | - | - | - | - | 11,096 | 11,096 | |||||||||
| Foreign currency translation adjustment | - | - | - | 20,147 | - | 20,147 | |||||||||
| Balance as of January 31, 2023 | 332,699,500 | $ | 33,270 | $ | 3,245,230 | $ | 4,591 | $ | (1,895,296 | ) | $ | 1,387,795 | |||
| Balance | 332,699,500 | $ | 33,270 | $ | 3,245,230 | $ | 4,591 | $ | (1,895,296 | ) | $ | 1,387,795 |
See
accompanying notes to condensed consolidated financial statements.
| F-4 |
| --- |
PHOENIX
PLUS CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024 and 2023
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| Six months ended January 31 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net loss | $ | (156,747 | ) | $ | (134,883 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Equity method investment loss | - | - | ||||
| Depreciation | 1,222 | 444 | ||||
| Amortization of right-of-use | 12,853 | 13,874 | ||||
| Changes in operating assets and liabilities: | ||||||
| Trade receivables | (332,388 | ) | (15,151 | ) | ||
| Contract assets | - | - | ||||
| Contract liabilities | 24,477 | - | ||||
| Retention sum receivables | (106,923 | ) | - | |||
| Other receivables, prepayment and deposits | (33,500 | ) | (23,936 | ) | ||
| Deferred cost | (28,557 | ) | (7,504 | ) | ||
| Trade payables | 223,769 | - | ||||
| Other payables, accrued liabilities and deposit received | (21,826 | ) | (21,277 | ) | ||
| Retention sum payables | 65,837 | - | ||||
| Operating lease liabilities | (15,188 | ) | (13,850 | ) | ||
| Net cash used in operating activities | (366,971 | ) | (202,283 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITY | ||||||
| Purchase of plant and equipment | (1,647 | ) | (1,520 | ) | ||
| Net cash used in investing activity | (1,647 | ) | (1,520 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITY: | ||||||
| Net cash provided by financing activity | - | - | ||||
| Effect of exchange rate changes on cash and cash equivalents | $ | 1,101 | 6,635 | |||
| Net decrease in cash and cash equivalents | (367,517 | ) | (197,168 | ) | ||
| Cash and cash equivalents, beginning of period | 1,108,039 | 1,537,864 | ||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 740,522 | 1,340,696 | |||
| SUPPLEMENTAL CASH FLOWS INFORMATION | ||||||
| Income taxes paid | $ | - | $ | - | ||
| Interest paid | $ | - | $ | - |
See
accompanying notes to condensed consolidated financial statements.
| F-5 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
1.
DESCRIPTION OF BUSINESS AND ORGANIZATION
Phoenix Plus Corp. was incorporated on November 5, 2018 under the laws of the state of Nevada.
The Company, through its subsidiaries, engaged in providing technical consultancy on solar power system and consultancy on green energy solution, and also focused on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production.
On
March 18, 2019, the Company acquired 100% of the equity interests in Phoenix Plus Corp. (herein referred as the “Malaysia Company”), a private limited company incorporated in Labuan, Malaysia.
On July 25, 2019, Phoenix Plus Corp., a Malaysia Company, acquired Phoenix Plus International Limited (herein referred as the “Hong Kong Company”), a private limited company incorporated in Hong Kong.
On
May 17, 2022, the Company, through its Labuan incorporated subsidiary, Phoenix Plus Corp., subscribed 100% of the equity interests in Phoenix Green Energy Sdn. Bhd., a private limited company incorporated in Malaysia.
The Company, through its subsidiaries, mainly provides incubation and corporate development services to the clients. Details of the Company’s subsidiaries:
SCHEDULE
OF DETAILS OF COMPANY’S SUBSIDIARY
| Company<br> name | Place<br> and date of incorporation | Particulars<br> of issued capital | Principal<br> activities | |
|---|---|---|---|---|
| 1. | Phoenix<br> Plus Corp. | Labuan<br> / January 4, 2019 | 100<br> shares of ordinary share of US$1 each | Investment<br> holding |
| 2. | Phoenix<br> Plus International Limited | Hong<br> Kong / March 19, 2019 | 1<br> ordinary share of HK$1 each | Providing<br> technical consultancy on solar power system and consultancy on green energy solution |
| 3. | Phoenix<br> Green Energy Sdn. Bhd. | Malaysia<br> / May 17, 2022 | 1,200,000<br> shares of ordinary share of MYR1 each | Providing<br> renewable energy turnkey solutions from engineering, procurement, construction and commissioning services |
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The unaudited condensed financial statements for Phoenix Plus Corporation for the period ended January 31, 2024 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statement, instructions to Form 10-Q and Regulations S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended July 31, 2023. In management’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended January 31, 2024 and 2023 presented are not necessarily indicative of the results to be expected for the full year. The Company has adopted July 31 as its fiscal year end.
Basis of consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation.
| F-6 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Use of estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
Revenue recognition
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The Company derives its revenue from solar PV system installation services, consultancy services provided to our customers on engineering, equipment procurement and transportation, construction on solar plant.
The revenue from long term contract is recognized by reference to the stage of completion of the contract activity at the end of the reporting period, the stage of completion is measured by the proportion that costs incurred for work performed to date bear to the estimated total costs. The revenue from non-contract customers is recognized upon the delivery of services.
Cost of revenue
Cost of revenue includes the cost of services and product in providing technical consultancy on solar power system, and renewable energy turnkey solutions from engineering, procurement, construction and commissioning services.
Cash and cash equivalents
Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:
SCHEDULE
OF PROPERTY PLANT AND EQUIPMENT ESTIMATED USEFUL LIFE
| Classification | Estimated<br> useful life |
|---|---|
| Leasehold<br> improvement | 21<br> months |
| Computer<br> hardware and software | 5<br> years |
| Tools<br> and gauges | 5<br> years |
Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the Consolidated Statements of Operations and Comprehensive Loss.
Investment under equity method
The Company apply the equity method to account for investments it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20% of the voting interests of the investee.
In applying the equity method, the Company records the investment at cost and subsequently increase or decrease the carrying amount of the investment by proportionate share of the net earnings or losses and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment.
| F-7 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Income taxes
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
Going concern
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. As reflected in the accompanying financial statements, for the period ended January 31, 2024, the Company suffered an accumulated deficit of $2,306,397
,
negative operating cash flow of $366,971
and net loss of $156,747
These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
| F-8 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Net loss per share
The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.
Foreign currencies translation
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations.
The reporting currency of the Company is United States Dollars (“US$”). The Company’s subsidiary in Labuan and Hong Kong maintains its books and record in United States Dollars (“US$”) respectively, and Ringgits Malaysia (“MYR”) is functional currency as being the primary currency of the economic environment in which the entity operates.
In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.
Translation of amounts from MYR into US$1 and HK$ into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE
OF FOREIGN CURRENCY TRANSLATION
| As of and for the<br> period ended<br> January 31, 2023 | |||
|---|---|---|---|
| Period-end RM : US1 exchange rate | 4.73 | 4.27 | |
| Period-average RM : US1 exchange rate | 4.68 | 4.51 | |
| Period-end HK: US1 exchange rate | 7.82 | 7.84 | |
| Period-average HK : US1 exchange rate | 7.81 | 7.83 |
All values are in US Dollars.
Related parties
Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
| F-9 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Fair value of financial instruments:
The carrying value of the Company’s financial instruments: cash and cash equivalents, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.
The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level1: Observable inputs such as quoted prices in active markets;
Level2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Leases
Prior to August 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective August 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did not have a significant impact on our liquidity. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. (see Note 14).
Recent accounting pronouncements
ASB issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915) Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations and cash flows since inception.
In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its consolidated financial statements.
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
| F-10 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
3.
COMMON STOCK
As
of January 31, 2024, the Company has an issued and outstanding common share of 332,699,500.
4.
PLANT AND EQUIPMENT
Plant and equipment as of January 31, 2024 and July 31, 2023 are summarized below:
SCHEDULE
OF PROPERTY AND EQUIPMENT
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (Unaudited) | (Audited) | |||||
| Leasehold improvement | $ | 114,263 | $ | 114,263 | ||
| Computer hardware and software | 9,624 | 8,918 | ||||
| Tools and gauges | 3,127 | 2,213 | ||||
| Total | 127,014 | 125,394 | ||||
| Accumulated depreciation | (116,847 | ) | $ | (115,625 | ) | |
| Effect of translation exchange | (287 | ) | (54 | ) | ||
| Plant and equipment, net | $ | 9,880 | $ | 9,715 |
These leasehold improvements include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. The leasehold improvement has completed on September 2019.
Depreciation
expense for the period ended January 31, 2024 and January 31, 2023 was $1,222 and $444 respectively.
5.
EQUITY METHOD INVESTMENT
SCHEDULE
OF EQUITY METHOD INVESTMENT
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (Unaudited) | (Audited) | |||||
| Investment, at cost | $ | 232,040 | $ | 232,040 | ||
| Less: Equity method loss | (335 | ) | (335 | ) | ||
| Less: Impairment loss on investment | (231,705 | ) | (231,705 | ) | ||
| Equity method investment | $ | - | $ | - |
The
Company holds investment in business that is accounted for pursuant to the equity method due to the Company’s ability to exert significant influence over decisions relating to its operating and financial affairs. Revenue and expenses of this investment are not consolidated into the Company’s financial statements; rather, the proportionate share of the earnings/losses is reflected as equity method earnings/losses in statements of operations and comprehensive income/loss. As of January 31, 2024, the Company holds 33.9% interest in the investee company.
During the period ended January 31, 2024 and 2023, the Company accounted $0 and $0 of equity method loss respectively.
| F-11 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
6.
TRADE RECEIVABLES
Trade receivables consisted of the following at January 31, 2024 and July 31, 2023:
SCHEDULE
OF TRADE RECEIVABLES
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||
|---|---|---|---|---|
| (Unaudited) | (Audited) | |||
| Trade receivables | $ | 344,476 | $ | 12,088 |
| Total trade receivables | $ | 344,476 | $ | 12,088 |
7.
CONTRACT ASSETS/(LIABILITIES)
Contract assets/(liabilities) as of January 31, 2024 and July 31, 2023 are summarized below:
SCHEDULE
OF CONTRACT ASSETS (LIABILITIES)
| As of<br> January 31, 2024<br> (Audited) | As of<br> July 31, 2023<br> (Audited) | ||||
|---|---|---|---|---|---|
| Cost incurred | $ | 884,166 | $ | 15,224 | |
| Attributable profit | 55,361 | 3,499 | |||
| Contract (liabilities)/assets,<br> gross | 939,527 | 18,723 | |||
| Progress billings | (945,281 | ) | - | ||
| Total contract (liabilities)/assets | $ | (5,754 | ) | $ | 18,723 |
8.
OTHER RECEIVABLES, PREPAYMENT AND DEPOSITS
Other receivables, prepayment and deposits consisted of the following at January 31, 2024 and July 31, 2023:
SCHEDULE
OF OTHER RECEIVABLES PREPAYMENTS AND DEPOSITS
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||
|---|---|---|---|---|
| (Unaudited) | (Audited) | |||
| Other receivables | $ | 32,166 | $ | - |
| Deposits | 16,327 | 12,325 | ||
| Prepayment | - | 2,668 | ||
| Total other receivables, prepayment and deposits | $ | 48,493 | $ | 14,993 |
9.
DEFERRED COST
For service contracts where the performance obligation is not completed, deferred costs are recorded for any costs incurred in advance of the performance obligation.
10.
TRADE PAYABLES
Trade payables consisted of the following at January 31, 2024 and July 31, 2023:
SCHEDULE
OF TRADE PAYABLES
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||
|---|---|---|---|---|
| (Unaudited) | (Audited) | |||
| Trade payables | $ | 227,971 | $ | 4,202 |
| Total trade payables | $ | 227,971 | $ | 4,202 |
| F-12 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
11.
OTHER PAYABLES, ACCRUED LIABILITIES AND DEPOSITS RECEIVED
Other payables, accrued liabilities and deposits received consisted of the following at January 31, 2024 and July 31, 2023:
SCHEDULE
OF OTHER PAYABLES AND ACCRUED LIABILITIES AND DEPOSITS RECEIVED
| As of<br> January 31, 2024 | As of<br> July 31, 2023 | |||
|---|---|---|---|---|
| (Unaudited) | (Audited) | |||
| Accrued audit fees | $ | 2,500 | $ | 14,000 |
| Other payables, accrued liabilities and deposits received | 12,421 | 22,747 | ||
| Total other payables, accrued liabilities and deposits received | $ | 14,921 | $ | 36,747 |
12.
REVENUE
For the period ended January 31, 2024 and 2023, the Company has revenue arise from the following:
SCHEDULE
OF REVENUE
| Six months<br> period ended<br> January 31, 2024 | Six months<br> period ended<br> January 31, 2023 | |||
|---|---|---|---|---|
| (Unaudited) | (Unaudited) | |||
| Installation service provided | $ | 932,358 | $ | 35,588 |
| Total revenue | $ | 932,358 | $ | 35,588 |
13.
INCOME TAXES
For the period ended January 31, 2024 and 2023, the local (United States) and foreign components of loss before income taxes were comprised of the following:
SCHEDULE OF LOCAL AND FOREIGN COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAX
| Six months<br> period ended<br> January 31, 2024 | Six months<br> period ended<br> January 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | |||||
| Tax jurisdictions from: | ||||||
| Local | $ | (38,083 | ) | $ | (26,431 | ) |
| Foreign, representing | ||||||
| - Labuan | (9,129 | ) | 36,738 | |||
| - Hong Kong | (12,964 | ) | (77,436 | ) | ||
| - Malaysia | (96,571 | ) | (67,754 | ) | ||
| Loss before income tax | $ | (156,747 | ) | $ | (134,883 | ) |
The provision for income taxes consisted of the following:
SCHEDULE OF PROVISION FOR INCOME TAX
| For the period<br> ended<br> January 31, 2024 | For the period<br> ended<br> January 31, 2023 | |||
|---|---|---|---|---|
| Current: | ||||
| - Local | - | - | ||
| - Foreign | - | - | ||
| Deferred: | ||||
| - Local | - | - | ||
| - Foreign | - | - | ||
| Income tax expense | $ | - | $ | - |
| F-13 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date.
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows:
UnitedStates of America
The
Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of January 31, 2024 the operations in the United States of America incurred $914,337 of cumulative net operating losses which can be carried forward to offset a maximum of 80% future taxable income. The net operating loss carry forwards begin to expire in 2038, if unutilized. The Company has provided for a full valuation allowance of $731,470 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.
Labuan
Under the current laws of the Labuan, Phoenix Plus Corp.is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit.
HongKong
Phoenix
Plus International Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income.
Malaysia
Phoenix Green Energy Sdn. Bhd. is subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range from 15% to 24% on its assessable income.
| F-14 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
14.
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES
The Company officially adopted ASC 842 for the year on and after August 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative years presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative years, thusly.
As
of July 1, 2021, the Company recognized approximately US$40,445, lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of July 1, 2021, with borrowing rate of 5.60% adopted from CIMB Bank Berhad’s fixed deposit rate as a reference for discount rate.
As
of June 1, 2022, the Company recognized another approximately US$9,343, lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of June 1, 2022, with borrowing rate of 5.56% adopted from Affin Bank Berhad’s fixed deposit rate as a reference for discount rate.
On June 3, 2023, Phoenix Plus International Limited and Phoenix Green Energy Sdn. Bhd. respectively entered into two-years lease with landlord for renting office space, from August 1, 2023 to July 31, 2025, with an option to renew after the end of the tenancy agreement. Phoenix Plus International Limited and Phoenix Green Energy Sdn. Bhd. respectively recognized lease liabilities of approximately US$25,967 and US$60,850, with a corresponding right-of-use asset in the same amount based on the present value of the future minimum rental payments of the lease, with borrowing rate of 6.85% adopted from CIMB Bank Berhad’s fixed deposit rate as a reference for discount rate.
A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.
The initial recognition of operating lease right and lease liability as follow:
SCHEDULE OF INITIAL RECOGNITION OF OPERATING LEASE RIGHT AND LEASE LIABILITY
| As of<br> January 31, 2024<br> (Unaudited) | As of<br> July 31, 2023<br> (Audited) | |||||
|---|---|---|---|---|---|---|
| Gross lease payable | $ | 107,053 | $ | 107,053 | ||
| Less: imputed interest | (9,359 | ) | (9,359 | ) | ||
| Recognition | $ | 97,694 | $ | 97,694 |
As of January 31, 2024 and July 31, 2023, operating lease right of use asset as follow:
SCHEDULE OF OPERATING LEASE RIGHT OF USE ASSET
| As of<br> January 31, 2024<br> (Unaudited) | As of<br> July 31, 2023<br> (Audited) | |||||
|---|---|---|---|---|---|---|
| Initial recognition as of August 1, 2019 | $ | 26,772 | $ | 26,772 | ||
| Additional portion from July 31, 2020 to June 30, 2021 | 2,719 | 2,719 | ||||
| Add: new lease addition from July 1, 2021 to June 30, 2023 | 40,445 | 40,445 | ||||
| Add: new lease addition from June 1, 2022 to May 31, 2023 | 9,343 | 9,343 | ||||
| Add: new lease addition from June 1, 2023 to July 31, 2023 | 1,534 | 1,534 | ||||
| Add: new lease addition from August 1, 2023 to July 31, 2026 | 86,817 | 86,817 | ||||
| Accumulated amortization | (92,097 | ) | (79,244 | ) | ||
| Foreign exchange translation loss | (4,790 | ) | (1,569 | ) | ||
| Balance | $ | 70,743 | $ | 86,817 |
| F-15 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
As of January 31, 2024 and July 31, 2023, operating lease liability as follow:
SCHEDULE
OF OPERATING LEASE LIABILITY
| As of<br> January 31, 2024<br> (Unaudited) | As of<br> July 31, 2023<br> (Audited) | |||||
|---|---|---|---|---|---|---|
| Initial recognition as of August 1, 2019 | $ | 26,772 | $ | 26,772 | ||
| Add: additional portion (increase of leasing fee) | 2,719 | 2,719 | ||||
| Add: new lease addition from July 1, 2021 to June 30, 2023 | 40,445 | 40,445 | ||||
| Add: new lease addition from June 1, 2022 to May 31, 2023 | 9,343 | 9,343 | ||||
| Add: new lease addition from June 1, 2023 to July 31, 2023 | 1,534 | 1,534 | ||||
| Add: new lease addition from August 1, 2023 to July 31, 2026 | 86,817 | 86,817 | ||||
| Less: gross repayment | (95,653 | ) | (81,468 | ) | ||
| Add: imputed interest | 2,861 | 245 | ||||
| Foreign exchange translation gain | (3,209 | ) | 410 | |||
| Balance | 71,629 | 86,817 | ||||
| Less: lease liability current portion | (26,379 | ) | (29,211 | ) | ||
| Lease liability non-current portion | $ | 45,250 | $ | 57,606 |
For
the period ended January 31, 2024 and 2023, the amortization of the operating lease right of use asset are $12,853 and $13,874 respectively.
Maturities of operating lease obligation as follow:
SCHEDULE OF MATURITIES OF OPERATING LEASE OBLIGATION
| Year ending | ||
|---|---|---|
| July 31, 2024 (6 months) | $ | 12,382 |
| July 31, 2025 (12 months) | 28,162 | |
| July 31, 2026 (12 months) | 31,085 | |
| Total | $ | 71,629 |
Other information:
SCHEDULE OF OTHER INFORMATION
| Period ended January 31 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| (Unaudited) | (Unaudited) | |||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||
| Operating cash flow from operating lease | $ | 15,188 | $ | 13,874 | ||
| Right-of-use assets obtained in exchange for operating lease liabilities | - | 11,907 | ||||
| Remaining lease term for operating lease (years) | ||||||
| Lease 1 | - | 0.4 | ||||
| Lease 2 | - | 0.3 | ||||
| Lease 3 | 2.5 | - | ||||
| Weighted average discount rate for operating lease | ||||||
| Lease 1 | 5.6 | % | 5.6 | % | ||
| Lease 2 | 5.56 | % | 5.56 | % | ||
| Lease 3 | 6.85 | % | - |
Lease
expenses were $2,626 for the period ended January 31, 2024 and $480 for the period ended January 31, 2023. The Company adopt ASC 842 on and after August 1, 2019.
| F-16 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
15.
CONCENTRATION OF RISK
The Company is exposed to the following concentrations of risk:
SCHEDULE
OF CONCENTRATION OF RISK
| (a) | Major<br> customers |
|---|
For the three months ended January 31, 2024 and 2023, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at year-end are presented as follows:
| Three months ended January 31 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | Percentage of Revenue | Trade Receivable | ||||||||||||
| Customer A | $ | 240,408 | $ | 19,517 | 49 | % | 95 | % | $ | 250,173 | $ | 16,019 | ||
| Customer B | 244,985 | - | 50 | % | - | 94,303 | - | |||||||
| $ | 485,393 | $ | 19,517 | 99 | % | 95 | % | $ | 344,476 | $ | 16,019 |
For the six months ended January 31, 2024 and 2023, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at year-end are presented as follows:
| Six months ended January 31 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | Percentage of Revenue | Trade Receivable | ||||||||||||
| Customer A | $ | 403,103 | $ | 26,009 | 43 | % | 73 | % | $ | 250,173 | $ | 16,019 | ||
| Customer B | $ | 528,259 | - | 56 | % | - | $ | 94,303 | - | |||||
| Customer C | - | $ | 8,647 | - | 24 | % | - | - | ||||||
| $ | 913,362 | $ | 34,656 | 99 | % | 97 | % | $ | 344,476 | $ | 16,019 | |||
| (b) | Major<br> vendors | |||||||||||||
| --- | --- |
For the three months ended January 31, 2024 and 2023, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at year-end are presented as follows:
| Three months ended January 31 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Cost of Revenue | Percentage of Cost of Revenue | Trade Payable | ||||||||||||
| Vendor A | - | $ | 3,632 | - | 25 | % | - | - | ||||||
| Vendor B | - | $ | 6,032 | - | 41 | % | - | - | ||||||
| Vendor C | - | $ | 1,621 | - | 11 | % | - | - | ||||||
| Vendor E | $ | 75,334 | - | 15 | % | - | 43,632 | - | ||||||
| Vendor F | $ | 65,072 | - | 13 | % | - | 17,343 | - | ||||||
| Vendor G | $ | 64,628 | - | 13 | % | - | 25,271 | - | ||||||
| $ | 205,034 | $ | 11,284 | 41 | % | 77 | % | $ | 86,246 | $ | - |
For the six months ended January 31, 2024 and 2023, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at year-end are presented as follows:
| Six months ended January 31 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Cost of Revenue | Percentage of Cost of Revenue | Trade Payable | ||||||||||||
| Vendor A | - | $ | 3,632 | - | % | 13 | % | - | - | |||||
| Vendor B | - | $ | 6,032 | - | % | 21 | % | - | - | |||||
| Vendor C | - | $ | 3,093 | - | % | 11 | % | - | - | |||||
| Vendor D | - | $ | 8,071 | - | % | 28 | % | - | - | |||||
| Vendor H | $ | 204,038 | - | 23 | % | - | $ | 21,144 | - | |||||
| Vendor I | $ | 91,824 | - | 10 | % | - | $ | 43,090 | - | |||||
| $ | 295,862 | $ | 20,828 | 33 | % | 73 | % | $ | 64,234 | $ | - |
| F-17 |
| --- |
PHOENIX
PLUS CORP.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED JANUARY 31, 2024
(Currencyexpressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
16.
SEGMENT INFORMATION
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.
The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:
SCHEDULE
OF INTER-SEGMENT SALES
By Geography:
| For the period ended January 31, 2024 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| United States | Malaysia | Hong Kong | Total | |||||||||
| Revenue | $ | - | $ | 932,358 | $ | - | $ | 932,358 | ||||
| Cost of revenue | - | (880,491 | ) | - | (880,491 | ) | ||||||
| Net loss | (38,083 | ) | (105,700 | ) | (12,964 | ) | (156,747 | ) | ||||
| Total assets | $ | - | $ | 1,300,898 | $ | 49,020 | $ | 1,349,918 | ||||
| For the period ended January 31, 2023 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| United States | Malaysia | Hong Kong | Total | |||||||||
| Revenue | $ | - | $ | 35,588 | $ | - | $ | 35,588 | ||||
| Cost of revenue | - | (28,357 | ) | - | (28,357 | ) | ||||||
| Net loss | (26,431 | ) | (31,016 | ) | (77,436 | ) | (134,883 | ) | ||||
| Total assets | $ | - | $ | 1,313,373 | $ | 105,975 | $ | 1,419,348 |
| F-18 |
| --- |
ITEM
- MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Theinformation contained in this quarter report on Form 10-Q is intended to update the information contained in our Form 10-K, dated October30, 2023, for the year ended July 31, 2023 and presumes that readers have access to, and will have read, the “Management’sDiscussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. Thefollowing discussion and analysis also should be read together with our consolidated financial statements and the notes to the consolidatedfinancial statements included elsewhere in this Form 10-Q.
Thefollowing discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of thePrivate Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation,“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guaranteesof future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-lookingstatements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. Weassume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following shouldalso be read in conjunction with the unaudited condensed Consolidated Financial Statements and notes thereto that appear elsewhere inthis report.
CompanyOverview
Phoenix Plus Corp., a Nevada Corporation, is a company that operates through its wholly owned subsidiary, Phoenix Plus Corp., a Company organized in Labuan, Malaysia. It should be noted that our wholly owned subsidiary, Phoenix Plus Corp., owns 100% of Phoenix Plus International Limited, an operating Hong Kong Company and 100% of Phoenix Green Energy Sdn. Bhd., an operating Malaysia company, which are described below.
We have a physical office in Malaysia with address of 2-3 & 2-5 Bedford Business Park, Jalan 3/137B, Batu 5, Jalan Kelang Lama, 58200 Kuala Lumpur, Malaysia which completed renovation in September 2019. The office space is 12,000 square feet and to date the Company has spent $114,263 towards ongoing renovations. These renovations include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. Our office space is rented by Phoenix Plus International Limited for a 12-month period from July 1, 2019 to June 30, 2020, for an initial down payment of MYR 13,500 and additional bi-monthly payments in the amount of MYR 4,500 over the course of the lease. The Company had decided to renew the tenancy agreement for another 12 months’ period at a monthly rental of MYR 6,500 from July 1, 2020 to June 30, 2021 with the landlord. The Company has further renewed the tenancy agreement for another 24 months with bi-monthly payments in the amount of MYR 7,500 over the course of the lease from July 1, 2021 to June 30, 2023.
On June 3, 2023, Phoenix Plus International Limited and Phoenix Green Energy Sdn. Bhd. respectively rented the office space from landlord for a 24-month period from August 1, 2023 to July 31, 2025, with the respective initial deposit of MYR 6,850 and MYR 16,000, monthly payment in the amount of MYR 3,425 and MYR 8,000 for the period from August 1, 2023 to July 31, 2024 and monthly payment in the amount of MYR 3,726 and MYR 8,748 for the period from August 1, 2024 to July 31, 2025.
Phoenix Plus Corp., through its Hong Kong subsidiary, is engaged in providing technical consultancy on solar power systems and consultancy on green energy solutions, with an additional focus on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production. Our mission is to harness the power of the sun to meet the growing resource demands of sustainable 21st century development.
Phoenix Green Energy Sdn. Bhd. is also engaged in providing renewable energy turnkey solutions from engineering, procurement, construction and commissioning (“EPCC”) as well as financing services to domestic users, small businesses, corporate and institutional organization. We also provide associated services and products to complement our core services in EPCC, and construction and installation services. This includes provision of solar PV consulting and engineering services, O&M services, as well as supply of related equipment and ancillary construction materials such as PV module mounting system and gutters. Solar PV consulting and engineering services include preparation and submission of documentations to authorities, facility audit and site surveys, and providing seminars and training services.
Our business is to market and sell solar power products, systems and services. Specifically, we intend to engage in the following:
| ● | Provide<br> end-to-end services from engineering design, planning and procurement, construction and installation up to testing and commissioning; |
|---|---|
| ● | Construction<br> and installation of solar PV facilities including residential, commercial and industrial properties, and |
| ● | Associated<br> services and products to complement our core business in the provision of EPCC, and construction and installation services, including<br> the provision of solar PV consulting and engineering, and operations and maintenance services, as well as supply of solar PV equipment<br> and ancillary system such as gutter and mounting system. |
| --- | --- |
| 3 |
| --- |
Resultsof Operation
Forthe three months ended January 31, 2024 and 2023
Revenues
For the three months ended January 31, 2024 and 2023, the Company has generated revenue of $488,287 and $20,456 respectively. The revenue represented income from solar PV system installation services, consultancy services provided to our customers on engineering, equipment procurement and transportation, construction on solar plant.
Costof Revenue and Gross Margin
For the three months ended January 31, 2024 and 2023, cost incurred in providing consultancy services and installation services are $502,181 and $14,575 respectively. The Company generated gross (loss)/profit of $13,894 and $5,881 for the three months ended January 31, 2024 and 2023 respectively.
Generaland administrative expenses
For the three months ended January 31, 2024 and 2023, we had incurred general and administrative expenses in the amount of $101,504 and $99,608. These expenses are comprised of salary, consultancy fees for listing advisory, professional fee, compliance fee, office and outlet operation expenses and depreciation.
OtherIncome
The Company recorded an amount of $3,739 and $105,022 as other income for the three months ended January 31, 2024 and 2023. This income is derived from the interest income and foreign exchange gain.
Net(Loss)/Profit
Our net (loss)/profit for three months ended January 31, 2024 and 2023 was $112,927 and $11,096. The net loss mainly derived from the general and administrative expenses incurred.
| 4 |
| --- |
Forthe six months ended January 31, 2024 and 2023
Revenues
For the six months ended January 31, 2024 and 2023, the Company has generated revenue of $932,358 and $35,588 respectively. The revenue represented income from solar PV system installation services, consultancy services provided to our customers on engineering, equipment procurement and transportation, construction on solar plant.
Costof Revenue and Gross Margin
For the six months ended January 31, 2024 and 2023, cost incurred in providing consultancy services and installation services are $880,491 and $28,357 respectively. The Company generated gross profit of $51,867 and $7,231 for the six months ended January 31, 2024 and 2023 respectively, representing a gross margin of approximately 5.6% and 20.3% for the six months ended January 31, 2024 and 2023 respectively.
Generaland administrative expenses
For the six months ended January 31, 2024 and 2023, we had incurred general and administrative expenses in the amount of $199,486 and $246,658. These expenses are comprised of salary, consultancy fees for listing advisory, professional fee, compliance fee, office and outlet operation expenses and depreciation.
OtherIncome
The Company recorded an amount of $18 and $105,023 as other income for the six months ended January 31, 2024 and 2023. This income is derived from the interest income and foreign exchange gain.
NetLoss
Our net loss for six months ended January 31, 2024 and 2023 were $156,747 and $134,883. The net loss mainly derived from the general and administrative expenses incurred.
Liquidityand Capital Resources
As of January 31, 2024 and 2023, we had cash and cash equivalents of $740,522 and $1,340,696. We expect increased levels of operations going forward will result in more significant cash flow and in turn working.
CashUsed In Operating Activities
For the six months ended January 31, 2024 and 2023, net cash used in operating activities was $366,971 and $202,283 respectively. The increase in cash used in operating activities was mainly for payment of general and administrative expenses, and selling and marketing expenses.
CashProvided By Financing Activities
For the six months ended January 31, 2024 and 2023, net cash provided by financing activities was $0 and $0. The financing cash flow performance primarily reflects sale of common stock and collection of subscription receivables.
| 5 |
| --- |
CashUsed In Investing Activities
For the six months ended January 31, 2024 and 2023, the net cash used in investing activities was $1,647 and $1,520. The investing cash flow performance primarily reflects the purchase of plant and equipment.
CreditFacilities
We do not have any credit facilities or other access to bank credit.
Off-balanceSheet Arrangements
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 January 31, 2024.
RecentAccounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
ITEM
3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.
ITEM
4 CONTROLS AND PROCEDURES
Evaluationof Disclosure Controls and Procedures:
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of January 31, 2024. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer. Based upon that evaluation, our Chief Executive Officer concluded that, as of January 31, 2024, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of January 31, 2024, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.
Changesin Internal Control over Financial Reporting:
There were no changes in our internal control over financial reporting during the quarter ended January 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 6 |
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PART
II — OTHER INFORMATION
Item1. Legal Proceedings
On August 8, 2022, the Company being a member of Vettons City Angels Sdn. Bhd (hereinafter referred as “VCASB”) holding 33.9% of the issued share capital of VCASB, had requested to convene an Extraordinary General Meeting (“EGM”) of VCASB pursuant to Section 310(b) and Section 311 of the Companies Act 2016 within 14 days from the date thereof and to be held at Level 5, Tower 8, Avenue 5, Horizon 2, Bangsar South City, 59200 Kuala Lumpur to explain on VCASB company business status and other related issues, yet the Company received no response from the director to the shareholders of VCASB.
The EGM was held on September 20, 2022, during the EGM the Company seek to discuss the operational affairs of VCASB, however, the EGM could not proceed further without the presence of the director of VCASB.
Given there were no response from VCASB, the Company on October 20, 2022 filed a winding up petition against VCASB. VCASB were served with the winding up petition on October 26, 2022.
On May 23, 2023, the Company’s solicitor, Messrs. Amos Ho, Sew & Kiew, has delivered an affidavit on compliance of all provisions of Companies Winding UP Rules 1972 (Malaysia). On the same day, the Company’s solicitor also delivered an affidavit to the local court to confirm serving of Memorandum of Advertisement and Gazetting to Registrar of Companies and Insolvency Department.
The hearing of petition of the case was held on May 31, 2023. On the same day, the court has given order that:
| a. | VCASB<br> is wound up under the provisions of the Companies Act Malaysia 2016; |
|---|---|
| b. | The<br> Malaysian Receiver Officer (Director General of Insolvency/ Department of Insolvency Malaysia) is appointed as Liquidator for VCASB;<br> and |
| --- | --- |
| c. | The<br> cost of RM5,000 will be paid from the assets of VCASB to petitioner. |
| --- | --- |
Item1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item3. Defaults Upon Senior Securities
None
Item4. Mine Safety Disclosures
Not applicable.
Item5. Other Information.
None
| 7 |
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ITEM6. Exhibits
| Exhibit<br> No. | Description |
|---|---|
| 31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* |
| 32.1 | Section 1350 Certification of principal executive officer * |
| 101.INS | Inline<br> XBRL Instance Document* |
| 101.SCH | Inline<br> XBRL Schema Document* |
| 101.CAL | Inline<br> XBRL Calculation Linkbase Document* |
| 101.DEF | Inline<br> XBRL Definition Linkbase Document* |
| 101.LAB | Inline<br> XBRL Label Linkbase Document* |
| 101.PRE | Inline<br> XBRL Presentation Linkbase Document* |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith.
| 8 |
| --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Phoenix<br> Plus Corp. | ||
|---|---|---|
| (Name<br> of Registrant) | ||
| Date:<br> March 13, 2024 | ||
| By: | /s/ LEE CHONG CHOW | |
| Title: | Chief<br> Executive Officer,<br><br> <br>President,<br> Director, Secretary and Treasurer |
| 9 |
| --- |
EXHIBIT31.1
CERTIFICATION
I, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Phoenix Plus Corp. (the “Company”) for the quarter ended January 31, 2024;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a. | Designed<br> such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,<br> to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others<br> within those entities, particularly during the period in which this report is being prepared; |
|---|---|
| b. | Designed<br> such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide<br> reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes<br> in accordance with generally accepted accounting principles. |
| c. | Evaluated<br> the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about<br> the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;<br> and |
| d. | Disclosed<br> in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s<br> most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected,<br> or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
| a. | All<br> significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are<br> reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;<br> and | |
|---|---|---|
| b. | Any<br> fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s<br> internal control over financial reporting. | |
| Date:<br> March 13, 2024 | By: | /s/ LEE CHONG CHOW |
| --- | --- | --- |
| LEE<br> CHONG CHOW | ||
| Chief<br> Executive Officer,<br><br> <br>President,<br> Director, Secretary, Treasurer |
EXHIBIT32.1
CERTIFICATIONPURSUANT TO
18U.S.C. SECTION 1350,
ASADOPTED PURSUANT TO
SECTION906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Phoenix Plus Corp. (the “Company”) on Form 10-Q for the quarter ended January 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
| Date:<br> March 13, 2024 | By: | /s/ LEE CHONG CHOW |
|---|---|---|
| LEE<br> CHONG CHOW | ||
| Chief<br> Executive Officer, | ||
| President,<br> Director, Secretary, Treasurer |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.