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 (e) 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, 2021 and 2020, the Company has generated a revenue
of $161,132 and $340,406. This is a decrease of 52.66%. The breakdown of revenue
is as following:



                                     Year ended March 31
                                      2021          2020
Dine-In Revenue                    $  103,404     $ 262,975

Percentage towards Total Revenue 64.17 % 77.25 %



Delivery Revenue                   $   57,728     $  77,431

Percentage towards Total Revenue 35.83 % 22.75 %



Total Revenue                      $  161,132     $ 340,406

Total Cost of Sales                $   57,655     $ 101,771

Total Gross Profit                 $  103,477     $ 238,635
Gross Profit Margin                     64.22 %       70.10 %

Dine-in revenue declined from $262,975 for the year ended March 31, 2020 to $103,404 for the year ended March 31, 2021 for a decline rate of approximately 60.43%. 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 $77,431 for the year ended March 31, 2020 to $57,728 for the year ended March 31, 2021 for a decline rate of approximately 25.45%. The decline in delivery primarily due to closure of our restaurants for subsequent rebranding purpose.





Gross Profit

The Company gross profit margin has decline slightly from 70.10% for the year ended March 31, 2020 to 64.22% for the year ended March 31, 2021. As a combination of declining revenue and profit margin, the Company gross profit has declined from $238,635 for the year ended March 31, 2020 to $103,477 for the year ended March 31, 2021, approximately a decline of 56.64%.





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General and Administrative Expenses

For the year ended March 31, 2021 and 2020, the Company incurred a general and administrative expenses of $492,433 and $460,802 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                                            2021          2020
Salary and salary related expenses                       $  219,303     $ 230,272

Percentage towards general and administrative expenses 44.68 % 49.97 %



Lease and rent expenses                                  $   73,865     $  86,064

Percentage towards general and administrative expenses 15.05 % 18.68 %



Utility expenses                                         $   29,738     $  49,252

Percentage towards general and administrative expenses 6.06 % 10.69 %



Professional expenses                                    $   83,599     $  35,263

Percentage towards general and administrative expenses 17.03 % 7.65 %



Depreciation expenses                                    $   34,181     $  27,089

Percentage towards general and administrative expenses 6.96 % 5.88 %



Repair and maintenance expenses                          $    8,661     $  16,952

Percentage towards general and administrative expenses 1.76 % 3.68 %



Compliance expenses                                      $    6,763     $   4,962

Percentage towards general and administrative expenses 1.38 % 1.08 %



Advertising and promotion expenses                       $    1,616     $       -
Percentage towards general and administrative expenses         0.33 %           -

Total primary expenses                                   $  457,726     $ 449,854

Percentage towards general and administrative expenses 93.25 % 97.62 %



Miscellaneous expenses                                   $   33,108     $  10,948

Percentage towards general and administrative expenses 6.75 % 2.38 %






Net Loss

For the year ended March 31, 2021 and 2020, the Company incurred a net loss of $11,862 and $215,815 respectively.





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Liquidity and Capital Resources

The Company's cash and cash equivalent has increased by $257,669, from $87,492 as of March 31, 2020 to $345,161 as of March 31, 2021 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, 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.

For the year ended March 31, 2020, the Company used $176,778 in operating activities primarily caused by net loss from operation, increase in accounts receivables, decrease in accrued liabilities and leased liabilities contra by depreciation and amortization and increase in account payable.

Cash Used In Investing activities

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.

For the year ended March 31, 2020, the Company used $32,322 in renovations for both central kitchen and restaurants respectively.

Cash Provided by Financing Activities

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.

For the year ended March 31, 2020, the Company had net proceeds from financing cash flow of $235,943, primarily from loan and advances from director and officer contra by repayment of business loan and hire purchase.

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, 2021 and March 31, 2020.





Contractual Obligation

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

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