The information contained in this quarter report on Form 10-Q is intended to update the information contained in our Form 10-K dated June 29, 2021, for the year ended March 31, 2021 and presumes that readers have access to, and will have read, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

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.





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 restaurant chains and one central kitchen.

It is worth highlighting that, on 15 June 2021, Malaysia Government introduced a four-phase National Recovery Plan (herein and after referred the "NRP") to help the country emerge from the COVID-19 pandemic and its economic fallout. As each phase is based on the number of new cases, people requiring ICU treatment, and vaccination rates, it can be extended, or moved on to the next phase, whenever possible.

Phase 1 - Conditions are the same as "total lockdown" launched from 1 June 2021. No social gatherings, dine-in eating at restaurants, interstate travel and non-essential services are permitted. Any remaining workplaces are required to have their workers work from their homes. This phase, based on the critical condition of the healthcare services, may last until end of July.

Phase 2 - If more people are vaccinated, ICU bed usage reduced to a moderate level; and new cases fall below 4,000, the country will move on to the next phase which allows more economic sectors to resume operation.

Phase 3 - Once daily cases are reduced to 2,000, the healthcare system has returned to a manageable level; ICU cases have been reduced to an adequate amount; and 40% of the people have been vaccinated. All economic sectors will be allowed to operate and most importantly dining in restaurants and cafes will be allowed. This phase will be expected to start on late August.

Phase 4 - Once daily cases have dropped to 500, the healthcare system becomes safe as ICU cases become low enough; and 60% of the people have been vaccinated. This phase will be expected to start on late October.

The Company's central kitchen and two restaurants were and will continue to operate throughout each phases of NRP.





Results of Operations

For the three months ended June 30, 2021 and 2020, the Company has generated a revenue of $11,047 and $91,974. Breakdown of revenue as following:





                                     Three months ended
                                           June 30
                                      2021          2020

Dine-In and Take Away Revenue $ 6,257 $ 59,066 Percentage towards Total Revenue 56.64 % 64.22 %



Delivery Revenue                   $    4,790     $ 32,908

Percentage towards Total Revenue 43.36 % 35.78 %



Total Revenue                      $   11,047     $ 91,974

Total Cost of Sales                $    3,989     $ 24,499

Total Gross Profit                 $    7,058     $ 67,475
Gross Profit Margin                     63.89 %      73.36 %




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The Company has experience significant deterioration in both delivery and dine in & take away revenue segment due to several reasons. One being the closure of previous four restaurants since September 2020 and launching of two brand new restaurants in C180 and Sri Petaling which commence operation on February and June 2021, respectively for business rebranding purpose and another being adversely impacted by COVID-19 Movement Control Order imposed by Malaysia Government.

General and Administrative Expenses

For the three months ended June 30, 2021 and 2020, the Company has incurred a general and administrative expenses of $121,868 and $101,202 respectively. Of which primarily consist of salary, lease expenses, utilities, depreciation, professional fees and repair and maintenance and advertisement and promotions.





                                                           Three months ended
                                                                 June 30
Primary expenses                                            2021          2020
Salary and salary related expenses                       $   53,472     $ 56,735

Percentage towards General and Administrative Expenses 43.88 % 56.06 %



Lease expenses                                           $   20,597     $ 20,282

Percentage towards General and Administrative Expenses 16.90 % 20.04 %



Utility expenses                                         $    6,236     $  9,916

Percentage towards General and Administrative Expenses 5.12 % 9.80 %



Depreciation and amortization expenses                   $   19,473     $  6,832

Percentage towards General and Administrative Expenses 15.98 % 6.75 %



Professional expenses                                    $    6,647     $  2,606

Percentage towards General and Administrative Expenses 5.45 % 2.58 %



Repair and maintenance expenses                          $    2,988     $  1,627

Percentage towards General and Administrative Expenses 2.45 % 1.61 %



Compliance expenses                                      $      736     $    200

Percentage towards general and administrative expenses 0.60 % 0.20 %



Advertisement and promotion expenses                     $        -     $    928
Percentage towards General and Administrative Expenses            - %       0.92 %

Total primary expenses                                   $  110,149     $ 99,126

Percentage towards General and Administrative Expenses 90.38 % 97.95 %



Miscellaneous expenses                                   $   11,719        2,076

Percentage towards General and Administrative Expenses 9.62 % 2.05 %






Net Loss

For the three months ended June 30, 2021 and 2020, the Company has incurred a net loss of $106,431 and $24,755 respectively.





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Liquidity and Capital Resources

Cash Used In Operating Activities

For the three months ended June 30, 2021, the Company has used $178,488 in operating activities primarily caused by net loss from operating, decrease in accrued liability and lease liability contra by depreciation expenses add back.

For the three months ended June 30, 2020, the Company has used $33,978 in operating activities primarily caused by net loss from operating, increase in prepayment and decrease in trade payable, other payable and lease liability contra by depreciation.

Cash Used In investing activities

The Company has invested $31,775 in investing activity for the acquisition of new kitchen equipment, office equipment, renovation and application of trademark for the three months ended June 30, 2021.

The Company has invested $701 in investing activity for the acquisition of new kitchen equipment for the three months ended June 30, 2020.

Cash Provided by Financing Activities

For the three months ended June 30, 2021, the Company repaid $3,773 to bank loan.

For the three months ended June 30, 2020, the Company received $8,304 from financing cash flow primarily consist of advances from director contra by repayment to officer.

Off-balance Sheet 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 June 30, 2021.





Contractual Obligations

As of June 30, 2021, the Company has no contractual obligations involved.





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