The information contained in this quarter report on Form 10-Q is intended to
update the information contained in our Form 10-K, dated October 28, 2022, for
the year ended July 31, 2022 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
consolidated financial statements and the notes to the consolidated financial
statements included elsewhere in this Form 10-Q.
The following discussion contains certain statements that may be deemed
"forward-looking statements" within the meaning of the Private 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 guarantees of future performance and involve risks, uncertainties and
requirements that are difficult to predict or are beyond our control.
Forward-looking statements speak only as of the date of this quarterly report.
You should not put undue reliance on any forward-looking statements. We assume
no responsibility to update the forward-looking statements contained in this
transition report on Form 10-Q. The following should also be read in conjunction
with the unaudited condensed Consolidated Financial Statements and notes thereto
that appear elsewhere in this report.
Company Overview
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 with the tenancy agreement set to expire on June 30, 2023. 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. The Company has an option to renew after the end of the agreement.
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, including 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 photovoltaic (PV)
consulting and engineering services, operation and maintenance 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 government authorities,
facility audit and site surveys, and providing seminars and training services.
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Results of Operation
For the three months ended October 31, 2022 and 2021
Revenues
For the three months ended October 31, 2022 and 2021, the Company has generated
revenue of $15,132 and $19,918 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.
Cost of Revenue and Gross Margin
For the three months ended October 31, 2022 and 2021, cost incurred in providing
consultancy services and installation services are $13,782 and $16,328
respectively. The Company generated gross profit of $1,350 and $3,590 for the
three months ended October 31, 2022 and 2021 respectively.
General and administrative expenses
For the three months ended October 31, 2022 and 2021, we had incurred general
and administrative expenses in the amount of $147,330 and $69,354. These
expenses are comprised of salary, consultancy fees for listing advisory,
professional fee, compliance fee, office and outlet operation expenses and
depreciation.
Other Income
The Company recorded an amount of $1 and $35,153 as other income for the three
months ended October 31, 2022 and 2021. This income is derived from the interest
income and foreign exchange gain.
Net Loss
Our net loss for three months ended October 31, 2022 and 2021 were $145,979 and
$30,669. The net loss mainly derived from the general and administrative
expenses incurred.
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Liquidity and Capital Resources
As of October 31, 2022 and 2021, we had cash and cash equivalents of $1,349,303
and $1,878,176. We expect increased levels of operations going forward will
result in more significant cash flow and in turn working.
Cash Used In Operating Activities
For the three months ended October 31, 2022 and 2021, net cash used in operating
activities was $174,300 and $32,696 respectively. The increase in cash used in
operating activities was mainly for payment of general and administrative
expenses, and selling and marketing expenses.
Cash Provided By Financing Activities
For the three months ended October 31, 2022 and 2021, 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.
Cash Used In Investing Activities
For the three months ended October 31, 2022 and 2021, the net cash used in
investing activities was $1,375 and $0. The investing cash flow performance
primarily reflects the purchase of property, plant and equipment.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
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 October 31, 2022.
Recent Accounting 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.
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