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 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. Phase 1 ended on September 10, 2021 for states the Company restaurant operates in and on October 1, 2021, entire nation move to phase 2.

Phase 2 - Allows Dine-in, gathering up to 5 people for fully vaccinated individual or 2 people for non-vaccinated individual including off-mask activities. Phase 2 ended on October 1, 2021 for states the Company restaurant operates in.

Phase 3 - Allow gathering up to 8 people for fully vaccinated individual or 5 people for non-vaccinated individual, all economic sectors will be allowed, excluding those with large crowds such as conventions and bars. Phase 3 ended on October 18, 2021 for states the Company restaurant operates in.

Phase 4 - No headcount restriction on gathering.

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





Results of Operations



                                     Three months ended           Nine months ended
                                         December 31                 December 31
                                     2021          2020          2021          2020

Dine-In and Take Away Revenue $ 39,265 $ 8,667 $ 47,083 $ 96,901 Percentage towards Total Revenue 72.02 % 60.79 % 57.14 % 63.04 %



Delivery Revenue                   $  15,256     $   5,591     $  35,321     $  56,820

Percentage towards Total Revenue 27.98 % 39.21 % 42.86 % 36.96 %



Total Revenue                      $  54,521     $  14,258     $  82,404     $ 153,721

Total Cost of Sales                $ (15,753 )   $ (12,265 )   $ (26,474 )   $ (54,249 )

Total Gross Profit                 $  38,768     $   1,993     $  55,930     $  99,472
Gross Profit Margin                    71.11 %       13.98 %       67.87 %       64.71 %




3

Revenue for the Three Months ended December 31, 2021 and 2020

Dine-in and take away revenue improved from $8,667 for the three months ended December 31, 2020 to $39,265 for the three months ended December 31, 2021.

Delivery revenue improved from $5,591 for the three months ended December 31, 2020 to $15,256 for the three months ended December 31, 2021.

Total revenue improved from $14,258 for the three months ended December 31, 2020 to $54,521 for the three months ended December 31, 2021, primarily due to improvement in dine-in and take away revenue as a result of the relaxation NRP, which previously discourage nearby residents to travel beyond restricted area for dining and take away thusly.

Revenue for the Nine Months ended December 31, 2021 and 2020

Dine-in and take away revenue decrease from $96,901 for the nine months ended December 31, 2020 to $47,083 for the nine months ended December 31, 2021.

Delivery revenue decrease from $56,820 for the nine months ended December 31, 2020 to $35,321 for the nine months ended December 31, 2021.

Total revenue decrease from $153,721 for the nine months ended December 31, 2020 to $82,404 for the nine months ended December 31, 2021. Declination in dine-in revenue primarily due to the implementation NRP, which discourage nearby residents to travel beyond restricted area for dining and take away thusly.

The Company expect, through relaxation of dine-in and gathering restriction, should expect a slow but gradual recovery in consumer confidence in consumption in public space, and revenue of the Company thusly.





Gross Profit

The Company gross profit margin has improved significantly from 13.98% for the three months ended December 31, 2020 to 71.11% for the three months ended December 31, 2021 as the Company encounter significant wastage for the three months ended December 31, 2020 during NRP early phases period.

Meanwhile, gross profit margin improved marginally from 64.71% for the nine months ended December 31, 2020 to 67.87% for the nine months ended December 31, 2021.

As a result, gross profit for the three months ended December 31, 2020 increased from $1,993 to $38,768 for the three months ended December 31, 2021, while gross profit for the nine months ended December 31, 2020 decreased from $99,472 to $55,930 for the nine months ended December 31, 2021.

General and Administrative Expenses

For the nine months ended December 31, 2021 and 2020, the Company has incurred a general and administrative expenses of $393,377 and $312,345 respectively. Of which primarily consist of salary, lease expenses, utilities, depreciation, professional fees and repair and maintenance and advertisement and promotions.





                                                            Nine months ended
                                                               December 31
Primary expenses                                           2021          2020
Salary and salary related expenses                       $ 181,180     $ 168,688

Percentage towards General and Administrative Expenses 46.06 % 54.01 %



Lease expenses                                           $  61,251     $  56,683

Percentage towards General and Administrative Expenses 15.57 % 18.15 %



Utility expenses                                         $  21,156     $  25,273

Percentage towards General and Administrative Expenses 5.38 % 8.09 %



Depreciation expenses                                    $  58,958     $  21,050

Percentage towards General and Administrative Expenses 14.99 % 6.74 %



Professional expenses                                    $  30,545     $  13,963

Percentage towards General and Administrative Expenses 7.76 % 4.47 %



Repair and maintenance expenses                          $  10,674     $   4,709

Percentage towards General and Administrative Expenses 2.71 % 1.51 %



Compliance expenses                                      $   4,938     $   4,096

Percentage towards general and administrative expenses 1.26 % 1.31 %



Advertisement and promotion expenses                     $       -     $     954
Percentage towards General and Administrative Expenses           - %        0.31 %

Total primary expenses                                   $ 368,702     $ 295,416

Percentage towards General and Administrative Expenses 94.73 % 95.06 %



Miscellaneous expenses                                   $  24,675     $  16,929

Percentage towards General and Administrative Expenses 6.27 % 5.42 %



Total General and Administrative Expenses                $ 393,377     $ 312,345




Net Loss

For the nine months ended December 31, 2021 and 2020, the Company has incurred a net loss of $300,786 and $160,006 respectively.





Foreign Currency Exposure

The Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company could post the same amount of income for two comparable periods and because of the fluctuating exchange rate post higher or lower income depending on exchange rate converted into US$ at the end of the financial year. The exchange rate could fluctuate depending on changes in political and economic environments without notice.





4

Liquidity and Capital Resources

Cash Used In Operating Activities

For the nine months ended December 31, 2021, the Company has used $344,975 in operating activities caused by net loss from operating, increase in inventories, prepayment, decrease in account payable, accrued liabilities and lease liability offsetting by depreciation.

For the nine months ended December 31, 2020, the Company has used $187,185 in operating activities primarily caused by net loss from operating, loss on disposal of fixed assets, increase in prepayment and decrease in trade payable and other payable and change in operating lease liability contra by depreciation, decrease in inventories.

Cash Used in Investing Activities

The Company has invested $46,957 in investing activity for the acquisition of new kitchen equipment, office equipment, renovation and application of trademark for the nine months ended December 31, 2021.

The Company has invested $2,013 for the acquisition of new kitchen equipment and received $10,255 from disposing fully depreciated motor vehicle, netting a $8,242 net proceed from investing cash flow for the nine months ended December 31, 2020.

Cash Provided by Financing Activities

For the nine months ended December 31, 2021, the Company received $118,802 of advances from director and repaid $11,524 to bank loan.

For the nine months ended December 31, 2020, the Company received $724,867 from financing cash flow primarily consist of advances from director and issuance of shares of common stock pursuant to our public offering contra by repayment of bank loan and advancement to related party.

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 December 31, 2021.





Contractual Obligations

As of December 31, 2021, the Company has no contractual obligations involved.

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