The information contained in this quarter report on Form 10-Q is intended to update the information contained in our Form 10-K dated July 14, 2022, for the year ended March 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 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, 2022 and 2021, the Company has generated a revenue of $44,909 and $11,047. Breakdown of revenue as following:



                                     Three months ended
                                           June 30
                                      2022          2021

Dine-In and Take Away Revenue $ 26,495 $ 6,257 Percentage towards Total Revenue 59.00 % 56.64 %



Delivery Revenue                   $   18,414     $  4,790

Percentage towards Total Revenue 41.00 % 43.36 %



Total Revenue                      $   44,909     $ 11,047

Total Cost of Sales                $   20,963     $  3,989

Total Gross Profit                 $   23,946     $  7,058
Gross Profit Margin                     53.32 %      63.89 %



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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.

Revenue for the Three Months ended June 30, 2022 and 2021

Dine-in and take away revenue improved from $6,257 for the three months ended June 30, 2021 to $26,495 for the three months ended June 30, 2022.

Delivery revenue improved from $4,790 for the three months ended June 30, 2021 to $18,414 for the three months ended June 30, 2022.

Total revenue improved from $11,047 for the three months ended June 30, 2021 to $44,909 for the three months ended June 30, 2022, primarily due to improvement in dine-in and take away revenue as a result of the relaxation of NRP, which previously discourage nearby residents to travel beyond restricted area for dining and take away thusly.

General and Administrative Expenses

For the three months ended June 30, 2022 and 2021, the Company has incurred a general and administrative expenses of $167,029 and $121,868 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                                           2022          2021
Salary and salary related expenses                       $  68,913     $  53,472

Percentage towards General and Administrative Expenses 41.26 % 43.88 %



Lease expenses                                           $  19,382     $  20,597

Percentage towards General and Administrative Expenses 11.60 % 16.90 %



Utility expenses                                         $   8,955     $   6,236

Percentage towards General and Administrative Expenses 5.36 % 5.12 %



Depreciation and amortization expenses                   $  16,194     $  19,473

Percentage towards General and Administrative Expenses 9.70 % 15.98 %



Professional expenses                                    $  13,325     $   6,647

Percentage towards General and Administrative Expenses 7.98 % 5.45 %



Repair and maintenance expenses                          $   3,138     $   2,988

Percentage towards General and Administrative Expenses 1.88 % 2.45 %



Compliance expenses                                      $     410     $     736

Percentage towards general and administrative expenses 0.24 % 0.60 %



Advertisement and promotion expenses                     $   2,967     $       -
Percentage towards General and Administrative Expenses        1.78 %           - %

Total primary expenses                                   $ 133,284     $ 110,149

Percentage towards General and Administrative Expenses 79.80 % 90.38 %



Miscellaneous expenses                                   $  33,745        11,719

Percentage towards General and Administrative Expenses 20.20 % 9.62 %

Net Loss

For the three months ended June 30, 2022 and 2021, the Company has incurred a net loss of $143,597 and $106,431 respectively.



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Liquidity and Capital Resources

Cash Used In Operating Activities

For the three months ended June 30, 2022, the Company has used $146,897 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, 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.

Cash Used In Investing Activities

The Company has invested $10,209 in investing activity for the acquisition of new kitchen equipment and office equipment for the three months ended June 30, 2022.

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.

Cash Provided by Financing Activities

For the three months ended June 30, 2022, the Company repaid $3,938 to bank loan and received $126,075 from financing cash flow primarily consist of advances from director.

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

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, 2022.

Contractual Obligations

As of June 30, 2022, the Company has no contractual obligations involved.

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