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 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 phase of NRP.

On October 31, 2022, the Company terminated all the tenancy agreements before the due date of the agreements.

On November 30, 2022, the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party. The leasing period is commencing from January 1, 2023 to December 31, 2023. The Company did not cease its business operation nor sell the operating assets. The Company is looking for a new strategic location to continue their business while leasing out their assets to the third party.





Results of Operations



For the nine months ended December 31, 2022 and 2021, the Company has generated
a revenue of $113,750 and $82,404, respectively. Breakdown of revenue as
following:



                                     Three months ended           Nine months ended
                                         December 31                 December 31
                                     2022          2021          2022          2021

Dine-In and Take Away Revenue $ 7,564 $ 39,265 $ 68,122 $ 47,083 Percentage towards Total Revenue 66.35 % 72.02 % 59.89 % 57.14 %



Delivery Revenue                   $   3,836     $  15,256     $  45,628     $  35,321

Percentage towards Total Revenue 33.65 % 27.98 % 40.11 % 42.86 %



Total Revenue                      $  11,400     $  54,521     $ 113,750     $  82,404

Total Cost of Sales                $  (9,286 )   $ (15,753 )   $ (69,081 )   $ (26,474 )

Total Gross Profit                 $   2,114     $  38,768     $  44,669     $  55,930
Gross Profit Margin                    18.54 %       71.11 %       39.27 %       67.87 %




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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. On October 31, 2022, the Company terminated all the tenancy agreements and therefore do not generate any revenue for November and December 2022.

Revenue for the Three Months ended December 31, 2022 and 2021

Dine-in and take away revenue decreased from $39,265 for the three months ended December 31, 2021 to $7,564 for the three months ended December 31, 2022.

Delivery revenue decreased from $15,256 for the three months ended December 31, 2021 to $3,836 for the three months ended December 31, 2022.

Total revenue decreased from $54,521 for the three months ended December 31, 2021 to $11,400 for the three months ended December 31, 2022, which primarily due to the discontinuation of all tenancy agreement and the Company do not generate any revenue for November and December 2022.

Revenue for the Nine Months ended December 31, 2022 and 2021

Dine-in and take away revenue improved from $47,083 for the nine months ended December 31, 2021 to $68,122 for the nine months ended December 31, 2022.

Delivery revenue improved from $35,321 for the nine months ended December 31, 2021 to $45,628 for the nine months ended December 31, 2022.

Total revenue improved from $82,404 for the nine months ended December 31, 2021 to $113,750 for the nine months ended December 31, 2022, which primarily due to improvement in dine-in and take away revenue as a result of the relaxation of NRP, which allow consumers to dine in public area and the effect of our advertisement and promotions.

General and Administrative Expenses

For the nine months ended December 31, 2022 and 2021, the Company has incurred a general and administrative expenses of $563,612 and $393,377 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                                           2022          2021
Salary and salary related expenses                       $ 156,767     $ 181,180

Percentage towards General and Administrative Expenses 41.16 % 46.06 %



Lease expenses                                           $  43,283     $  61,251

Percentage towards General and Administrative Expenses 11.36 % 15.57 %



Utility expenses                                         $  21,167     $  21,156

Percentage towards General and Administrative Expenses 5.56 % 5.38 %



Depreciation expenses                                    $  38,400     $  58,958

Percentage towards General and Administrative Expenses 10.08 % 14.99 %



Professional expenses                                    $  49,599     $  30,545

Percentage towards General and Administrative Expenses 13.02 % 7.76 %



Repair and maintenance expenses                          $   6,626     $  10,674

Percentage towards General and Administrative Expenses 1.74 % 2.71 %



Compliance expenses                                      $   8,887     $   4,938

Percentage towards general and administrative expenses 2.33 % 1.26 %



Advertisement and promotion expenses                     $   7,688     $       -

Percentage towards General and Administrative Expenses 2.02 % 0.00 %



Total primary expenses                                   $ 332,417     $ 368,702

Percentage towards General and Administrative Expenses 87.27 % 94.73 %



Miscellaneous expenses                                   $  48,479     $  24,675

Percentage towards General and Administrative Expenses 12.73 % 6.27 %



Loss on disposal of fixed asset                          $ 182,716     $       -

Total General and Administrative Expenses                $ 563,612     $ 393,377




Net Loss

For the nine months ended December 31, 2022 and 2021, the Company has incurred a net loss of $520,166 and $305,478 respectively.





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Liquidity and Capital Resources

Cash Used In Operating Activities

For the nine months ended December 31, 2022, the Company has used $295,748 in operating activities caused by net loss from operating, increase in accounts receivable and inventories, decrease in prepayment, accounts payable, accrued liabilities and lease liability contra by depreciation, inventory written off, fixed asset written off and write off of other receivables.

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, account payable, decrease in prepayment, accrued liabilities and lease liability offsetting by depreciation and write off of other receivables.

Cash Used in Investing Activities

The Company has invested $11,434 in investing activity for the acquisition of new kitchen equipment and office equipment for the nine months ended December 31, 2022.

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.

Cash Provided by Financing Activities

For the nine months ended December 31, 2022, the Company received $281,406 from financing cash flow primarily consist of advances from director and repaid $11,838 to bank loan.

For the nine months ended December 31, 2021, the Company received $118,802 of advances from director and repaid $11,524 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 December 31, 2022.





Contractual Obligations

As of December 31, 2022, the Company has no contractual obligations involved.





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