FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "intends", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our or our industry's actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results, later events or circumstances or to reflect the occurrence of unanticipated events.

In this report unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares of our capital stock.

The management's discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with U.S. GAAP.





General Overview

Unex was incorporated in the State of Nevada on February 17, 2017 and was formed to provide geodesy services. On December 20, 2021, EvoAir International transferred its HVAC business to Unex, the Company through its subsidiaries upon completion of the Transactions (defined hereunder), is engaged in the sale of ("HVAC") products in Asia.

EvoAir International is a company incorporated in the BVI on November 17, 2021 and the parent company of WKL Eco Earth Holdings, WKL Eco Earth, WKL Green Energy, EvoAir Manufacturing, WKL EcoEarth Indochina, WKL Guanzhe and Evo Air Marketing (M) Sdn. Bhd. ("Evo Air Marketing") (together with Unex, EvoAir International, to be referred to as the "WKL Group" or "the Group"). The WKL Group is principally engaged in the research and development, manufacturing sale and marketing of HVAC products for residential, commercial and industrial uses.

The WKL Group operates manufacturing plants and assembly lines in China and Malaysia in order to develop and manufacture its HVAC products, totaling approximately 60,000 square feet of manufacturing space. With the rise of the Covid-19 pandemic, the Group has been engaged as an authorized exclusive distributor of the INCU branded Ionic Nano Copper Solution Technology ("INCU Technology"). The Group partners with various original equipment manufacturers ("OEMs") in producing air purifier products that incorporate the INCU Technology under the brand e-CondLife, as well as distributes the INCU Technology to other brands for incorporation into their products.





Results of Operations

The following summary of our operations should be read in conjunction with our unaudited condensed consolidated financial statements for the three and six months ended February 28, 2022, as compared to the three and six months ended February 28, 2021.





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Three months Quarter Ended February 28, 2022, versus Three months Quarter Ended
February 28, 2021



                                     Three Months Ended
                                        February 28,
                                     2022            2021          Changes           %
Revenue                          $    302,884     $   27,568     $   275,316            999 %
Cost of revenue                      (194,585 )      (67,730 )       126,855            187 %
Gross profit / (loss)                 108,299        (40,162 )       148,461          (370) %
Operating expenses                 (1,303,079 )     (558,986 )       744,093            133 %
Loss from operation                (1,194,780 )     (599,148 )       595,632             99 %
Other income/ (expense) income      (993,618)            622         994,240       (159864) %
Net Loss                         $ (2,188,398 )   $ (598,526 )     1,589,872            266 %

The Company generated revenues of $302,884 in the three months ended February 28,2022 as compared to $27,568 in the same financial period for 2021, a change in revenue of $275,316. The sales increases in the 2022 are attributable to the expansion of customer base, increase sales to existing customers as well as expansion of product offering.

Cost of revenue was $194,585 or 64% of revenue in the three months ended February 28 as compared to $67,730 or 246% of revenue in the same financial period for 2021. Cost of revenues includes production cost and purchases of goods.

Gross profit was $108,299 or 36% of revenue for the three months ended February 28 ,2022 as compared to gross loss of $40,162 in the same financial period in 2021 or 146% of revenues. The improvement in gross profit in the corresponding period in 2022 is attributable to the economies of scale resulting in higher level of sales

Operating expenses were $1,303,079 for the three months ended February 28, 2022 compared to $558,986 in the corresponding period in 2021, an increase of $744,093. The increase of operating expenses were in line with the growth in business operations and business development, professionals fee and compliance cost in relation to our financial reporting, patent and trademark filings.

The net loss from operations for the three months ended February 28,2022 was $2,188,398 as compared to $598,526 for the corresponding period in 2021. The continuous operating loss is attributable to the Group's focused effort in creating the infrastructure and resource to meet the business expansion needs of the Group's as well as lack of economies of scale.

Six Months Ended February 28, 2022, versus Six months Ended February 28, 2021





                               Six Months Ended
                                 February 28,
                              2022            2021          Changes           %
 Revenue                  $  1,111,763     $  221,231     $    890,532          403 %
Cost of revenue               (901,999 )     (117,226 )        784,773          669 %
Gross income                   209,764        104,005          105,759          102 %
Operating expenses          (1,813,136 )     (739,376 )      1,073,760          145 %
Loss from operation         (1,603,372 )     (635,371 )       (968,001 )        152 %
Other income /(expense)       (968,358 )        1,453         (969,811 )     (66745 )%
Net Loss                  $ (2,571,730 )   $ (633,918 )     (1,937,812 )        306 %

The Company generated revenue of $1,111,763 for the six months ended February 28, 2022 as compared to $221,231 in the corresponding financial period in 2021, an increase in revenues of $890,532 which is attributable to the expansion of customers base, increase of sales from existing customers and expansion of product offerings as well as increased sales to existing customers.





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Cost of revenues was $901,999 or 81% of revenues in the six months ended February 28, 2022 as compared to $117,226 or 53% of revenue in the corresponding period in 2021. Cost of revenues includes production cost and purchases of goods.

Gross profit was $209,764 or 19% of revenue for the six months ended February 28, 2022 as compared to $104,005 in the corresponding period in 2021 or 47% of revenues. The improvement of gross income in the corresponding period in 2022 is attributable to the increase in sales of higher margin products and economy of scale resulting from higher level of sales.

Operating expenses were $1,813,136 for the six months ended February 28, 2022 compared to $739,376 in the corresponding period in 2021, an increase of $1,073,760. An increased operating expense was in line with the growth in business operations and business development, professionals fee and compliance cost in relation to our financial reporting, patent and trademark filings.

The net loss from operations for the six month first half of fiscal 2022 was $1,603,372 as compared to $635,371for the comparable period of the prior year. The continuous operating loss is attributable to the infrastructure and resource to meet the business expansion needs of the Group's as well as lack of economies of scale.

Liquidity and Capital Resources





Working Capital



                          As of             As of
                       February 28,      August 31,
                           2022             2021          Changes         %
Current Assets        $    2,666,244     $ 3,224,772     $ (558,528 )     (17 )%
Current Liabilities          779,286       1,665,879       (886,593 )     (53 )%
Working Capital            1,886,958       1,558,893        328,065        21 %

As at February 28, 2022, our company's liabilities stood at $1,279,058, which included account payable and accruals of $17,694, other payable of $655,946, hire purchase creditor $34,372, amount due to related party $22,204 and current portion operating lease liabilities of $49,070, and the non-current portion operating lease liabilities of $499,772.

As at February 28, 2022 our company had a positive working capital of $1,886,958 compared with the positive working capital of $1,558,893 as at August 31, 2021. The increase in working capital was primarily due to a decrease in convertible bonds balance at current period end.

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