The information contained in this Form 10-Q is intended to update the
information contained in our Annual Report on Form 10-K for the year ended July
31, 2021 filed with the Securities and Exchange Commission on November 15, 2021
(the "Form 10-K") 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.
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
MU Global Holding Limited, the US Company, operates through its wholly owned
subsidiary, MU Worldwide Group Limited, a Seychelles Company; which operates
through its wholly owned subsidiary, MU Global Holding Limited, a Hong Kong
Company; which operates through its wholly owned subsidiary, MU Global Health
Management (Shanghai) Limited, a Shanghai Company. The US, Seychelles and Hong
Kong Companies act solely for holding purposes whereas all current and future
operations in China are planned to be carried out via MU Global Health
Management (Shanghai) Limited, the Shanghai Company. The purpose of the Hong
Kong Company is to function as the current regional hub of the Company.
At present, we have a physical office in Shanghai with address of Room 1510,
Building 5, Ark Times Square, No. 3148, Chengliu-Chong Road, Jiading District,
Shanghai, People Republic of China. In the future, we do not have definitive
plans for which markets intend to expand to, but we base our operations in
Shanghai, as we prepare for future unidentified expansion efforts.
All of the previous entities share the same exact business plan with the goal of
developing and providing wellness and beauty services to our future clients. We
aim to promote improved overall health and beauty in our clients through a
holistic detoxification method. We will, at least initially, primarily focus our
efforts on attracting customers in China. We have intentions, but no definitive
plans or timelines, to expand to Singapore, Malaysia, Hong Kong, and Middle
Eastern countries in the coming years, and subsequently we intend to make
efforts to expand throughout Asia. We anticipate spending a substantial amount
in marketing and advertising in the coming year.
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Results of Operation
For the nine months ended April 30, 2022 and 2021
Revenue
For the nine months ended April 30, 2022 and 2021, the Company has generated
revenue of $39,357 and $46,576 respectively. The revenue represented income from
wellness and beauty services provided to customers and sales of products via
Shanghai outlets and sharing of revenue from leasable equipment with business
alliance and franchisee.
Cost of Revenue and Gross Margin
For the nine months ended April 30, 2022 and 2021, cost incurred arise in
providing wellness and beauty services is $17,628 and $9,607 respectively, and
generate a gross profit of $21,729 and $36,969 for the nine months ended April
30, 2022 and 2021.
Selling and marketing expenses
For the nine months ended April 30, 2022 and 2021, we had not incurred marketing
expenses.
General and administrative expenses
For the nine months ended April 30, 2022 and 2021, we had incurred general and
administrative expenses in the amount of $379,230 and $373,153 respectively.
These expenses are comprised of salary, allowance, professional fees,
consultancy fee for IT and system management, office and outlet operation
expenses, depreciation and impairment loss.
Other Income
The Company recorded an amount of $51,495 and $30,214 as other income for the
nine months ended April 30, 2022 and 2021. This income is derived from gain on
disposal, foreign exchange and interest income.
Net Loss
Our net loss for nine months ended April 30, 2022 and 2021 were $306,006 and
$305,970. The net loss mainly derived from the general and administrative
expenses incurred.
Liquidity and Capital Resources
As of April 30, 2022 and 2021, we had cash and cash equivalents of $2,921 and
$10,659 respectively. We expect increased levels of operations going forward
will result in more significant cash flow and in turn working.
Cash Generated From/(Used In) Operating Activities
For the nine months ended April 30, 2022, net cash generated from operating
activities was $23,073 as compared to net cash used in operating activities of
$129,280 for the nine months ended April 30, 2021. The decrease in cash used in
operating activities was mainly due to lower spend in general and administrative
expenses.
Cash (Used In) / Provided By Financing Activities
For the nine months ended April 30, 2022, net cash used in financing activities
was $32,775 and for the nine months ended April 30, 2021, net cash provided by
financing activities was $111,059. The financing cash flow performance primarily
reflects the provision of short-term and long-term loan by director and related
party.
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Cash (Used In) / Generated From Investing Activities
For the nine months ended April 30, 2022, net cash used in investing activities
was $7,276 and for the nine months ended April 30, 2021, net cash generated from
investing activities was $20,565. The investing cash flow performance primarily
reflects the purchase of property, plant and equipment and trademark and
disposal 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 April 30, 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.
For the three months ended April 30, 2022 and 2021
Revenue
For the three months ended April 30, 2022 and 2021, the Company has generated
revenue of $570 and $5,500 respectively. The revenue represented income from
wellness and beauty services provided to customers and sales of products via
Shanghai outlets and sharing of revenue from leasable equipment with business
alliance and franchisee.
Cost of Revenue and Gross Margin
For the three months ended April 30, 2022 and 2021, cost incurred arise in
providing wellness and beauty services is $232 and $51 respectively, and
generate a gross profit of $338 and $5,449 for the three months ended April 30,
2022 and 2021.
Selling and marketing expenses
For the three months ended April 30, 2022 and 2021, we had not incurred
marketing expenses.
General and administrative expenses
For the three months ended April 30, 2022 and 2021, we had incurred general and
administrative expenses in the amount of $210,092 and $78,879 respectively.
These expenses are comprised of salary, allowance, professional fees,
consultancy fee for IT and system management, office and outlet operation
expenses and depreciation.
Other Income
The Company recorded an amount of $24,562 and $5,227 as other income for the
three months ended April 30, 2022 and 2021. This income is derived from gain on
disposal, foreign exchange and interest income.
Net Loss
Our net loss for three months ended April 30, 2022 and 2021 were $185,192 and
$68,203. The net loss mainly derived from the general and administrative
expenses incurred.
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 April 30, 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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