You should read the following discussion and analysis of our financial condition
and results of operations together with our consolidated financial statements
and the related notes and the other financial information included elsewhere in
this Form 10-K. Some of the information contained in this discussion and
analysis or set forth elsewhere in this Form 10-K, including information with
respect to our plans and strategy for our business and related financing,
includes forward-looking statements that involve risks and uncertainties. As a
result of many factors, including those factors set forth in the “Risk Factors”
section of this Form 10-K, our actual results could differ materially from the
results described in or implied by these forward-looking statements. See
“Special Note Regarding Forward Looking Statements” above for certain
information concerning those forward-looking statements. Our financial
statements are prepared in
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Safe Harbor for Forward-Looking Statements
Certain statements included in this MD&A constitute forward-looking statements,
including those identified by the expressions anticipate, believe, plan,
estimate, expect, intend, and similar expressions to the extent they relate to
NVGT or its management. These forward-looking statements are not facts,
promises, or guarantees; rather, they reflect current expectations regarding
future results or events. These forward-looking statements are subject to risks
and uncertainties that could cause actual results, activities, performance, or
events to differ materially from current expectations. These include risks
related to revenue growth, operating results, industry, products, and
litigation, as well as the matters discussed in NVGT’s MD&A under Risk Factors.
Readers should not place undue reliance on any such forward-looking statements.
NVGT disclaims any obligation to publicly update or to revise any such
statements to reflect any change in the Company’s expectations or in events,
conditions, or circumstances on which any such statements may be based, or that
may affect the likelihood that actual results will differ from those set forth
in the forward-looking statements.
Overview
The consolidated statements of profit or loss and other comprehensive income,
consolidated statements of changes in equity and consolidated statements of cash
flows for each of two years ended
changes in equity and cash flows of the companies now comprising EFLL for the
relevant years, as if our Company had always been the holding company of EFLL
and the current group structure had been in existence throughout the relevant
years.
The consolidated statement of financial position at
prepared to present the assets and liabilities of the companies now comprising
EFLL as if the current group structure had been in existence at that date.
Results of Operations and Financial Condition
Business Acquired
On
“Exchange Agreement”) with
transaction contemplated under the Exchange Agreement, Chen transferred all of
his share capital in EFLL to the Company, thus causing EFLL to become a direct
wholly-owned subsidiary of the Company. The Company now operates all of its
business through EFLL. EFLL is engaged in provision of logistic services.
Management’s Discussion and Analysis and Results of Operations
The following management’s discussion and analysis (“MD&A”) should be read in
conjunction with financial statements of EFLL for the years ended
and 2020, for the years ended
2020
Results Of Operations During The Year Ended
Year Ended
Revenue
For the year ended
by the type of logistics service during the year ended
Year ended 31 March 2021 Year ended 31 March 2020
USD % USD %
Transportation - Air Freight 43,295 27 95,012 35
Transportation - Ocean 117,056 73 175,368 65
Freight
160,351 100 270,380 100
We provide logistics services for
be sent out from
US. During the year ended
transportation has sharply declined to
year ended
freight revenue in transportation has sharply declined to
from
due to the outbreak of the COVID-19, where orders from EFLL’s local customers
has been decreased by the result of the less demand for the logistics services.
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Air Freight
For air freight, we will send the booking details and draft airway bill to the
customers for confirmation. Then we will arrange pick of the goods and measure
the correct kilograms for customers confirmation. At last, we will arrange the
goods to the airline for upload to the cargo plane at the airport.
Ocean Freight
Customers will first provide us a booking form and information of the bill of
lading, which includes the shipping details, like details of the products,
destination, carrier and details of the consignee. We will then arrange a pick
up of the goods at the customers’ warehouse by a third party local
transportation provider. We will store the goods at the public warehouse where
we will measure the accurate cubic metres (“CBM”) for final determination of the
correct ocean freight. Upon receipt of the confirmation of the final CBM with
the customers, we will arrange upload of goods to the container at the port and
make sure the shipment arrive the destination port on time. This for Loose
Cargo Load service (“LCL”).
For Full Container Load service, it is more or less the same as LCL, the only
different procedure is that we will arrange the container directly to the
customers’ warehouse for the upload of the goods. We need not measure the CBM as
the customers pay the fee of using the whole container.
Cost of services
Our direct cost of services was mainly in the air/ocean freight service
provision, it has decreased from
business activities, as a result in lower cost of services.
Expenses
For the year ended
expenses which consisted of general and administrative expenses. The finance
costs was
expenses in the amount of
expenses. The decrease was due to a decrease in activity, also the rental
expenses has decreased to
for the year ended
policy from the company. Hence, the entertainment has decreased from
was decreased due to fewer business entertainment required.
Net Profit
We reported a net profit of
ended
Due to the outbreak of the COVID-19, the import orders from the customers in the
US and in the
decreased. Thus, the income decreased significantly during the year
2021
deceased in line with the decrease in the income. However, the gross profits
were slightly increased. The major reason is that the company appointed a new
forwarder and carrier who provided such services at a lower freight rate.
We recorded gross profit margins of approximately 37.76% and 43% for FY2020 and
FY2021, respectively.
Such business is largely affected by factors such as market competition, global
and local economic conditions, market demands for our services, the fuel prices
and other costs of services. Given the logistics industry is highly sensitive to
these factors, it is probable that we may suffer a low or even negative profit
margin due to a decrease in revenue and/or gross profit should the global
economy be adversely affected. As such, there is no assurance that we will be
profitable or be able to maintain positive gross profit margins in the future.
If we are unable to effectively manage our operations and costs, our business,
financial condition and results of operations could be adversely affected.
Liquidity
As of
deposits, and current liabilities of
bank balances and cash on hand, and current liabilities of
To the extent that our capital resources are insufficient to meet planned
operating requirements, we will seek additional funds through equity or debt
financing, collaborative or other arrangements with corporate partners,
licensees or others, and from other
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sources, which may have the effect of diluting the holdings of existing
shareholders. The Company has no current arrangements with respect to, or
sources of, such additional financing and we do not anticipate that existing
shareholders will provide any portion of our future financing requirements.
No assurance can be given that additional financing will be available when
needed or that such financing will be available on terms acceptable to the
Company. If adequate funds are not available, we may be required to delay or
terminate expenditures for certain of its programs that it would otherwise seek
to develop and commercialize. This would have a material adverse effect on the
Company.
Off-Balance Sheet Arrangements
As of
arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated
under the Securities Act of 1934.
We do not have any interest in any unconsolidated entity that provides
financing, liquidity, market risk or credit support to us or engages in leasing
or hedging or research and development or other services with us.
Critical Accounting Policies
Our significant accounting policies are described in the notes to our financial
statements for the year ended
elsewhere in this Form 10-K.
Results Of Operations During The Years Ended
Years Ended
Revenue
For the years ended
revenue in transportation has decreased to
was because of fewer orders in transportation. The following table sets out the
breakdown of our revenue by the type of logistics service during the years ended
Year ended March 31 2022 Year ended March 31 2021
USD % USD %
Transportation - Air Freight 16,722 16 43,295 27
Transportation - Ocean 87,790 84 117,056 73
Freight
104,512 100 160,351 100
We provide logistics services for
be sent out from
US. During the year ended
transportation has decreased to
ended
for Air Freight services from our customers. In addition, during the year ended
in revenue were due to the outbreak of the COVID-19, where orders from EFLL’s
local customers have been decreased by the result of the less demand for the
logistics services.
Air Freight
For air freight, we will send the booking details and draft airway bill to the
customers for confirmation. Then we will arrange pick of the goods and measure
the correct kilograms for customers confirmation. At last, we will arrange the
goods to the airline for upload to the cargo plane at the airport.
Ocean Freight
Customers will first provide us a booking form and information of the bill of
lading, which includes the shipping details, like details of the products,
destination, carrier and details of the consignee. We will then arrange a pick
up of the goods at the customers’ warehouse by a third party local
transportation provider. We will store the goods at the public warehouse where
we will measure the accurate cubic metres (“CBM”) for final determination of the
correct ocean freight. Upon receipt of the confirmation of the final CBM with
the customers, we will arrange upload of goods to the container at the port and
make sure the shipment arrive the destination port on time. This for Loose
Cargo Load service (“LCL”).
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For Full Container Load service, it is more or less the same as LCL, the only
different procedure is that we will arrange the container directly to the
customers’ warehouse for the upload of the goods. We need not measure the CBM as
the customers pay the fee of using the whole container.
Cost of services
Our direct cost of services was mainly in the air/ocean freight service
provision, it has decreased from
lower demand for services provided by the air and ocean freight service
providers due to the outbreak of the COVID-19.
Expenses
For the year ended
expenses which consisted of general and administrative expenses of
and marketing expenses of
incurred operating expenses in the amount of
and administrative expenses of
increase was primarily caused by the share based payment for some of our
employees during the period.
EFLL, which was acquired on
Net Loss
For the year ended
we had a net income of
loss was due to some restricted shares issued to 6 service providers and 15
employees as compensation in lieu of cash for services during the period.
Liquidity
As of
and cash equivalents, and current liabilities of
we had
and current liabilities of
To the extent that our capital resources are insufficient to meet planned
operating requirements, we will seek additional funds through equity or debt
financing, collaborative or other arrangements with corporate partners,
licensees or others, and from other sources, which may have the effect of
diluting the holdings of existing shareholders. The Company has no current
arrangements with respect to, or sources of, such additional financing and we do
not anticipate that existing shareholders will provide any portion of our future
financing requirements.
No assurance can be given that additional financing will be available when
needed or that such financing will be available on terms acceptable to the
Company. If adequate funds are not available, we may be required to delay or
terminate expenditures for certain of its programs that it would otherwise seek
to develop and commercialize. This would have a material adverse effect on the
Company.
Off-Balance Sheet Arrangements
As of
arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated
under the Securities Act of 1934.
We do not have any interest in any unconsolidated entity that provides
financing, liquidity, market risk or credit support to us or engages in leasing
or hedging or research and development or other services with us.
Critical Accounting Policies
Our significant accounting policies are described in the notes to our financial
statements for the year ended
elsewhere in this Form 10-K.
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Results Of Operations For the period from
Compared To The Nine Months Ended
Revenue
For the period from
period from
31, 2020
The decrease was because of less orders in transportation.
Cost of services
Our direct cost of services was mainly in the air/ocean freight service
provision, it has decreased from
2020
decrease was in line with the decrease in revenue.
Expenses
For the period from
expenses of
31, 2020
consisted of general and administrative expenses of
entity, had no operations from
business activity occurred within EFLL, which was acquired on
2021
Net Loss
For the period from
The decrease is due to the decrease in business activity during the period.
Liquidity
As of
cash and cash equivalents, and current liabilities of
31, 2020
equivalents, and current liabilities of
To the extent that our capital resources are insufficient to meet planned
operating requirements, we will seek additional funds through equity or debt
financing, collaborative or other arrangements with corporate partners,
licensees or others, and from other sources, which may have the effect of
diluting the holdings of existing shareholders. The Company has no current
arrangements with respect to, or sources of, such additional financing and we do
not anticipate that existing shareholders will provide any portion of our future
financing requirements.
No assurance can be given that additional financing will be available when
needed or that such financing will be available on terms acceptable to the
Company. If adequate funds are not available, we may be required to delay or
terminate expenditures for certain of its programs that it would otherwise seek
to develop and commercialize. This would have a material adverse effect on the
Company.
Off-Balance Sheet Arrangements
As of
sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K
promulgated under the Securities Act of 1934.
We do not have any interest in any unconsolidated entity that provides
financing, liquidity, market risk or credit support to us or engages in leasing
or hedging or research and development or other services with us.
Critical Accounting Policies
Our significant accounting policies are described in the notes to our financial
statements for the period from
nine months ended
10-K.
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