MU GLOBAL HOLDING LTD MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

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The information in this Form 10-Q is intended to update the information in our Annual Report on Form 10-K for the year ended. July 31, 2021 filed with the Security and Exchange Commission on November 15, 2021
(the “Form 10-K”) and assumes that readers have access to and will have read the “MD&A and Discussion of Financial Condition and Results of Operations” and other information contained in this Form 10-K. The following discussion and analysis should also be read in conjunction 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 several places in this report, including, without limitation, the “Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and circumstances that are difficult to predict or are beyond our control. Forward-looking statements are not as of the date of this quarterly report. You should not place undue reliance on forward-looking statements. We assume no responsibility for updating 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 accompanying notes es that appear elsewhere in this report.



Company Overview


MU Global Holding Limitedthe American societyoperates through its wholly owned subsidiary, MU Worldwide Group Limiteda Seychellois society; which operates through its wholly owned subsidiary, MU Global Holding Limiteda Hong Kong company; which operates through its wholly owned subsidiary, MU Global Health Management (Shanghai) Limiteda Shanghai Company. United States, Seychelles and Hong Kong companies are acting for holding purposes only while all current and future transactions in China are planned to be carried out via MU Global Health Management (Shanghai) Limitedthe Shanghai Company. The purpose of the Hong Kong company is to function as the current regional center of the Society.

Currently we have a physical office in Shanghai with address of Room 1510Building 5, Times Square ArchNo. 3148, Chengliu-Chong Road, Jiading County,
Shanghai, People’s Republic from China. Going forward, we do not have definite plans for which markets intend to expand, but we base our operations on
Shanghaias we prepare for future unidentified expansion efforts.

All previous entities share exactly the same business plan with the aim of developing and providing wellness and beauty services to our future clients. We aim to promote the improvement of the overall health and beauty of our clients through a holistic detox method. We will, at least initially, focus our efforts primarily on attracting customers in China. We have intentions, but no definitive plans or timelines, to expand to Singapore, Malaysia, hong kongand Middle Eastern countries in the coming years, and thereafter we intend to make efforts to expand through Asia. We plan to spend considerable amounts on 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 generated revenues of $39,357 and $46,576 respectively. Revenue represented revenues from wellness and beauty services provided to customers and product sales through
Shanghai points of sale and revenue sharing of rental equipment with the commercial alliance and the franchisee.

Revenue Cost and Gross Margin

For the nine months ended April 30, 2022 and 2021, the costs incurred to provide wellness and beauty services are $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.

Sales and marketing expenses

For the nine months ended April 30, 2022 and 2021, we had not incurred any 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 include salary, allowances, professional fees, consultancy fees for IT and system management, operating expenses for offices and outlets, depreciation and impairment losses.



Other Income


The Company recognized an amount of $51,495 and $30,214 as other income for the nine months ended April 30, 2022 and 2021. This income comes from the gain on disposal, foreign exchange and interest income.



Net Loss


Our net loss for nine months ended April 30, 2022 and 2021 have been $306,006 and
$305,970. The net loss comes mainly from general and administrative expenses incurred.

Cash and capital resources

From April 30, 2022 and 2021, we had cash and cash equivalents of $2,921 and
$10,659 respectively. We anticipate that increasing operating levels in the future will result in greater cash flow and, therefore, labor.

Cash generated by/(used in) operating activities

For the nine months ended April 30, 2022the net cash generated by operating activities was $23,073 compared to the net cash used in operating activities of
$129,280 for the nine months ended April 30, 2021. The decrease in cash flow used in operating activities is mainly due to lower general and administrative expenses.

Cash (used) / provided by fundraising activities

For the nine months ended April 30, 2022the net cash allocated to financing activities was $32,775 and for the nine months ended April 30, 2021net cash provided by financing activities was $111,059. Funding cash flow performance primarily reflects the provision of short and long-term loans by the trustee and related party.



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Cash (used) / generated by investing activities

For the nine months ended April 30, 2022the net cash used in investing activities was $7,276 and for the nine months ended April 30, 2021the net cash generated by investing activities was $20,565. Investing cash flow performance primarily reflects the purchase of property, plant and equipment and trademarks and the 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 do not have any material off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial position, changes in our financial position, income or expenses, results of operations, liquidity , our capital expenditures or resources that are material to our shareholders upon April 30, 2022.

Recent accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have a material impact on the financial statements, unless otherwise stated, and the Company does not believe that there are any other new accounting pronouncements that could have a material impact on its financial position. or its 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 generated revenues of $570 and $5,500 respectively. Revenue represented revenues from wellness and beauty services provided to customers and product sales through
Shanghai points of sale and revenue sharing of rental equipment with the commercial alliance and the franchisee.

Revenue Cost and Gross Margin

For the three months ended April 30, 2022 and 2021, the costs incurred to provide wellness and beauty services are $232 and $51 respectively, and generate a gross profit of $338 and $5,449 for the three months ended April 30, 2022 and 2021.

Sales and marketing expenses

For the three months ended April 30, 2022 and 2021, we had not incurred any 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 include salary, allowances, professional fees, IT and system management consulting fees, office and retail operating expenses, and amortization.



Other Income


The Company recognized an amount of $24,562 and $5,227 as other income for the three months ended April 30, 2022 and 2021. This income comes from the gain on disposal, foreign exchange and interest income.



Net Loss


Our net loss for three months ended April 30, 2022 and 2021 have been $185,192 and
$68,203. The net loss comes mainly from 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 do not have any material off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial position, changes in our financial position, income or expenses, results of operations, liquidity , our capital expenditures or resources that are material to our shareholders upon April 30, 2022.

Recent accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have a material impact on the financial statements, unless otherwise stated, and the Company does not believe that there are any other new accounting pronouncements that could have a material impact on its financial position. or its results of operations.




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