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-332182 -28134783 2904466 10777843 2390339 2783440 1159355 17165 1051138 7998836 79584 -1931646 75044 -9313225 34330 43069 -8476879 -13222847 -1159355 18877600 10965553 9342339 37522 375000 2247086 2163037 3129711 2293900 2118893 2067332 18830786 10672219 10404718 955755 2550149 -1169213 -16825121 2903987 18853993 36558752 33654765 14800772 19733631 36558752 33654765 570113 1209381 3176269 85993 111790 98086 7386320 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Happiness Development Group Limited (“Happiness Development”) is a holding company. It was incorporated on February 13, 2018 under the laws of the Cayman Islands and named Happiness Biotech Group Limited. On November 5, 2021, the Company changed its name to Happiness Development Group Limited under the special resolution dated October 21, 2021. The Company has no substantive operations other than holding all of the outstanding share capital of Happiness Biology Technology Group Limited (“Happiness Hong Kong”). Happiness Hong Kong is a holding company of all of the equity or ownership of Happiness (Nanping) Biotech Co., Limited (“Happiness Nanping”).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Happiness Nanping is a holding company of all of the equity or ownership of Fujian Happiness Biotech Co., Limited (“Fujian Happiness”), Fuzhou Happiness Enterprise Management Consulting Co., Ltd. (“Fujian Consulting”), Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”), Taochejun (Fujian) Automobile Sales Co., Ltd. (“Fujian Taochejun”), Hangzhou Happiness Youche Automobile Partnership (Limited partnership) (“Happiness Youche”) and Haiwushuo (Fujian) Food Co., Ltd. (“Haiwushuo Food”).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Reorganization</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of Happiness Development Group Limited, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Nanping) Biotech Co., Limited, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Nanping. Happiness Development, Happiness Hong Kong and Happiness Nanping are all holding companies and had not commenced operation until August 21, 2018.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the reorganization, Mr. Wang Xuezhu, Chief Executive Officer owns 47.7% ownership of Fujian Happiness. On August 21, 2018, Mr. Wang Xuezhu and other shareholders of Fujian Happiness transferred their 100% ownership interests in Fujian Happiness to Happiness Nanping, which is 100% owned by Happiness Hong Kong. After the reorganization, Happiness Development owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Happiness Development, became the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since the Company is effectively controlled by the same Controlling Shareholder before and after the reorganization, it is considered under common control. Therefore, the above-mentioned transactions were accounted for as a recapitalization. The reorganization has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 4, 2019, the Company subdivided its 50,000 ordinary shares into 90,000,000 Ordinary shares and 10,000,000 Preferred shares. The authorized ordinary shares became 100,000,000 shares and the par value was changed from $1 to $0.0005. On the same day, the Company cancelled 77,223,100 ordinary shares and sold additional 223,100 ordinary shares. As of March 31, 2019, the Company has 23,000,000 ordinary shares issued and outstanding. The Company has retrospectively reflected the stock subdivision and cancellation in all periods presented in these financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Initial Public Offering </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 25, 2019, the Company announced the closing of its initial public offering of 2,000,000 ordinary shares, US$0.0005 par value per share (“Ordinary Shares”) at an offering price of $5.50 per share for a total of $11,000,000 in gross proceeds. The Company raised total net proceeds of $9,342,339 after deducting underwriting discounts and commissions and offering expenses. In addition, the Company granted to its underwriters, Univest Securities, LLC as the Underwriter Representative, an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s Ordinary Shares to be offered by the Company pursuant to the initial public offering (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the reporting periods, the Company has several subsidiaries in PRC. Details of the Company and its operating subsidiaries are set out below:  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="width: 22%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Name of Entity</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Date of Incorporation</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Place of Incorporation</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 11%; border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Registered </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Capital</b></p></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>% of </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Ownership</b></p></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 21%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Principal Activities</b></span></td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happiness (Nanping) Biotech Co., Ltd. (“Nanping Happiness”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 1, 2018</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">US$ 36,100,000</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Investment</span></td></tr> <tr style="vertical-align: top"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">November 19, 2004</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Research, development, production and selling of nutraceutical and dietary supplements</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happiness comes Medical Equipment Manufacturing Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">April 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Selling of medical equipment</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Happiness comes Health Products Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 19, 1998</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 2,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Research, development, production and selling of edible fungi</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Shennongjiagu Development Co., Ltd.(“Shennong”)</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">December 10, 2012</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 51,110,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">70% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, food sales, data service, information consulting service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Hekangyuan Trading Co., Ltd. (“Hekangyuan”)</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">October 13, 2017</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, food sales, commodity sales, information consulting service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Happiness Enterprise Management Consulting Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Management and consulting service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 16, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happy Studio Network Technology Co. LTD</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 10, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hangzhou C’est la vie Interactive Technology Co., Ltd. (“Hangzhou C’est la vie”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 26, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Lever Media Co., Ltd. (“Fujian Lever”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">March 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Baolong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Shunchang Shihong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 21, 2017</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">70% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 8, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Putian City Hanjiang District Qiyao Trading Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">February 9, 2021</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">100% by Putian Luochen</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> </table><p style="margin: 0"/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Putian City Hanjiang District Zhiran Trading Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 8, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Putian Luochen</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">November 30, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Qida Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Penghong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Daji Media Co., Ltd. (“Daji”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Live streaming service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Buy (Nanping) Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 5,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Happy Buy Automobile</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 29, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Haiwushuo Brand Management Co., Ltd. (“Shunchang Haiwushuo”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">September 2, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Salt Sweet Network Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 9, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 500,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Shunchang Haiwushuo</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Haiwushuo (Hangzhou) Media Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">October 29, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Shunchang Haiwushuo</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang County Partners Supply Chain Management Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 11, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 2,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales, Advertising</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Youxi e-commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 18, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Haiwushuo (Fujian) Food Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">March 9, 2022</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Nanping Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Unicorn (Hangzhou) Network Technology Co., Ltd. (“Happy Unicorn”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, automobile sales, Internet technology service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Ganzhou Youjia New Energy Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 10, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy car source (Ningbo) Automobile Service Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 14, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Wuhan Xingfu Youxuan Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Hangzhou) New Energy Technology Co., Ltd. (“Hangzhou Taochejun”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Zhejiang Yiche Chuxing Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 26, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Travel Technology (Fujian) Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">October 27, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 50,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Sichuan Taochejun New Energy Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 13, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Automobile sales.</p></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Xi’an) Car Rental Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 20, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales, car rental service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Fuzhou) Automotive Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 27, 2019</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">60% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Taochejun Culture Media Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, information consulting service,</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Hainan) New Energy Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 15, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales, car rental service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hunan Xingfu Vehicle Source Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 28, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">NEV charging technology service, advertising service, automobile sales, automobile parts sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Happy Automobile Service (Nanping) Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">December 4, 2020</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">70% by Fujian Taochejun</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Automobile sales, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hangzhou Happiness Youche Automobile Partnership (Limited partnership)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 29, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 3,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">60% by Nanping Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">automobile parts sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Bangren Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales  </span></td></tr> </table><p style="margin: 0"/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; width: 22%"><span style="font-size: 10pt">Shunchang Shenzhou Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify; width: 1%"> </td> <td style="padding-right: 2.15pt; width: 13%"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; width: 15%"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Tongyuan Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Guangxiang Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Lishijin Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Wangfu Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Yibo Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 1, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Runhao Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang fanyanfull Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">May 8, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Fanquguan Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 23, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Youqiangdiao Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 16, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Shangyoupin Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 15, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou baodeng Trading Co., Ltd (“Fuzhou Baodeng”) (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 4,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Dachen e-commerce Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Nanen Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Dechen Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou lehuang Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">June 11, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Happy Doddo (Fujian) Network Technology Co. , Ltd. (“Happy Doddo”) (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">June 28, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Shenghui Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Wansheng Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Jiefei Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Zhibo Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Herui Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 1, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Xiaocongcong Electronic Commerce Co., Ltd. (d)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales  </span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Xianghong Electronic Commerce Co., Ltd. (e)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Happy Cat Electronic Commerce Co., Ltd. (f)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Subobo E-commerce Co. , Ltd. (f)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">July 9, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 500,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Happy Feiyue (Fujian) Network Technology Co., Ltd. (“Happy Feiyue”) (g)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">March 19, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">HAPPINESS (HK) TECHNOLOGY LIMITED (g)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt; text-align: justify"><span style="font-size: 10pt">April 8, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">HK$ 10,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Feiyue</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt"> </span> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(a)</td><td style="text-align: justify">During the year ended March 31, 2022, the Company closed 12 subsidiaries to optimize the Company’s structure on online store business.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(b)</td><td style="text-align: justify">Fuzhou Baodeng and its subsidiaries were focus on the online store operation. In March 2022, the Company disposed Fuzhou Baodeng and its subsidiaries to a third party.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(c)</td><td style="text-align: justify">Happy Doddo and its subsidiaries were focus on the online store operation. In February 2022, the Company disposed Happy Doddo and its subsidiaries to a third party.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(d)</td><td style="text-align: justify">Shunchang Xiaocongcong Electronic Commerce Co., Ltd. was a company with no operation. The Company closed it in October 2021.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(e)</td><td style="text-align: justify">Shunchang Xianghong Electronic Commerce Co., Ltd. was closed in October 2021 due to the business optimization.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(f)</td><td style="text-align: justify">Shunchang Happy Cat Electronic Commerce Co., Ltd. and Shunchang Subobo E-commerce Co., Ltd. were disposed in November 2021 due to the business optimization.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(g)</td><td style="text-align: justify">Happy Feiyue and its subsidiary were focus on the online store operation. In January 2022, the Company disposed Happy Feiyue and its subsidiary to a third party.</td></tr></table> 1 0.477 Mr. Wang Xuezhu and other shareholders of Fujian Happiness transferred their 100% ownership interests in Fujian Happiness to Happiness Nanping, which is 100% owned by Happiness Hong Kong. After the reorganization, Happiness Development owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Happiness Development, became the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. 50000 90000000 10000000 100000000 1 0.0005 77223100 223100 23000000 23000000 2000000 0.0005 5.5 11000000 9342339 45 days 0.15 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="width: 22%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Name of Entity</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Date of Incorporation</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Place of Incorporation</b></span></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 11%; border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Registered </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Capital</b></p></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid"> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>% of </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Ownership</b></p></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 21%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Principal Activities</b></span></td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happiness (Nanping) Biotech Co., Ltd. (“Nanping Happiness”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 1, 2018</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">US$ 36,100,000</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Investment</span></td></tr> <tr style="vertical-align: top"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">November 19, 2004</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Research, development, production and selling of nutraceutical and dietary supplements</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happiness comes Medical Equipment Manufacturing Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">April 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Selling of medical equipment</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Happiness comes Health Products Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 19, 1998</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 2,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Research, development, production and selling of edible fungi</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Shennongjiagu Development Co., Ltd.(“Shennong”)</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">December 10, 2012</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 51,110,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">70% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, food sales, data service, information consulting service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Hekangyuan Trading Co., Ltd. (“Hekangyuan”)</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">October 13, 2017</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, food sales, commodity sales, information consulting service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Happiness Enterprise Management Consulting Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Management and consulting service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 16, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Nanping Happiness </span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Happy Studio Network Technology Co. LTD</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 10, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hangzhou C’est la vie Interactive Technology Co., Ltd. (“Hangzhou C’est la vie”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 26, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Lever Media Co., Ltd. (“Fujian Lever”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">March 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Baolong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Shunchang Shihong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 21, 2017</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">70% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 8, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Putian City Hanjiang District Qiyao Trading Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">February 9, 2021</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">100% by Putian Luochen</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> </table><p style="margin: 0"/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Putian City Hanjiang District Zhiran Trading Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 8, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Putian Luochen</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">November 30, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Qida Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Penghong Electronic Commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fujian Daji Media Co., Ltd. (“Daji”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">February 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Live streaming service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Buy (Nanping) Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 15, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 5,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Happy Buy Automobile</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 29, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Haiwushuo Brand Management Co., Ltd. (“Shunchang Haiwushuo”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">September 2, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Salt Sweet Network Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 9, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 500,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Shunchang Haiwushuo</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Haiwushuo (Hangzhou) Media Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">October 29, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Shunchang Haiwushuo</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang County Partners Supply Chain Management Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 11, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 2,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Hangzhou C’est la vie</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales, Advertising</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Shunchang Youxi e-commerce Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 18, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Online Sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Haiwushuo (Fujian) Food Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">March 9, 2022</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Nanping Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Unicorn (Hangzhou) Network Technology Co., Ltd. (“Happy Unicorn”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 1, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">51% by Happy Buy</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, online sales, automobile sales, Internet technology service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Ganzhou Youjia New Energy Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 10, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy car source (Ningbo) Automobile Service Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 14, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Wuhan Xingfu Youxuan Automobile Sales Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Hangzhou) New Energy Technology Co., Ltd. (“Hangzhou Taochejun”)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Zhejiang Yiche Chuxing Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 26, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Hangzhou Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Happy Travel Technology (Fujian) Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">October 27, 2020</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 50,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Technology service, automobile sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Sichuan Taochejun New Energy Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 13, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Automobile sales.</p></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Xi’an) Car Rental Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">August 20, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales, car rental service</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Fuzhou) Automotive Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 27, 2019</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">60% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Fuzhou Taochejun Culture Media Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">July 12, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Advertising service, information consulting service,</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Taochejun (Hainan) New Energy Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">June 15, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">Automobile sales, online sales, car rental service</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hunan Xingfu Vehicle Source Technology Co., Ltd.</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">May 28, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">100% by Fujian Taochejun</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">NEV charging technology service, advertising service, automobile sales, automobile parts sales</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-indent: -9pt; width: 22%"><span style="font-size: 10pt">Happy Automobile Service (Nanping) Co., Ltd.</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">December 4, 2020</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 30,000,000</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 15%"><span style="font-size: 10pt">70% by Fujian Taochejun</span></td> <td style="text-align: justify; width: 1%"> </td> <td style="width: 21%"><span style="font-size: 10pt">Automobile sales, online sales</span></td></tr> <tr style="vertical-align: top; "> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Hangzhou Happiness Youche Automobile Partnership (Limited partnership)</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">December 29, 2021</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span style="font-size: 10pt">RMB 3,000,000</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">60% by Nanping Happiness</span></td> <td style="text-align: justify"> </td> <td><span style="font-size: 10pt">automobile parts sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Bangren Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Lever</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales  </span></td></tr> </table><p style="margin: 0"/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; width: 22%"><span style="font-size: 10pt">Shunchang Shenzhou Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify; width: 1%"> </td> <td style="padding-right: 2.15pt; width: 13%"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; text-align: justify; width: 13%"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; text-align: justify; width: 11%"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; width: 15%"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify; width: 1%"> </td> <td style="vertical-align: top; width: 21%"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Tongyuan Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Guangxiang Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Lishijin Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Wangfu Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Yibo Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 1, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Runhao Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang fanyanfull Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">May 8, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Fanquguan Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 23, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Youqiangdiao Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 16, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Shangyoupin Electronic Commerce Co., Ltd. (a)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 15, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Seravi</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou baodeng Trading Co., Ltd (“Fuzhou Baodeng”) (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 4,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Dachen e-commerce Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Nanen Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou Dechen Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">April 1, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Fuzhou lehuang Trading Co., Ltd (b)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">June 11, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Happy Doddo (Fujian) Network Technology Co. , Ltd. (“Happy Doddo”) (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">June 28, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Shenghui Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Wansheng Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Jiefei Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 30,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Zhibo Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Herui Electronic Commerce Co., Ltd. (c)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 1, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 100,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Doddo</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Xiaocongcong Electronic Commerce Co., Ltd. (d)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 1,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Fujian Baodeng</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales  </span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Xianghong Electronic Commerce Co., Ltd. (e)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 2, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Happy Cat Electronic Commerce Co., Ltd. (f)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">December 3, 2020</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 200,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Shunchang Subobo E-commerce Co. , Ltd. (f)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">July 9, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 500,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Optimal</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">Happy Feiyue (Fujian) Network Technology Co., Ltd. (“Happy Feiyue”) (g)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt"><span style="font-size: 10pt">March 19, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">RMB 10,000,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">51% by Happy Unicorn</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> <tr> <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom"><span style="font-size: 10pt">HAPPINESS (HK) TECHNOLOGY LIMITED (g)</span></td> <td style="vertical-align: bottom; text-align: justify"> </td> <td style="padding-right: 2.15pt; text-align: justify"><span style="font-size: 10pt">April 8, 2021</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">PRC</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">HK$ 10,000</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">100% by Happy Feiyue</span></td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top"><span style="font-size: 10pt">Online sales</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt"> </span> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(a)</td><td style="text-align: justify">During the year ended March 31, 2022, the Company closed 12 subsidiaries to optimize the Company’s structure on online store business.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(b)</td><td style="text-align: justify">Fuzhou Baodeng and its subsidiaries were focus on the online store operation. In March 2022, the Company disposed Fuzhou Baodeng and its subsidiaries to a third party.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(c)</td><td style="text-align: justify">Happy Doddo and its subsidiaries were focus on the online store operation. In February 2022, the Company disposed Happy Doddo and its subsidiaries to a third party.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(d)</td><td style="text-align: justify">Shunchang Xiaocongcong Electronic Commerce Co., Ltd. was a company with no operation. The Company closed it in October 2021.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(e)</td><td style="text-align: justify">Shunchang Xianghong Electronic Commerce Co., Ltd. was closed in October 2021 due to the business optimization.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(f)</td><td style="text-align: justify">Shunchang Happy Cat Electronic Commerce Co., Ltd. and Shunchang Subobo E-commerce Co., Ltd. were disposed in November 2021 due to the business optimization.</td></tr></table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">(g)</td><td style="text-align: justify">Happy Feiyue and its subsidiary were focus on the online store operation. In January 2022, the Company disposed Happy Feiyue and its subsidiary to a third party.</td></tr></table> June 1, 2018 PRC US$ 36,100,000 Investment November 19, 2004 PRC RMB 100,000,000 100% by Nanping Happiness Research, development, production and selling of nutraceutical and dietary supplements April 15, 2020 PRC RMB 10,000,000 51% by Fujian Happiness Selling of medical equipment May 19, 1998 PRC RMB 2,000,000 100% by Fujian Happiness Research, development, production and selling of edible fungi December 10, 2012 PRC RMB 51,110,000 70% by Fujian Happiness Advertising service, online sales, food sales, data service, information consulting service October 13, 2017 PRC RMB 10,000,000 100% by Fujian Happiness Advertising service, online sales, food sales, commodity sales, information consulting service December 15, 2020 PRC RMB 1,000,000 100% by Nanping Happiness Management and consulting service July 16, 2020 PRC RMB 30,000,000 100% by Nanping Happiness Advertising service, online sales August 10, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service August 26, 2020 PRC RMB 10,000,000 51% by Happy Buy Online sales March 1, 2021 PRC RMB 10,000,000 51% by Hangzhou C’est la vie Online sales December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales August 21, 2017 PRC RMB 10,000,000 70% by Hangzhou C’est la vie Online sales February 8, 2021 PRC RMB 100,000 100% by Hangzhou C’est la vie Online sales February 9, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales February 8, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales November 30, 2020 PRC RMB 10,000,000 100% by Hangzhou C’est la vie Online sales December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales February 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Live streaming service December 15, 2020 PRC RMB 5,000,000 100% by Happy Buy Automobile Automobile sales December 29, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service September 2, 2021 PRC RMB 1,000,000 51% by Happy Buy Advertising service, online sales July 9, 2021 PRC RMB 500,000 100% by Shunchang Haiwushuo Online Sales October 29, 2021 PRC RMB 1,000,000 100% by Shunchang Haiwushuo Advertising service, online sales June 11, 2021 PRC RMB 2,000,000 51% by Hangzhou C’est la vie Online Sales, Advertising May 18, 2021 PRC RMB 200,000 100% by Fujian Seravi Online Sales March 9, 2022 PRC RMB 10,000,000 51% by Nanping Happiness Advertising service, online sales June 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Advertising service, online sales, automobile sales, Internet technology service May 10, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales May 14, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales May 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales July 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Technology service, automobile sales May 26, 2020 PRC RMB 10,000,000 100% by Hangzhou Taochejun Technology service, automobile sales October 27, 2020 PRC RMB 50,000,000 100% by Fujian Taochejun Technology service, automobile sales July 13, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales. August 20, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service December 27, 2019 PRC RMB 30,000,000 60% by Fujian Taochejun Automobile sales, online sales July 12, 2021 PRC RMB 1,000,000 100% by Fujian Taochejun Advertising service, information consulting service, June 15, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service May 28, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun NEV charging technology service, advertising service, automobile sales, automobile parts sales December 4, 2020 PRC RMB 30,000,000 70% by Fujian Taochejun Automobile sales, online sales December 29, 2021 PRC RMB 3,000,000 60% by Nanping Happiness automobile parts sales December 3, 2020 PRC RMB 1,000,000 100% by Fujian Lever Online sales December 2, 2020 PRC RMB 1,000,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 200,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 200,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 200,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales December 1, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales December 2, 2020 PRC RMB 200,000 100% by Fujian Seravi Online sales May 8, 2021 PRC RMB 200,000 100% by Fujian Seravi Online sales April 23, 2021 PRC RMB 200,000 100% by Fujian Seravi Online sales April 16, 2021 PRC RMB 200,000 100% by Fujian Seravi Online sales April 15, 2021 PRC RMB 200,000 100% by Fujian Seravi Online sales April 1, 2021 PRC RMB 4,000,000 51% by Happy Unicorn Online sales April 1, 2021 PRC RMB 1,000,000 100% by Fujian Baodeng Online sales April 1, 2021 PRC RMB 1,000,000 100% by Fujian Baodeng Online sales April 1, 2021 PRC RMB 1,000,000 100% by Fujian Baodeng Online sales June 11, 2021 PRC RMB 1,000,000 100% by Fujian Baodeng Online sales June 28, 2021 PRC RMB 10,000,000 51% by Happy Unicorn Online sales December 3, 2020 PRC RMB 200,000 100% by Happy Doddo Online sales December 2, 2020 PRC RMB 30,000 100% by Happy Doddo Online sales December 2, 2020 PRC RMB 30,000 100% by Happy Doddo Online sales December 3, 2020 PRC RMB 1,000,000 100% by Happy Doddo Online sales December 1, 2020 PRC RMB 100,000 100% by Happy Doddo Online sales December 3, 2020 PRC RMB 1,000,000 100% by Fujian Baodeng Online sales December 2, 2020 PRC RMB 200,000 100% by Happy Optimal Online sales December 3, 2020 PRC RMB 200,000 100% by Happy Optimal Online sales July 9, 2021 PRC RMB 500,000 100% by Happy Optimal Online sales March 19, 2021 PRC RMB 10,000,000 51% by Happy Unicorn Online sales April 8, 2021 PRC HK$ 10,000 100% by Happy Feiyue Online sales <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Basis of Presentation and Principles of Consolidation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Happiness Development and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Non-controlling interests</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated statements of comprehensive (loss)/income to distinguish the interests from that of the Company. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Use of Estimates</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include,   but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, inventory reserve, allowance for credit losses, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and purchase price allocation in connection with the business combination. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Business combination</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Accounting Standards Codification (“ASC”) 805   establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Cash and Cash Equivalents</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains all bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Accounts Receivable and Allowance for Doubtful Accounts</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Inventories</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overheads. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Goodwill</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of March 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB ASC 350 guidance on “Testing of Goodwill for Impairment”, a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value of the reporting unit and the carrying amount will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, goodwill resulting from business acquisitions have been allocated into three reporting units, including Shennong, Hekangyuan and Daji. The Company evaluates if goodwill impairment may be indicated on quarterly basis and performs the annual goodwill impairment assessment as of March 31. As of March 31, 2022, the Company qualitatively assessed relevant events and circumstances, including macroeconomics conditions, industry and market considerations, its overall financial performance, and concluded by weighing all these factors in their entirety that it was more likely than not the fair value of the Company’s reporting unit was lower than its respective carrying value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Property, Plant and Equipment</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful Lives</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Buildings</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">20 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Machinery</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Furniture, fixture and electronic equipment</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">3-10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Vehicles</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">4 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Intangible Assets</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets with definite lives are initially recorded at cost. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives. Intangible assets with indefinite lives should not be amortized but should be tested for impairment at least annually or when event occurs or circumstances that could indicate that the asset might be impaired.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The estimated useful lives of intangible assets are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful life</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><b>Land use right</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">50 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Licensed software</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5-10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td><span style="font-size: 10pt"><b>Trademark</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Customer relationship</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Impairment of Long-lived Assets other than goodwill</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of March 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Fair Value of Financial Instruments</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820, <i>Fair Value Measurement and Disclosures</i>, requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 1 - Quoted prices in active markets for identical assets and liabilities.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other receivable, accounts payable, short-term borrowings, accounts payable, income tax assets and liabilities and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2022 and 2021 based upon the short-term nature of the assets and liabilities.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><b>Warrants</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt; margin: 0pt"><span>The Company accounts for the warrants pursuant to share exchange agreements in accordance with the guidance contained in ASC 815, under which the warrants do not meet the criteria for equity classification and must be recorded as liabilities. All such warrant agreements contain fixed strike prices and number of shares that may be issued at the fixed strike price, and do not contain exercise contingencies that adjust the strike price or number of shares issuable upon settlement of the warrants. All such warrant agreements are exercisable at the option of the holder and settled in shares of the Company. The warrants are qualified as equity-linked instrument embedded in a host instrument whereby do not meet definition of derivative, therefore it’s not required to separate the embedded component from its host.</span></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The Company treats a modification of the terms or conditions of an equity award in accordance with ASC Topic 718-20-35-3, by treating the modification as an exchange of the original award for a new award. In substance, the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional compensation cost for any incremental value. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award determined in accordance with the provisions of ASC Topic 718-20-35-3 over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date. There is no modification of the terms or conditions of the warrant issued by the Company.</span></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Deconsolidation</b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for the deconsolidation of a subsidiary by recognizing a gain or loss in net income/loss attributable to the parent, measured as the difference between:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">a.</td><td style="text-align: justify">The aggregate of all of the following:</td></tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1. The fair value of any consideration received;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3.The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">b.</td><td style="text-align: justify">The carrying amount of the former subsidiary’s assets and liabilities.</td></tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the deconsolidation transactions were transacted with related parties under common control, the Group should not recognize gain on sales of the subsidiaries and losses should be recognized by the Company only when an impairment in value is indicated.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has continued to operate the online store business through the other subsidiaries. Since the deconsolidated subsidiaries’ operating revenue was less than 1% of the Company’s consolidated revenue and the disposal did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for these subsidiaries were not reported as discontinued operations in the consolidated financial statements.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Revenue Recognition</b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company generates its revenue mainly from sales of healthcare products, automobiles, online store sales and internet information and advertising services.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company allows its customers to return products within some range. The range was limited to 3% of the customer’s yearly payment amount for the year for online store business. The transportation fee is borne by the customers in the condition of products return. For the year ended March 31, 2022, products return of all product sales amounted to $66,646, which is within the range.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition on April 1, 2019.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 1: Identify the contract (s) with a customer</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 2: Identify the performance obligations in the contract</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 3: Determine the transaction price</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 4: Allocate the transaction price to the performance obligations in the contract</p><p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 0.5in">Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-indent: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Healthcare products</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company sells nutraceutical and dietary supplements to third-party distributors and experience stores. Experience stores are owned by third parties, which are located in tourist sites where the sales consultants gave in-depth presentation of the origin, tradition and history of the Company’s products. Tourists are guided to enjoy a presentation of traditional Chinese herb culture offered by the distributors in the experience store and be presented with the Company’s healthcare products. The Company is a principal for the healthcare product sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to distributors’ or the experience stores’ premises and evidenced by signed acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to distributors or experience stores and the signing of their acknowledgment. Distributors and experience stores are required to pay under the customary payment terms, which is generally less than six months. According to the sales agreement, the healthcare product sold cannot be returned after the acknowledgement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Automobile</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells automobiles in fiscal year 2022. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. The Company is a principal for the automobiles sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. According to the contract, the automobile sold cannot be returned after the customer acknowledgement. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment, which is within 3 months after sales.  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Online store</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells various goods through its online store business in fiscal year 2022. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. The Company is a principal for the online store sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment unless the customers require sales return within 7 days after the acknowledgement. Customers are required to pay to the third-party platform before the goods were send out and the Company will receive the amount from the third-party platform after the customer sign off the acceptance form on the platform.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Internet information and advertising service</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company provides internet information and advertising service online. For all sales, the Company requires a signed contract and sales order, which specifies the price and service range. The Company is a principal for the services as i) the Company has the right to determine the sales price; ii) the Company bears the collection risks; iii) the Company is responsible to the service provided. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to provide specified information and advertising service to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The information and advertising service provided is satisfied at a point in time, which is the time when the information and advertising service is performed. No sales return is permitted after the service performed according to the contract signed. The selling price per click, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the completion of the service. Customers are required to pay to the Company in advance according to the contract.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted ASC 606 as of April 1, 2019 using the modified retrospective transition method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard.  Results for reporting periods beginning after April 1, 2019 are presented under the new standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods.  The Company does not expect any impact to its net income from the adoption of ASU 2014-09 on an ongoing basis.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in PRC. All of the Company’s revenues are recognized on a gross basis and presented as revenue on the consolidated statements of operations and comprehensive income/(loss).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents an overview of our sales from our product lines for the years ended March 31, 2022, 2021 and 2020:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Healthcare products</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,323,831</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">45,389,702</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,061,953</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Online store</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,014,109</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,473,626</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet information and advertising</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,538,943</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,245,019</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Automobile</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,611,775</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,376,356</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Revenue</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">89,488,658</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">71,484,703</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">65,061,953</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Cost of Revenues</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt"><i>Healthcare products</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of healthcare product is mainly composed of the cost of product sales, employees, depreciation expenses and other manufacturing overhead expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Automobile</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of automobile is mainly composed of the cost of automobile and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Online store</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of online store is mainly composed of the cost of goods sales and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Internet information and advertising service</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of automobile is mainly composed of the cost of service provide and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Government Grant</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as compensation for the Company’s research and development efforts. For the years ended March 31, 2022, 2021 and 2020, the Company recognized government grants of $11,893, $63,520 and $162,268, respectively, for the government support of the Company’s research and development activities and patent applications. The government grants were recorded as other income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Research and Development Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services, raw materials, and supplies, are expensed as incurred. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Shipping and Handling Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shipping and handling costs are expensed when incurred as selling and marketing expense. Shipping and handling costs were $291,170, $1,104,120 and $1,869,505 for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Advertising Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Advertising costs expensed as economic benefits are consumed in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $26,210,291, $5,720,458 and $3,856,921for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Stock-Based Compensation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation to employees in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including the equity incentive plan, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Stock option forfeitures are recognized at the date of employee termination. Effective April 1, 2019, the Company adopted ASU 2018-07 for the accounting of share-based payments granted to non-employees for goods and services and no material impacts to the Financial Statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Option</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The fair value of options issued pursuant to the Company’s option plans at the grant date was estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the expected term of the options, the estimated forfeiture rates and the expected stock price volatility. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Group uses projected volatility rates based upon the Group’s historical volatility rates. These assumptions are inherently uncertain. Different assumptions and judgments would affect the Company’s calculation of the fair value of the underlying ordinary shares for the options granted, and the valuation results and the amount of option would also vary accordingly.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Income Taxes</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The provisions of ASC 740-10, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at March 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent applicable, the Company records interest and penalties as a general and administrative expense. All of the tax returns of the Company and its subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to Chinese tax laws. We are not subject to U.S. tax laws and local state tax laws. Our income and our related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and we are subject to Chinese tax laws, all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of China will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by us, reducing the amount available to pay dividends to the holders of our ordinary shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company with no material operations of our own. We conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends and to finance any debt we may incur depends upon dividends paid by our subsidiaries. Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50% of its registered capital. These reserves are not distributable as cash dividends.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of March 31, 2022, our PRC subsidiaries had an aggregate retained earnings of approximately RMB 195.2 million (US$26.04 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Any declaration and payment, as well as the amount, of dividends will be subject to our By-Laws, charter and applicable Chinese and U.S. state and federal laws and regulations, including the approval from the shareholders of each subsidiary which intends to declare such dividends, if applicable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Value-added Tax</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is generally subject to the VAT for merchandise sales and services performed. Before May 1, 2018, the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Earnings/ Loss per Share</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings/loss per share is computed by dividing net profit/loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two-class method. Using the two class method, net profit/loss is allocated between Class A ordinary shares, Class B ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as Net profit divided by the weighted average common shares outstanding for the period. Diluted earnings/loss per share is calculated by dividing net profit/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year/period. Dilutive equivalent shares are excluded from the computation of diluted earnings/loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the earning/loss per share for both classes of shares are identical. The earning/loss per share amounts are the same for Class A and Class B ordinary shares because the holders of each class are entitled to equal per share dividends or distributions in liquidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Foreign Currency Translation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company and its subsidiaries’ principal country of operations is the PRC. The Company maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The consolidated statements of income and comprehensive income and cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average rate of exchange, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43%; padding-bottom: 1.5pt"> </td> <td style="width: 1%"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2022</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2021</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2020</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Period-end spot rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.3482</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.5713</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 7.0851</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Average rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.4083</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.7960</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.965</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Comprehensive Income</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of income and comprehensive income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Segment Reporting</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s CODM has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. In the year ended March 31, 2022, the CODM reviews financial information analyzed by customer, which only presented at the gross profit level with no allocation of operating expenses. Thus, the Company determined that it operates in four operating segments: (1) Healthcare products; (2) Automobile; (3) Online store; and (4) Internet information and advertising service. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As the Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenue and expense are derived from within the PRC, no geographical segments are presented.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Concentration of Risks</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Exchange Rate Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As of March 31, 2022 and 2021, cash and cash equivalents of $19,571,668 (RMB 124,244,865) and $36,203,665 (RMB 237,905,147), respectively, is denominated in RMB and is held in PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Currency Convertibility Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Concentration of Credit Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Interest Rate Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to interest rate risk. Bank interest bearing loans are charged at variable interest rates within the reporting period. The Company is subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Risks and Uncertainties</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>COVID-19 Pandemic</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The outbreak of COVID-19 began in January 2020 and was quickly declared as a Public Health Emergency of International Concern and subsequently a pandemic by the World Health Organization. A series of prevention and control measures including quarantines, travel restrictions, and the temporary closure of facilities were implemented across the country.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was impacted by the COVID-19 pandemic in many ways, including the plump of closures of experience stores, diving sales by distribution channels, and shut down or partly shut down of production facilities for several months.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Despite the fact that China has largely brought the pandemic under control, there is still a high degree of uncertainty as to how the pandemic will evolve going forward. A new outbreak in China could cause new disruptions of our production, distribution and sales, and have an adverse impact on our business, financial condition and results of operations for the remainder of the fiscal year ending March 31, 2022, which cannot be reasonably estimated at the current stage. The Company will regularly assess its business conditions and adopt measures to mitigate any new impact of the ongoing pandemic. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Related Parties</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. There were no related party transactions as of March 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Recent Accounting Pronouncements</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Recently Issued Accounting Pronouncements</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In May 2020, the FASB issued ASC 2020-05 to defer the effective date for non-issuer entities that have not yet issued their financial statements reflecting the adoption of leases; the amended effective date for non-issuer entities is for fiscal years beginning after December 15, 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company as an “emerging growth company” has elected to adopt the new lease standard as of the effective date applicable to non-issuers and will adopt the new lease standard on April 1, 2022 using the modified retrospective method. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company does not expect this update will have a material impact on the Company’s consolidated financial position, results of operations and cash flow.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for annual and interim impairment tests performed in periods beginning after December 15, 2022. The guidance should be applied on a prospective basis, and is not expected to have a material impact on the Company’s consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2021 and the adoption of this standard did not have any material impact on the Company’s consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Basis of Presentation and Principles of Consolidation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Happiness Development and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Non-controlling interests</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated statements of comprehensive (loss)/income to distinguish the interests from that of the Company. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Use of Estimates</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include,   but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, inventory reserve, allowance for credit losses, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and purchase price allocation in connection with the business combination. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Business combination</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Accounting Standards Codification (“ASC”) 805   establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> P1Y <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Cash and Cash Equivalents</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains all bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Accounts Receivable and Allowance for Doubtful Accounts</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Inventories</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overheads. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Goodwill</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of March 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB ASC 350 guidance on “Testing of Goodwill for Impairment”, a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value of the reporting unit and the carrying amount will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, goodwill resulting from business acquisitions have been allocated into three reporting units, including Shennong, Hekangyuan and Daji. The Company evaluates if goodwill impairment may be indicated on quarterly basis and performs the annual goodwill impairment assessment as of March 31. As of March 31, 2022, the Company qualitatively assessed relevant events and circumstances, including macroeconomics conditions, industry and market considerations, its overall financial performance, and concluded by weighing all these factors in their entirety that it was more likely than not the fair value of the Company’s reporting unit was lower than its respective carrying value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 3 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Property, Plant and Equipment</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful Lives</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Buildings</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">20 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Machinery</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Furniture, fixture and electronic equipment</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">3-10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Vehicles</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">4 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful Lives</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Buildings</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">20 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Machinery</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Furniture, fixture and electronic equipment</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">3-10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Vehicles</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">4 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> P20Y P10Y P3Y P10Y P4Y <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Intangible Assets</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets with definite lives are initially recorded at cost. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives. Intangible assets with indefinite lives should not be amortized but should be tested for impairment at least annually or when event occurs or circumstances that could indicate that the asset might be impaired.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The estimated useful lives of intangible assets are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful life</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><b>Land use right</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">50 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Licensed software</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5-10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td><span style="font-size: 10pt"><b>Trademark</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Customer relationship</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 84%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Useful life</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><b>Land use right</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">50 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Licensed software</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5-10 years</span></td></tr> <tr style="vertical-align: top; background-color: #CCECFF"> <td><span style="font-size: 10pt"><b>Trademark</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">10 years</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt"><b>Customer relationship</b></span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">5 years</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> P50Y P5Y P10Y P10Y P5Y <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Impairment of Long-lived Assets other than goodwill</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of March 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Fair Value of Financial Instruments</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820, <i>Fair Value Measurement and Disclosures</i>, requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 1 - Quoted prices in active markets for identical assets and liabilities.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0px"/> <td style="width: 24px"><span style="font-size: 10pt">●</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other receivable, accounts payable, short-term borrowings, accounts payable, income tax assets and liabilities and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2022 and 2021 based upon the short-term nature of the assets and liabilities.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><b>Warrants</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0pt; margin: 0pt"><span>The Company accounts for the warrants pursuant to share exchange agreements in accordance with the guidance contained in ASC 815, under which the warrants do not meet the criteria for equity classification and must be recorded as liabilities. All such warrant agreements contain fixed strike prices and number of shares that may be issued at the fixed strike price, and do not contain exercise contingencies that adjust the strike price or number of shares issuable upon settlement of the warrants. All such warrant agreements are exercisable at the option of the holder and settled in shares of the Company. The warrants are qualified as equity-linked instrument embedded in a host instrument whereby do not meet definition of derivative, therefore it’s not required to separate the embedded component from its host.</span></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The Company treats a modification of the terms or conditions of an equity award in accordance with ASC Topic 718-20-35-3, by treating the modification as an exchange of the original award for a new award. In substance, the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional compensation cost for any incremental value. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award determined in accordance with the provisions of ASC Topic 718-20-35-3 over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date. There is no modification of the terms or conditions of the warrant issued by the Company.</span></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Deconsolidation</b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for the deconsolidation of a subsidiary by recognizing a gain or loss in net income/loss attributable to the parent, measured as the difference between:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">a.</td><td style="text-align: justify">The aggregate of all of the following:</td></tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1. The fair value of any consideration received;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3.The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top"> <td style="width: 0"/><td style="width: 0.25in">b.</td><td style="text-align: justify">The carrying amount of the former subsidiary’s assets and liabilities.</td></tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the deconsolidation transactions were transacted with related parties under common control, the Group should not recognize gain on sales of the subsidiaries and losses should be recognized by the Company only when an impairment in value is indicated.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has continued to operate the online store business through the other subsidiaries. Since the deconsolidated subsidiaries’ operating revenue was less than 1% of the Company’s consolidated revenue and the disposal did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for these subsidiaries were not reported as discontinued operations in the consolidated financial statements.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.01 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Revenue Recognition</b></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company generates its revenue mainly from sales of healthcare products, automobiles, online store sales and internet information and advertising services.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company allows its customers to return products within some range. The range was limited to 3% of the customer’s yearly payment amount for the year for online store business. The transportation fee is borne by the customers in the condition of products return. For the year ended March 31, 2022, products return of all product sales amounted to $66,646, which is within the range.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition on April 1, 2019.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 1: Identify the contract (s) with a customer</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 2: Identify the performance obligations in the contract</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 3: Determine the transaction price</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Step 4: Allocate the transaction price to the performance obligations in the contract</p><p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 0.5in">Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-indent: 0pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Healthcare products</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company sells nutraceutical and dietary supplements to third-party distributors and experience stores. Experience stores are owned by third parties, which are located in tourist sites where the sales consultants gave in-depth presentation of the origin, tradition and history of the Company’s products. Tourists are guided to enjoy a presentation of traditional Chinese herb culture offered by the distributors in the experience store and be presented with the Company’s healthcare products. The Company is a principal for the healthcare product sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to distributors’ or the experience stores’ premises and evidenced by signed acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to distributors or experience stores and the signing of their acknowledgment. Distributors and experience stores are required to pay under the customary payment terms, which is generally less than six months. According to the sales agreement, the healthcare product sold cannot be returned after the acknowledgement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Automobile</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells automobiles in fiscal year 2022. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. The Company is a principal for the automobiles sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. According to the contract, the automobile sold cannot be returned after the customer acknowledgement. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment, which is within 3 months after sales.  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Online store</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells various goods through its online store business in fiscal year 2022. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. The Company is a principal for the online store sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment unless the customers require sales return within 7 days after the acknowledgement. Customers are required to pay to the third-party platform before the goods were send out and the Company will receive the amount from the third-party platform after the customer sign off the acceptance form on the platform.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Internet information and advertising service</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company provides internet information and advertising service online. For all sales, the Company requires a signed contract and sales order, which specifies the price and service range. The Company is a principal for the services as i) the Company has the right to determine the sales price; ii) the Company bears the collection risks; iii) the Company is responsible to the service provided. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to provide specified information and advertising service to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, excluding amounts collected on behalf of third parties (e.g., value-added taxes). The information and advertising service provided is satisfied at a point in time, which is the time when the information and advertising service is performed. No sales return is permitted after the service performed according to the contract signed. The selling price per click, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the completion of the service. Customers are required to pay to the Company in advance according to the contract.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted ASC 606 as of April 1, 2019 using the modified retrospective transition method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard.  Results for reporting periods beginning after April 1, 2019 are presented under the new standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods.  The Company does not expect any impact to its net income from the adoption of ASU 2014-09 on an ongoing basis.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in PRC. All of the Company’s revenues are recognized on a gross basis and presented as revenue on the consolidated statements of operations and comprehensive income/(loss).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents an overview of our sales from our product lines for the years ended March 31, 2022, 2021 and 2020:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Healthcare products</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,323,831</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">45,389,702</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,061,953</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Online store</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,014,109</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,473,626</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet information and advertising</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,538,943</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,245,019</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Automobile</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,611,775</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,376,356</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Revenue</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">89,488,658</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">71,484,703</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">65,061,953</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.03 66646 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Healthcare products</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,323,831</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">45,389,702</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,061,953</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Online store</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,014,109</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,473,626</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet information and advertising</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,538,943</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,245,019</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Automobile</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,611,775</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,376,356</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Revenue</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">89,488,658</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">71,484,703</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">65,061,953</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 30323831 45389702 65061953 28014109 13473626 10538943 9245019 20611775 3376356 89488658 71484703 65061953 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Cost of Revenues</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt"><i>Healthcare products</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of healthcare product is mainly composed of the cost of product sales, employees, depreciation expenses and other manufacturing overhead expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Automobile</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of automobile is mainly composed of the cost of automobile and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Online store</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of online store is mainly composed of the cost of goods sales and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Internet information and advertising service</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of revenue of automobile is mainly composed of the cost of service provide and other miscellaneous expenses that are directly attributable to the business.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Government Grant</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as compensation for the Company’s research and development efforts. For the years ended March 31, 2022, 2021 and 2020, the Company recognized government grants of $11,893, $63,520 and $162,268, respectively, for the government support of the Company’s research and development activities and patent applications. The government grants were recorded as other income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> 11893 63520 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Research and Development Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services, raw materials, and supplies, are expensed as incurred. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Shipping and Handling Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shipping and handling costs are expensed when incurred as selling and marketing expense. Shipping and handling costs were $291,170, $1,104,120 and $1,869,505 for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 291170 1104120 1869505 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Advertising Costs</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Advertising costs expensed as economic benefits are consumed in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $26,210,291, $5,720,458 and $3,856,921for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 26210291 5720458 3856 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Stock-Based Compensation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation to employees in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including the equity incentive plan, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Stock option forfeitures are recognized at the date of employee termination. Effective April 1, 2019, the Company adopted ASU 2018-07 for the accounting of share-based payments granted to non-employees for goods and services and no material impacts to the Financial Statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Option</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The fair value of options issued pursuant to the Company’s option plans at the grant date was estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the expected term of the options, the estimated forfeiture rates and the expected stock price volatility. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Group uses projected volatility rates based upon the Group’s historical volatility rates. These assumptions are inherently uncertain. Different assumptions and judgments would affect the Company’s calculation of the fair value of the underlying ordinary shares for the options granted, and the valuation results and the amount of option would also vary accordingly.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Income Taxes</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The provisions of ASC 740-10, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at March 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent applicable, the Company records interest and penalties as a general and administrative expense. All of the tax returns of the Company and its subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to Chinese tax laws. We are not subject to U.S. tax laws and local state tax laws. Our income and our related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and we are subject to Chinese tax laws, all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of China will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by us, reducing the amount available to pay dividends to the holders of our ordinary shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company with no material operations of our own. We conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends and to finance any debt we may incur depends upon dividends paid by our subsidiaries. Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50% of its registered capital. These reserves are not distributable as cash dividends.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of March 31, 2022, our PRC subsidiaries had an aggregate retained earnings of approximately RMB 195.2 million (US$26.04 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Any declaration and payment, as well as the amount, of dividends will be subject to our By-Laws, charter and applicable Chinese and U.S. state and federal laws and regulations, including the approval from the shareholders of each subsidiary which intends to declare such dividends, if applicable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.10 0.50 195200000 26040000.00 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Value-added Tax</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is generally subject to the VAT for merchandise sales and services performed. Before May 1, 2018, the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law. <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Earnings/ Loss per Share</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings/loss per share is computed by dividing net profit/loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two-class method. Using the two class method, net profit/loss is allocated between Class A ordinary shares, Class B ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as Net profit divided by the weighted average common shares outstanding for the period. Diluted earnings/loss per share is calculated by dividing net profit/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year/period. Dilutive equivalent shares are excluded from the computation of diluted earnings/loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the earning/loss per share for both classes of shares are identical. The earning/loss per share amounts are the same for Class A and Class B ordinary shares because the holders of each class are entitled to equal per share dividends or distributions in liquidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Foreign Currency Translation</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company and its subsidiaries’ principal country of operations is the PRC. The Company maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The consolidated statements of income and comprehensive income and cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average rate of exchange, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43%; padding-bottom: 1.5pt"> </td> <td style="width: 1%"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2022</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2021</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2020</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Period-end spot rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.3482</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.5713</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 7.0851</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Average rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.4083</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.7960</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.965</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43%; padding-bottom: 1.5pt"> </td> <td style="width: 1%"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2022</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2021</b></span></td> <td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>March 31, 2020</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Period-end spot rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.3482</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.5713</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 7.0851</span></td></tr> <tr style="vertical-align: top; "> <td><span style="font-size: 10pt">Average rate</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.4083</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB  6.7960</span></td> <td> </td> <td style="text-align: center"><span style="font-size: 10pt">US$1=RMB 6.965</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> US$1=RMB 6.3482 US$1=RMB  6.5713 US$1=RMB 7.0851 US$1=RMB 6.4083 US$1=RMB  6.7960 US$1=RMB 6.965 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Comprehensive Income</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of income and comprehensive income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Segment Reporting</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s CODM has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. In the year ended March 31, 2022, the CODM reviews financial information analyzed by customer, which only presented at the gross profit level with no allocation of operating expenses. Thus, the Company determined that it operates in four operating segments: (1) Healthcare products; (2) Automobile; (3) Online store; and (4) Internet information and advertising service. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As the Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenue and expense are derived from within the PRC, no geographical segments are presented.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Concentration of Risks</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Exchange Rate Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As of March 31, 2022 and 2021, cash and cash equivalents of $19,571,668 (RMB 124,244,865) and $36,203,665 (RMB 237,905,147), respectively, is denominated in RMB and is held in PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Currency Convertibility Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Concentration of Credit Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Interest Rate Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to interest rate risk. Bank interest bearing loans are charged at variable interest rates within the reporting period. The Company is subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 19571668 124244865 36203665 237905147 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Risks and Uncertainties</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>COVID-19 Pandemic</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The outbreak of COVID-19 began in January 2020 and was quickly declared as a Public Health Emergency of International Concern and subsequently a pandemic by the World Health Organization. A series of prevention and control measures including quarantines, travel restrictions, and the temporary closure of facilities were implemented across the country.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was impacted by the COVID-19 pandemic in many ways, including the plump of closures of experience stores, diving sales by distribution channels, and shut down or partly shut down of production facilities for several months.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Despite the fact that China has largely brought the pandemic under control, there is still a high degree of uncertainty as to how the pandemic will evolve going forward. A new outbreak in China could cause new disruptions of our production, distribution and sales, and have an adverse impact on our business, financial condition and results of operations for the remainder of the fiscal year ending March 31, 2022, which cannot be reasonably estimated at the current stage. The Company will regularly assess its business conditions and adopt measures to mitigate any new impact of the ongoing pandemic. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Related Parties</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Recent Accounting Pronouncements</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Recently Issued Accounting Pronouncements</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In May 2020, the FASB issued ASC 2020-05 to defer the effective date for non-issuer entities that have not yet issued their financial statements reflecting the adoption of leases; the amended effective date for non-issuer entities is for fiscal years beginning after December 15, 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company as an “emerging growth company” has elected to adopt the new lease standard as of the effective date applicable to non-issuers and will adopt the new lease standard on April 1, 2022 using the modified retrospective method. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company does not expect this update will have a material impact on the Company’s consolidated financial position, results of operations and cash flow.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for annual and interim impairment tests performed in periods beginning after December 15, 2022. The guidance should be applied on a prospective basis, and is not expected to have a material impact on the Company’s consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2021 and the adoption of this standard did not have any material impact on the Company’s consolidated financial statements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 3 – ACCOUNTS RECEIVABLE</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accounts receivable consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Accounts receivable, gross</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">27,911,421</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,563,743</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: allowance for doubtful accounts</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">463,514</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt">Accounts receivable</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">27,447,907</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">34,563,743</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recorded net of allowance for doubtful accounts of $463,514 as of March 31, 2022 due to uncollectible balances from three overseas companies. The Company gives its customers credit period of 180 days and continually assesses the recoverability of uncollected accounts receivable. As of March 31, 2022, the balance of the Company’s accounts receivable was all due within 2 years. As of March 31, 2021, the balance of the Company’s accounts receivable was all due within 1 year. The Company believes the balances of its accounts receivable are fully recoverable as of March 31, 2022.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Accounts receivable, gross</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">27,911,421</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,563,743</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: allowance for doubtful accounts</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">463,514</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt">Accounts receivable</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">27,447,907</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">34,563,743</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 27911421 34563743 463514 27447907 34563743 463514 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 4 – INVENTORIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All the inventories are located in China. Inventories consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Raw materials</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">786,082</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,422,941</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,717</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">603,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">327,721</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,389,561</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,785,379</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No lower of cost or net realizable value adjustment was recorded as of March 31, 2022 and 2021, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No inventory provision or write-downs for the years ended March 31, 2022 and 2021.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Raw materials</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">786,082</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,422,941</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34,717</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">603,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">327,721</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,389,561</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,785,379</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 786082 1422941 34717 603479 327721 1389561 1785379 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prepaid expenses and other current assets consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Prepayments to suppliers</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,177,537</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">9,334,225</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Loans receivables (a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">727,765</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deposit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">691,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,174</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Prepayments to technical provider</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">669,481</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,752</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>VAT-in</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">560,155</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Prepayment to Weilan (b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">448,946</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Receivable from disposal of subsidiaries</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">408,106</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Deposit for the acquisition of Shennong (Note 14)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,130,613</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left">Other current assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">226,173</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,065,980</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,909,233</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">22,189,744</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 20pt; text-align: left">(a)</td><td style="text-align: justify">Loans receivables to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from six to nine months and the interest rate from 0.03% to 0.5% per day.</td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 27px; font-size: 10pt"><span style="font-size: 10pt">(b)</span></td> <td style="font-size: 10pt; text-align: justify"><span style="font-size: 10pt">In the year ended March 31, 2022, the Company signed a cooperation agreement with a third party to invest in Hangzhou Weilan Automobile Co., Ltd. (“Weilan”) and paid $448,946 to the shareholders of Weilan. In June 2022, both parties agreed to terminate the cooperation agreement and the Company collected the full prepayment.</span></td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Prepayments to suppliers</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,177,537</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">9,334,225</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Loans receivables (a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">727,765</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Deposit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">691,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,174</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Prepayments to technical provider</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">669,481</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,752</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>VAT-in</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">560,155</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Prepayment to Weilan (b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">448,946</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Receivable from disposal of subsidiaries</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">408,106</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Deposit for the acquisition of Shennong (Note 14)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,130,613</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left">Other current assets</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">226,173</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,065,980</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,909,233</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">22,189,744</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 4177537 9334225 727765 691070 12174 669481 646752 560155 448946 408106 9130613 226173 3065980 7909233 22189744 0.0003 0.005 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Property, plant and equipment consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Buildings</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,345,997</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,813,510</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Machinery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,918,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,867,046</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture, fixture and electronic equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">179,667</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">231,929</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Vehicles</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">176,606</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">147,132</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total property plant and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,621,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,059,617</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,374,373</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,545,586</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt">Property, plant and equipment, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,246,815</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,514,031</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and 2021, the Company pledged its building with a carrying value of approximately $2.1 million and $5.1 million, respectively, as the collateral for short-term bank loans (see <i>Note 10</i>).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense was $1,553,399, $849,454 and $674,247 for the years ended March 31, 2022, 2021 and 2020, respectively. Depreciation allocated as manufacturing overhead to inventories was $621,654, $589,610 and $555,636 for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amount of disposed property, plant and equipment recognized for the year ended March 31, 2022 and 2021 were amounted to $505,969 and $0, respectively.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Buildings</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,345,997</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,813,510</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Machinery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,918,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,867,046</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture, fixture and electronic equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">179,667</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">231,929</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Vehicles</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">176,606</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">147,132</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total property plant and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17,621,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,059,617</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,374,373</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,545,586</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt">Property, plant and equipment, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">11,246,815</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,514,031</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 15345997 12813510 1918918 2867046 179667 231929 176606 147132 17621188 16059617 6374373 5545586 11246815 10514031 2100000 5100000 1553399 849454 674247 621654 589610 555636 505969 0 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 7 – INTANGIBLE ASSETS, NET</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Land use right, cost</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">910,808</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">879,886</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left"><span style="font-size: 10pt">Customer relationship (<i>Note 14</i>)</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,822,973</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Trademark</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,027</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-127">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">Software, cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,127,710</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,084,858</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,872,518</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,964,744</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(771,113</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(132,645</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt; text-align: left">Intangible assets, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,101,405</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,832,099</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and 2021, the Company pledged its land use right on its land with a carrying value of $93,140 (12,120 square meters) and $758,504 (29,720 square meters), respectively, as the collateral for a short-term bank loan (see Note 10).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amortization expense was $633,807, $31,425 and $16,502 for the years ended March 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Estimated future amortization expense is as follows as of March 31, 2022: </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amortization<br/> expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left">2023</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,897,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">616,405</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,101,405</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Land use right, cost</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">910,808</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">879,886</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left"><span style="font-size: 10pt">Customer relationship (<i>Note 14</i>)</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,822,973</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Trademark</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,027</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-127">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">Software, cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,127,710</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,084,858</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,872,518</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,964,744</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt; text-align: left">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(771,113</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(132,645</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt; text-align: left">Intangible assets, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,101,405</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,832,099</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 910808 879886 8822973 11027 1127710 1084858 10872518 1964744 771113 132645 10101405 1832099 93140 12120 758504 29720 633807 31425 16502 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amortization<br/> expense</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left">2023</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,897,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,897,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">616,405</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,101,405</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 1897000 1897000 1897000 1897000 1897000 616405 10101405 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 8 – GOODWILL</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Goodwill consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Shennong</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,288,219</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Hekangyuan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,627,427</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Daji</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">168,555</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,832</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,084,201</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">162,832</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The changes in the carrying amount of goodwill for the years ended March 31, 2022 and 2021 were as follow:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Balance as of March 31</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">162,832</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Acquisitions (Note 14)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,237,015</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Impairment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,309,745</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Exchange gain and loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,901</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Goodwill, net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">10,084,201</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong, and cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Due to the continually influence of the COVID-19 pandemic, Shennong and Hekangyuan’s operating result decreased significantly. The Company assessed qualitative factors and performed the quantitative impairment test. As of March 31, 2022 and 2021, the Company recognized impairment amounted to $10,309,745 (including $5,844,804 to Shennong and $4,464,941 to Hekangyuan) and <span style="-sec-ix-hidden: hidden-fact-128">nil</span>, respectively.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Shennong</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,288,219</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Hekangyuan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,627,427</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Daji</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">168,555</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,832</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,084,201</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">162,832</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 6288219 3627427 168555 162832 10084201 162832 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%">Balance as of March 31</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">162,832</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Acquisitions (Note 14)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,237,015</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Impairment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,309,745</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Exchange gain and loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,901</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Goodwill, net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">10,084,201</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 162832 20237015 162832 -10309745 -5901 10084201 162832 10309745 5844804 4464941 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 9 – PREPAID ASSETS </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prepaid assets consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Prepayments for advertising or marketing</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,485,325</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,909,840</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Prepayment of celebrity endorsement fee</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,774</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228,265</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,627,099</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,138,105</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since October 1, 2018, the Company entered into agreements with exclusive distributors to provide subsidy of $152,177 to $913,062 (RMB 1.0 million to 6.0 million) to each exclusive distributor for advertising and marketing in the next 3 years when they open new stores. The Company provided $7.09 million and $2.95 million subsidy in the year ended March 31, 2022 and 2021. In November 2019, the Company also entered into a business development cooperation agreement with a service company located in the U.S, who provides market channel and advertisement supports to the Company, for a total of $1,600,000 over 3-year.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2018, the Company paid a celebrity endorsement fee of $445,533 (RMB 3.0 million). The celebrity endorsement contract is for a period of 5 years. </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Prepayments for advertising or marketing</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,485,325</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,909,840</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Prepayment of celebrity endorsement fee</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,774</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228,265</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,627,099</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,138,105</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 5485325 4909840 141774 228265 5627099 5138105 152177 913062 1 6000000 P3Y 7090000.00 2950000 1600000 445533 3000000 P5Y <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 10 – SHORT-TERM BANK BORROWINGS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Short-term bank borrowings consisted of the following as of March 31, 2022 and 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Industrial Bank Co., Ltd</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,102,675</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,065,238</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Postal Saving Bank of China</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,165,685</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,171,762</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,268,360</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,237,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 4, 2018, the Company entered into a bank loan agreement with Industrial Bank Co., Ltd to borrow $1,039,578 (RMB 7.0 million) as working capital for one year with due date on April 21, 2019 and it was renewed in 2019 for another year. The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +2.19% on the date of drawing per annum. The loan facility agreement is personally guaranteed by Mr. Xuezhu Wang, Mr. Xianfu Wang, and Mrs. Yanying Lin. Based on guarantee contract the maximum guaranteed amount was RMB 7.0 million. The Company also pledged its building and land use rights as collaterals. Based on the pledge agreement, the maximum pledged amount was RMB 17.4 million. There were no loan guarantee fees paid to the personal guarantors. In April 2020, Fujian Happiness renewed the loan agreement with Industrial Bank Co. Ltd for $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 1.45% per annum, payable monthly. The loan was expired and paid off in April 2021. In addition, the Company entered into a loan agreement of $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 0.75% on June 9, 2021 and repaid it on June 5, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 24, 2019, the Company entered into a loan facility framework agreement with Postal Saving Bank of China. The agreement allows the Company to access a total borrowing of approximately $3.4 million (RMB 24.4 million) for short-term loans. The loan facility agreement is valid until June 23, 2025 and subject to renewal. The loan facility agreement is personally guaranteed by Mr. Xuezhu Wang and Happiness Nanping. The Company also pledged its building and land use right as collaterals. Pursuant to the loan facility agreement with Postal Saving Bank of China, which is valid from June 24, 2019 to June 23, 2025. On January 12, 2022 and January 13, 2022, the Company entered into a loan agreement of $846,848 (RMB 6.0 million) and $197,597 (RMB 1.4 million) short-term loans bearing fixed interest rate of 4.25%, which was due on January 10, 2023 and February 12, 2023, respectively. In addition, on April 7, 2020 and January 15, 2021, the Company entered into a loan agreement of RMB 1.7 million and RMB 6.0 million with Postal Saving Bank of China as working capital for one year, respectively. The loans bear a fixed interest rate of LPR+20 BP. The Company repaid RMB 1.7 million on April 6, 2021 and April 8, 2021, and repaid RMB 6.0 million on January 12, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying values of the Company’s pledged assets to secure short-term borrowings by the Company are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Buildings, net</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,076,215</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,062,724</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Land use rights, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">93,140</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">758,504</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,169,355</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,821,228</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended March 31, 2022, 2021 and 2020, interest expense on all short-term bank loans amounted to $85,993, $111,790 and $98,086, respectively.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Industrial Bank Co., Ltd</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,102,675</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,065,238</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Postal Saving Bank of China</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,165,685</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,171,762</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,268,360</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,237,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 1102675 1065238 1165685 1171762 2268360 2237000 1039578 7000000 The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +2.19% on the date of drawing per annum. 7000000 17400000 Fujian Happiness renewed the loan agreement with Industrial Bank Co. Ltd for $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 1.45% per annum, payable monthly. 1065238 7000000 In addition, the Company entered into a loan agreement of $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 0.75% on June 9, 2021 and repaid it on June 5, 2022. 3400000 24400000 846848 6000000 197597 1400000 0.0425 0.0425 1700000 6000000 1700000 6000000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Buildings, net</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,076,215</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,062,724</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Land use rights, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">93,140</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">758,504</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,169,355</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,821,228</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 2076215 5062724 93140 758504 2169355 5821228 85993 111790 98086 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 11 – SHARE BASED COMPENSATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>2020 Equity incentive plan</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2021, the Company adopted the 2020 Equity incentive plan which allows the Company to offer incentive awards to employee, directors and consultants (collectively, “the Participants”). Under the 2020 Equity incentive plan, the Company may issue incentive awards to the Participants to purchase no more than 3,500,000 ordinary shares with no restrictive legend affixed.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Share-based compensation expense of $1,086,231 and $778,423 was immediately recognized in general and administrative expenses for the year ended March 31, 2022 and 2021 with no vesting conditions.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair values of share units are determined based on the fair value of the grant date of the Company’s ordinary shares.</p> 3500000 1086231 778423 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 12 – SHAREHOLDERS’ EQUITY</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Ordinary shares</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Happiness Development was incorporated under the laws of the Cayman Islands on February 9, 2018. The Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in Fujian Happiness from the former shareholders to Happiness Nanping.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of Happiness Development Group Limited, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Nanping) Biotech Co., Ltd, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Nanping.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2018, the Company received $627,628 (RMB 4.0 million) from two investors into Fujian Happiness.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 4, 2019, the Company subdivided its 50,000 ordinary shares into 90,000,000 Ordinary shares and 10,000,000 Preferred shares. The authorized ordinary shares became 100,000,000 shares and the par value changed from $1 to $0.0005. On the same day, the Company cancelled 77,223,100 ordinary shares and sold additional 223,100 ordinary shares. The Company has retrospectively reflected the stock subdivision and cancellation in all periods presented in these financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 25, 2019, the Company announced the closing of its initial public offering of 2,000,000 ordinary shares, US$0.0005 par value per share (“Ordinary Shares”) at an offering price of $5.50 per share for a total of $11,000,000 in gross proceeds. The Company raised total net proceeds of $9,342,339 after deducting underwriting discounts and commissions and offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company entered several Securities Purchase Agreement from September 2020 through March 2021. Pursuant to which, the Company issued 5,100,000 ordinary shares to the purchasers with a total consideration amounted $10,965,703. The Company collected total net proceeds of $10,725,700 after deducting commissions and offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 15, 2021, the Company issued 381,580 ordinary shares to its management and employees for their service. The Company recorded compensation cost $778,423 according to the fair value of the shares issued.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 21, 2021, the Company issued an aggregate of 231,445 Class A ordinary shares of the Company to certain employees and a director for their services. The total compensation cost was $351,796.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 25, 2021, the Company entered several Securities Purchase Agreement with non-US investors. Pursuant to which, the Company issued 1,240,000 Class A ordinary shares to the purchasers with a total consideration amounted $2,157,600. The Company collected total net proceeds of $2,157,600 after deducting commissions and offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 14, 2021, the Company issued an aggregate of 113,458 Class A ordinary shares of the Company to certain employees and a director for their services. The total compensation cost was $99,843.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 20, 2021, the Company entered into a certain equity agreement with Shennong for the purchase of 70% of the equity interest of Shennong at a consideration of RMB 103.0 million (approximately $16.1 million). The total consideration paid for the Equity Interests are RMB 48.0 million (approximately $7.5 million) in cash and 4,200,000 Class A ordinary shares of the Company. The Company issued an aggregate of 4,200,000 ordinary shares of the Company to certain transaction on November 12, 2021. The total compensation cost was $3,736,320.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 21, 2021, the Company held its annual meeting of shareholders for its fiscal year ending March 31, 2021. The Company approved as a special resolution an alteration to the share capital of the Company by: a: the conversion of each issued paid up Ordinary Share with a par value of $0.0005 each into stock (the “Stock”); b: the alteration of the authorized issued share capital of the Company from (i) US$50,000 divided into 90,000,000 Ordinary Shares with a par value of US$0.0005 each and 10,000,000 Preferred Shares with a par value of US$0.0005 each; to (ii) 70,000,000 Class A Ordinary Shares with a par value of $0.0005 each, 20,000,000 Class B Ordinary Shares with a par value of US$0.0005 each and 10,000,000 Preferred Shares with a par value of US$0.0005 each. Class A Ordinary Shares was entitled to one vote per share and to receive notice of, attend at and vote as a member at any general meeting of the Company; and be entitled to such dividends as the Board may from time to time declare; and generally be entitled to enjoy all of the rights attaching to shares. Class B Ordinary Shares was entitled to twenty (20) votes per share and to receive notice of, attend at and vote as a member at any general meeting of the Company; be entitled to such dividends as the Board may from time to time declare; and generally be entitled to enjoy all of the rights attaching to shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 12, 2022, the Company issued an aggregate of 1,133,200 Class A ordinary shares of the Company to certain employees for their services. The total compensation cost was $634,592.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 20, 2022, the Company entered several Securities Purchase Agreement with non-US persons. Pursuant to which, the Company issued 12,500,000 Class A ordinary shares to the purchasers with a total consideration amounted $10,000,000. The Company collected total net proceeds of $10,000,000 after deducting commissions and offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On March 4, 2022, the Company entered into a certain equity transfer agreement with Hekangyuan for the purchase of 100% of the equity interest of Hekangyuan at a consideration of $12.0 million. The total consideration paid for the Equity Interests are $8.0 million in cash and 10,000,000 Class A ordinary shares of the Company. The Company issued an aggregate of 10,000,000 ordinary shares of the Company to certain transaction on March 7, 2022. The total compensation cost was $3,560,000.  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 10, 2022, the Company entered several Securities Purchase Agreement with non-US investors. Pursuant to which, the Company issued 19,200,000 Class A ordinary shares to the purchasers with a total consideration amounted $6,720,000. The Company collected total net proceeds of $6,720,000 after deducting commissions and offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Non-controlling Interest</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Non-controlling interests represent the interest of non-controlling shareholders in Happiness Development Group Limited based on their proportionate interests in the equity of that company adjusted for their proportionate share, which is 30% to 49% of the particular subsidiaries, of income or losses from operations. See <i>Note 1</i> for details of the Company and its operating subsidiaries ownership.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Statutory reserve</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. In 2019, $56,077 was appropriated by Fujian Happiness to the statutory surplus reserve and the statutory reserve reached 50% of its registered capital. In 2020, no statutory surplus was appropriated. In 2021, $5,558,669 was appropriated by Fujian Happiness to the statutory surplus reserve. The reserved amounts as determined pursuant to PRC statutory laws amounted $7,622,765 and $7,622,765 as of March 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under PRC laws and regulations, statutory surplus reserves are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company, and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor allowed for distribution except under liquidation. Amounts restricted include paid-in capital, additional paid-in capital and statutory surplus reserves of the Company in PRC amounted $19,978,449 and $18,978,449 as of March 31, 2022 and 2021, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">As of March 31, 2022, our PRC subsidiaries had an aggregate retained earnings of approximately RMB195.2 million (US$26.04 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Options</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2019, the Company granted its underwriters an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s Ordinary Shares to be offered by the Company pursuant to the offering (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. These options expired and unexercised in 2020.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Contractual Life in Days</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Options Outstanding as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-129">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-130">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-131">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-132">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Options Exercisable as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-133">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-134">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-135">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-136"> </div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Options granted</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">300,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5.12</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">45</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-137">               -</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Options forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-138">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-139">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-140">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-141">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options expired</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(300,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-142">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Options Outstanding as of March 31, 2022 and 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-143">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Options Exercisable as of March 31, 2022 and 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">-</div></td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Warrants</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2019, the Company granted to the underwriters warrants to purchase up to a total of 184,000 ordinary shares (equal to 8% of the aggregate number of ordinary shares sold in the offering, if over-allotment shares are placed by the underwriters. Without over-allotment share issuance, a total of 160,000 warrants will be granted). The warrants will be exercisable at an exercise price equal to one hundred twenty percent (120%) of the offering price, in whole or in parts, at any time from issuance and expire five (5) years from the effective date of the offering.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s outstanding and exercisable warrants as of March 31, 2022 are presented below:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Contractual Life in Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">     -</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="width: 52%; text-align: left">Warrants granted</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">-</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-158">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-159">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Warrants exercised</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-160">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-161">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-162">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-163">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding as of March 31, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-164">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Warrants Outstanding as of March 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-165">-</div></td><td style="text-align: left"> </td></tr> </table> 50000 1 1 627628 4000000 50000 90000000 10000000 100000000 1 0.0005 77223100 223100 2000000 0.0005 5.5 11000000 9342339 5100000 10965703 10725700 381580 778423 231445 351796 1240000 2157600 2157600 113458 99843 0.70 103000000 16100000 48000000 7500000 4200000 4200000 3736320 0.0005 50000 90000000 0.0005 10000000 0.0005 70000000 0.0005 20000000 0.0005 10000000 0.0005 1133200 634592 12500000 10000000 10000000 1 12000000 8000000 10000000 10000000 3560000 19200000 6720000 6720000 0.30 0.49 Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. In 2019, $56,077 was appropriated by Fujian Happiness to the statutory surplus reserve and the statutory reserve reached 50% of its registered capital. In 2020, no statutory surplus was appropriated. 5558669 7622765 7622765 19978449 18978449 195200000 26040000.00 0.15 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Contractual Life in Days</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Options Outstanding as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-129">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-130">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-131">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-132">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Options Exercisable as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-133">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-134">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-135">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-136"> </div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Options granted</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">300,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5.12</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">45</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-137">               -</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Options forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-138">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-139">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-140">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-141">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options expired</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(300,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.12</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-142">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Options Outstanding as of March 31, 2022 and 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-143">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Options Exercisable as of March 31, 2022 and 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">-</div></td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 300000 5.12 P45Y -300000 5.12 P45Y the Company granted to the underwriters warrants to purchase up to a total of 184,000 ordinary shares (equal to 8% of the aggregate number of ordinary shares sold in the offering, if over-allotment shares are placed by the underwriters. Without over-allotment share issuance, a total of 160,000 warrants will be granted). The warrants will be exercisable at an exercise price equal to one hundred twenty percent (120%) of the offering price, in whole or in parts, at any time from issuance and expire five (5) years from the effective date of the offering. <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Contractual Life in Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding as of March 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">     -</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="width: 52%; text-align: left">Warrants granted</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">-</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants forfeited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-158">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-159">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Warrants exercised</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-160">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-161">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-162">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-163">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Warrants Outstanding as of March 31, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-164">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Warrants Outstanding as of March 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-165">-</div></td><td style="text-align: left"> </td></tr> </table> 160000 6.6 P4Y7M6D 160000 6.6 P3Y7M6D 160000 6.6 P2Y7M6D <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 13 – TAXES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) Corporate Income Taxes (“CIT”)</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated in the Cayman Islands and is not subject to tax on income or capital gain under the laws of the Cayman Islands.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Happiness Hong Kong was incorporated in Hong Kong and is subject to a statutory income tax rate of 16.5%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Fujian Happiness, the Company’s main operating entity in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from December 2019 to December 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended March 31, 2022 and 2021, respectively, and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table reconciles the statutory rate to the Company’s effective tax rate:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">PRC statutory income tax rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Effect of PRC preferential tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of other deductible expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.7</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.4</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3.3</td><td style="padding-bottom: 1.5pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">17.7</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">22.4</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">18.3</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The provision for income tax consisted of the following:</p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Current income tax provision</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">195,678</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">959,384</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,844,087</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred income tax provision</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,921,905</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-166">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-167">  -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(3,726,227</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">959,384</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,844,087</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The deferred income tax assets and liabilities as below:</p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Net accumulated loss-carry forward</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,402,633</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-168">   -</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-169">     -</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(606,141</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-170">      -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-171">        -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net deferred tax assets</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3,796,492</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-172">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-173">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Beginning balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-174">        -</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-175">          -</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Write-off</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-176"> </div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-177"> </div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-178"> </div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Change of valuation allowance</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">4,402,633</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-179">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-180">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 4pt">Ending balance</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,402,633</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-181">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-182">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Intangible assets arising from acquisition</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">(2,079,986</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-183">       -</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-184">      -</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total deferred tax liabilities</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(2,079,986</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-185">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-186">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred income taxes reflect the net effects of temporary difference between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. The Company recorded deferred tax assets of $3,796,492 and deferred tax liabilities of $2,079,986 as of March 31, 2022. The Company recorded no deferred tax assets and liabilities as of March 31, 2021, as there was no material temporary difference between the carrying amounts of assets and liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) Taxes Payable</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company’s taxes payable as of March 31, 2022 and 2021 consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Income tax payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,078</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">377,025</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">VAT payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,035</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Other tax payables</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">19,958</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,533</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,225</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">334,523</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 0.165 effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Fujian Happiness, the Company’s main operating entity in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from December 2019 to December 2022. <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">PRC statutory income tax rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25.0</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Effect of PRC preferential tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10.0</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Effect of other deductible expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.7</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7.4</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3.3</td><td style="padding-bottom: 1.5pt; text-align: left">)%</td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">17.7</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">22.4</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">18.3</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 0.25 0.25 0.25 0.10 0.10 0.10 0.027 0.074 -0.033 0.177 0.224 0.183 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Current income tax provision</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">195,678</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">959,384</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,844,087</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred income tax provision</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,921,905</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-166">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-167">  -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(3,726,227</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">959,384</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,844,087</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> 195678 959384 2844087 -3921905 -3726227 959384 2844087 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Net accumulated loss-carry forward</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,402,633</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-168">   -</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-169">     -</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Less: valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(606,141</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-170">      -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-171">        -</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net deferred tax assets</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3,796,492</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-172">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-173">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Beginning balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-174">        -</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-175">          -</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Write-off</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-176"> </div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-177"> </div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-178"> </div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Change of valuation allowance</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">4,402,633</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-179">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-180">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 4pt">Ending balance</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,402,633</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-181">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-182">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Intangible assets arising from acquisition</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">(2,079,986</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-183">       -</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-184">      -</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total deferred tax liabilities</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(2,079,986</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-185">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-186">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 4402633 606141 3796492 4402633 4402633 -2079986 -2079986 3796492 2079986 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td><td> </td> <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>As of</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31,</b></p></td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Income tax payable</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,078</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">377,025</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">VAT payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,035</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Other tax payables</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">19,958</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,533</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,225</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">334,523</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table> 15078 377025 2189 -53035 19958 10533 37225 334523 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 14 – BUSINESS COMBINATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Acquisition of Daji</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 1, 2021, the Company acquired 51% equity interest of DAJI with total cash consideration of $75,044 (RMB510,000). DAJI is a company incorporated in Nanjing, the PRC and engages in providing live show service. The results of DAJI have been included in the consolidated financial statements of the Company since the acquisition date of February 1, 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the acquisition date, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows. Fair value of the non-controlling interests was estimated based on the equity value of DAJI derived by the discounted cash flow method after considering a discount for lack of control:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left">Net liabilities acquired</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(11,544</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(76,244</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">75,044</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Purchase price – cash consideration</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">75,044</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited pro forma combined statements of operations presents the accounts of the Company and DAJI for the years ended March 31, 2021 and 2020, respectively, assuming the acquisition occurred on April 1, 2019.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1.5pt solid">2021 Summary Statement of Operations</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">HAPPINESS BIOTECH GROUP LIMITED</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">DAJI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">71,433,130</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">175,425</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">71,608,555</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Income (Loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">683,926</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,333</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">681,593</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><div style="-sec-ix-hidden: hidden-fact-188; -sec-ix-hidden: hidden-fact-187">Net Income (Loss) per ordinary share - basic and diluted</div></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><div style="-sec-ix-hidden: hidden-fact-190; -sec-ix-hidden: hidden-fact-189">Weighted average ordinary shares - basic and diluted</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,160,270</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,160,270</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-30</p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1.5pt solid">2020 Summary Statement of Operations</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">HAPPINESS BIOTECH GROUP LIMITED</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">DAJI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,061,953</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,429</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,069,382</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Income (Loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,688,035</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(21</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,688,014</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><div style="-sec-ix-hidden: hidden-fact-192; -sec-ix-hidden: hidden-fact-191">Net Income (Loss) per ordinary share - basic and diluted</div></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.53</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.53</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><div style="-sec-ix-hidden: hidden-fact-194; -sec-ix-hidden: hidden-fact-193">Weighted average ordinary shares - basic and diluted</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,843,836</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,843,836</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Acquisition of Shennong</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 12, 2021, the Company acquired 70% equity interest of Shennong with total cash consideration of $7.5 million (RMB 48.0 million) and 4,200,000 Class A ordinary shares of the Company. The Class A Ordinary Shares were registered on November 12, 2021, valued at $0.8896 per share. Shennong is a company incorporated in Fujian, the PRC and focus on agriculture products, electronic products and hardware products. Acquisition of Shennong has strengthen the supply-chain as well as the industrial integration of online store. According to the share transfer agreement signed with the transferer, the Company owns the right to require the transferer purchasing back all the equity interests in cash of RMB72.1million if the target company doesn’t meet the profit target. In the year ended March 31, 2021, the Company has paid $9.1 million (RMB 60.0 million) to the transferer as a deposit of this acquisition. And the overpaid RMB 12.0 million (approximately $1.9 million with $0.3 million exchange gain) has been collected back in the year ended March 31, 2022. The results of Shennong have been included in the consolidated financial statements of the Company since the acquisition date of November 12, 2021.  </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The balance sheet as of March 31, 2022 and the statement of income and comprehensive income for the period from the acquisition date to March 31, 2022 has been consolidated into the Company’s consolidated financial statements. The net revenue and net income of Shennong since the acquisition date and that were included in the Company’s consolidated statements of operations and comprehensive income/(loss) for year ended March 31, 2022 are $4,444,960 and $354,722, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified, contingent consideration and non-controlling interests as of the acquisition day.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The identifiable intangible assets acquired upon acquisition were customer relationships with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common share on the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values. Fair value of the non-controlling interests was evaluated based on the equity value of Shennong derived by the discounted cash flow method after considering a discount for lack of control:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fair value of total consideration transferred:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 89%; text-align: left">Equity instrument (4.2 million Class A Ordinary Shares issued)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3,736,320</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Cash consideration</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,492,391</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> 11,228,711</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Recognized amounts of identifiable assets acquired and liability assumed:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,091</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current assets other than cash</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,591,825</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Intangible asset – customer relationships</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,214,470</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13,650,246</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,053,617</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total identifiable net assets</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,161,523</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Fair value of non-controlling interests^*</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,010,254</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-size: 10pt"><b>Goodwill^*</b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">12,077,442</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0%"/><td style="width: 0.25in; text-align: left">*</td><td style="text-align: justify">The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong.</td> </tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-controlling interest was recognized and measured at fair value on the acquisition date by the Company.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Acquisition of Hekangyuan</i></p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 4, 2022, the Company acquired 100% equity interest of Hekangyuan with total cash consideration of $8 million and 10,000,000 Class A Ordinary Shares of the Company. The Class A Ordinary Shares were registered on March 4, 202, valued at $0.365 per share. Hekangyuan is a company incorporated in Fujian, the PRC and focus on the sales of healthcare products and optical glasses. The acquisition has further strengthened the distribution network of the Company. According to the share transfer agreement signed with the transferer, the Company owns the right to require the transferer purchasing back all the equity interests in cash of $12.0 million if the target company doesn’t meet the profit target. The results of Hekangyuan have been included in the consolidated financial statements of the Company since the acquisition date of March 4, 2022.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The balance sheet as of March 31, 2022 and the statement of income and comprehensive income for the period from the acquisition date to March 31, 2022 has been consolidated into the Company’s consolidated financial statements.The net revenue and net income of Hekangyuan since the acquisition date and that were included in the Company’s consolidated statements of operations and comprehensive income/(loss) for year ended March 31, 2022 are $917,787 and $38,178, respectively.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of the acquisition day.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The identifiable intangible assets acquired upon acquisition were customer relationships with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common share on the acquisition date.</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows:</p><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fair value of total consideration transferred:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left"><div style="-sec-ix-hidden: hidden-fact-195">Equity instrument (10 million Class A Ordinary Shares issued)</div></td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cash consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,000,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 1.5pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">11,650,000</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; text-align: left">Recognized amounts of identifiable assets acquired and liability assumed:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,164</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Current assets other than cash</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,882,139</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property, plant and equipment, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">187</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Intangible asset – customer relationships</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,582,227</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,829,733</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,145,557</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total identifiable net assets</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,490,427</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Fair value of non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-size: 10pt"><b>Goodwill^*</b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,159,573</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in; text-align: left">*</td><td style="text-align: justify">The goodwill generated from the expected synergies from the cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan.</td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The business combination accounting is provisionally complete for all assets and liabilities acquired on the acquisition date and the Company will continue to evaluate the asset values within the 1-year timeframe according to ASC 805.</p> 0.51 75044 510000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left">Net liabilities acquired</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(11,544</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">162,832</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(76,244</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">75,044</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Purchase price – cash consideration</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">75,044</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> -11544 162832 76244 75044 75044 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1.5pt solid">2021 Summary Statement of Operations</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">HAPPINESS BIOTECH GROUP LIMITED</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">DAJI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">71,433,130</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">175,425</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">71,608,555</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Income (Loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">683,926</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,333</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">681,593</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><div style="-sec-ix-hidden: hidden-fact-188; -sec-ix-hidden: hidden-fact-187">Net Income (Loss) per ordinary share - basic and diluted</div></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><div style="-sec-ix-hidden: hidden-fact-190; -sec-ix-hidden: hidden-fact-189">Weighted average ordinary shares - basic and diluted</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,160,270</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,160,270</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1.5pt solid">2020 Summary Statement of Operations</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">HAPPINESS BIOTECH GROUP LIMITED</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">DAJI</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Combined</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Revenue</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,061,953</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,429</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">65,069,382</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net Income (Loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,688,035</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(21</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,688,014</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><div style="-sec-ix-hidden: hidden-fact-192; -sec-ix-hidden: hidden-fact-191">Net Income (Loss) per ordinary share - basic and diluted</div></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.53</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.53</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><div style="-sec-ix-hidden: hidden-fact-194; -sec-ix-hidden: hidden-fact-193">Weighted average ordinary shares - basic and diluted</div></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,843,836</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,843,836</td><td style="text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 71433130 175425 71608555 683926 -2333 681593 0.03 0.03 26160270 26160270 65061953 7429 65069382 12688035 -21 12688014 0.53 0.53 23843836 23843836 0.70 7500000 48000000 4200000 0.8896 72 9100000 60000000 12000000 1900000 300000 4444960 354722 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fair value of total consideration transferred:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 89%; text-align: left">Equity instrument (4.2 million Class A Ordinary Shares issued)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">3,736,320</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Cash consideration</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,492,391</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"> 11,228,711</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Recognized amounts of identifiable assets acquired and liability assumed:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,091</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current assets other than cash</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,591,825</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Intangible asset – customer relationships</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,214,470</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13,650,246</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,053,617</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total identifiable net assets</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,161,523</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Fair value of non-controlling interests^*</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,010,254</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-size: 10pt"><b>Goodwill^*</b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">12,077,442</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0%"/><td style="width: 0.25in; text-align: left">*</td><td style="text-align: justify">The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong.</td> </tr></table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Fair value of total consideration transferred:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left"><div style="-sec-ix-hidden: hidden-fact-195">Equity instrument (10 million Class A Ordinary Shares issued)</div></td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cash consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,000,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; padding-bottom: 1.5pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">11,650,000</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="font-weight: bold; text-align: left">Recognized amounts of identifiable assets acquired and liability assumed:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,164</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Current assets other than cash</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,882,139</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property, plant and equipment, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">187</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Intangible asset – customer relationships</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,582,227</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,829,733</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,145,557</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total identifiable net assets</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,490,427</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Fair value of non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-size: 10pt"><b>Goodwill^*</b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,159,573</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> </table><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 6pt"> </span></p> 4.2 3736320 7492391 11228711 59091 13591825 4214470 13650246 -1053617 3161523 4010254 12077442 1 8000000 10000000 0.365 12000000 917787 38178 3650000 8000000 11650000 1164 1882139 187 4582227 1829733 -1145557 3490427 8159573 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 15 – DECONSOLIDATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year, the Company has disposed several subsidiaries supporting the online store business to optimize the Company’s structure and recognized loss resulting from the deconsolidation amounted to $95,932 and $0, for the year ended March 31, 2022 and 2021, respectively. </p> 95932 0 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 16 – COMMITMENTS AND CONTINGENCIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022 and 2021, Company has no significant leases or unused letters of credit.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the Company is involved in various legal proceedings, claims and other disputes arising from commercial operations, employees, and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. As of March 31, 2022 and 2021, Company has no pending legal proceedings.</p> <p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 17 – SEGMENT REPORTING  </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before March 31, 2021, the Company’s CODM, chief executive officer, measures the performance of the Company based on metrics of revenue only and doesn’t focus on any profit of the business. Starting from April 1, 2021, the Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and gross profit and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets and operating expenses to its segments as the CODM does not evaluate the performance of segments using asset and operating expenses information.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"><b> </b></span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the year ended March 31, 2022, the Company has determined that it operates in four operating segments: (1) Healthcare products; (2) Automobile; (3) Online store; and (4) Internet information and advertising service. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following tables present the summary of each reportable segment’s revenue and gross profit, which is considered as a segment operating performance measure, for the fiscal year ended March 31, 2022:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td colspan="18" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Fiscal year ended March 31, 2022</b></span></td> <td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Healthcare products</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Automobile</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Online store</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Internet information and advertising service</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Consolidated</b></span></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 40%"><span style="font-size: 10pt">Revenues </span></td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">30,323,831</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">20,611,775</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">28,014,109</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">10,538,943</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">89,488,658</span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Cost</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(30,538,282</span></td> <td><span style="font-size: 10pt">) </span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(20,380,773</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(25,844,918</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(9,013,219</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(85,777,192</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Segment gross profit</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(214,451</span></td> <td><span style="font-size: 10pt">) </span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">231,002</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">2,169,191</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">1,525,724</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">3,711,466</span></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Segment gross profit margin</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">(0.7</span></td> <td><span style="font-size: 10pt">)%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">1.1</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">7.7</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">14.5</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">4.1</span></td> <td><span style="font-size: 10pt">%</span></td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td colspan="18" style="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Fiscal year ended March 31, 2022</b></span></td> <td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Healthcare products</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Automobile</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Online store</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Internet information and advertising service</b></span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Consolidated</b></span></td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 40%"><span style="font-size: 10pt">Revenues </span></td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">30,323,831</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">20,611,775</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">28,014,109</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">10,538,943</span></td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 9%; text-align: right"><span style="font-size: 10pt">89,488,658</span></td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Cost</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(30,538,282</span></td> <td><span style="font-size: 10pt">) </span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(20,380,773</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(25,844,918</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(9,013,219</span></td> <td><span style="font-size: 10pt">)</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(85,777,192</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Segment gross profit</span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">(214,451</span></td> <td><span style="font-size: 10pt">) </span></td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">231,002</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">2,169,191</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">1,525,724</span></td> <td> </td> <td> </td> <td><span style="font-size: 10pt">$</span></td> <td style="text-align: right"><span style="font-size: 10pt">3,711,466</span></td> <td> </td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Segment gross profit margin</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">(0.7</span></td> <td><span style="font-size: 10pt">)%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">1.1</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">7.7</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">14.5</span></td> <td><span style="font-size: 10pt">%</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">4.1</span></td> <td><span style="font-size: 10pt">%</span></td></tr> </table> 30323831 20611775 28014109 10538943 89488658 30538282 20380773 25844918 9013219 85777192 -214451 231002 2169191 1525724 3711466 -0.007 0.011 0.077 0.145 0.041 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 18 – CUSTOMER AND SUPPLIER CONCENTRATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s sales are made to customers that are located primarily in China. For the years ended March 31, 2022 and 2021, no individual customer accounted for more than 10% of the Company’s total revenues.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended March 31, 2022, Guanxian Chunjiang Ganoderma professional cooperative community and Fuzhou Chenyao Industrial Co., Ltd. contributed approximately 13.4% and 12.5% of total purchases of the Company, respectively, which amounted to $14.7 million and $13.7 million respectively. The accounts payable of Guanxian Chunjiang Ganoderma professional cooperative community and Fuzhou Chenyao Industrial Co., Ltd. amounted to $4.3 million and <span style="-sec-ix-hidden: hidden-fact-196">nil</span> as of March 31, 2022. For the years ended March 31, 2021 and 2020, the Company purchased a substantial portion of raw materials from one third-party supplier (16.84% of total raw materials purchase for the year ended March 31, 2021 and 16.67% of total raw materials purchases for the year ended March 31, 2020). As of March 31, 2021, the amounts due to this vendor was $645,635. As of March 31, 2020, the amounts due to this vendor was $-0-</p> Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.  0.10 0.10 0.134 0.125 14700000 13700000 0.043 0.1684 0.1667 645635 0 <p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 19 – SUBSEQUENT EVENTS </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 21, 2022, 150,000 Class A Ordinary Shares owned by Xuezhu Wang were reconverted into Class B Ordinary Shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 1, 2022, the Company repaid $1,065,238 (RMB 7.0 million) under the above Max Pledge Amount Agreement from Industrial Bank Co., Ltd. On the same day, the Company borrowed $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 0.9%. The loan facility agreement is personally guaranteed by Mr. Xuezhu Wang, Mr. Xianfu Wang, and Mrs. Yanying Lin. The Company also pledged its building and land use rights as collaterals. There were no loan guarantee fees paid to the personal guarantors.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 24, 2022, Ganzhou Youjia New Energy Automobile Sales Co., Ltd. was dissolved.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 8pt"> </span></p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company evaluated all events and transactions that occurred after March 31, 2022 through the date of the issuance of the consolidated financial statements on August 15, 2022 and noted that there were no other material subsequent events.</p> 150000 1065238 7000000 1065238 7000000 0.009 353001 0.03 0.53 -1.22 23843836 40485912 40485912 0.03 0.03 26160270 26160270 0.53 0.53 23843836 23843836 10.0 false N/A FY 00000 0001751876 Shunchang Xiaocongcong Electronic Commerce Co., Ltd. was a company with no operation. The Company closed it in October 2021. Shunchang Happy Cat Electronic Commerce Co., Ltd. and Shunchang Subobo E-commerce Co., Ltd. were disposed in November 2021 due to the business optimization. Shunchang Xianghong Electronic Commerce Co., Ltd. was closed in October 2021 due to the business optimization. Happy Doddo and its subsidiaries were focus on the online store operation. In February 2022, the Company disposed Happy Doddo and its subsidiaries to a third party. Happy Feiyue and its subsidiary were focus on the online store operation. In January 2022, the Company disposed Happy Feiyue and its subsidiary to a third party. Fuzhou Baodeng and its subsidiaries were focus on the online store operation. In March 2022, the Company disposed Fuzhou Baodeng and its subsidiaries to a third party. During the year ended March 31, 2022, the Company closed 12 subsidiaries to optimize the Company’s structure on online store business. In the year ended March 31, 2022, the Company signed a cooperation agreement with a third party to invest in Hangzhou Weilan Automobile Co., Ltd. (“Weilan”) and paid $448,946 to the shareholders of Weilan. In June 2022, both parties agreed to terminate the cooperation agreement and the Company collected the full prepayment. Loans receivables to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from six to nine months and the interest rate from 0.03% to 0.5% per day. The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong.