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Acquisitions of Subsidiaries | 12 Months Ended
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Mar. 31, 2025
Acquisitions of Subsidiaries [Abstract] |
ACQUISITIONS OF SUBSIDIARIES | NOTE 5 - ACQUISITIONS OF SUBSIDIARIES On January 31, 2025, the Company entered into that certain Equity Exchange Agreement with Mr. Lingtao Kong and Ridgeline, pursuant to which the Company acquired from Mr. Kong all of the issued and outstanding ordinary shares of Ridgeline, the direct parent company of Allright, by issuing 2,225,000 ordinary shares to Mr. Kong. The Acquisition were approved by the Company’s shareholders at our annual general meeting of shareholders held on February 25, 2025, and were closed on February 28, 2025. Ridgeline owns all the issued and outstanding equity interests of Allright, which operates in the B2B sector, providing wholesale distribution through self-operated and third-party platforms, with a focus on pharmaceuticals, medical devices, health foods, cosmetics, and daily necessities The fair value of the 2,225,000 ordinary shares issued was determined based on the closing market price of the Company’s ordinary shares on the acquisition date. Based on the closing market price of $1.61 on February 28, 2025, the acquisition-date fair value of the consideration transferred totaled $3,582,250. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Ridgeline International Limited is calculated as follows:
Total purchase considerations for 100% equity interest purchase |  | $ | 3,582,250 |
Fair value of assets acquired: |  |  |  |
Cash and cash equivalents |  | $ | 837,983 |
Restricted cash |  |  | 3,995,456 |
Trade accounts receivables |  |  | 4,998,140 |
Inventories |  |  | 1,904,532 |
Other receivables, net |  |  | 30,388 |
Other current assets |  |  | 93,263 |
Property and equipment, net |  |  | 3,299 |
Intangible assets, net |  |  | 2,087,109 |
Total assets acquired |  |  | 13,950,170 |
Fair value of liabilities assumed: |  |  |  |
Accounts payable |  | $ | 6,718,157 |
Notes payable |  |  | 4,532,086 |
Other payables |  |  | 42,686 |
Taxes payable |  |  | 16,947 |
Deferred tax liabilities |  |  | 521,777 |
Total liabilities assumed |  |  | 11,831,653 |
Total net assets acquired |  |  | 2,118,517 |
Goodwill as a result of the acquisition |  | $ | 1,463,733 |
The following table presents Ridgeline International Limited’s statement of income for the period from the date of acquisition through March 31, 2025.
|  | From the date of acquisition through March 31, 2025 |
Revenue |  | $ | 3,060,280 |
Operating costs and expenses |  |  | 2,904,704 |
Income from operations |  |  | 155,576 |
Other income |  |  | 321 |
Income tax expense |  |  | 38,974 |
Net income |  |  | 116,923 |
The following condensed unaudited pro forma consolidated results of operations for the Company and Ridgeline International Limited for the years ended March 31, 2025, 2024, and 2023 present the results of operations of the Company and Ridgeline International Limited as if the acquisitions occurred on April 1, 2022. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results.
|  | For the years ended March 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |
Revenue |  | $ | 75,566,508 |  |  | $ | 86,263,951 |  |  | $ | 53,075,095 |
Operating costs and expenses |  |  | 72,919,515 |  |  |  | 84,815,305 |  |  |  | 66,196,848 |
Income (loss) from operations |  |  | 2,646,993 |  |  |  | 1,448,646 |  |  |  | (13,121,753 | )
Other income (loss) |  |  | 3,547 |  |  |  | (1,412,695 | ) |  |  | (2,263,251 | )
Income tax expense |  |  | 218,561 |  |  |  | (13,936 | ) |  |  | 394,541 |
Net income (loss) |  |  | 2,431,979 |  |  |  | 49,887 |  |  |  | (15,779,545 | )

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