(Note: This is NOT an IPO. This is a NASDAQ uplisting from the OTCQB Marketplace, where Addentax Group’s stock trades under the symbol “ATXG” and the closing price for its common stock on July 25, 2022, was $7.50. This is a “firm commitment” public offering – in conjunction with the NASDAQ uplisting – of 5.0 million shares of common stock at $5.00.)

Addentax is our Nevada holding company, which is issuing the common stock in this public offering. 

We classify our businesses into four segments: garment manufacturing (includes textiles), logistics services, property management and subleasing, and epidemic prevention supplies.

Our garment manufacturing business consists of sales made principally to a wholesaler located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high-quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through four wholly owned subsidiaries, namely Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), Dongguan Yushang Clothing Co., Ltd (“YS”), Shantou Yi Bai Yi Garment Co., Ltd (“YBY”), and Shantou Chenghai Dai Tou Garments Co., Ltd (“DT”), which are located in the Guangdong province, China. In October 2020, the Company disposed of DT to a third party at fair value – its carrying value as of Sept. 30, 2020.

Our logistics business consists of delivery and courier services covering 79 cities in seven provinces and two municipalities in China. Although we have our own motor vehicles and drivers, we currently outsource some of the business to our contractors.  We conduct our logistic operations through four wholly owned subsidiaries, namely Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), Shenzhen Hua Peng Fa Logistic Co., Ltd (“HPF”), Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”) and Shenzhen Yingxi Tongda Logistic Co., Ltd (“TD”), which are located in the Guangdong province, China. In November 2020, the Company disposed of HPF to a third party at fair value – its carrying value as of Nov. 30, 2020.

Our property management and subleasing business provides shop subleasing and property management services for garment wholesalers and retailers in the garment market. We conduct our property management and subleasing operation through a wholly owned subsidiary, namely Dongguan Yingxi Daying Commercial Co., Ltd. (“DY”), which is located in the Guangdong province, China.

Our epidemic prevention supplies business consists of manufacturing and distribution of epidemic prevention products and resale of epidemic prevention supplies purchased from third parties in both domestic and overseas markets. We conduct our manufacturing of the epidemic prevention products in Dongguan Yushang Clothing Co., Ltd (“YS”). We conduct the trading of epidemic prevention suppliers through Addentax and Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), a wholly owned subsidiary of the Company, which is located in the Guangdong province in China.

**Note: Revenue and net income figures are for fiscal year 2021.

(Note: Addentax Group Corp. priced its public offering on Aug. 30, 2022 – in conjunction with its NASDAQ uplisting – in line with the terms in its prospectus: 5.0 million shares at $5.00 each to raise $25.0 million. The stock was expected to start trading Wednesday, Aug. 31, 2022, on the NASDAQ.)

(Background: Addentax Group Corp. updated its S-1/A on July 25, 2022. Addentax, the Nevada holding company of a Chinese garment and textiles manufacturing business, a logistics business, a property management and subleasing business and an epidemic prevention supplies business, increased the size of its IPO by 150 percent in an S-1/A dated Jan. 22, 2021, to 5 million shares at $5.00, the last closing price of its stock on the OTC, to raise $25 million – up 150 percent from its initial terms of 2 million shares at $5.00 each to raise $10 million. Addentax Group Corp. filed its S-1 on April 18, 2019.)