CXJ Group Co., Limited is a Nevada holding company that operates primarily in China through its PRC WFOE subsidiary, CXJ (Shenzhen) Technology Co., Ltd., and a variable interest entity, CXJ Technology (Hangzhou) Co., Ltd., with which it has contractual arrangements due to PRC restrictions on foreign ownership in certain businesses. The company is an automobile aftermarket products wholesaler and an auto detailing store consultancy, with a business divided into sales of automobile aftermarket products and authorization fees on its brand name "Chejiangling / Teenage Hero Car". As of May 31, 2026, more than 85 active franchise auto detailing stores use the brand name, and the store network has reached 23 provinces in China. The company aims to increase 400 stores with its customers across China in the next five years.

The automotive aftermarket products industry in China is highly fragmented and intensely competitive, with industry participants including large scale and well-funded manufacturers and distributors, as well as smaller counterparts. The market is highly sensitive to the introduction of new products, including the ever-growing list of engine oil products, which may rapidly capture a significant share of the market. Most of the company's business operations and product distribution are concentrated in Hunan, Henan and Shangdong provinces, China, and the company expects to expand its product sales into broader markets and more geographic areas in China. Competitors include China home-grown manufacturers and distributors, foreign companies with China operations, as well as product importers and distributors that carry the same categories of products.

The company generates revenue through two main sectors: sales of automobile aftermarket products and authorization fees on its brand name. It provides consultancy services to customers who are auto detailing store owners or persons planning to start stores, offering professional training, guidelines for standardizing stores, and an enterprise resource planning system (ERP) for information management and daily operations. Customers can sell the company's star product, NOVATE, a fully synthetic motor oil, and Ksoncar or X-Line, an automobile exhaust cleaner, in their stores. The company's customers are authorized to operate auto detailing stores under its brand name and must fulfill certain criteria, including location and services provided, and must provide services such as automobile detailing, engine system maintenance, air conditioning system cleaning and maintenance, braking system maintenance, and transmission system maintenance.

The company sells a variety of automotive aftermarket products, such as engine/machine oil, anti-icing fluid and auto parts. Currently it sells about two different brands of engine/machine oil, most of which are purchased from distributors from Germany and Malaysia, and auto parts purchased domestically, with 40 SKU of auto parts. The products are mainly sold to 4S repair shops. The company has developed an ERP system for its customers, which allows information management from both PC and mobile devices and daily operation of the stores, increasing the efficiency of store management. Most of the company's agents order from this platform.

The company's customers refer to 85 active auto detailing store owners or persons who are going to start the stores. Customers are authorized to operate stores under the brand name "Chejiangling / Teenage Hero Car" and sell the product Ksoncar in their stores. The company standardizes the stores and requires customers to provide standard and professional services to end customers. The premium experience of visiting the stores is intended to enhance the brand name and attract more customers to join the network of auto detailing stores.

During the fiscal year ended May 31, 2026, the company did not report any material product launches, acquisitions, or partnerships. However, in the prior fiscal year, on September 1, 2024, the company entered into a Subscription Agreement with Zhongxin Lei to issue and sell an aggregate of 160,000 shares at a price of $0.657 per share, with net proceeds of $105,128. On September 1, 2024, the company entered into a Subscription Agreement with Shiguo Wang to issue and sell 200,000 shares at a price of $0.675 per share, with net proceeds of $135,000. On September 2, 2024, the company entered into another Subscription Agreement with Shiguo Wang to issue and sell 200,000 shares at a price of $0.648 per share, with net proceeds of $129,600. These proceeds went directly to the company as working capital.

For the fiscal years ended May 31, 2026 and 2025, the company generated revenues of $531,606 and $458,632, respectively, and incurred net losses of $9,680 and $2,284,025, respectively. The company had an accumulated deficit of $7,657,185 and negative net assets of $1,624,018 as of May 31, 2026. The company's independent auditors added an explanatory paragraph to their audit opinion stating that the financial statements were prepared assuming the company would continue as a going concern, with substantial doubt raised about its ability to continue as a going concern.

The company's business plan is to extend its market share through acquiring quality businesses in the automotive aftermarket industries, in order to increase its customer base and supply channels, as well as to acquire more skilled employees and business connections. The company plans to continue developing its online and offline marketing platform. Management considers factors such as costs involved in an acquisition, financial performance of the target, reputation, existing customer base, supplier network, expertise of management and employees, and inventory condition when evaluating quality acquisition targets.

The company plans to diversify its existing product portfolio strategically, thereby providing customers with a wider range of choices and broadening its existing customer base. It also plans to continue to solidify relationships with existing suppliers as well as identifying new suppliers. The company intends to strengthen its corporate image by increasing marketing and promotion efforts, attract, motivate and retain high-quality talent, and continue to expand and explore additional services and products to enrich its one-stop services to customers.

The company intends to expand throughout Southeast Asia, especially in Malaysia, and anticipates spending a substantial amount in marketing and advertising in the coming years. Tentative plans include building brand image through print advertisements and possibly online paid advertisements, developing a corporate website, and using social media platforms such as Weibo, X, Instagram and Facebook to promote products to overseas markets. However, these marketing plans have not yet been determined in sufficient detail and remain under development.

The company's viability of business strategy plans includes Tik Tok's short videos e-commerce sales model, and financial support from the substantial shareholder and director (supported by a financial support letter) to generate sufficient funds to cover next 12 months cash demands. The company continues to focus on increasing its revenue through the sale of motor oil and auto parts products on e-commerce sales models such as Tik Tok to reduce its costs of goods sold, streamlining its overhead costs, or obtaining financing from its stockholders or directors.

Management may seek additional funds, primarily through the issuance of equity securities for cash and loans from potential investors and controlling stockholders, to operate its business and estimates that additional capital will be necessary to support its operations and growth. The company has not made any transfers, paid any dividends, or made any distributions to U.S. investors, and none of the Company, its subsidiaries, or its VIE has any plan to distribute earnings or settle amounts owed under the VIE Agreements in the foreseeable future.

The company intends to retain all available funds and future earnings, if any, for the operation of its VIE's business. The company's ability to achieve profitability depends on the competitiveness of its products and services as well as its ability to control costs and to provide new products and services to meet market demands and attract new customers. Due to numerous risks and uncertainties, the company cannot guarantee that it will be able to achieve profitability in the short-term or long-term.

The company faces significant headwinds including the uncertainty of the PRC legal system and the enforceability of its VIE agreements, which have not been tested in a court of law in the PRC. The Chinese government may exercise significant oversight and discretion over the conduct of the company's business operations in China, and could disallow or limit the use of the VIE structure, which could result in the company's shares significantly declining in value or becoming worthless. Additionally, the company's PRC subsidiary and consolidated affiliated entity failed to strictly comply with PRC laws and regulations to contribute towards social insurance premium and housing fund on behalf of their employees, and may be required to make up the shortfall.

The company is exposed to risks related to the distribution of products manufactured by third parties, including product liability claims, as it does not currently maintain any third-party liability insurance or product liability insurance in relation to products it sells. The company relies on independent suppliers and manufacturers, with products sourced from approximately eight independent suppliers, and does not have long-term contractual commitments with most of its retail or distributor customers, which could adversely affect its business if these relationships are not maintained.

Management's message emphasizes the company's position as an automobile aftermarket products wholesaler and auto detailing store consultancy, with a focus on expanding its market share through acquisitions and developing its online and offline marketing platform. The company's strategies include diversifying its product portfolio, solidifying supplier relationships, strengthening its corporate image through marketing, attracting and retaining high-quality talent, and expanding additional services and products. Management believes that successful acquisitions will bring synergies to the business and enhance shareholders' value. The company aims to increase 400 stores with its customers across China in the next five years, and plans to expand throughout Southeast Asia, especially in Malaysia. Management also highlights the viability of business strategy plans such as Tik Tok's short videos e-commerce sales model and financial support from the substantial shareholder and director to cover next 12 months cash demands.

For the fiscal year ended May 31, 2026, the company generated revenues of $531,606 ¹, compared to $458,632 ² in the prior fiscal year. Net loss for fiscal 2026 was $9,680 ³, compared to a net loss of $2,284,025 ⁴ in fiscal 2025. The company had an accumulated deficit of $7,657,185 ⁵ and negative net assets of $1,624,018 ⁶ as of May 31, 2026. The consolidated VIE had accumulated deficits of $2,213,665 ⁷ and $2,015,260 ⁸ as of May 31, 2026 and 2025, respectively. The company did not receive any cash dividends from its PRC subsidiaries for the years ended May 31, 2026 and 2025. The company's independent auditors added an explanatory paragraph to their audit opinion stating that the financial statements were prepared assuming the company would continue as a going concern, with substantial doubt raised about its ability to continue as a going concern.

The company faces material risks related to its VIE structure, as PRC laws prohibit or restrict foreign ownership in certain businesses, and the contractual arrangements have not been tested in a court of law in the PRC. If the Chinese government disallows or limits the use of the VIE, the company's shares could significantly decline in value or become worthless. The company also faces risks related to doing business in China, including the Chinese government's significant oversight and discretion over business operations, which could result in a material change in operations or the value of shares. Additionally, the company's PRC subsidiary and consolidated affiliated entity failed to strictly comply with PRC laws regarding social insurance premium and housing fund contributions, and may be required to make up the shortfall. The company relies on independent suppliers, with products sourced from approximately eight independent suppliers, and does not have long-term contractual commitments with most customers, which could adversely affect its business if these relationships are not maintained. The company does not maintain product liability insurance, exposing it to potential uninsured losses from product defects.