CXJ GROUP CO., Ltd

CXJ Group Co., Limited is a United States holding company that primarily operates in China through its PRC WFOE subsidiary, CXJ (Shenzhen) Technology Co., Ltd. To comply with Chinese laws and regulations that prohibit or restrict foreign ownership in companies providing value-added services, the Company uses a Variable Interest Entity (VIE) structure. This involves a series of contractual arrangements with CXJ Technology (Hangzhou) Co., Ltd. (the VIE). Through these agreements, CXJ (Shenzhen) Technology Co., Ltd. receives the economic benefits of the VIE's business operations and is considered the primary beneficiary for accounting purposes, consolidating the VIE's financial results in its consolidated financial statements under U.S. GAAP. Investors in CXJ Group Co., Limited's common stock are purchasing an equity interest in the Nevada holding company, not a direct equity interest in the VIE or its subsidiaries. The Company does not have any equity ownership of the VIE or its subsidiaries due to PRC legal restrictions on foreign ownership in certain businesses.