CXJ GROUP CO., Ltd

CXJ GROUP CO., Ltd is a United States holding company that primarily operates in China through its PRC WFOE subsidiary, CXJ (Shenzhen) Technology Co., Ltd. (SZ CXJ). To comply with Chinese laws and regulations that prohibit or restrict foreign ownership in companies providing value-added services, CXJ GROUP CO., Ltd uses a Variable Interest Entity (VIE) structure. This involves a series of contractual arrangements with CXJ Technology (Hangzhou) Co., Ltd. (HZ CXJ), which is the VIE. Through these agreements, SZ CXJ is the primary beneficiary of HZ CXJ for accounting purposes, and HZ CXJ is a PRC consolidation entity under U.S. GAAP. CXJ GROUP CO., Ltd consolidates the financial results of HZ CXJ and its subsidiaries in its consolidated financial statements in accordance with U.S. GAAP. Neither CXJ GROUP CO., Ltd nor its investors own any equity interest in, have direct foreign investment in, or control through ownership or investment in HZ CXJ or its subsidiaries. Investors in CXJ GROUP CO., Ltd's common stock are purchasing an equity interest in ECXJ, the Nevada holding company, and receive economic benefits from the VIE's business operations through these contractual agreements.