YIJIA Narrows Losses Amid Revenue Dip, Boosts Cash Reserves

TL;DR

**VNOV is still bleeding cash, but the new consulting segment and cost cuts offer a glimmer of hope for a turnaround.**

AI Summary

YIJIA GROUP CORP. (VNOV) reported a net loss of $46,301 for the three months ended July 31, 2025, an improvement from the $55,211 net loss in the same period of 2024. Revenue decreased by 4.2% to $103,899 in Q1 2025 from $108,477 in Q1 2024, primarily due to a decline in healthcare product sales from $108,477 to $99,674. However, the company successfully launched a new Consulting Service Segment, generating $4,225 in revenue in Q1 2025, which was non-existent in Q1 2024. Operating expenses saw a significant reduction of 14.7% to $101,221 from $118,587, driven by a 35.3% decrease in personnel and benefit costs to $34,928. Cash increased substantially by $263,810, reaching $1,046,620 by July 31, 2025, compared to $782,810 at April 30, 2025, primarily from operating activities. The company continues to operate with a full valuation allowance on its deferred tax assets, totaling $120,008 as of July 31, 2025, indicating ongoing uncertainty about future taxable income.

Why It Matters

For investors, YIJIA GROUP CORP.'s continued net losses, despite improvement, signal ongoing operational challenges and a lack of profitability, making it a high-risk investment. The shift in revenue from Hong Kong to the United States, coupled with the introduction of consulting services, suggests a strategic pivot that could impact competitive dynamics in both the healthcare and consulting sectors. Employees might face continued pressure on personnel costs, as evidenced by the significant reduction in benefits. Customers of healthcare products may see changes in product availability or focus, while new consulting clients represent a nascent revenue stream. The broader market will watch if VNOV can successfully diversify its revenue streams and achieve sustainable profitability in a competitive landscape.

Risk Assessment

Risk Level: high — The company reported a net loss of $46,301 for the three months ended July 31, 2025, and has a full valuation allowance on its deferred tax assets of $120,008, indicating management's uncertainty about generating future taxable income. Additionally, the effective tax rate was a negative 42.7% for the period, primarily due to adjustments to current year taxes and valuation allowance, highlighting significant financial instability.

Analyst Insight

Investors should exercise extreme caution and consider VNOV a speculative investment due to persistent net losses and a fully reserved deferred tax asset. Monitor the growth of the new Consulting Service Segment and its contribution to overall profitability, as well as any further reductions in operating expenses, to assess the viability of its strategic pivot.

Financial Highlights

debt To Equity

0.20

revenue

$103,899

operating Margin

-97.4%

total Assets

$2,242,358

total Debt

$0

net Income

-$46,301

eps

N/A

gross Margin

66.2%

cash Position

$1,046,620

revenue Growth

-4.2%

Revenue Breakdown

Key Numbers

• $46,301 — Net Loss (Decreased from $55,211 in Q1 2024, showing a 16.1% improvement.)
• $103,899 — Total Revenue (Decreased by 4.2% from $108,477 in Q1 2024, primarily due to lower healthcare product sales.)
• $4,225 — Consulting Service Revenue (New revenue stream in Q1 2025, up from $0 in Q1 2024, indicating diversification.)
• $101,221 — Total Operating Expenses (Reduced by 14.7% from $118,587 in Q1 2024, contributing to narrowed losses.)
• $34,928 — Personnel and Benefit Costs (Decreased by 35.3% from $53,984 in Q1 2024, a key driver of expense reduction.)
• $1,046,620 — Cash (Increased by $263,810 from $782,810 at April 30, 2025, primarily from operating activities.)
• 25,012,270 — Shares Outstanding (Remained constant, indicating no dilution for shareholders.)
• $120,008 — Deferred Tax Assets (Fully reserved with a valuation allowance, signaling uncertainty about future profitability.)
• -42.7% — Effective Tax Rate (Significantly negative, primarily due to adjustments and valuation allowance on deferred tax assets.)

Key Players & Entities

• YIJIA GROUP CORP. (company) — registrant
• Nutripeak Trading Corporation (company) — subsidiary
• Securities and Exchange Commission (regulator) — filing authority
• Qiuping Lu (person) — Chief Executive Officer and Director
• Steve Niu (person) — Chief Financial Officer and Director
• $46,301 (dollar_amount) — net loss for Q1 2025
• $103,899 (dollar_amount) — total revenue for Q1 2025
• $1,046,620 (dollar_amount) — cash balance as of July 31, 2025
• $120,008 (dollar_amount) — deferred tax assets fully reserved
• Nevada (company) — state of incorporation

FAQ

Risk Factors

• Uncertainty in Future Profitability [medium — financial]: The company maintains a full valuation allowance on its deferred tax assets totaling $120,008 as of July 31, 2025. This indicates management's assessment that it is more likely than not that no deferred tax benefits will be realized, suggesting ongoing concerns about future taxable income.
• Dependence on Healthcare Product Sales [medium — operational]: Revenue from healthcare products decreased by 8.1% to $99,674 in Q1 2025 from $108,477 in Q1 2024. This decline contributed significantly to the overall revenue drop, highlighting a reliance on this segment.
• Effective Tax Rate Volatility [low — operational]: The effective tax rate is significantly negative (-42.7%) due to adjustments and the valuation allowance on deferred tax assets. This can lead to unpredictable tax impacts on net income.

Industry Context

Yijia Group Corp. operates in segments including healthcare products and consulting services. The healthcare product market is competitive, with trends towards specialized supplements like Nicotinamide Riboside capsules. The consulting sector is driven by demand for business, accounting, and financial advisory services, often influenced by economic conditions and regulatory changes.

Regulatory Implications

The company's operations are subject to standard financial reporting regulations, including GAAP. The maintenance of a valuation allowance on deferred tax assets signals potential scrutiny regarding the company's long-term financial viability and tax planning strategies.

What Investors Should Do

1. Monitor the growth and profitability of the new Consulting Service Segment to assess its contribution to offsetting declines in healthcare product sales.
2. Evaluate the sustainability of the reduced operating expenses, particularly personnel costs, to ensure it does not negatively impact future growth or operational capacity.
3. Observe trends in healthcare product sales to understand the drivers of the recent decline and potential for recovery.
4. Assess the company's strategy for addressing the uncertainty indicated by the valuation allowance on deferred tax assets, which impacts future tax liabilities and net income.

Glossary

Valuation Allowance

A contra-asset account used to reduce the carrying amount of deferred tax assets when it is determined that it is more likely than not that some portion or all of the deferred tax asset will not be realized. (Indicates the company's uncertainty about its ability to generate sufficient future taxable income to utilize its deferred tax assets.)

Deferred Tax Assets

Tax assets that result from deductible temporary differences or net operating loss carryforwards. They represent future tax savings. (The company has these potential future tax benefits, but a valuation allowance suggests they may not be realized.)

Ex Works (EXW)

An Incoterm where the seller makes the goods available at their premises or another named place. The buyer bears all costs and risks in the transport of the goods from that point. (Relevant to the revenue recognition for healthcare products, indicating when the risk and title transfer to the customer.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Yijia Group Corp. has narrowed its net loss by 16.1% to $46,301, despite a 4.2% decrease in total revenue to $103,899. This improvement is largely attributed to a significant 14.7% reduction in total operating expenses, driven by a 35.3% decrease in personnel and benefit costs. A new consulting service revenue stream was introduced, contributing $4,225, while healthcare product sales declined. Cash reserves increased substantially by $263,810, primarily from operating activities, strengthening the company's liquidity position.

Key Financial Figures

• $1 — 100 shares of common stock, par value $1 per share 100 % YJGJ and its subsid
• $0.05 — al Officer - Steve Niu at fair value of $0.05 per share, subject to vesting condition

Filing Documents

• yijia_i10q-073125.htm (10-Q) — 450KB
• yijia_ex3101.htm (EX-31.1) — 9KB
• yijia_ex3102.htm (EX-31.2) — 9KB
• yijia_ex3201.htm (EX-32.1) — 4KB
• yijia_ex3202.htm (EX-32.2) — 3KB
• 0001683168-25-006918.txt ( ) — 2989KB
• yjgj-20250731.xsd (EX-101.SCH) — 26KB
• yjgj-20250731_cal.xml (EX-101.CAL) — 34KB
• yjgj-20250731_def.xml (EX-101.DEF) — 68KB
• yjgj-20250731_lab.xml (EX-101.LAB) — 217KB
• yjgj-20250731_pre.xml (EX-101.PRE) — 179KB
• yijia_i10q-073125_htm.xml (XML) — 376KB

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets as of July 31, 2025 and April 30, 2025 4 Unaudited Condensed Consolidated Statements of Operations for the Three Months ended July 31, 2025 and 2024 5 Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended July 31, 2025 and 2024 6 Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months ended July 31, 2025 and 2024 7 Notes to the Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21 PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 22 Item 6. Exhibits 22

Signatures

Signatures 23 2 PART 1 – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS The accompanying interim consolidated financial statements of Yijia Group Corp. ("the Company", "we", "us" or "our") have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements are condensed and should be read in conjunction with the Company's latest annual consolidated financial statements. In the opinion of management, the consolidated financial condition, results of operations, and cash flows of the Company for the interim periods presented. 3 YIJIA GROUP CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS July 31, 2025 April 30, 2025 (Unaudited) ASSETS Current assets: Cash $ 1,046,620 $ 782,810 Accounts receivable 1,014,282 1,266,951 Advances to vendors 158,802 158,802 Prepayment 10,083 – Inventories 9,130 44,247 Other current assets 3,441 3,441 Total current assets 2,242,358 2,256,251 TOTAL ASSETS $ 2,242,358 $ 2,256,251 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 67,431 $ 60,065 Deferred revenue 10,775 – Other current liabilities 1,226 820 Income tax payable 300,543 286,682 Total current liabilities 379,975 347,567 TOTAL LIABILITIES 379,975 347,567 Commitments and Contingencies – – Shareholders' equity: Common Stock, $ 0.001 par value; 75,000,000 shares authorized; 25,012,270 shares issued and outstanding as of July 31, 2025 and April 30, 2025 25,012 25,012 Additional paid in capital 1,012,971 1,012,971 Shares to be iss

financial statements and accompanying notes. Actual results could differ from those estimates

financial statements and accompanying notes. Actual results could differ from those estimates. Significant areas for which management uses estimates include: sales returns at point in time and allowances; inventory; income tax valuation allowances These estimates require the use of judgment as future events, and the effect of these events cannot be predicted with certainty. The estimates will change as new events occur, as more experience is acquired and as more information is obtained. We evaluate and update our assumptions and estimates on an ongoing basis and we may consult outside experts to assist as considered necessary. Revenue Recognition identify the contract with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to performance obligations in the contract; and recognize revenue as the performance obligation is satisfied. Currently, the Company operates in two business segments. The Consulting Service Segment mainly provides consulting advisory services in management, business, accounting and finance; and the Healthcare Segment mainly provides healthcare products and health consultation services to customers. The sale and distribution of healthcare products, such as Nicotinamide Riboside capsules, has only one performance obligation under the fixed-fee arrangements. Revenue is recognized from the sale of their healthcare products upon delivery to the customers, whereas the title and risk of loss are fully transferred to customers. 9 Shipping term under Ex Works ("EXW"), the Company fulfills the obligation to deliver when the products are available on their premises, i.e. the warehouse. Customers are responsible for all transportation costs, risk of loss, and any other costs that point onward. Revenue is earned from the rendering of consulting advisory services to customers. The Company recognizes services revenue over the period in which such services a

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our results of operations and financial condition should be read together with our unaudited condensed consolidated financial statements and the notes thereto, which are included elsewhere in this report and our Annual Report on Form 10-K for the fiscal year ended April 30, 2025 (the "Annual Report") filed with SEC. Our financial statements have been prepared in accordance with U.S. GAAP. In addition, our financial statements and the financial information included in this report reflect our organizational transactions and have been prepared as if our current corporate structure had been in place throughout the relevant periods. Forward looking statement notice or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. W

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