Company Overview

Agape ATP Corporation, a Nevada corporation (“the Company”), was incorporated on June 1, 2016. The Company operates through its subsidiaries, Agape ATP Corporation (“AATP LB”) in Labuan, Malaysia, and Agape Superior Living Sdn. Bhd. (“ASL”) in Malaysia.

AATP LB is an investment holding company with 100% equity interest in Agape ATP International Holding Limited (“AATP HK”), a Hong Kong-based company. On May 8, 2020, the Company acquired 99.99% of ASL, a network marketing entity in Malaysia.

On September 11, 2020, the Company incorporated Wellness ATP International Holdings Sdn. Bhd. (“WATP”), a wholly-owned subsidiary in Malaysia, to promote wellness and wellbeing lifestyle. On July 4, 2024, WATP changed its name to Cedar ATPC Sdn. Bhd. (“CEDAR”).

On November 11, 2021, AATP LB formed an entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”), with an independent third party, in which AATP LB owns 60% of the equity interest, to provide complementary health therapies.

The Company is also positioning itself for sustainable growth by diversifying into the renewable energy domain. On January 3, 2024, the Company formed an equity method investment entity, OIE ATPC Holdings (M) Sdn. Bhd. with Oriental Industries Enterprise (M) Sdn. Bhd. (“OIE”), each owning 50% of the equity. On March 14, 2024, the Company acquired the remaining 50% from OIE, making it a wholly-owned subsidiary, which was later renamed to ATPC Green Energy Sdn. Bhd (“AGE”) on June 7, 2024.

On December 25, 2024, the Company incorporated ATPC Technology Private Limited (“ATPC Tech”) in China, a wholly-owned subsidiary of AATP HK, to develop a digital wellness platform for the ASEAN market.

The Company is principally engaged in the Health and Wellness Industry, supplying high-quality health and wellness products, including supplements, and providing various wellness programs. The Company is also involved in the renewable energy business through its subsidiary AGE.

Results of Operation

For the three months ended March 31, 2025 and 2024

Revenue:

Particulars	Q1 2025	Q1 2024	Change
Network marketing business	$26,547 (9.2%)	$37,079 (11.6%)	-$10,532 (-28.4%)
Complementary health therapies	$252,246 (87.3%)	$281,564 (88.4%)	-$29,318 (-10.4%)
Skin care and healthcare products	$8,679 (3.0%)	-	$8,679
Green energy operations	$1,565 (0.5%)	-	$1,565
Total Revenue	$289,037	$318,643	-$29,606 (-9.3%)

The decrease in revenue was due to a strategic shift away from the network marketing business and the lack of overseas customers for the complementary health therapies. New revenue streams from skin care/healthcare products and green energy operations were introduced.

Cost of Revenue: Cost of revenue increased by $17,528 or 15.2% due to inventory write-offs in the network marketing business and varying gross profit margins in the complementary health therapies.

Gross Profit: Gross profit decreased from $203,420 (63.8% gross margin) in Q1 2024 to $156,286 (54.1% gross margin) in Q1 2025, due to the inventory write-offs and varying gross margins in the complementary health therapies.

Operating Expenses:

• Selling expenses increased by $12,704 or 25.2% due to higher advertisement costs.
• Commission expenses decreased by $1,399 or 15.0% in line with the decrease in network marketing revenue.
• General and administrative expenses decreased by $61,573 or 7.1% mainly due to lower company event and activity costs.

Other Income, Net: Other income, net decreased by $19,797 or 72.6% due to lower interest income and unrealized holding losses on marketable securities.

Income Tax Expense: The Company recorded no income tax expense in Q1 2025 compared to $6,838 in Q1 2024 related to its Malaysian operations.

Net Loss: Net loss increased by $9,825 from $703,094 in Q1 2024 to $712,919 in Q1 2025, mainly due to the factors discussed above.

Liquidity and Capital Resources

As of March 31, 2025, the Company had working capital of $23,775,576, consisting of cash, cash equivalents, and time deposits. The Company had a net loss of $712,919 for Q1 2025 and accumulated deficits of $10,216,994.

Cash Flow Summary:

Particulars	Q1 2025	Q1 2024
Net cash used in operating activities	$(1,453,874)	$(1,243,460)
Net cash used in investing activities	$(23,000,649)	$-
Net cash provided by (used in) financing activities	$22,994,658	$(899)
Effect of exchange rate on cash	$(1,584)	$(7,575)
Net change in cash	$(1,461,449)	$(1,251,934)

The Company does not have any credit facilities or other access to bank credit.

Critical Accounting Estimates and Policies

The Company’s critical accounting estimates and policies include:

• Allowance for inventory obsolescence
• Impairment of long-lived assets
• Allowance for deferred tax assets
• Allowance for credit loss
• Allowance for estimation of coupon redemption
• Assumptions used in the valuation of derivative financial instruments

The Company’s revenue recognition policies follow the five-step model under ASC Topic 606, recognizing revenue when control of goods and services is transferred to customers.

The Company also discusses recent accounting pronouncements and their potential impact on the financial statements.