Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number 333-220144

AGAPE ATP CORPORATION

(Exact name of registrant issuer as specified in its charter)

Nevada

36-4838886

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1705 - 1708, Level 17, Tower 2, Faber Tower, Jalan Desa Bahagia,

Taman Desa, 58100 Kuala Lumpur, Malaysia.

(Address of principal executive offices, including zip code)

Registrant’s phone number, including area code (60) 192230099

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes ☐ No ☐

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding at August 11, 2023
Common Stock, $0.0001 par value		75,452,012

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
ITEM 1.	UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
	Unaudited Condensed Consolidated Balance Sheets	F-1
	Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss	F-2
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity	F-3
	Unaudited Condensed Consolidated Statements of Cash Flows	F-4
	Notes to Unaudited Condensed Consolidated Financial Statements	F-5 - F-33
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	3
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	14
ITEM 4.	CONTROLS AND PROCEDURES	14
PART II	OTHER INFORMATION
ITEM 1	LEGAL PROCEEDINGS	17
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	17
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	17
ITEM 4	MINE SAFETY DISCLOSURES	17
ITEM 5	OTHER INFORMATION	17
ITEM 6	EXHIBITS	17
	SIGNATURES	18

PART I FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Included $1,146 and $1,609 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)	$	653,754		$	1,438,430
Accounts receivable		5,303			2,826
Amount due from related parties		1,417			10,534
Inventories		66,056			46,277
Prepaid taxes (Included $1,643 and $1,741 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)		91,968			339,367
Prepayments and deposits (Included $28 and $0 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)		122,938			191,100
Total Current Assets		941,436			2,028,534

OTHER ASSETS
Property and equipment, net		105,674			142,149
Intangible assets, net		19,728			24,044
Operating right-of-use assets		284,670			81,133
Investment in marketable securities		25,331			16,687
Deferred offering costs		522,062			499,202
Deferred tax assets		6,382			-
Total other assets		963,847			763,215

TOTAL ASSETS	$	1,905,283		$	2,791,749

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	50,800		$	28,833
Accounts payable – related parties		19,605			25,611
Customer deposits		312,189			363,018
Operating lease liabilities		98,688			82,708
Other payables and accrued liabilities ($1,028 and $1,090 are included in the consolidated VIE that are without recourse to the credit of Agape ATP Corporation as of June 30, 2023 and December 31, 2022, respectively.)		475,667			713,277
Other payable – related parties		1,030			4,880
Income tax payable		10,350			10,968
Total Current Liabilities		968,329			1,229,295

NON-CURRENT LIABILITIES
Operating lease liabilities		186,300			-
Total Non-current Liabilities		186,300			-

TOTAL LIABILITIES	$	1,154,629		$	1,229,295

STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding		-			-
Common Stock, par value $0.0001; 1,000,000,000 shares authorized, 75,452,012 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.		7,545			7,545
Additional paid in capital		6,470,716			6,470,716
Accumulated deficit		(5,746,112	)		(4,945,586	)
Accumulated other comprehensive income		11,612			9,266
TOTAL AGAPE CORPORATION STOCKHOLDERS’ EQUITY		743,761			1,541,941

NON-CONTROLLING INTERESTS		6,893			20,513

TOTAL EQUITY		750,654			1,562,454

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,905,283		$	2,791,749

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-1

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

	2023			2022			2023			2022
	For the three months ended						For the six months ended
	June 30,						June 30,
	2023			2022			2023			2022

REVENUE	$	303,935		$	396,707		$	684,703		$	805,667

COST OF REVENUE		(107,931	)		(109,383	)		(236,289	)		(182,814	)

GROSS PROFIT		196,004			287,324			448,414			622,853

SELLING		(64,126	)		(79,587	)		(140,224	)		(194,198	)
COMMISSION		(21,942	)		(62,557	)		(55,884	)		(176,666	)
GENERAL AND ADMINISTRATIVE		(469,469	)		(451,363	)		(1,065,723	)		(830,404	)
TOTAL OPERATING EXPENSES		(555,537	)		(593,507	)		(1,261,831	)		(1,201,268	)

LOSS FROM OPERATIONS		(359,533	)		(306,183	)		(813,417	)		(578,415	)

OTHER (EXPENSES) INCOME
Other income, net		4,134			1,341			12,500			12,826
Interest income		1,634			3,526			4,817			8,251
Unrealized holding gain (loss) on marketable securities		3,790			(35,219	)		8,710			(52,889	)
Gain on disposal of property and equipment		1,787			-			1,787			-
Exchange loss, net		(33,700	)		(67,417	)		(34,576	)		(83,883	)
TOTAL OTHER EXPENSES, NET		(22,355	)		(97,769	)		(6,762	)		(115,695	)

LOSS BEFORE INCOME TAXES		(381,888	)		(403,952	)		(820,179	)		(694,110	)

BENEFIT OF (PROVISION FOR) INCOME TAXES		2,439			(392	)		6,655			(8,680	)

NET LOSS		(379,449	)		(404,344	)		(813,524	)		(702,790	)

LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS		(4,763	)		10,556			(12,998	)		11,207

NET LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION	$	(374,686	)	$	(414,900	)	$	(800,526	)	$	(713,997	)

NET LOSS	$	(379,449	)	$	(404,344	)	$	(813,524	)	$	(702,790	)

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment		269			(61,156	)		2,346			(73,179	)

TOTAL COMPREHENSIVE LOSS		(379,180	)		(465,500	)		(811,178	)		(775,969	)

Less: Comprehensive loss attributable to non-controlling interests		(5,401	)		(271	)		(13,619	)		(270	)

COMPREHENSIVE LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION	$	(373,779	)	$	(465,229	)	$	(797,559	)	$	(775,699	)

LOSS PER SHARE
Basic and diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic and diluted		75,452,012			75,452,012			75,452,012			100,397,696

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

	Number of shares			Par value			PAID IN CAPITAL		ACCUMULATED DEFICIT			COMPREHENSIVE INCOME			CONTROLLING INTERESTS			STOCKHOLDERS’ EQUITY
	COMMON STOCK						ADDITIONAL					ACCUMULATED OTHER			NON-			TOTAL
	Number of shares			Par value			PAID IN CAPITAL		ACCUMULATED DEFICIT			COMPREHENSIVE INCOME			CONTROLLING INTERESTS			STOCKHOLDERS’ EQUITY
Balance as of December 31, 2021		290,460,047		$	29,046		$	6,449,215	$	(3,258,687	)	$	93,398		$	(336	)	$	3,312,636
Forfeiture of common stock		(215,008,035	)		(21,501	)		21,501		-			-			-			-
Net loss		-			-			-		(299,097	)		-			651			(298,446	)
Foreign currency translation adjustment		-			-			-		-			(12,023	)		1			(12,022	)
Balance as of March 31, 2022		75,452,012		$	7,545		$	6,470,716	$	(3,557,784	)	$	81,375		$	316		$	3,002,168
Net loss		-			-			-		(414,900	)		-			10,556			(404,344	)
Foreign currency translation adjustment		-			-			-		-			(61,156	)		(271	)		(61,427	)
Balance as of June 30, 2022		75,452,012		$	7,545		$	6,470,716	$	(3,972,684	)	$	20,219		$	10,601		$	2,536,397

	COMMON STOCK				ADDITIONAL					ACCUMULATED OTHER		NON-			TOTAL
	Number of shares		Par value		PAID IN CAPITAL		ACCUMULATED DEFICIT			COMPREHENSIVE INCOME		CONTROLLING INTERESTS			STOCKHOLDERS’ EQUITY
Balance as of December 31, 2022		75,452,012	$	7,545	$	6,470,716	$	(4,945,586	)	$	9,266	$	20,513		$	1,562,454
Net loss		-		-		-		(425,840	)		-		(8,235	)		(434,075	)
Foreign currency translation adjustment		-		-		-		-			2,077		17			2,094
Balance as of March 31, 2023		75,452,012	$	7,545	$	6,470,716	$	(5,371,426	)	$	11,343	$	12,295		$	1,130,473
Net loss		-		-		-		(374,686	)		-		(4,763	)		(379,449	)
Foreign currency translation adjustment		-		-		-		-			269		(639	)		(370	)
Balance as of June 30, 2023		75,452,012	$	7,545	$	6,470,716	$	(5,746,112	)	$	11,612	$	6,893		$	750,654

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”)

	2023			2022
	For the six months ended June 30,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(813,524	)	$	(702,790	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		36,177			36,661
Amortization		3,087			897
Amortization of operating right-of-use assets		78,333			75,241
Unrealized holding (gain) loss on marketable securities		(8,710	)		52,889
Deferred tax (benefit) provision		(6,655	)		-
Changes in operating assets and liabilities:
Accounts receivables		(2,751	)		(214	)
Amount due from related parties		(209	)		2,201
Inventories		(23,013	)		28,790
Prepaid taxes		238,064			296,219
Prepayments and deposits		80,651			102,099
Accounts payable		24,608			7,804
Accounts payable –related parties		(4,758	)		14,407
Customer deposits		(31,655	)		(175,936	)
Operating lease liabilities		(79,551	)		(75,200	)
Other payables and accrued liabilities		(228,812	)		(166,137	)
Other payable – related parties		(3,457	)		2,081
Income tax payable		-			5,261
Net cash used in operating activities		(742,175	)		(495,727	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		(6,499	)		(750	)
Net cash used in investing activities		(6,499	)		(750	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred offering costs		(22,861	)		(178,926	)
Net cash used in financing activities		(22,861	)		(178,926	)

EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS		(13,141	)		(115,008	)

DECREASE IN CASH AND CASH EQUIVALENTS		(784,676	)		(790,411	)

CASH AND CASH EQUIVALENTS, beginning of period		1,438,430			2,597,848

CASH AND CASH EQUIVALENTS, end of period	$	653,754		$	1,807,437

SUPPLEMENTAL CASH FLOWS INFORMATION
Income taxes paid	$	20,849		$	77,117

SUPPLEMENTAL NON-CASH FLOWS INFORMATION
Increase in right-of-use assets and lease liabilities due to lease renewal	$	283,220		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

1. ORGANIZATION AND BUSINESS BACKGROUND

Agape ATP Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on June 1, 2016.

Agape ATP Corporation operates through its subsidiaries, namely, Agape ATP Corporation (“AATP LB”), a company incorporated in Labuan, Malaysia, and Agape Superior Living Sdn. Bhd. (“ASL”), a company incorporated in Malaysia.

Agape ATP Corporation, incorporated in Labuan, Malaysia, is an investment holding company with 100% equity interest in Agape ATP International Holding Limited (“AATP HK”), a company incorporated in Hong Kong.

On May 8, 2020, the Company entered into a Share Exchange Agreement with Mr. How Kok Choong, CEO and director of the Company to acquire 9,590,596 ordinary shares, no par value, equivalent to approximately 99.99% of the equity interest in Agape Superior Living Sdn. Bhd., a network marketing entity incorporated in Malaysia.

Agape Superior Living Sdn. Bhd. is a limited company incorporated on August 8, 2003, under the laws of Malaysia.

On September 11, 2020, the Company incorporated Wellness ATP International Holdings Sdn, Bhd. (“WATP”), a wholly owned subsidiary under the laws of Malaysia, to pursue the business of promoting wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns on how to achieve positive wellness and lifestyle.

On November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which Agape ATP Corporation (Labuan) owns 60% of the equity interest, to pursue the business of providing complementary health therapies.

The Company and its subsidiaries are principally engaged in the Health and Wellness Industry. The principal activity of the Company is to supply high-quality health and wellness products, including supplements to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system of the human body and various wellness programs.

The accompanying consolidated financial statements reflect the activities of the Company, AATP LB, AATP HK, WATP, ASL and its variable interest entity (“VIE”), Agape S.E.A. Sdn. Bhd. (“SEA”) (See Note 3), and DSY Wellness.

Details of the Company’s subsidiaries:

SCHEDULE OF SUBSIDIARIES AND ASSOCIATES

Subsidiary company name

Place and date of incorporation

Particulars of issued capital

Principal activities

Proportional of ownership interest and voting power held

Agape ATP Corporation

Labuan,
March 6, 2017

100 shares of ordinary share of US$1 each

Investment holding

100

Agape ATP International Holding Limited

Hong Kong,
June 1, 2017

1,000,000 shares of ordinary share of HK$1 each

Wholesaling of health and wellness products; and health solution advisory services

100

Agape Superior Living Sdn. Bhd.

Malaysia,
August 8, 2003

9,590,598 shares of ordinary share of RM1 each

Health and wellness products and health solution advisory services via network marketing

99.99

Agape S.E.A. Sdn. Bhd.

Malaysia,
March 4, 2004

2 shares of ordinary share of RM1 each

VIE of Agape Superior Living Sdn. Bhd.

VIE

Wellness ATP International Holdings Sdn, Bhd

Malaysia,
September 11, 2020

100 shares of ordinary share of RM1 each

The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns

100

DSY Wellness International Sdn Bhd.

Malaysia,
November 11, 2021

1,000 shares of ordinary share of RM1 each

Provision of complementary health therapies

F-5

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

1. ORGANIZATION AND BUSINESS BACKGROUND (Continued)

Business Overview

Agape ATP Corporation is a company that provides health and wellness products and health solution advisory services to our clients. The Company primarily focus its efforts on attracting customers in Malaysia. Its advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or dieticians.

In order to strengthen the Company’s supply chain, on May 8, 2020, the Company has successfully acquired approximately 99.99% of ASL, with the goal of securing an established network marketing sales channel that has been established in Malaysia for the past 15 years. ASL has been offering the Company’s ATP Zeta Health Program as part of its product lineup. As such, the acquisition creates synergy in the Company’s operation by boosting the Company’s retail and marketing capabilities. The newly acquired subsidiary allows the Company to fulfill its mission of “helping people to create health and wealth” by providing a financially rewarding business opportunity to distributors and quality products to distributors and customers who seek a healthy lifestyle.

Via ASL, the Company offers three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE.

The ATP Zeta Health Program is a health program designed to promote health and general wellbeing designed to prevent health diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled dieticians as well as trained members and distributors.

The ÉNERGÉTIQUE series aims to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of the Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser.

The BEAUNIQUE product series focuses on the research of our diet’s impact on modifying gene expressions in order to address genetic variations and deliver a nutrigenomic solution for every individual.

The Company deems creating public awareness on wellness and wellbeing lifestyle as essential to enhance the provision of its health solution advisory services; and therefore, incorporated WATP. Upon its establishment, WATP started collaborating with ASL to carry out various wellness programs.

To further its reach in the Health and Wellness Industry, on November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with an independent third party which Agape ATP Corporation (Labuan) owns 60% of the equity interest, to pursue the business of providing complementary health therapies.

F-6

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

2. GOING CONCERN

In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Equity financing is used to supplement working capital requirements of the Company.

The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) the net loss of $379,449 and $813,524 for the three and six months ended June 30, 2023; (2) accumulated deficit of $5,746,112 as of June 30, 2023; (3) working capital deficit of $26,892 as of June 30, 2023; and (4) the unexpectedly long turnaround time that the Company’s distributors and members are taking to revert to pre-pandemic mode to generate sales.

Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources:

●	Equity financing from the Company’s second listing on NASDAQ to support its working capital and future growth;

●	Other available sources of financing (including debt) from banks and other financial institutions; and

●	Financial support and credit guarantee commitments from the Company’s related parties.

Based on the above measures, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the filing date of these unaudited condensed consolidated financial statements.

There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) undue delay in the Company’s current pursuit in seeking second listing on NASDAQ, (ii) the slow rate in which the Company’s distributors and members re-ignite their sales activities, (iii) changes in the demand for the Company’s products and services due to the diminishing effect on the purchasing power of the public in general, as a result of the COVID-19 pandemic, and (iv) if the Company’s new business in the provision of complementary health therapies fail to grow in the manner and at the rate as planned. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s viability and results of operations.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The interim unaudited financial information as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U. S. GAAP, have been omitted pursuant to those rules and regulations. The interim unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on March 31, 2023.

In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of June 30, 2023, its unaudited results of operations for the three and six months ended June 30, 2023 and 2022, and its unaudited cash flows for the six months ended June 30, 2023 and 2022, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its variable interest entity (“VIE”) over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and its VIE have been eliminated upon consolidation.

Principles of consolidation

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. As of and for the three and six months ended June 30, 2023, SEA, the only VIE of the Company has no significant operations.

Use of estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include allowance for inventories obsolescence, impairment of long-lived assets and allowance for deferred tax assets. Actual results could differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

F-7

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accounts receivable

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on credit term. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of June 30, 2023 and December 31, 2022, no allowance of doubtful accounts was recorded.

Inventories

Inventories consist of finished goods and are stated at the lower of cost or net realizable value using the first-in first-out method. Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the three and six months ended June 30, 2023 and 2022, the Company did not recognize any inventory write-downs nor write-off.

Prepaid taxes

Prepaid taxes include prepaid income taxes that will either be refunded or utilized to offset future income tax.

Prepayments and deposits

Prepayments and deposits are mainly cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the allowance policy and update it if necessary. There was no allowance for doubtful accounts recorded nor doubtful accounts written-off during the three and six months ended June 30, 2023 and 2022. There was no allowance for doubtful accounts balances as of June 30, 2023 and December 31, 2022.

Property and equipment, net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value. The estimated useful lives are as follows:

F-8

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

		Useful Life
Computer and office equipment		5-7 years
Furniture & fixtures		6-7 years
Leasehold improvements		Shorter of the remaining lease terms or the estimated useful lives
Vehicle		5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of operations and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

Intangible assets, net

Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows:

Classification		Useful Life

Computer software		5 years

Impairment for long-lived assets

Long-lived assets, including property and equipment, and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2023 and December 31, 2022, no impairment of long-lived assets was recognized.

Deferred offering costs

Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s proposed offering for uplisting.

Investment in marketable equity securities

The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Investments in marketable equity securities (non-current) are reported at fair value with changes in fair value recognized in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss in the caption of “unrealized holding gain (loss) on marketable securities” in each reporting period.

F-9

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investment in non-marketable equity securities

The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount.

Customer deposits

Customer deposits represent amounts advanced by customers on product orders and unapplied unexpired coupons. Customer deposits are reduced when the related sale is recognized in accordance with the Company’s revenue recognition policy.

Revenue recognition

The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606). The core principle underlying the revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

F-10

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Sales of Health and Wellness products

- Performance obligations satisfied at a point in time

The Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods. The revenue is recorded net of estimated discounts and return allowances. Products are given 60 days for returns or exchanges from the date of purchase. Historically, there were insignificant sales returns.

Under the Company’s network marketing business, the Company issues product coupons to members and distributors when these customers made purchases above certain thresholds set by the Company. Depending on the type of product coupons issued, the coupons carry varying values and can be used by the customers for reduction in the transaction price of product purchases within the coupon validity period. The value of the product coupons issued is recorded as a reduction of the Company’s revenue account upon issuance; the corresponding amount credited to the customer deposits account. Amounts in customer deposits will be reversed when the coupons are used. The Company’s coupons have a validity period of between six and twelve months. If the Company’s customers did not utilize the coupons after the validity period, the Company would recognize the forfeiture of the originated sales value of the coupons as net revenues.

For the three months ended June 30, 2023 and 2022, the Company recognized $6,422 and $4,824, as forfeited coupon income, respectively. For the six months ended June 30, 2023 and 2022, the Company recognized $28,872 and $5,777, as forfeited coupon income, respectively.

The Company had contracts for the sales of health and wellness products amounting to $7,790 which it is expected to fulfill within 12 months from June 30, 2023.

Sales of products for the provision of complementary health therapies

Products for the provision of complementary health therapies are predominantly Chinese herbs in different forms, processed or otherwise, for prescriptions for treating non-communicable diseases.

Provision of Health and Wellness services

- Performance obligations satisfied at a point in time

The Company carries out its Wellness program, where the Company’s products are bundled with health screening test and a health camp program. The health screening test and the health camp programs are considered as separate performance obligations. The promises to deliver the health screening test report and the attendance at the health camp are separately identifiable, which are evidenced by the fact that the Company provides separate services of delivering the health screening test report and allowing admission of the customers to attend the health camp. The Company derives its revenues from sales contracts with its customers with revenues being recognized when the test reports are completed and delivered to its customers during the consultation session in person.

The Company also separately derives its revenues from sales contracts with its customers with revenues being recognized when the health camp program was completed in the final day of the health camp. For the three months ended June 30, 2023 and 2022, revenues from health and wellness services were $58,862 and $30,072 respectively. For the six months ended June 30, 2023 and 2022, revenues from health and wellness services were $124,214 and $31,139 respectively.

F-11

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Disaggregated information of revenues by products are as follows:

	2023		2022		2023		2022
	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Survivor Select	$	-	$	13,941	$	28,210	$	22,753
Ionized Cal-Mag		37,221		14,278		84,802		62,368
Omega Blend		-		42,747		22,471		179,177
Beta Maxx		-		23,564		21,206		47,637
Iron		9,929		3,118		21,617		7,186
Young Formula		-		1,075		-		34,269
ATPR Mito+		-		76,605		-		187,926
Hyaluronic Acid Serum		-		1,698		-		3,006
Mousse Facial Cleanser		-		4,355		-		7,394
Trim+		3,702		2,765		9,587		6,236
LIVO 5		21,812		-		21,812		-
Others – Products for the provision of complementary health therapies		154,411		182,101		330,968		216,188
Others		17,998		388		19,816		388
Total revenues - products		245,073		366,635		560,489		774,528
Health and Wellness services		58,862		30,072		124,214		31,139
Total revenues - products and services	$	303,935	$	396,707	$	684,703	$	805,667

Cost of revenue

Cost of revenue comprised freight-in, the purchase cost of manufactured goods for sale to customers and products for the provision of complementary health therapies. For the three and six months ended June 30, 2023, cost of revenue were $107,931 and $236,289, respectively. For the three and six months ended June 30, 2022, cost of revenue were $109,383 and $182,814, respectively.

Shipping and handling

Shipping and handling charges amounted to $1,131 and $4,272 for the three months ended June 30, 2023 and 2022, respectively. Shipping and handling charges amounted to $2,656 and $7,179 for the six months ended June 30, 2023 and 2022, respectively. Shipping and handling charges are expensed as incurred and included in selling expenses.

Advertising costs

There were no advertising costs incurred for the three and six months ended June 30, 2023. Advertising costs amounted to $4,765 and $4,765 for the three and six months ended June 30, 2022. Advertising costs are expensed as incurred and included in selling expenses.

F-12

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Commission expenses

Commission expenses are the Company’s most significant expenses. As with all companies in the network marketing industry, the Company’s sales channel is external to the Company. The Company’s “external sales force” is stratified into two levels based on priority recruitment. First, there are sales distributors. Second, all members recruited by a sales distributor, directly or indirectly, are referred to as “sales network members”. The Company pays commission to every sales distributor based on purchases made by its sales network members which includes the independent direct sales members. Top performing distributors with their own physical stores may also become stockists of the Company, whereby they enjoy benefits such as maintaining a certain amount of the Company’s inventory on their store premises. The stockists shall account to the Company for all products sales from their store premises as monitored through the Company’s centralized stock tracking system. The Company pays a separate commission to stockists based on revenue generated from the stockists’ physical stores. Commission expenses amounted to $21,942 and $62,557 for the three months ended June 30, 2023 and 2022, respectively. Commission expenses amounted to $55,884 and $176,666 for the six months ended June 30, 2023 and 2022, respectively.

Defined contribution plan

The full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Total expenses for the plans were $35,759 and $35,936 for the three months ended June 30, 2023 and 2022, respectively. Total expenses for the plans were $79,472 and $63,408 for the six months ended June 30, 2023 and 2022, respectively.

The related contribution plans include:

	-	Social Security Organization (“SOSCO”) – 1.75% based on employee’s monthly salary capped of RM 5,000;
	-	Employees Provident Fund (“EPF”) –based on employee’s monthly salary, 13% for employee earning RM5,000 and below; and 12% for employee earning RM5,001 and above.
	-	Employment Insurance System (“EIS”) – 0.2% based on employee’s monthly salary capped of RM 5,000;
	-	Human Resource Development Fund (“HRDF”) – 1% based on employee’s monthly salary

Income taxes

The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled.

F-13

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income taxes for the three and six months ended June 30, 2023 and 2022.

The Company conducts much of its business activities in Hong Kong and Malaysia and is subject to tax in each of these jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities.

Comprehensive income (loss)

Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Net income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Non-controlling interest

Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the face of the consolidated statements of operations as an allocation of the total income or loss for the periods between non-controlling interest holders and the shareholders of the Company.

Earnings (loss) per share

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common stocks (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stocks that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three and six months ended June 30, 2023 and 2022, there were no dilutive shares.

F-14

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Foreign currencies translation and transaction

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements of operations and comprehensive loss.

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates, which is the Malaysian Ringgit (“MYR” or “RM”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency. The Company’s subsidiary and VIE in Malaysia conducts its businesses and maintains its books and record in the local currency, Malaysian Ringgit (“MYR” or “RM”), as its functional currency.

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods:

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022
Period-end MYR : US$1 exchange rate		4.67		4.41
Period-end HKD : US$1 exchange rate		7.84		7.80
Foreign currency exchange rate, translation		7.84		7.80

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Period-average MYR : US$1 exchange rate		4.58		4.37		4.48		4.28
Period-average HKD : US$1 exchange rate		7.84		7.85		7.84		7.83
Foreign currency exchange rate period average		7.84		7.85		7.84		7.83

F-15

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Related parties

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Fair value of financial instruments

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

	●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.

Leases

The Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopts the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Some of the Company’s leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in re-measurement of the right of use (“ROU”) assets and lease liabilities. Operating ROU assets and lease liabilities are recognized at the commencement date, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term.

F-16

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows.

Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.

In March 2023, the FASB issued ASU No. 2023-01, “Leases (Topic 842) Common Control Arrangements”. This ASU provides guidance in ASC Topic 842 that leasehold improvements associated with common control leases should be (i) amortized by the lessee over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset through a lease, and (ii) accounted for as a transfer between entities under common control through an adjustment to equity if and when the lessee no longer controls the use of the underlying asset. The ASU 2023-01 is effective for reporting periods beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. When adopted in an interim period, it must be adopted from the beginning of the year that includes that interim period. The Company is currently evaluating the impact of this ASU may have on its unaudited condensed consolidated financial statements.

Except for the above-mentioned pronouncements, there are no other new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows.

Recently adopted Accounting Pronouncements

In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company has accordingly adopted ASUs 2016-13 and 2019-05 in the preparation of its unaudited condensed consolidated financial statements. The adoption of the accounting standards has no material impact on the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023.

4. VARIABLE INTEREST ENTITY (“VIE”)

SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided majority of ASL’s purchases. Its equity at risk was insufficient to finance its activities and 100% of its business is transacted with ASL. Therefore, it was considered to be a VIE and ASL is the primary beneficiary since it has both of the following characteristics:

	a.	The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
	b.	The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Accordingly, the accounts of SEA is consolidated in the accompanying financial statements.

F-17

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

4. VARIABLE INTEREST ENTITY (“VIE”) (Continued)

The carrying amount of the VIE’s assets and liabilities were as follows:

SCHEDULE OF VARIABLE INTEREST ENTITY

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets	$	2,817		$	3,350
Current liabilities		(41,057	)		(43,512	)
Net deficit	$	(38,240	)	$	(40,162	)

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets:
Cash	$	1,146		$	1,609
Prepaid taxes		1,643			1,741
Prepayment and deposits		28			-
Total current assets	$	2,817		$	3,350

Current liabilities:
Accounts payable – intercompany	$	40,029		$	42,422
Other payables and accrued liabilities		1,028			1,090
Total current liabilities	$	41,057		$	43,512
Net deficit	$	(38,240	)	$	(40,162	)

The summarized operating results of the VIE’s are as follows:

	2023			2022		2023			2022
	For the three months ended June 30,					For the six months ended June 30,
	2023			2022		2023			2022

Operating revenues	$	-		$	-	$	-		$	-
Gross profit	$	-		$	-	$	-		$	-
Profit (Loss) from operations	$	(81	)	$	1,723	$	(359	)	$	(3,219	)
Net loss	$	(81	)	$	1,723	$	(359	)	$	(3,219	)

F-18

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

5. CASH AND CASH EQUIVALENTS

As of June 30, 2023 and December 31, 2022 the Company has $653,754 and $1,438,430, respectively, of cash and cash equivalents, which consists of $332,431 and $523,619, respectively, of cash and cash in banks and $321,323 and $914,811, respectively, of time deposits placed with banks or other financial institutions and are all highly liquid investments with an original maturity of three months or less. The effective interest rate for the time deposits ranged between 1.22% to 1.88% per annum for the three and six months ended June 30, 2023. The effective interest rate ranged between 1.10% to 1.17% per annum for the three and six months ended June 30, 2022. As of June 30, 2023 and December 31, 2022, $397,809 and $231,187 of these balances are not covered by deposit insurance, respectively.

6. ACCOUNTS RECEIVABLE

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Accounts receivable	$	5,303	$	2,826
Allowance for doubtful accounts		-		-
Total accounts receivable	$	5,303	$	2,826

7. INVENTORIES

Inventories consist of the following:

SCHEDULE OF INVENTORIES

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Finished goods	$	66,056	$	46,277

There were no inventory write-downs nor write-off for the three and six months ended June 30, 2023 and 2022, respectively.

8. PREPAYMENTS AND DEPOSITS

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Receivables from sales distributors	$	28,219	$	43,596
Deposits to suppliers		94,719		147,504
Subtotal		122,938		191,100
Less: Allowance for doubtful accounts		-		-
Total	$	122,938	$	191,100

F-19

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

8. PREPAYMENTS AND DEPOSITS (Continued)

Movements of allowance for doubtful accounts are as follows:

	For the six months ended June 30, 2023		For the year ended December 31, 2022

Beginning balance	$	-	$	121,095
Addition		-		-
Write off		-		(120,372	)
Exchange rate effect		-		(723	)
Ending balance	$	-	$	-

9. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer and office equipment	$	88,641		$	87,428
Furniture & fixtures		109,342			115,789
Leasehold improvements		181,136			191,965
Vehicle		88,259			93,535
Subtotal		467,378			488,717
Less: accumulated depreciation		(361,704	)		(346,568	)
Total	$	105,674		$	142,149

Depreciation expense for the three months ended June 30, 2023 and 2022 amounted to $18,124 and $17,954, respectively. Depreciation expense for the six months ended June 30, 2023 and 2022 amounted to $36,177 and $36,661, respectively.

10. INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

SCHEDULE OF INTANGIBLE ASSETS, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer software	$	52,225		$	55,348
Less: accumulated amortization		(32,497	)		(31,304	)
Total	$	19,728		$	24,044

Amortization expense for the three months ended June 30, 2023 and 2022 amounted to $1,506 and $439, respectively. Amortization expense for the six months ended June 30, 2023 and 2022 amounted to $3,087 and $897, respectively.

F-20

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

11. INVESTMENT IN MARKETABLE SECURITIES

	(i)	On May 17, 2018, the Company purchased 83,333 shares of common stock in Greenpro Capital Corp. for $500,000 at a purchase price of $6 per share.

	(ii)	On July 30, 2018, the Company disposed 20 shares of common stock in Greenpro Capital Corp. for $125 at a purchase price of $6.2613 per share.

	(iii)	On October 16, 2018, the Company purchased 33,333 shares of common stock in Greenpro Capital Corp. for $1,000 at a purchase price of $0.03 per share.

	(iv)	On July 19, 2022, Greenpro Capital Corp. filed a certificate of change with the Secretary of State of Nevada to effect a reverse split of the company’s common stock at the ratio of 10-for-1 effective July 28, 2022. Under the reverse stock split, each 10 pre-split share of common stock outstanding will automatically combine into 1 new share of common stock of the company. As at July 28, 2022, the Company has an investment of 116,646 common stock of Greenpro Capital Corp. The Company’s investment of 116,646 common stock of Greenpro Capital Corp. was reduced to 11,665 subsequent to the reverse stock split.

	(v)	On November 3, 2020, the Company received dividend of 6,667 shares of common stock in DSwiss, Inc. for $76,671 at fair value of $11.50 per share from Greenpro Capital Corporation as result of its Spin-off of DSwiss, Inc.’s shares

	(vi)	On December 9, 2020, the Company received dividend of 16,663 shares of common stock in DSwiss, Inc. for $83,315 at fair value of $5 per share from Greenpro Capital Corporation as result of its Spin-off of DSwiss, Inc.’s shares.

	(vii)	On September 27, 2021, the Company received dividend of 11,665 shares of common stock in SEATech Ventures Corp. for $18,874 at fair value of $1.62 per share from Greenpro Capital Corp as a dividend income since Greenpro Capital Corp previously owned these shares.

	(viii)	On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. (a non-marketable security) for $1,500 at purchase price of $0.0001 per share. Phoenix Plus Corp. obtained approval for Depository Trust Company eligibility on April 26, 2022. Since the commencement of trading of common stock of Phoenix Plus Corp. on May 18, 2022, to July 13, 2023, there were only 200 shares of common stock of the company traded. The Company deems there is an absence of a readily determinable fair value of the common stock of Phoenix Plus Corp. and has continued to value its investment in the company Phoenix Plus Corp. at cost.


	As of
	June 30, 2023			December 31, 2022
Cost of investment	$	16,687		$	89,001
Transfer from non-marketable security		-			1,500
Dividend income from Greenpro Capital Corp.		-			-
Unrealized holding gain (loss)		8,710			(73,519	)
Exchange rate effect		(66	)		(295	)
Investment in marketable securities	$	25,331		$	16,687

12. INVESTMENT IN NON-MARKETABLE SECURITIES

On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. for $1,500 at purchase price of $0.0001 per share. Phoenix Plus Corp. attained its effective date with the Securities Exchange Commission for listing on OTC (Pink Sheet), U.S. on March 12, 2021, and obtained approval for Depository trust Company (“DTC”) eligibility on April 26, 2022. Accordingly, stocks of Phoenix Plus Corp. can be traded on OTC. As such the investment in Phoenix Plus Corp. was transferred to marketable securities.


	As of
Phoenix Plus Corporation	June 30, 2023		December 31, 2022
Cost of investment	$	-	$	1,500
Less: Transfer to investment in marketable securities		-		(1,500	)
Investment in non-marketable securities	$	-	$	-

F-21

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

13. CUSTOMER DEPOSITS

SCHEDULE OF CUSTOMER DEPOSITS


	As of
	June 30, 2023		December 31, 2022

Customer deposits	$	265,300	$	289,487
Unexpired product coupons		46,889		73,531
Total	$	312,189	$	363,018

Customer deposits represent amounts advanced by customers on product orders and unexpired product coupons issued to the Company’s members and distributors of its network marketing business.

14. OTHER PAYABLES AND ACCRUED LIABILITIES


	As of
	June 30, 2023		December 31, 2022

Professional fees	$	140,672	$	324,629
Promotion expenses		38,583		38,583
Payroll		17,944		21,164
Amounts held in eWallets (a)		195,000		216,049
Tax penalty		75,000		75,000
Others		8,468		37,852
Total	$	475,667	$	713,277

(a)

The Company requires all members and distributors of its network marketing business to maintain an electronic wallet (eWallet) account with the Company. The eWallet is primarily for the crediting of any commission payment that falls below RM100 (or $22.70). Commission payment exceeding the RM100 threshold shall only be credited into the member’s or distributor’s eWallet upon request. The eWallet functionality allows the members to place new product orders utilizing eWallet available balance and/or request commission payout via multiple payment methods provided that each of the withdrawal amount exceeds RM100. Amounts held in eWallets are reflected on the balance sheet as a current liability.

15. RELATED PARTY BALANCES AND TRANSACTIONS

Related party balances

Amount due from related parties

SCHEDULE OF RELATED PARTIES

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Prepayment of IT expenses	$	1,178	$	1,273
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Deposits for products purchases		-		9,261
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Expenses paid for DSYWLC		239		-

Total			$	1,417	$	10,534

Accounts payable – related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	19,601	$	25,387
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		4		224
Total			$	19,605	$	25,611

F-22

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party balances

Other payable - related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	391	$	2,149
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		316		2,147
Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense		323		584
Total			$	1,030	$	4,880

Related party transactions

Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	55,614	$	63,142
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		212		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	55,826	$	63,664

F-23

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	116,269	$	74,909
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		17,761		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	134,030	$	75,431

Other Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	1,291	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		1,151		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		212		-
Total			$	2,654	$	69

F-24

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other purchases

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	2,233	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		3,407		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		280		-
Total			$	5,920	$	69

Commission

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	1,626	$	2,443
Total			$	1,626	$	2,443

F-25

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Commission

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	3,538	$	5,148
Total			$	3,538	$	5,148

Other Income

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	670	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		2,010		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	2,747	$	-

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	1,340	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		4,021		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	5,428	$	-

F-26

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other expenses

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	13,647	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		8,254		5,602
Total			$	21,901	$	5,602

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	27,718	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		16,363		11,203
Total			$	44,081	$	11,203

16. STOCKHOLDERS’ EQUITY

Preferred stock

As of June 30, 2023 and December 31, 2022, there were 200,000,000 preferred stocks authorized but none were issued and outstanding.

Common stock

As of June 30, 2023 and December 31, 2022, there were 1,000,000,000 common stocks authorized; and 75,452,012 shares issued and outstanding.

A share forfeiture agreement (the “Share Forfeiture Agreement”) dated January 20, 2022, between the Company and Mr. How Kok Choong, the CEO and director of the Company, pursuant to which Mr. How Kok Choong agreed to forfeit 215,008,035 shares of common stock of the Company. As a result, the outstanding shares was reduced by 215,008,035 shares of common stock.

There were no stock options, warrants or other potentially dilutive securities outstanding as of June 30, 2023 and December 31, 2022.

F-27

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

17. NON-CONTROLLING INTEREST

The Company’s non-controlling interest consists of the following:

SCHEDULE OF NON CONTROLLING INTEREST


	As of
	June 30, 2023			December 31, 2022
DSY Wellness:
Paid-in capital	$	97		$	97
Retained earnings		7,386			20,384
Accumulated other comprehensive (loss) income		(590	)		32
Noncontrolling interest gross		6,893			20,513
ASL		-			-
Total	$	6,893		$	20,513

18. INCOME TAXES

The United States and foreign components of income (loss) before income taxes were comprised of the following:


	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022

Tax jurisdictions from:
Local – United States	$	(142,912	)	$	(187,379	)	$	(310,697	)	$	(293,804	)
Foreign – Malaysia		(241,867	)		(189,395	)		(516,152	)		(354,459	)
Foreign – Hong Kong		2,891			(27,178	)		6,670			(45,847	)
Foreign, Tax Jurisdictions		2,891			(27,178	)		6,670			(45,847	)

Loss before income tax	$	(381,888	)	$	(403,952	)	$	(820,179	)	$	(694,110	)

The benefit of (provision for) income taxes consisted of the following:

SCHEDULE OF PROVISION FOR INCOME TAX


	For the three months ended June 30,					For the six months ended June 30,
	2023		2022			2023		2022

Current:
- Local	$	-	$	-		$	-	$	-
- Foreign		-		(392	)		-		(8,680	)

Deferred:
- Local		-		-			-		-
- Foreign		2,439		-			6,655		-
Benefit of (Provision for) income tax	$	2,439	$	(392	)	$	6,655	$	(8,680	)

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Malaysia (including Labuan) and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows:

F-28

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

18. INCOME TAXES (Continued)

United States of America

Agape ATP Corporation was incorporated in the State of Nevada and is subject to the tax laws of the United States of America with a corporate tax rate of 21% on its taxable income. Agape ATP Corporation also subject to controlled foreign corporations Subpart F income (“Subpart F”) tax, which is a tax primarily on passive income from controlled foreign corporations with a tax rate of 35%. In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied.

For the three and six months ended June 30, 2023 and 2022, the Company’s foreign subsidiaries did not generate any income that are subject to Subpart F tax and GILTI tax.

As of June 30, 2023 and December 31, 2022, the operations in the United States of America incurred approximately $1,668,000 and $1,357,000, respectively, of cumulative net operating losses (“NOL”) which can be carried forward to offset future taxable income or Subpart F and GILTI taxes. These balances can be carried forward indefinitely. The deferred tax valuation allowance as of June 30, 2023 and December 31, 2022 were approximately $350,000 and $285,000, respectively.

Malaysia

Agape ATP Corporation, Agape Superior Living Sdn Bhd, Agape S.E.A Sdn Bhd., Wellness ATP International Holdings Sdn Bhd. and DSY Wellness International Sdn. Bhd. are governed by the income taxes laws of Malaysia and the income taxes provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Income Tax Act of Malaysia, enterprises that incorporated in Malaysia are usually subject to a unified 24% enterprise income taxes rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) for the three and six months ended June 30, 2023 and 2022, with the remaining balance being taxed at the 24% rate.

As of June 30, 2023 and December 31, 2022, the operations in Malaysia incurred approximately $2,149,000 and $1,723,000, respectively, of cumulative net operating losses (“NOL”) which can be carried forward to offset future taxable income. Approximately $35,000, $778,000, $858,000 and $478,000 of the net operating loss carry forwards will expire in 2030, 2031, 2032 and 2033, respectively, if unutilized. The deferred tax valuation allowance as of June 30, 2023 and December 31, 2022 were approximately $501,000 and $408,000, respectively.

Hong Kong

Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction.

F-29

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

18. INCOME TAXES (Continued)

The following table sets forth the significant components of the aggregate deferred tax assets of the Company:

SCHEDULE OF DEFERRED TAX ASSETS


	As of
	June 30, 2023			December 31, 2022
Deferred tax assets:
Net operating loss carry forwards in U.S.	$	350,216		$	284,959
Net operating loss carry forwards in Malaysia		507,709			408,226
Net operating Loss carry forward		507,709			408,226

Less: valuation allowance		(851,545	)		(693,185	)
Deferred tax assets, net	$	6,382		$	-

Uncertain tax positions

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2023 and December 31, 2022, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties tax for the three and six months ended June 30, 2023 and 2022.

19. CONCENTRATIONS OF RISKS

(a) Major customers

For the three months ended June 30, 2023 and 2022, no customer accounted for 10% or more of the Company’s total revenues. For the six months ended June 30, 2023 and 2022, no customer accounted for 10% or more of the Company’s total revenues.

As of June 30, 2023, two individual customers accounted for approximately 19.9% and 18.7% of the Company’s balance of accounts receivable, respectively. As of December 31, 2022, five individual customers accounted for approximately 72.0% of the Company’s balance of accounts receivable.

(b) Major vendors

For the three months ended June 30, 2023, three vendors accounted for approximately 43.1%, 27.5% and 26.0% of the Company’s total purchases. For the three months ended June 30, 2022, three vendors accounted for approximately 70.0%, 17.0% and 11% of the Company’s total purchases, respectively.

For the six months ended June 30, 2023, the same three vendors accounted for approximately 47.2%, 26.5% and 13.6% of the Company’s total purchases. For the six months ended June 30, 2022, two vendors accounted for approximately 46.0% and 43.0% of the Company’s total purchases.

As of June 30, 2023, two vendors accounted for approximately 62.3% and 27.8% of the Company’s total balance of accounts payable, respectively. As of December 31, 2022, three vendors accounted for approximately 46.6%, 25.8% and 23.9% of the Company’s total balance of accounts payable, respectively.

CTA Nutriceuticals (Asia) Sdn Bhd, a related company, accounted for approximately 27.8% and 46.6% of the Company’s total balance of accounts payable as of June 30, 2023 and December 31, 2022, respectively.

F-30

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

19. CONCENTRATIONS OF RISKS (Continued)

One sales distributor accounted for 10% or more of the Company’s commission expense for the three months ended June 30, 2023 and 2022.

For the six months ended June 30, 2023, one sales distributor accounted for 10% or more of the Company’s commission expense. For the six months ended June 30, 2022, no sales distributor accounted for 10% or more of the Company’s commission expense.

(d) Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of June 30, 2023 and December 31, 2022, $630,285 and $1,427,963 were deposited with financial institutions, respectively, $397,809 and $231,187 of these balances are not covered by deposit insurance, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable.

(e) Exchange rate risk

The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

20. COMMITMENTS AND CONTINGENCIES

Lease commitments

On April 1, 2020, the Company adopted ASC 842 for ASL’s office space lease and sales and training center as the lease commencement date upon the acquisition of ASL. The Company recognized lease liabilities of approximately $490,000, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 5.5%, which was determined using the Company’s estimated incremental borrowing rate.

On May 31, 2021, the Company entered into two separate two-year leases extension with the modified lease expiring May 31, 2023 for its office space and expiring August 31, 2023 for its training center. The lease modification required the Company to re-measure the ROU assets and lease liabilities based on the modified leases. The Company recognized a reduction of $3,250 in ROU assets and lease liabilities upon lease modifications based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 5.5%, which was determined using the Company’s estimated incremental borrowing rate. On June 1, 2023, upon the expiry of the two-years lease for its office space, the Company entered into a new three-years lease with the same landlord. The Company recognized lease liabilities of approximately $283,220, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 5.5%, which was determined using the Company’s estimated incremental borrowing rate.

On October 1, 2021, the Company entered into a two-years lease for an apartment to serve as staff accommodation. The Company recognized lease liabilities of approximately $9,777, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 5.5%, which was determined using the Company’s estimated incremental borrowing rate.

On November 1, 2021, the Company entered into a two-years lease for a branch office and operating centre. The Company recognized lease liabilities of approximately $10,864, with a corresponding right-of-use (“ROU”) asset in the same amount based on the present value of the future minimum rental payments of the lease, using an effective interest rate of 5.5%, which was determined using the Company’s estimated incremental borrowing rate.

Amortization of operating right-of-use assets for the three months ended June 30, 2023 and 2022 were $38,683 and $36,162 respectively. Amortization of operating right-of-use assets for the six months ended June 30, 2023 and 2022 were $78,333 and $75,241 respectively.

As of June 30, 2023, the weighted remaining term of the lease is approximately 2.81 years.

F-31

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

20. COMMITMENTS AND CONTINGENCIES (Continued)

The five-year maturity of the Company’s operating lease liabilities is as follow:

SCHEDULE OF LEASE COMMITMENTS

Twelve Months Ending June 30,	Operating lease liabilities

2024	$	111,362
2025		102,501
2026		93,959
Thereafter		-
Total lease payments		307,822
Less: interest		(22,834	)
Present value of lease liabilities	$	284,988

The Company also leases one office and operation center, and one shophouse with an expiring term of twelve months or less, which were classified as operation leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of June 30, 2023, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $16,020.

Rent expense for the three months ended June 30, 2023 and 2022 was $48,727 and $54,237, respectively. Rent expense for the six months ended June 30, 2023 and 2022 was $99,434 and $98,312, respectively.

Contingencies

Legal

From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.

F-32

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

20. COMMITMENTS AND CONTINGENCIES (Continued)

COVID-19

Malaysia, where the operations of the Company predominantly reside, officially transitioned to the endemic phase of COVID-19 effective April 1, 2022. Restrictions on businesses and people are minimal. Meanwhile, the government continues to encourage inoculation for those between the ages of 5 and 11 years and its adolescent group which comprised those between the ages 12 and 17. Adults who have been fully vaccinated, i.e. received two doses of the COVID-19 vaccine are encouraged to take booster shots.

Substantially all of our revenues are concentrated in Malaysia. Consequently, our results of operations will likely be adversely, and may be materially, affected, to the extent that the COVID-19 or any other epidemic harms the Malaysia and global economy in general. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following:

	●	temporary closure of offices, travel restrictions, disruption or suspension of supplies, our customers may be negatively impacted financially resulting in which the demand for our products may be adversely affected;
	●	we may have to provide significant sales incentives to our customers during the outbreak, which may in turn materially adversely affect our financial condition and operating results; and
	●	any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing us or our suppliers to cease manufacturing for a period of time or materially delay delivery to our customers, which may also lead to loss of our customers.

Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the COVID-19 cannot be reasonably estimated at this time. There is no guarantee that the Company’s total revenues will grow or remain at similar levels year over year in 2023 and beyond.

21. SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of issuance of this unaudited condensed consolidated financial statements, and does not identify any events with material financial impact on the Company’s unaudited condensed consolidated financial statements.

F-33

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information contained in this quarterly report on Form 10-Q is intended to update the information contained in our Form 10-K, dated March 31, 2023, for the year ended December 31, 2022 and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our unaudited condensed consolidated financial statements and the notes to the unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q.

The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following should also be read in conjunction with the unaudited condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.

Company Overview

Agape ATP Corporation provides health solution advisory services to its clients. We primarily focus our efforts on attracting customers in Malaysia. We have an advisory services center called the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and the promotion of health. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled nutritionists and/or dieticians.

In order to strengthen the Company’s supply chain, on May 8, 2020, the Company successfully acquired approximately 99.99% of Agape Superior Living Sdn Bhd, a Malaysia company (“ASL”), with the goal of securing an established network marketing sales channel that has been established in Malaysia for the past 18 years. ASL has been offering the Company’s ATP Zeta Health Program as part of its product lineup. As such, the acquisition creates synergy in the Company’s operation by boosting the Company’s retail and marketing capabilities. The acquired subsidiary allows the Company to fulfill its mission of “helping people to create health and wealth” by providing a financially rewarding business opportunity to distributors and quality products to distributors and customers who seek a healthy lifestyle.

The Company deems creating public awareness on wellness and wellbeing lifestyle as essential to enhance the provision of its health solution advisory services; and therefore, incorporated Wellness ATP International Holdings Sdn, Bhd. (“WATP”). Upon its establishment, WATP started collaborating with ASL to carry out various wellness programs.

On November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with Mr. Steve Yap following which Agape ATP Corporation (Labuan) owns 60% of the equity interest, to pursue the business of providing complementary health therapies. The establishment of DSY Wellness is a further expansion of our business into the health and wellness industry. Mr. Steve Yap readily owns 33 proprietary formulas for treating non-communicable disease which he has agreed to bring into the company for joint commercialization. Mr. Steve Yap also has existing clients receiving traditional complimentary medicine or “TCM” in Indonesia and China.

We offer three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE.

The newly established subsidiary DSY Wellness is a further expansion of our business into the health and wellness industry and aims to pursue the business of providing traditional and complementary health therapies.

Results of Operation

For the three months ended June 30, 2023 and 2022

Revenue

We generated revenue of $303,935, which comprised revenue from the Company’s network marketing business of $90,662 (approximately 29.8%); and revenue from the Company’s operations in the provision of complementary health therapies of $213,273 (approximately 70.2%) for the three months ended June 30, 2023 as compared to $396,707, which comprised revenue from the Company’s network marketing business of $184,534 (approximately 46.5%); and revenue from the Company’s operations in the provision of complementary health therapies of $212,173 (approximately 53.5%) for the three months ended June 30, 2022. Revenue from the Company’s network marketing business decreased significantly by $93,872, or approximately 50.9%. Revenue from the Company’s operations in the provision of complementary health therapies increased marginally by $1,100, or approximately 0.5%. Total revenue decreased by $92,772, or approximately 23.4%. The decrease was predominately due to the anticipated poor performance from the Company’s network marketing business. The Company is in the process of introducing a whole new range of products for its networking marketing business. Distributors and members curtailed the purchases of the Company’s existing products, awaiting the Company’s new products range. The launch of the Company’s new products, regrettably was delayed.

Cost of Revenue

Cost of revenue for the three months ended June 30, 2023 amounted to $107,931 as compared to $109,383 for the three months ended June 30, 2022, a marginal decrease of $1,452, or approximately 1.3%. Cost of revenue did not decrease in tandem with decrease in revenue for the period due to the varying gross profit margins associated with the provision of complementary health therapies.

Cost of revenue typically comprise of freight-in, cost of goods purchased, packing materials and services acquired.

Gross Profit

Gross profit for the three months ended June 30, 2023 amounted to $196,004, represented a gross margin of approximately 64.5% as compared to $287,324 for the three months ended June 30, 2022, equivalent to a gross margin of approximately 72.4%. The decrease in gross margin was predominantly due to lower gross margin associated with the provision of complementary health therapies as compared to the Company’s network marketing business.

Operating Expenses

Our operating expenses consist of selling expenses, commission expenses and G&A expenses (as defined below). Total operating expenses were $555,537 for the three months ended June 30, 2023, increased by $37,970 or approximately 6.4% from $593,507 for the three months ended June 30, 2022.

Selling expenses

Selling expenses for the three months ended June 30, 2023 amounted to $64,126 as compared to $79,587 for the three months ended June 30, 2022, a decrease of $15,461, or approximately 19.4%. The Company’s selling expenses typically comprise salaries and benefits expenses which represented approximately 70% to 85% of total selling expenses, credit card processing fees and promotional expenses.

Commission expenses

Commission expenses were $21,942 and $62,557 for the three months ended June 30, 2023 and 2022, respectively. The decrease in commission expenses was in line with the decrease in revenue.

General and administrative expenses (“G&A Expenses”)

G&A expenses for the three months ended June 30, 2023 amounted to $469,469, as compared to $451,363 for the three months ended June 30, 2022, an increase of $18,106, or approximately 4.0%. The Company’s G&A expenses typically comprise of salaries and benefits expenses, rental expenses, professional expenses and depreciation expenses.

Other Expenses, Net

For the three months ended June 30, 2023, we recorded an amount of $22,355 as other expenses, net, as compared to $97,769 other expenses, net, for the three months ended June 30, 2022, represented a decrease of $75,414, or approximately 77.1%.

The net other expenses of $22,355 incurred during the three months ended June 30, 2023 comprised foreign currency exchange loss of $33,700, unrealized holding gain on marketable securities of $3,790, other income, net of $4,134, interest income of $1,634 and gain on disposal of property and equipment of $1,787. The net other expenses of $97,769 incurred during the three months ended June 30, 2022 comprised foreign currency exchange loss of $67,417, unrealized holding loss on marketable securities of $35,219, other income, net of $1,341 and interest income of $3,526.

Benefit of (Provision for) Income Taxes

The Company recorded benefit of income taxes of $2,439 and provision for income taxes of $392 for the three months ended June 30, 2023 and 2022, respectively. Both the benefit of income taxes as well as the provision for income taxes were in respect of the Company’s operations in Malaysia.

Net Loss

Net loss reduced by $24,895 from net loss of $404,344 for the three months ended June 30, 2022 to net loss of $379,449 for the three months ended June 30, 2023, mainly due to reasons as discussed above.

For the six months ended June 30, 2023 and 2022

Revenue

We generated revenue of $684,703, which comprised revenue from the Company’s network marketing business of $229,521 (approximately 33.5%); and revenue from the Company’s operations in the provision of complementary health therapies of $455,182 (approximately 66.5%) for the six months ended June 30, 2023 as compared to $805,667, which comprised revenue from the Company’s network marketing business of $558,340 (approximately 69.3%); and revenue from the Company’s operations in the provision of complementary health therapies of $247,327 (approximately 30.7%) for the six months ended June 30, 2022. Revenue from the Company’s network marketing business decreased significantly by $328,819, or approximately 58.9%. Revenue from the Company’s operations in the provision of complementary health therapies increased significantly by $207,855, or approximately 84.0%. Total revenue decreased by $120,964, or approximately 15.0%. The decrease was predominately due to the anticipated poor performance from the Company’s network marketing business. The Company is in the process of introducing a whole new range of products for its networking marketing business. Distributors and members curtailed the purchases of the Company’s existing products, awaiting the Company’s new products range. The shortfall in revenue of the Company’s network marketing business was significantly compensated by the significant increase in revenue in the Company’s operations in the provision of complementary health therapies. This new division which commenced in February 2022 is witnessing modest growth.

Cost of Revenue

Cost of revenue for the six months ended June 30, 2023 amounted to $236,289 as compared to $182,814 for the six months ended June 30, 2022, an increase of $53,475, or approximately 29.3%. The increase was due to the varying gross profit margins in the Company’s operations in the provision of complementary health therapies.

Cost of revenue typically comprise of freight-in, cost of goods purchased, packing materials and services acquired.

Gross Profit

Gross profit for the six months ended June 30, 2023, amounted to $448,414, represented a gross margin of approximately 65.5% as compared to $622,853 for the six months ended June 30, 2022, equivalent to a gross margin of approximately 77.3%. The decrease in gross margin was predominantly due to lower gross margin associated with the provision of complementary health therapies as compared to the Company’s network marketing business.

Operating Expenses

Our operating expenses consist of selling expenses, commission expenses, general and administrative expenses. Total operating expenses were $1,261,831 for the six months ended June 30, 2023, increased by $60,563 or approximately 5.0% from $1,201,268 for the six months ended June 30, 2022.

Selling expenses

Selling expenses for the six months ended June 30, 2023 amounted to $140,224 as compared to $194,198 for the six months ended June 30, 2022, a decrease of $53,974, or approximately 27.8%, predominantly due to decrease in promotional expenses. Promotional activities on the Company’s network marketing business were scaled back during the time lag between phasing out of the old products range awaiting the upcoming new range of products. The Company’s selling expenses typically comprise of salaries and benefits expenses which represented approximately 70% to 85% of total selling expenses, credit card processing fees and promotional expenses. There was also a small reduction in the number of headcounts in the recent six months ended June 30, 2023.

Commission expenses

Commission expenses were $55,884 and $176,666 for the six months ended June 30, 2023 and 2022, respectively. The decrease in commission expenses was in line with the decrease in revenue.

General and administrative expenses (“G&A expenses”)

G&A expenses for the six months ended June 30, 2023 amounted to $1,065,723, as compared to $830,404 for the six months ended June 30, 2022, an increase of $235,319, or approximately 28.3%. The increase in G&A expenses was mainly due to G&A expenses associated with the provision of complementary health therapies and expenses incurred by the Company on its on-going uplisting exercise to Nasdaq. The Company’s G&A expenses typically comprise of salaries and benefits expenses, rental expenses, professional expenses and depreciation expenses.

Other Expenses, Net

For the six months ended June 30, 2023, we recorded an amount of $6,762 as other expenses, net, as compared to $115,695 other expenses, net, for the six months ended June 30, 2022, represented a decrease of $108,933 or approximately 94.2%.

The net other expenses of $6,762 incurred during the six months ended June 30, 2023 comprised foreign currency exchange loss of $34,576, unrealized holding gain on marketable securities of $8,710, other income, net of $12,500, interest income of $4,817 and gain on disposal of property and equipment of $1,787. The net other expenses of $115,695 incurred during the six months ended June 30, 2022 comprised foreign currency exchange loss of $83,883, unrealized holding loss on marketable securities of $52,889, other income, net of $12,826 and interest income of $8,251.

Benefit of (Provision for) Income Taxes

The Company recorded benefit of income taxes of $6,655 and provision for income taxes of $8,680 for the six months ended June 30, 2023 and 2022, respectively. Both the benefit of income taxes as well as the provision for income taxes were in respect of the Company’s operations in Malaysia.

Net Loss

Net loss increased by $110,734 from net loss of $702,790 for the six months ended June 30, 2022 to net loss of $813,524 for the six months ended June 30, 2023, mainly due to reasons as discussed above.

Liquidity and Capital Resources

Malaysia, where the operations of the Company predominantly reside, officially transitioned to the endemic phase of COVID-19 effective April 1, 2022. Restrictions on businesses and people are minimal. Meanwhile, the government continues to encourage inoculation for those between the ages of 5 to 11 years and its adolescent group which comprised those between the ages 12 and 17. Adults who have been fully vaccinated, i.e. received two doses of the COVID-19 vaccine are encouraged to take booster shots.

	●	temporary closure of offices, travel restrictions, disruption or suspension of supplies, our customers may be negatively impacted financially resulting in which the demand for our products may be adversely affected;
	●	we may have to provide significant sales incentives to our customers during the outbreak, which may in turn materially adversely affect our financial condition and operating results; and
	●	any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing us or our suppliers to cease manufacturing for a period of time or materially delay delivery to our customers, which may also lead to loss of our customers.

Albeit a lengthy 3 years in the COVID-19 pandemic and living alongside COVID-19, there could still be supply chain disruptions. From our experiences operating under the much-restricted COVID-19 environment, we have modified our methods of operations, to build in sufficient buffer in the management of inventories. We may experience slight delay in products delivery lead time but barring unforeseen circumstances, the setback should be temporary.

We are currently operating primarily in Malaysia and anticipate expanding into the Asian markets in the future, with a particular focus, at least initially, on expanding into Thailand, Indonesia and Taiwan. We will explore expansion via e-commerce. Now that most nations are living alongside COVID-19, we will re-assess our plans to set up offices in the countries in which we operate to better service our customers.

As of June 30, 2023, we had working capital deficit of $26,893, consisting of cash and cash in bank of $332,431 and time deposits of $321,323 as compared to working capital of $799,239 consisting of cash and cash in bank of $523,619 and time deposits of $914,811 as of December 31, 2022. The Company had a net loss of $813,524 for the six months ended June 30, 2023 and accumulated deficits of $5,746,112 as of June 30, 2023 as compared to net loss of $1,666,079 for the year ended December 31, 2022 and accumulated deficits of $4,945,586 as of December 31, 2022.

In assessing our liquidity and going concern, management is projecting that the company’s revenue will revert to pre-pandemic level, generating sufficient cash therefrom to cover our operating expenses.

If our Company is unable to generate sufficient cash flow within the normal operating cycle of a twelve-month period to pay for its future payment obligations, we may have to consider supplementing our available sources of funds through the following sources:

●	Equity financing from the Company’s second listing on NASDAQ to support its working capital and future growth;

●	Other available sources of financing (including debt) from banks and other financial institutions; and

●	Financial support and credit guarantee commitments from the Company’s related parties.

The following summarizes the key components of our cash flows for the six months ended June 30, 2023 and 2022:

	For the six months ended June 30,
	2023			2022

Net cash used in operating activities	$	(742,175	)	$	(495,727	)
Net cash used in investing activities		(6,499	)		(750	)
Net cash used in financing activities		(22,861	)		(178,926	)
Effect of exchange rate on cash and cash equivalents		(13,141	)		(115,008	)
Net change in cash and cash equivalents	$	(784,676	)	$	(790,411	)

Operating activities

Net cash used in operating activities for the six months ended June 30, 2023 was $742,175, comprised of net loss of $813,524, increase in accounts receivables of $2,751, increase in amount due from related parties of $209, increase in inventories of $23,013, decrease in accounts payable –related parties of $4,758, decrease in customer deposits of $31,655, decrease in other payables and accrued liabilities of $228,812, payment of operating lease liabilities of $79,551, decrease in other payable –related parties of $3,457, the non-cash expenses on unrealized holding gain on marketable securities of $8,710, deferred tax benefit of $6,655, offset by the non-cash depreciation and amortization expense of $39,264, amortization of operating right-of-use assets of $78,333, decrease in prepaid taxes of $238,064, decrease in prepayments and deposits of $80,651 and increase in accounts payable of $24,608.

Net cash used in operating activities for the six months ended June 30, 2022 was $495,727 and were mainly comprised of the net loss of $702,790, increase in accounts receivables of $214, decrease in customer deposits of $175,936, payment of operating lease liabilities of $75,200 and decrease in other payables and accrued liabilities (including related party) of $164,056. The net cash used in operating activities was mainly offset by the non-cash depreciation and amortization expense of $37,558, amortization of operating right-of-use assets of $75,241, unrealized holding loss on marketable securities of $52,889, decrease in amount due from related parties of $2,201, the decrease in inventories of $28,790, refund in prepaid taxes of $296,219, decrease in prepayments and deposits of $102,099, increase in accounts payable (including related party) of $22,211 and increase in income tax payables of $5,261.

Investing activities

Net cash used in investing activities for the six months ended June 30, 2023 was $6,499, which was in respect of purchase of equipment.

Net cash used in investing activities for the six months ended June 30, 2022 was $750, which was in respect of purchase of equipment.

Financing activities

Deferred offering cost made up the entire net cash used in financing activities for the six months ended June 30, 2023 and 2022 of $22,861 and $178,926, respectively.

Credit Facilities

We do not have any credit facilities or other access to bank credit.

Off-Balance Sheet Arrangements

As of June 30, 2023, we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

Critical Accounting Estimates

Estimated allowance for inventories obsolescence

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. The Company did not recognize any inventory write-downs nor inventory write-off for the six months ended June 30, 2023 and 2022.

Impairment of long-lived assets

Operating right-of-use assets and property and equipment are stated at costs less accumulated depreciation and impairment, if any. In determining whether an asset is impaired, the Company has to exercise judgment and make estimation, particularly in assessing: (1) whether an event has occurred or any indicators that may affect the asset value; (2) whether the carrying value of an asset is not recoverable that is its carrying amount exceeds the amount of expected undiscounted future cash flows result from the use of the asset. Once it is established that impairment has occurred, the amount of impairment expense is determined as the difference between the carrying value of the asset and its estimated fair value based on a discounted cash flows approach.

As of June 30, 2023 and December 31, 2022, the carrying amounts of operating right-of-use assets and property and equipment amounted to $284,670 and $105,674 (December 31, 2022: $81,133 and $142,149), respectively. No impairment losses on operating right-of-use assets and property and equipment were recognized as of June 30, 2023 and 2022.

Allowance for deferred tax assets

The Company conducts much of its business activities in Malaysia and Hong Kong and is subject to tax in each of these jurisdictions. Significant estimates are required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

Deferred tax assets relating to certain temporary differences and tax losses are recognized as management considers it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilized. Where the expectation is different from the original estimate, such differences will impact the recognition of deferred taxation assets and taxation in the periods in which such estimate is changed.

Critical Accounting Policies

Revenue recognition

Sales of Health and Wellness products

- Performance obligations satisfied at a point in time

Provision of Health and Wellness services

- Performance obligations satisfied at a point in time

Fair value of financial instruments

	●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

Accounting Standards Adopted in 2023

On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology.

In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell.

As ASU 2016-13 has been adopted from January 1, 2023, the Company adopted ASU 2019-05, Financial instruments – Credit Losses (Topic 326) Targeted Transition Relief at the same time.

The AUS 2019-05 provides entities that have certain instruments with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for eligible instruments. The fair value option election does not apply to held-to-maturity debt securities.

The adoption of these ASUs did not have a material impact on the unaudited condensed consolidated financial statements for the six months ended and as at June 30, 2023.

Recent accounting pronouncements

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign exchange risk. Substantially most of our revenues are denominated in the Malaysian Ringgit while most of our expenses are denominated in Malaysian Ringgit, U.S. dollar and Hong Kong Dollar. We do not believe that we currently have any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or any other derivative financial instruments. Although in general, our exposure to foreign exchange risks should be limited, the value of an investment in our Common Stock may be affected by the foreign exchange rate between U.S. dollar and Malaysian Ringgit; and U.S. dollar and Hong Kong Dollar because the value of our business is effectively denominated in Malaysian Ringgit and Hong Kong Dollar, while the Common Stock is traded in U.S. dollars.

Credit risk. Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

ITEM 4 CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on the foregoing evaluation, our chief executive officer and chief financial officer concluded that, as of June 30, 2023, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

Internal Control Over Financial Reporting

Our management, including our chief executive officer and chief financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the company’s chief executive officer and chief financial officer and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

	●	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

	●	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

	●	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

As of June 30, 2023, our management, including our chief executive officer and chief financial officer, assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on such evaluation, the Company’s management, including our chief executive and chief financial officer, concluded that, during the period covered by this Report, internal controls and procedures over financial reporting were not effective. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

Identified Material Weakness

A material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

Management, including our chief executive officer and chief financial officer identified the following material weakness during its assessment of internal controls over financial reporting as of June 30, 2023:

(i) insufficient full-time personnel with appropriate levels of accounting knowledge and experience to monitor the daily recording of transactions, address complex U.S. GAAP accounting issues and to prepare and review financial statements and related disclosures under U.S. GAAP; (ii) lack of a functional internal audit department or personnel that monitors the consistencies of the preventive internal control procedures and lack of adequate policies and procedures in internal audit function to ensure that the Company’s policies and procedures have been carried out as planned; (iii) lack of proper IT policies and procedures developed for system change management, user access management, backup management and service organization management.

Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.

Management’s Remediation Initiatives

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we will prepare written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines, to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity and debt transactions.

To further strengthen the Company’s internal controls, we plan to initiate the following measures going forward:

1.	We intend to establish an internal audit function with assessment of Sarbanes-Oxley compliance requirements and improvement of overall internal control.

2.	Once we hire additional employees, we intend to initiate a comprehensive training program and development plan to provide ongoing company-wide trainings regarding internal control and requirements of U.S. GAAP financial statements and related disclosures, with particular emphasis on our accounting staff.

3.	Hire suitable IT personnel to develop and implement proper IT policies and procedures for system change management, user access management, backup management and service organization management.

We anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2023.

Changes in Internal Control over Financial Reporting:

Except as disclosed above, there were no changes in our internal control over financial reporting during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest averse to us.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information.

None.

ITEM 6. Exhibits

Exhibit No.		Description

31.1		Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer*

31.2		Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial officer*

32.1		Section 1350 Certification of principal executive officer *

32.2		Section 1350 Certification of principal financial officer *

101.INS		Inline XBRL Instance Document*

101.SCH		Inline XBRL Schema Document*

101.CAL		Inline XBRL Calculation Linkbase Document*

101.DEF		Inline XBRL Definition Linkbase Document*

101.LAB		Inline XBRL Label Linkbase Document*

101.PRE		Inline XBRL Presentation Linkbase Document*

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AGAPE ATP CORPORATION
	(Name of Registrant)

Date: August 14, 2023
	By:	*/s/ How Kok Choong*
	Title:	Chief Executive Officer, President, Director, Secretary and Treasurer
		(Principal Executive Officer and Principal Financial Officer)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AGAPE ATP CORPORATION
	(Name of Registrant)

Date: August 14, 2023
	By:	*/s/ Andrew Lee Kam Fan*
	Title:	Chief Financial Officer,

EXHIBIT 31.1

CERTIFICATION

I, HOW KOK CHOONG, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Agape ATP Corporation (the “Company”) for the quarter ended June 30, 2023;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2023	By:	/s/ How Kok Choong
		HOW KOK CHOONG
		Chief Executive Officer, President, Director, Secretary, Treasurer
		(Principal Executive Officer and Principal Financial Officer)

EXHIBIT 31.2

CERTIFICATION

I, ANDREW LEE KAM FAN, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Agape ATP Corporation (the “Company”) for the quarter ended June 30, 2023;

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2023	By:	/s/ Andrew Lee Kam Fan
		LEE KAM FAN
		Chief Financial Officer,

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Agape ATP Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 14, 2023	By:	/s/ How Kok Choong
		HOW KOK CHOONG
		Chief Executive Officer, President, Director, Secretary, Treasurer
		(Principal Executive Officer and Principal Financial Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 14, 2023	By:	/s/ Andrew Lee Kam Fan
		LEE KAM FAN
		Chief Financial Officer

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 11, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	333-220144
Entity Registrant Name	AGAPE ATP CORPORATION
Entity Central Index Key	0001713210
Entity Tax Identification Number	36-4838886
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1705 - 1708, Level 17, Tower 2, Faber Tower
Entity Address, Address Line Two	Jalan Desa Bahagia
Entity Address, Address Line Three	Taman Desa
Entity Address, City or Town	Kuala Lumpur
Entity Address, Country	MY
Entity Address, Postal Zip Code	58100
City Area Code	(60)
Local Phone Number	192230099
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		75,452,012

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents (Included $1,146 and $1,609 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)	$ 653,754	$ 1,438,430
Accounts receivable	5,303	2,826
Inventories	66,056	46,277
Prepaid taxes (Included $1,643 and $1,741 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)	91,968	339,367
Prepayments and deposits (Included $28 and $0 in the consolidated VIE that can be used only to settle obligations of the consolidated VIE as of June 30, 2023 and December 31, 2022, respectively.)	122,938	191,100
Total Current Assets	941,436	2,028,534
OTHER ASSETS
Property and equipment, net	105,674	142,149
Intangible assets, net	19,728	24,044
Operating right-of-use assets	284,670	81,133
Investment in marketable securities	25,331	16,687
Deferred offering costs	522,062	499,202
Deferred tax assets	6,382
Total other assets	963,847	763,215
TOTAL ASSETS	1,905,283	2,791,749
CURRENT LIABILITIES
Accounts payable	50,800	28,833
Customer deposits	312,189	363,018
Operating lease liabilities	98,688	82,708
Other payables and accrued liabilities ($1,028 and $1,090 are included in the consolidated VIE that are without recourse to the credit of Agape ATP Corporation as of June 30, 2023 and December 31, 2022, respectively.)	475,667	713,277
Other payable – related parties	1,030	4,880
Income tax payable	10,350	10,968
Total Current Liabilities	968,329	1,229,295
NON-CURRENT LIABILITIES
Operating lease liabilities	186,300
Total Non-current Liabilities	186,300
TOTAL LIABILITIES	1,154,629	1,229,295
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding
Common Stock, par value $0.0001; 1,000,000,000 shares authorized, 75,452,012 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.	7,545	7,545
Additional paid in capital	6,470,716	6,470,716
Accumulated deficit	(5,746,112)	(4,945,586)
Accumulated other comprehensive income	11,612	9,266
TOTAL AGAPE CORPORATION STOCKHOLDERS’ EQUITY	743,761	1,541,941
NON-CONTROLLING INTERESTS	6,893	20,513
TOTAL EQUITY	750,654	1,562,454
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	1,905,283	2,791,749
Related Party [Member]
CURRENT ASSETS
Amount due from related parties	1,417	10,534
CURRENT LIABILITIES
Accounts payable – related parties	$ 19,605	$ 25,611

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
VIE consolidated amount of cash and cash equivalents	$ 1,146	$ 1,609
VIE consolidated amount of prepaid taxes	1,643	1,741
VIE consolidated amount of prepaid taxes	28	0
VIE consolidated amount of other payables and accrued liabilities	$ 1,028	$ 1,090
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	200,000,000	200,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	75,452,012	75,452,012
Common stock, shares outstanding	75,452,012	75,452,012

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
REVENUE	$ 303,935	$ 396,707	$ 684,703	$ 805,667
COST OF REVENUE	(107,931)	(109,383)	(236,289)	(182,814)
GROSS PROFIT	196,004	287,324	448,414	622,853
SELLING	(64,126)	(79,587)	(140,224)	(194,198)
COMMISSION	(21,942)	(62,557)	(55,884)	(176,666)
GENERAL AND ADMINISTRATIVE	(469,469)	(451,363)	(1,065,723)	(830,404)
TOTAL OPERATING EXPENSES	(555,537)	(593,507)	(1,261,831)	(1,201,268)
LOSS FROM OPERATIONS	(359,533)	(306,183)	(813,417)	(578,415)
OTHER (EXPENSES) INCOME
Other income, net	4,134	1,341	12,500	12,826
Interest income	1,634	3,526	4,817	8,251
Unrealized holding gain (loss) on marketable securities	3,790	(35,219)	8,710	(52,889)
Gain on disposal of property and equipment	1,787		1,787
Exchange loss, net	(33,700)	(67,417)	(34,576)	(83,883)
TOTAL OTHER EXPENSES, NET	(22,355)	(97,769)	(6,762)	(115,695)
LOSS BEFORE INCOME TAXES	(381,888)	(403,952)	(820,179)	(694,110)
BENEFIT OF (PROVISION FOR) INCOME TAXES	2,439	(392)	6,655	(8,680)
NET LOSS	(379,449)	(404,344)	(813,524)	(702,790)
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(4,763)	10,556	(12,998)	11,207
NET LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION	(374,686)	(414,900)	(800,526)	(713,997)
NET LOSS	(379,449)	(404,344)	(813,524)	(702,790)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	269	(61,156)	2,346	(73,179)
TOTAL COMPREHENSIVE LOSS	(379,180)	(465,500)	(811,178)	(775,969)
Less: Comprehensive loss attributable to non-controlling interests	(5,401)	(271)	(13,619)	(270)
COMPREHENSIVE LOSS ATTRIBUTABLE TO AGAPE ATP CORPORATION	$ (373,779)	$ (465,229)	$ (797,559)	$ (775,699)
LOSS PER SHARE
Net Loss per share - basic	$ 0.00	$ 0.01	$ 0.01	$ 0.01
Net Loss per share - diluted	$ 0.00	$ 0.01	$ 0.01	$ 0.01
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Weighted average number of shares - basic	75,452,012	75,452,012	75,452,012	100,397,696
Weighted average number of shares - diluted	75,452,012	75,452,012	75,452,012	100,397,696

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 29,046	$ 6,449,215	$ (3,258,687)	$ 93,398	$ (336)	$ 3,312,636
Beginning balance, shares at Dec. 31, 2021	290,460,047
Forfeiture of common stock	$ (21,501)	21,501
Forfeiture of common stock, shares	(215,008,035)
Net loss			(299,097)		651	(298,446)
Foreign currency translation adjustment				(12,023)	1	(12,022)
Ending balance, value at Mar. 31, 2022	$ 7,545	6,470,716	(3,557,784)	81,375	316	3,002,168
Ending balance, shares at Mar. 31, 2022	75,452,012
Beginning balance, value at Dec. 31, 2021	$ 29,046	6,449,215	(3,258,687)	93,398	(336)	3,312,636
Beginning balance, shares at Dec. 31, 2021	290,460,047
Net loss						(702,790)
Ending balance, value at Jun. 30, 2022	$ 7,545	6,470,716	(3,972,684)	20,219	10,601	2,536,397
Ending balance, shares at Jun. 30, 2022	75,452,012
Beginning balance, value at Mar. 31, 2022	$ 7,545	6,470,716	(3,557,784)	81,375	316	3,002,168
Beginning balance, shares at Mar. 31, 2022	75,452,012
Net loss			(414,900)		10,556	(404,344)
Foreign currency translation adjustment				(61,156)	(271)	(61,427)
Ending balance, value at Jun. 30, 2022	$ 7,545	6,470,716	(3,972,684)	20,219	10,601	2,536,397
Ending balance, shares at Jun. 30, 2022	75,452,012
Beginning balance, value at Dec. 31, 2022	$ 7,545	6,470,716	(4,945,586)	9,266	20,513	1,562,454
Beginning balance, shares at Dec. 31, 2022	75,452,012
Net loss			(425,840)		(8,235)	(434,075)
Foreign currency translation adjustment				2,077	17	2,094
Ending balance, value at Mar. 31, 2023	$ 7,545	6,470,716	(5,371,426)	11,343	12,295	1,130,473
Ending balance, shares at Mar. 31, 2023	75,452,012
Beginning balance, value at Dec. 31, 2022	$ 7,545	6,470,716	(4,945,586)	9,266	20,513	1,562,454
Beginning balance, shares at Dec. 31, 2022	75,452,012
Net loss						(813,524)
Ending balance, value at Jun. 30, 2023	$ 7,545	6,470,716	(5,746,112)	11,612	6,893	750,654
Ending balance, shares at Jun. 30, 2023	75,452,012
Beginning balance, value at Mar. 31, 2023	$ 7,545	6,470,716	(5,371,426)	11,343	12,295	1,130,473
Beginning balance, shares at Mar. 31, 2023	75,452,012
Net loss			(374,686)		(4,763)	(379,449)
Foreign currency translation adjustment				269	(639)	(370)
Ending balance, value at Jun. 30, 2023	$ 7,545	$ 6,470,716	$ (5,746,112)	$ 11,612	$ 6,893	$ 750,654
Ending balance, shares at Jun. 30, 2023	75,452,012

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (813,524)	$ (702,790)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	36,177	36,661
Amortization	3,087	897
Amortization of operating right-of-use assets	78,333	75,241
Unrealized holding (gain) loss on marketable securities	(8,710)	52,889
Deferred tax (benefit) provision	(6,655)
Changes in operating assets and liabilities:
Accounts receivables	(2,751)	(214)
Amount due from related parties	(209)	2,201
Inventories	(23,013)	28,790
Prepaid taxes	238,064	296,219
Prepayments and deposits	80,651	102,099
Customer deposits	(31,655)	(175,936)
Operating lease liabilities	(79,551)	(75,200)
Income tax payable		5,261
Net cash used in operating activities	(742,175)	(495,727)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(6,499)	(750)
Net cash used in investing activities	(6,499)	(750)
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred offering costs	(22,861)	(178,926)
Net cash used in financing activities	(22,861)	(178,926)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS	(13,141)	(115,008)
DECREASE IN CASH AND CASH EQUIVALENTS	(784,676)	(790,411)
CASH AND CASH EQUIVALENTS, beginning of period	1,438,430	2,597,848
CASH AND CASH EQUIVALENTS, end of period	653,754	1,807,437
SUPPLEMENTAL CASH FLOWS INFORMATION
Income taxes paid	20,849	77,117
SUPPLEMENTAL NON-CASH FLOWS INFORMATION
Increase in right-of-use assets and lease liabilities due to lease renewal	283,220
Nonrelated Party [Member]
Changes in operating assets and liabilities:
Accounts payable	24,608	7,804
Other payables and accrued liabilities	(228,812)	(166,137)
Related Party [Member]
Changes in operating assets and liabilities:
Accounts payable –related parties	(4,758)	14,407
Other payable – related parties	$ (3,457)	$ 2,081

ORGANIZATION AND BUSINESS BACKGROUND

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

ORGANIZATION AND BUSINESS BACKGROUND

1. ORGANIZATION AND BUSINESS BACKGROUND

Agape ATP Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on June 1, 2016.

Agape Superior Living Sdn. Bhd. is a limited company incorporated on August 8, 2003, under the laws of Malaysia.

Details of the Company’s subsidiaries:

SCHEDULE OF SUBSIDIARIES AND ASSOCIATES

Subsidiary company name

Place and date of incorporation

Particulars of issued capital

Principal activities

Proportional of ownership interest and voting power held

Agape ATP Corporation

Labuan,
March 6, 2017

100 shares of ordinary share of US$1 each

Investment holding

100

Agape ATP International Holding Limited

Hong Kong,
June 1, 2017

1,000,000 shares of ordinary share of HK$1 each

Wholesaling of health and wellness products; and health solution advisory services

100

Agape Superior Living Sdn. Bhd.

Malaysia,
August 8, 2003

9,590,598 shares of ordinary share of RM1 each

Health and wellness products and health solution advisory services via network marketing

99.99

Agape S.E.A. Sdn. Bhd.

Malaysia,
March 4, 2004

2 shares of ordinary share of RM1 each

VIE of Agape Superior Living Sdn. Bhd.

VIE

Wellness ATP International Holdings Sdn, Bhd

Malaysia,
September 11, 2020

100 shares of ordinary share of RM1 each

The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns

100

DSY Wellness International Sdn Bhd.

Malaysia,
November 11, 2021

1,000 shares of ordinary share of RM1 each

Provision of complementary health therapies

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

1. ORGANIZATION AND BUSINESS BACKGROUND (Continued)

Business Overview

Via ASL, the Company offers three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

GOING CONCERN

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

2. GOING CONCERN

●	Equity financing from the Company’s second listing on NASDAQ to support its working capital and future growth;

●	Other available sources of financing (including debt) from banks and other financial institutions; and

●	Financial support and credit guarantee commitments from the Company’s related parties.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Principles of consolidation

Use of estimates

Cash and cash equivalents

Cash and cash equivalents represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accounts receivable

Inventories

Prepaid taxes

Prepaid taxes include prepaid income taxes that will either be refunded or utilized to offset future income tax.

Prepayments and deposits

Property and equipment, net

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

		Useful Life
Computer and office equipment		5-7 years
Furniture & fixtures		6-7 years
Leasehold improvements		Shorter of the remaining lease terms or the estimated useful lives
Vehicle		5 years

Intangible assets, net

Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows:

Classification		Useful Life

Computer software		5 years

Impairment for long-lived assets

Deferred offering costs

Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s proposed offering for uplisting.

Investment in marketable equity securities

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investment in non-marketable equity securities

The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

Customer deposits

Revenue recognition

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Sales of Health and Wellness products

- Performance obligations satisfied at a point in time

The Company had contracts for the sales of health and wellness products amounting to $7,790 which it is expected to fulfill within 12 months from June 30, 2023.

Sales of products for the provision of complementary health therapies

Products for the provision of complementary health therapies are predominantly Chinese herbs in different forms, processed or otherwise, for prescriptions for treating non-communicable diseases.

Provision of Health and Wellness services

- Performance obligations satisfied at a point in time

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Disaggregated information of revenues by products are as follows:

	2023		2022		2023		2022
	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Survivor Select	$	-	$	13,941	$	28,210	$	22,753
Ionized Cal-Mag		37,221		14,278		84,802		62,368
Omega Blend		-		42,747		22,471		179,177
Beta Maxx		-		23,564		21,206		47,637
Iron		9,929		3,118		21,617		7,186
Young Formula		-		1,075		-		34,269
ATPR Mito+		-		76,605		-		187,926
Hyaluronic Acid Serum		-		1,698		-		3,006
Mousse Facial Cleanser		-		4,355		-		7,394
Trim+		3,702		2,765		9,587		6,236
LIVO 5		21,812		-		21,812		-
Others – Products for the provision of complementary health therapies		154,411		182,101		330,968		216,188
Others		17,998		388		19,816		388
Total revenues - products		245,073		366,635		560,489		774,528
Health and Wellness services		58,862		30,072		124,214		31,139
Total revenues - products and services	$	303,935	$	396,707	$	684,703	$	805,667

Cost of revenue

Shipping and handling

Advertising costs

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Commission expenses

Defined contribution plan

The related contribution plans include:

	-	Social Security Organization (“SOSCO”) – 1.75% based on employee’s monthly salary capped of RM 5,000;
	-	Employees Provident Fund (“EPF”) –based on employee’s monthly salary, 13% for employee earning RM5,000 and below; and 12% for employee earning RM5,001 and above.
	-	Employment Insurance System (“EIS”) – 0.2% based on employee’s monthly salary capped of RM 5,000;
	-	Human Resource Development Fund (“HRDF”) – 1% based on employee’s monthly salary

Income taxes

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Comprehensive income (loss)

Non-controlling interest

Earnings (loss) per share

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Foreign currencies translation and transaction

Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods:

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022
Period-end MYR : US$1 exchange rate		4.67		4.41
Period-end HKD : US$1 exchange rate		7.84		7.80
Foreign currency exchange rate, translation		7.84		7.80

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Period-average MYR : US$1 exchange rate		4.58		4.37		4.48		4.28
Period-average HKD : US$1 exchange rate		7.84		7.85		7.84		7.83
Foreign currency exchange rate period average		7.84		7.85		7.84		7.83

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Related parties

Fair value of financial instruments

	●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

Leases

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent accounting pronouncements

Recently adopted Accounting Pronouncements

VARIABLE INTEREST ENTITY (“VIE”)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITY (“VIE”)

4. VARIABLE INTEREST ENTITY (“VIE”)

	a.	The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
	b.	The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Accordingly, the accounts of SEA is consolidated in the accompanying financial statements.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

4. VARIABLE INTEREST ENTITY (“VIE”) (Continued)

The carrying amount of the VIE’s assets and liabilities were as follows:

SCHEDULE OF VARIABLE INTEREST ENTITY

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets	$	2,817		$	3,350
Current liabilities		(41,057	)		(43,512	)
Net deficit	$	(38,240	)	$	(40,162	)

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets:
Cash	$	1,146		$	1,609
Prepaid taxes		1,643			1,741
Prepayment and deposits		28			-
Total current assets	$	2,817		$	3,350

Current liabilities:
Accounts payable – intercompany	$	40,029		$	42,422
Other payables and accrued liabilities		1,028			1,090
Total current liabilities	$	41,057		$	43,512
Net deficit	$	(38,240	)	$	(40,162	)

The summarized operating results of the VIE’s are as follows:

	2023			2022		2023			2022
	For the three months ended June 30,					For the six months ended June 30,
	2023			2022		2023			2022

Operating revenues	$	-		$	-	$	-		$	-
Gross profit	$	-		$	-	$	-		$	-
Profit (Loss) from operations	$	(81	)	$	1,723	$	(359	)	$	(3,219	)
Net loss	$	(81	)	$	1,723	$	(359	)	$	(3,219	)

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

CASH AND CASH EQUIVALENTS

6 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENTS

5. CASH AND CASH EQUIVALENTS

ACCOUNTS RECEIVABLE

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE

6. ACCOUNTS RECEIVABLE

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Accounts receivable	$	5,303	$	2,826
Allowance for doubtful accounts		-		-
Total accounts receivable	$	5,303	$	2,826

INVENTORIES

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

INVENTORIES

7. INVENTORIES

Inventories consist of the following:

SCHEDULE OF INVENTORIES

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Finished goods	$	66,056	$	46,277

There were no inventory write-downs nor write-off for the three and six months ended June 30, 2023 and 2022, respectively.

PREPAYMENTS AND DEPOSITS

6 Months Ended

Jun. 30, 2023

Prepayments And Deposits

PREPAYMENTS AND DEPOSITS

8. PREPAYMENTS AND DEPOSITS

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Receivables from sales distributors	$	28,219	$	43,596
Deposits to suppliers		94,719		147,504
Subtotal		122,938		191,100
Less: Allowance for doubtful accounts		-		-
Total	$	122,938	$	191,100

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

8. PREPAYMENTS AND DEPOSITS (Continued)

Movements of allowance for doubtful accounts are as follows:

	For the six months ended June 30, 2023		For the year ended December 31, 2022

Beginning balance	$	-	$	121,095
Addition		-		-
Write off		-		(120,372	)
Exchange rate effect		-		(723	)
Ending balance	$	-	$	-

PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

9. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer and office equipment	$	88,641		$	87,428
Furniture & fixtures		109,342			115,789
Leasehold improvements		181,136			191,965
Vehicle		88,259			93,535
Subtotal		467,378			488,717
Less: accumulated depreciation		(361,704	)		(346,568	)
Total	$	105,674		$	142,149

INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

10. INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

SCHEDULE OF INTANGIBLE ASSETS, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer software	$	52,225		$	55,348
Less: accumulated amortization		(32,497	)		(31,304	)
Total	$	19,728		$	24,044

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

INVESTMENT IN MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2023

Investment In Marketable Securities

INVESTMENT IN MARKETABLE SECURITIES

11. INVESTMENT IN MARKETABLE SECURITIES

	(i)	On May 17, 2018, the Company purchased 83,333 shares of common stock in Greenpro Capital Corp. for $500,000 at a purchase price of $6 per share.

	(ii)	On July 30, 2018, the Company disposed 20 shares of common stock in Greenpro Capital Corp. for $125 at a purchase price of $6.2613 per share.

	(iii)	On October 16, 2018, the Company purchased 33,333 shares of common stock in Greenpro Capital Corp. for $1,000 at a purchase price of $0.03 per share.

	(iv)	On July 19, 2022, Greenpro Capital Corp. filed a certificate of change with the Secretary of State of Nevada to effect a reverse split of the company’s common stock at the ratio of 10-for-1 effective July 28, 2022. Under the reverse stock split, each 10 pre-split share of common stock outstanding will automatically combine into 1 new share of common stock of the company. As at July 28, 2022, the Company has an investment of 116,646 common stock of Greenpro Capital Corp. The Company’s investment of 116,646 common stock of Greenpro Capital Corp. was reduced to 11,665 subsequent to the reverse stock split.

	(v)	On November 3, 2020, the Company received dividend of 6,667 shares of common stock in DSwiss, Inc. for $76,671 at fair value of $11.50 per share from Greenpro Capital Corporation as result of its Spin-off of DSwiss, Inc.’s shares

	(vi)	On December 9, 2020, the Company received dividend of 16,663 shares of common stock in DSwiss, Inc. for $83,315 at fair value of $5 per share from Greenpro Capital Corporation as result of its Spin-off of DSwiss, Inc.’s shares.

	(vii)	On September 27, 2021, the Company received dividend of 11,665 shares of common stock in SEATech Ventures Corp. for $18,874 at fair value of $1.62 per share from Greenpro Capital Corp as a dividend income since Greenpro Capital Corp previously owned these shares.

	(viii)	On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. (a non-marketable security) for $1,500 at purchase price of $0.0001 per share. Phoenix Plus Corp. obtained approval for Depository Trust Company eligibility on April 26, 2022. Since the commencement of trading of common stock of Phoenix Plus Corp. on May 18, 2022, to July 13, 2023, there were only 200 shares of common stock of the company traded. The Company deems there is an absence of a readily determinable fair value of the common stock of Phoenix Plus Corp. and has continued to value its investment in the company Phoenix Plus Corp. at cost.


	As of
	June 30, 2023			December 31, 2022
Cost of investment	$	16,687		$	89,001
Transfer from non-marketable security		-			1,500
Dividend income from Greenpro Capital Corp.		-			-
Unrealized holding gain (loss)		8,710			(73,519	)
Exchange rate effect		(66	)		(295	)
Investment in marketable securities	$	25,331		$	16,687

INVESTMENT IN NON-MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2023

Investment In Non-marketable Securities

INVESTMENT IN NON-MARKETABLE SECURITIES

12. INVESTMENT IN NON-MARKETABLE SECURITIES


	As of
Phoenix Plus Corporation	June 30, 2023		December 31, 2022
Cost of investment	$	-	$	1,500
Less: Transfer to investment in marketable securities		-		(1,500	)
Investment in non-marketable securities	$	-	$	-

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

CUSTOMER DEPOSITS

6 Months Ended

Jun. 30, 2023

Customer Deposits

CUSTOMER DEPOSITS

13. CUSTOMER DEPOSITS

SCHEDULE OF CUSTOMER DEPOSITS


	As of
	June 30, 2023		December 31, 2022

Customer deposits	$	265,300	$	289,487
Unexpired product coupons		46,889		73,531
Total	$	312,189	$	363,018

Customer deposits represent amounts advanced by customers on product orders and unexpired product coupons issued to the Company’s members and distributors of its network marketing business.

OTHER PAYABLES AND ACCRUED LIABILITIES

6 Months Ended

Jun. 30, 2023

Other Liabilities Disclosure [Abstract]

OTHER PAYABLES AND ACCRUED LIABILITIES

14. OTHER PAYABLES AND ACCRUED LIABILITIES


	As of
	June 30, 2023		December 31, 2022

Professional fees	$	140,672	$	324,629
Promotion expenses		38,583		38,583
Payroll		17,944		21,164
Amounts held in eWallets (a)		195,000		216,049
Tax penalty		75,000		75,000
Others		8,468		37,852
Total	$	475,667	$	713,277

(a)

RELATED PARTY BALANCES AND TRANSACTIONS

6 Months Ended

Jun. 30, 2023

RELATED PARTY BALANCES AND TRANSACTIONS

15. RELATED PARTY BALANCES AND TRANSACTIONS

Related party balances

Amount due from related parties

SCHEDULE OF RELATED PARTIES

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Prepayment of IT expenses	$	1,178	$	1,273
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Deposits for products purchases		-		9,261
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Expenses paid for DSYWLC		239		-

Total			$	1,417	$	10,534

Accounts payable – related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	19,601	$	25,387
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		4		224
Total			$	19,605	$	25,611

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party balances

Other payable - related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	391	$	2,149
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		316		2,147
Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense		323		584
Total			$	1,030	$	4,880

Related party transactions

Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	55,614	$	63,142
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		212		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	55,826	$	63,664

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	116,269	$	74,909
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		17,761		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	134,030	$	75,431

Other Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	1,291	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		1,151		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		212		-
Total			$	2,654	$	69

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other purchases

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	2,233	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		3,407		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		280		-
Total			$	5,920	$	69

Commission

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	1,626	$	2,443
Total			$	1,626	$	2,443

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Commission

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	3,538	$	5,148
Total			$	3,538	$	5,148

Other Income

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	670	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		2,010		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	2,747	$	-

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	1,340	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		4,021		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	5,428	$	-

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other expenses

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	13,647	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		8,254		5,602
Total			$	21,901	$	5,602

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	27,718	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		16,363		11,203
Total			$	44,081	$	11,203

STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

STOCKHOLDERS’ EQUITY

16. STOCKHOLDERS’ EQUITY

Preferred stock

As of June 30, 2023 and December 31, 2022, there were 200,000,000 preferred stocks authorized but none were issued and outstanding.

Common stock

As of June 30, 2023 and December 31, 2022, there were 1,000,000,000 common stocks authorized; and 75,452,012 shares issued and outstanding.

There were no stock options, warrants or other potentially dilutive securities outstanding as of June 30, 2023 and December 31, 2022.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

NON-CONTROLLING INTEREST

6 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTEREST

17. NON-CONTROLLING INTEREST

The Company’s non-controlling interest consists of the following:

SCHEDULE OF NON CONTROLLING INTEREST


	As of
	June 30, 2023			December 31, 2022
DSY Wellness:
Paid-in capital	$	97		$	97
Retained earnings		7,386			20,384
Accumulated other comprehensive (loss) income		(590	)		32
Noncontrolling interest gross		6,893			20,513
ASL		-			-
Total	$	6,893		$	20,513

INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

18. INCOME TAXES

The United States and foreign components of income (loss) before income taxes were comprised of the following:


	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022

Tax jurisdictions from:
Local – United States	$	(142,912	)	$	(187,379	)	$	(310,697	)	$	(293,804	)
Foreign – Malaysia		(241,867	)		(189,395	)		(516,152	)		(354,459	)
Foreign – Hong Kong		2,891			(27,178	)		6,670			(45,847	)
Foreign, Tax Jurisdictions		2,891			(27,178	)		6,670			(45,847	)

Loss before income tax	$	(381,888	)	$	(403,952	)	$	(820,179	)	$	(694,110	)

The benefit of (provision for) income taxes consisted of the following:

SCHEDULE OF PROVISION FOR INCOME TAX


	For the three months ended June 30,					For the six months ended June 30,
	2023		2022			2023		2022

Current:
- Local	$	-	$	-		$	-	$	-
- Foreign		-		(392	)		-		(8,680	)

Deferred:
- Local		-		-			-		-
- Foreign		2,439		-			6,655		-
Benefit of (Provision for) income tax	$	2,439	$	(392	)	$	6,655	$	(8,680	)

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

18. INCOME TAXES (Continued)

United States of America

For the three and six months ended June 30, 2023 and 2022, the Company’s foreign subsidiaries did not generate any income that are subject to Subpart F tax and GILTI tax.

Malaysia

Hong Kong

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

18. INCOME TAXES (Continued)

The following table sets forth the significant components of the aggregate deferred tax assets of the Company:

SCHEDULE OF DEFERRED TAX ASSETS


	As of
	June 30, 2023			December 31, 2022
Deferred tax assets:
Net operating loss carry forwards in U.S.	$	350,216		$	284,959
Net operating loss carry forwards in Malaysia		507,709			408,226
Net operating Loss carry forward		507,709			408,226

Less: valuation allowance		(851,545	)		(693,185	)
Deferred tax assets, net	$	6,382		$	-

Uncertain tax positions

CONCENTRATIONS OF RISKS

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

CONCENTRATIONS OF RISKS

19. CONCENTRATIONS OF RISKS

(a) Major customers

(b) Major vendors

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

19. CONCENTRATIONS OF RISKS (Continued)

One sales distributor accounted for 10% or more of the Company’s commission expense for the three months ended June 30, 2023 and 2022.

(d) Credit risk

(e) Exchange rate risk

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

Lease commitments

As of June 30, 2023, the weighted remaining term of the lease is approximately 2.81 years.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

20. COMMITMENTS AND CONTINGENCIES (Continued)

The five-year maturity of the Company’s operating lease liabilities is as follow:

SCHEDULE OF LEASE COMMITMENTS

Twelve Months Ending June 30,	Operating lease liabilities

2024	$	111,362
2025		102,501
2026		93,959
Thereafter		-
Total lease payments		307,822
Less: interest		(22,834	)
Present value of lease liabilities	$	284,988

Contingencies

Legal

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

20. COMMITMENTS AND CONTINGENCIES (Continued)

COVID-19

	●	temporary closure of offices, travel restrictions, disruption or suspension of supplies, our customers may be negatively impacted financially resulting in which the demand for our products may be adversely affected;
	●	we may have to provide significant sales incentives to our customers during the outbreak, which may in turn materially adversely affect our financial condition and operating results; and
	●	any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing us or our suppliers to cease manufacturing for a period of time or materially delay delivery to our customers, which may also lead to loss of our customers.

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

21. SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of presentation

Principles of consolidation

Use of estimates

Cash and cash equivalents

Cash and cash equivalents represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accounts receivable

Inventories

Prepaid taxes

Prepaid taxes include prepaid income taxes that will either be refunded or utilized to offset future income tax.

Prepayments and deposits

Property and equipment, net

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

		Useful Life
Computer and office equipment		5-7 years
Furniture & fixtures		6-7 years
Leasehold improvements		Shorter of the remaining lease terms or the estimated useful lives
Vehicle		5 years

Intangible assets, net

Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows:

Classification		Useful Life

Computer software		5 years

Impairment for long-lived assets

Deferred offering costs

Deferred offering costs represents costs associated with the Company’s current offering which will be netted against the proceeds from the Company’s proposed offering for uplisting.

Investment in marketable equity securities

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investment in non-marketable equity securities

The Company follows the provisions of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

Customer deposits

Revenue recognition

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Sales of Health and Wellness products

- Performance obligations satisfied at a point in time

The Company had contracts for the sales of health and wellness products amounting to $7,790 which it is expected to fulfill within 12 months from June 30, 2023.

Sales of products for the provision of complementary health therapies

Products for the provision of complementary health therapies are predominantly Chinese herbs in different forms, processed or otherwise, for prescriptions for treating non-communicable diseases.

Provision of Health and Wellness services

- Performance obligations satisfied at a point in time

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Disaggregated information of revenues by products are as follows:

	2023		2022		2023		2022
	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Survivor Select	$	-	$	13,941	$	28,210	$	22,753
Ionized Cal-Mag		37,221		14,278		84,802		62,368
Omega Blend		-		42,747		22,471		179,177
Beta Maxx		-		23,564		21,206		47,637
Iron		9,929		3,118		21,617		7,186
Young Formula		-		1,075		-		34,269
ATPR Mito+		-		76,605		-		187,926
Hyaluronic Acid Serum		-		1,698		-		3,006
Mousse Facial Cleanser		-		4,355		-		7,394
Trim+		3,702		2,765		9,587		6,236
LIVO 5		21,812		-		21,812		-
Others – Products for the provision of complementary health therapies		154,411		182,101		330,968		216,188
Others		17,998		388		19,816		388
Total revenues - products		245,073		366,635		560,489		774,528
Health and Wellness services		58,862		30,072		124,214		31,139
Total revenues - products and services	$	303,935	$	396,707	$	684,703	$	805,667

Cost of revenue

Shipping and handling

Advertising costs

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Commission expenses

Defined contribution plan

The related contribution plans include:

	-	Social Security Organization (“SOSCO”) – 1.75% based on employee’s monthly salary capped of RM 5,000;
	-	Employees Provident Fund (“EPF”) –based on employee’s monthly salary, 13% for employee earning RM5,000 and below; and 12% for employee earning RM5,001 and above.
	-	Employment Insurance System (“EIS”) – 0.2% based on employee’s monthly salary capped of RM 5,000;
	-	Human Resource Development Fund (“HRDF”) – 1% based on employee’s monthly salary

Income taxes

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Comprehensive income (loss)

Non-controlling interest

Earnings (loss) per share

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Foreign currencies translation and transaction

Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods:

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022
Period-end MYR : US$1 exchange rate		4.67		4.41
Period-end HKD : US$1 exchange rate		7.84		7.80
Foreign currency exchange rate, translation		7.84		7.80

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Period-average MYR : US$1 exchange rate		4.58		4.37		4.48		4.28
Period-average HKD : US$1 exchange rate		7.84		7.85		7.84		7.83
Foreign currency exchange rate period average		7.84		7.85		7.84		7.83

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Related parties

Fair value of financial instruments

	●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

Leases

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent accounting pronouncements

Recently adopted Accounting Pronouncements

ORGANIZATION AND BUSINESS BACKGROUND (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SCHEDULE OF SUBSIDIARIES AND ASSOCIATES

Details of the Company’s subsidiaries:

SCHEDULE OF SUBSIDIARIES AND ASSOCIATES

Subsidiary company name

Place and date of incorporation

Particulars of issued capital

Principal activities

Proportional of ownership interest and voting power held

Agape ATP Corporation

Labuan,
March 6, 2017

100 shares of ordinary share of US$1 each

Investment holding

100

Agape ATP International Holding Limited

Hong Kong,
June 1, 2017

1,000,000 shares of ordinary share of HK$1 each

Wholesaling of health and wellness products; and health solution advisory services

100

Agape Superior Living Sdn. Bhd.

Malaysia,
August 8, 2003

9,590,598 shares of ordinary share of RM1 each

Health and wellness products and health solution advisory services via network marketing

99.99

Agape S.E.A. Sdn. Bhd.

Malaysia,
March 4, 2004

2 shares of ordinary share of RM1 each

VIE of Agape Superior Living Sdn. Bhd.

VIE

Wellness ATP International Holdings Sdn, Bhd

Malaysia,
September 11, 2020

100 shares of ordinary share of RM1 each

The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns

100

DSY Wellness International Sdn Bhd.

Malaysia,
November 11, 2021

1,000 shares of ordinary share of RM1 each

Provision of complementary health therapies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT

		Useful Life
Computer and office equipment		5-7 years
Furniture & fixtures		6-7 years
Leasehold improvements		Shorter of the remaining lease terms or the estimated useful lives
Vehicle		5 years

SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET

Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows:

Classification		Useful Life

Computer software		5 years

SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES

Disaggregated information of revenues by products are as follows:

	2023		2022		2023		2022
	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Survivor Select	$	-	$	13,941	$	28,210	$	22,753
Ionized Cal-Mag		37,221		14,278		84,802		62,368
Omega Blend		-		42,747		22,471		179,177
Beta Maxx		-		23,564		21,206		47,637
Iron		9,929		3,118		21,617		7,186
Young Formula		-		1,075		-		34,269
ATPR Mito+		-		76,605		-		187,926
Hyaluronic Acid Serum		-		1,698		-		3,006
Mousse Facial Cleanser		-		4,355		-		7,394
Trim+		3,702		2,765		9,587		6,236
LIVO 5		21,812		-		21,812		-
Others – Products for the provision of complementary health therapies		154,411		182,101		330,968		216,188
Others		17,998		388		19,816		388
Total revenues - products		245,073		366,635		560,489		774,528
Health and Wellness services		58,862		30,072		124,214		31,139
Total revenues - products and services	$	303,935	$	396,707	$	684,703	$	805,667

SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES

Translation of foreign currencies into US$1 have been made at the following exchange rates for the respective periods:

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022
Period-end MYR : US$1 exchange rate		4.67		4.41
Period-end HKD : US$1 exchange rate		7.84		7.80
Foreign currency exchange rate, translation		7.84		7.80

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Period-average MYR : US$1 exchange rate		4.58		4.37		4.48		4.28
Period-average HKD : US$1 exchange rate		7.84		7.85		7.84		7.83
Foreign currency exchange rate period average		7.84		7.85		7.84		7.83

VARIABLE INTEREST ENTITY (“VIE”) (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SCHEDULE OF VARIABLE INTEREST ENTITY

The carrying amount of the VIE’s assets and liabilities were as follows:

SCHEDULE OF VARIABLE INTEREST ENTITY

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets	$	2,817		$	3,350
Current liabilities		(41,057	)		(43,512	)
Net deficit	$	(38,240	)	$	(40,162	)

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022
Current assets:
Cash	$	1,146		$	1,609
Prepaid taxes		1,643			1,741
Prepayment and deposits		28			-
Total current assets	$	2,817		$	3,350

Current liabilities:
Accounts payable – intercompany	$	40,029		$	42,422
Other payables and accrued liabilities		1,028			1,090
Total current liabilities	$	41,057		$	43,512
Net deficit	$	(38,240	)	$	(40,162	)

The summarized operating results of the VIE’s are as follows:

	2023			2022		2023			2022
	For the three months ended June 30,					For the six months ended June 30,
	2023			2022		2023			2022

Operating revenues	$	-		$	-	$	-		$	-
Gross profit	$	-		$	-	$	-		$	-
Profit (Loss) from operations	$	(81	)	$	1,723	$	(359	)	$	(3,219	)
Net loss	$	(81	)	$	1,723	$	(359	)	$	(3,219	)

ACCOUNTS RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Accounts receivable	$	5,303	$	2,826
Allowance for doubtful accounts		-		-
Total accounts receivable	$	5,303	$	2,826

INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORIES

Inventories consist of the following:

SCHEDULE OF INVENTORIES

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Finished goods	$	66,056	$	46,277

PREPAYMENTS AND DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2023

Prepayments And Deposits

SCHEDULE OF PREPAID EXPENSES AND DEPOSITS

	June 30, 2023		December 31, 2022
	As of
	June 30, 2023		December 31, 2022

Receivables from sales distributors	$	28,219	$	43,596
Deposits to suppliers		94,719		147,504
Subtotal		122,938		191,100
Less: Allowance for doubtful accounts		-		-
Total	$	122,938	$	191,100

SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS

Movements of allowance for doubtful accounts are as follows:

	For the six months ended June 30, 2023		For the year ended December 31, 2022

Beginning balance	$	-	$	121,095
Addition		-		-
Write off		-		(120,372	)
Exchange rate effect		-		(723	)
Ending balance	$	-	$	-

PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer and office equipment	$	88,641		$	87,428
Furniture & fixtures		109,342			115,789
Leasehold improvements		181,136			191,965
Vehicle		88,259			93,535
Subtotal		467,378			488,717
Less: accumulated depreciation		(361,704	)		(346,568	)
Total	$	105,674		$	142,149

INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

SCHEDULE OF INTANGIBLE ASSETS, NET

	June 30, 2023			December 31, 2022
	As of
	June 30, 2023			December 31, 2022

Computer software	$	52,225		$	55,348
Less: accumulated amortization		(32,497	)		(31,304	)
Total	$	19,728		$	24,044

INVESTMENT IN MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2023

Investment In Marketable Securities

SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES


	As of
	June 30, 2023			December 31, 2022
Cost of investment	$	16,687		$	89,001
Transfer from non-marketable security		-			1,500
Dividend income from Greenpro Capital Corp.		-			-
Unrealized holding gain (loss)		8,710			(73,519	)
Exchange rate effect		(66	)		(295	)
Investment in marketable securities	$	25,331		$	16,687

INVESTMENT IN NON-MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2023

Investment In Non-marketable Securities

SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES


	As of
Phoenix Plus Corporation	June 30, 2023		December 31, 2022
Cost of investment	$	-	$	1,500
Less: Transfer to investment in marketable securities		-		(1,500	)
Investment in non-marketable securities	$	-	$	-

CUSTOMER DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2023

Customer Deposits

SCHEDULE OF CUSTOMER DEPOSITS


	As of
	June 30, 2023		December 31, 2022

Customer deposits	$	265,300	$	289,487
Unexpired product coupons		46,889		73,531
Total	$	312,189	$	363,018

OTHER PAYABLES AND ACCRUED LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Other Liabilities Disclosure [Abstract]

SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES


	As of
	June 30, 2023		December 31, 2022

Professional fees	$	140,672	$	324,629
Promotion expenses		38,583		38,583
Payroll		17,944		21,164
Amounts held in eWallets (a)		195,000		216,049
Tax penalty		75,000		75,000
Others		8,468		37,852
Total	$	475,667	$	713,277

(a)

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2023

SCHEDULE OF RELATED PARTIES

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Prepayment of IT expenses	$	1,178	$	1,273
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Deposits for products purchases		-		9,261
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Expenses paid for DSYWLC		239		-

Total			$	1,417	$	10,534

Accounts payable – related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	19,601	$	25,387
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		4		224
Total			$	19,605	$	25,611

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party balances

Other payable - related parties

			As of
Name of Related Party	Relationship	Nature	June 30, 2023		December 31, 2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	391	$	2,149
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		316		2,147
Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense		323		584
Total			$	1,030	$	4,880

Related party transactions

Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	55,614	$	63,142
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		212		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	55,826	$	63,664

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchases of products for the provision of complementary health therapies	$	116,269	$	74,909
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchases of beauty products		17,761		395
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchases of products for the provision of complementary health therapies		-		127
Total			$	134,030	$	75,431

Other Purchases

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	1,291	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		1,151		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		212		-
Total			$	2,654	$	69

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other purchases

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

CTA Nutriceuticals (Asia) Sdn Bhd (“CTA”)	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	Purchase of products for general use	$	2,233	$	-
SY Welltech Sdn Bhd (“Welltech”) (formerly known as DSY Beauty Sdn Bhd)	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	Purchase of products for general use		3,407		69
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Purchase of products for general use		280		-
Total			$	5,920	$	69

Commission

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	1,626	$	2,443
Total			$	1,626	$	2,443

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Commission

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Mr. How Kok Choong	Mr. How Kok Choong, the CEO and director of the Company	Commission expense	$	3,538	$	5,148
Total			$	3,538	$	5,148

Other Income

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	670	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		2,010		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	2,747	$	-

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

Ando Design Sdn Bhd (“Ando”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Rental income	$	1,340	$	-
Redboy Picture Sdn Bhd (“Redboy”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Rental income		4,021		-
TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Rental income		67		-
Total			$	5,428	$	-

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Related party transactions

Other expenses

			For the three months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	13,647	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		8,254		5,602
Total			$	21,901	$	5,602

			For the six months ended June 30,
Name of Related Party	Relationship	Nature	2023		2022

TH3 Technology Sdn Bhd (“TH3”)	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	IT support services fee	$	27,718	$	-
DSY Wellness and Longevity Center Sdn Bhd (“DSYWLC”)	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Office rental expense		16,363		11,203
Total			$	44,081	$	11,203

NON-CONTROLLING INTEREST (Tables)

6 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Abstract]

SCHEDULE OF NON CONTROLLING INTEREST

The Company’s non-controlling interest consists of the following:

SCHEDULE OF NON CONTROLLING INTEREST


	As of
	June 30, 2023			December 31, 2022
DSY Wellness:
Paid-in capital	$	97		$	97
Retained earnings		7,386			20,384
Accumulated other comprehensive (loss) income		(590	)		32
Noncontrolling interest gross		6,893			20,513
ASL		-			-
Total	$	6,893		$	20,513

INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX

The United States and foreign components of income (loss) before income taxes were comprised of the following:


	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022

Tax jurisdictions from:
Local – United States	$	(142,912	)	$	(187,379	)	$	(310,697	)	$	(293,804	)
Foreign – Malaysia		(241,867	)		(189,395	)		(516,152	)		(354,459	)
Foreign – Hong Kong		2,891			(27,178	)		6,670			(45,847	)
Foreign, Tax Jurisdictions		2,891			(27,178	)		6,670			(45,847	)

Loss before income tax	$	(381,888	)	$	(403,952	)	$	(820,179	)	$	(694,110	)

SCHEDULE OF PROVISION FOR INCOME TAX

The benefit of (provision for) income taxes consisted of the following:

SCHEDULE OF PROVISION FOR INCOME TAX


	For the three months ended June 30,					For the six months ended June 30,
	2023		2022			2023		2022

Current:
- Local	$	-	$	-		$	-	$	-
- Foreign		-		(392	)		-		(8,680	)

Deferred:
- Local		-		-			-		-
- Foreign		2,439		-			6,655		-
Benefit of (Provision for) income tax	$	2,439	$	(392	)	$	6,655	$	(8,680	)

SCHEDULE OF DEFERRED TAX ASSETS

The following table sets forth the significant components of the aggregate deferred tax assets of the Company:

SCHEDULE OF DEFERRED TAX ASSETS


	As of
	June 30, 2023			December 31, 2022
Deferred tax assets:
Net operating loss carry forwards in U.S.	$	350,216		$	284,959
Net operating loss carry forwards in Malaysia		507,709			408,226
Net operating Loss carry forward		507,709			408,226

Less: valuation allowance		(851,545	)		(693,185	)
Deferred tax assets, net	$	6,382		$	-

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

SCHEDULE OF LEASE COMMITMENTS

The five-year maturity of the Company’s operating lease liabilities is as follow:

SCHEDULE OF LEASE COMMITMENTS

Twelve Months Ending June 30,	Operating lease liabilities

2024	$	111,362
2025		102,501
2026		93,959
Thereafter		-
Total lease payments		307,822
Less: interest		(22,834	)
Present value of lease liabilities	$	284,988

SCHEDULE OF SUBSIDIARIES AND ASSOCIATES (Details)	6 Months Ended
SCHEDULE OF SUBSIDIARIES AND ASSOCIATES (Details)	Jun. 30, 2023
Subsidiary Company [Member]
Subsidiary company name	Agape ATP Corporation
Place and date of incorporation	Labuan, March 6, 2017
Particulars of issued capital	100 shares of ordinary share of US$1 each
Principal activities	Investment holding
Proportional of ownership interest and voting power held	100.00%
Subsidiary Company One [Member]
Subsidiary company name	Agape ATP International Holding Limited
Place and date of incorporation	Hong Kong, June 1, 2017
Particulars of issued capital	1,000,000 shares of ordinary share of HK$1 each
Principal activities	Wholesaling of health and wellness products; and health solution advisory services
Proportional of ownership interest and voting power held	100.00%
Subsidiary Company Two [Member]
Subsidiary company name	Agape Superior Living Sdn. Bhd.
Place and date of incorporation	Malaysia, August 8, 2003
Particulars of issued capital	9,590,598 shares of ordinary share of RM1 each
Principal activities	Health and wellness products and health solution advisory services via network marketing
Proportional of ownership interest and voting power held	99.99%
Subsidiary Company Three [Member]
Subsidiary company name	Agape S.E.A. Sdn. Bhd.
Place and date of incorporation	Malaysia, March 4, 2004
Particulars of issued capital	2 shares of ordinary share of RM1 each
Principal activities	VIE of Agape Superior Living Sdn. Bhd.
Subsidiary Company Four [Member]
Subsidiary company name	Wellness ATP International Holdings Sdn, Bhd
Place and date of incorporation	Malaysia, September 11, 2020
Particulars of issued capital	100 shares of ordinary share of RM1 each
Principal activities	The promotion of wellness and wellbeing lifestyle of the community by providing services that includes online editorials, programs, events and campaigns
Proportional of ownership interest and voting power held	100.00%
Subsidiary Company Five [Member]
Subsidiary company name	DSY Wellness International Sdn Bhd.
Place and date of incorporation	Malaysia, November 11, 2021
Particulars of issued capital	1,000 shares of ordinary share of RM1 each
Principal activities	Provision of complementary health therapies
Proportional of ownership interest and voting power held	60.00%

ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - shares	May 08, 2020	Jun. 30, 2023	Nov. 11, 2021
Share Exchange Agreement [Member] \| Mr.How Kok Choong [Member]
Stock issued during period acquisitions, shares	9,590,596
Agape ATP International Holding Limited [Member]
Ownership interest percentage		100.00%
Agape Superior Living Sdn Bhd [Member]
Ownership interest percentage	99.99%
DSY Wellness International Sdn Bhd [Member]
Ownership interest percentage			60.00%

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Profit loss	$ 379,449	$ 404,344	$ 813,524	$ 702,790
Accumulated deficit	5,746,112		5,746,112		$ 4,945,586
Working capital	$ 26,892		$ 26,892

SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details)	Jun. 30, 2023
Computer Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Computer Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years
Furniture and Fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	6 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	Useful Life, Lease Term [Member]
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years

SCHEDULE OF ESTIMATED USEFUL LIVES OF INTANGIBLE ASSETS, NET (Details)	Jun. 30, 2023
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	5 years

SCHEDULE OF DIS-AGGREGATED INFORMATION OF REVENUES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Product Information [Line Items]
Total revenues - products and services	$ 303,935	$ 396,707	$ 684,703	$ 805,667
Survivor Select [Member]
Product Information [Line Items]
Total revenues - products and services		13,941	28,210	22,753
Ionized Cal Mag [Member]
Product Information [Line Items]
Total revenues - products and services	37,221	14,278	84,802	62,368
Omega Blend [Member]
Product Information [Line Items]
Total revenues - products and services		42,747	22,471	179,177
Beta Maxx [Member]
Product Information [Line Items]
Total revenues - products and services		23,564	21,206	47,637
Iron [Member]
Product Information [Line Items]
Total revenues - products and services	9,929	3,118	21,617	7,186
Young Formula [Member]
Product Information [Line Items]
Total revenues - products and services		1,075		34,269
ATPR MITO Plus [Member]
Product Information [Line Items]
Total revenues - products and services		76,605		187,926
Hyaluronic Acid Serum [Member]
Product Information [Line Items]
Total revenues - products and services		1,698		3,006
Mousse Facial Cleanser [Member]
Product Information [Line Items]
Total revenues - products and services		4,355		7,394
Trim Plus [Member]
Product Information [Line Items]
Total revenues - products and services	3,702	2,765	9,587	6,236
LIVO5 [Member]
Product Information [Line Items]
Total revenues - products and services	21,812		21,812
Product Health Therapies [Member]
Product Information [Line Items]
Total revenues - products and services	154,411	182,101	330,968	216,188
Others [Member]
Product Information [Line Items]
Total revenues - products and services	17,998	388	19,816	388
Product [Member]
Product Information [Line Items]
Total revenues - products and services	245,073	366,635	560,489	774,528
Health and Wellness Services [Member]
Product Information [Line Items]
Total revenues - products and services	$ 58,862	$ 30,072	$ 124,214	$ 31,139

SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Period End MYR [Member]
Debt Instrument [Line Items]
Foreign currency exchange rate, translation	4.67		4.67		4.41
Period End H K D [Member]
Debt Instrument [Line Items]
Foreign currency exchange rate, translation	7.84		7.84		7.80
Period Average MYR [Member]
Debt Instrument [Line Items]
Foreign currency exchange rate period average	4.58	4.37	4.48	4.28
Period Average HKD [Member]
Debt Instrument [Line Items]
Foreign currency exchange rate period average	7.84	7.85	7.84	7.83

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 MYR (RM) shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2022 USD ($) shares
Product Information [Line Items]
Accounts receivable, allowance for credit loss
Wrote-off allowance for doubtful accounts						120,372
Allowance for doubtful accounts	0		0			0
Impairment of long-lived assets			0			$ 0
Value of coupons	6,422	$ 4,824	28,872		5,777
Cost of revenue	107,931	109,383	236,289		182,814
Revenues	303,935	396,707	684,703		805,667
Selling expenses	64,126	79,587	140,224		194,198
Advertising costs	0	4,765	0		4,765
Commission expenses	21,942	62,557	55,884		176,666
Defined contribution plan expense	35,759	35,936	$ 79,472		63,408
Income tax description			greater than 50%	greater than 50%
Income tax examination, penalties and interest expense	$ 0	$ 0	$ 0		$ 0
Noncontrolling interest, description			Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals	Non-controlling interest consists of 40% of the equity interests of DSY Wellness held by an individual and approximately 0.01% (2 ordinary shares out of 9,590,598 shares) of the equity interests of ASL held by two individuals
Potentially dilutive securities outstanding \| shares	0	0	0	0	0	0
Social Security Organization [Member]
Product Information [Line Items]
Salary percentage			1.75%	1.75%
Monthly salary \| RM				RM 5,000
Employees Provident Fund [Member] \| Minimum [Member]
Product Information [Line Items]
Salary percentage			13.00%	13.00%
Monthly salary \| RM				RM 5,000
Employees Provident Fund [Member] \| Maximum [Member]
Product Information [Line Items]
Salary percentage			12.00%	12.00%
Monthly salary \| RM				RM 5,001
Employment Insurance System [Member]
Product Information [Line Items]
Salary percentage			0.20%	0.20%
Monthly salary \| RM				RM 5,000
Human Resource Development Fund [Member]
Product Information [Line Items]
Salary percentage			1.00%	1.00%
Health and Wellness Services [Member]
Product Information [Line Items]
Cost of revenue			$ 7,790
Revenues	$ 58,862	$ 30,072	124,214		$ 31,139
Shipping and Handling [Member]
Product Information [Line Items]
Selling expenses	$ 1,131	$ 4,272	$ 2,656		$ 7,179

SCHEDULE OF VARIABLE INTEREST ENTITY (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Trading Activity, Gains and Losses, Net [Line Items]
Total current assets	$ 941,436		$ 941,436		$ 2,028,534
Current liabilities	(968,329)		(968,329)		(1,229,295)
Net deficit	743,761		743,761		1,541,941
Cash	653,754		653,754		1,438,430
Prepaid taxes	91,968		91,968		339,367
Prepayment and deposits	122,938		122,938		191,100
Other payables and accrued liabilities	475,667		475,667		713,277
Total current liabilities	968,329		968,329		1,229,295
Operating revenues	303,935	$ 396,707	684,703	$ 805,667
Gross profit	196,004	287,324	448,414	622,853
Profit (Loss) from operations	(359,533)	(306,183)	(813,417)	(578,415)
Net loss	(374,686)	(414,900)	(800,526)	(713,997)
Variable Income Interest Rate [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Total current assets	2,817		2,817		3,350
Current liabilities	(41,057)		(41,057)		(43,512)
Net deficit	(38,240)		(38,240)		(40,162)
Cash	1,146		1,146		1,609
Prepaid taxes	1,643		1,643		1,741
Prepayment and deposits	28		28
Accounts payable – intercompany	40,029		40,029		42,422
Other payables and accrued liabilities	1,028		1,028		1,090
Total current liabilities	41,057		41,057		$ 43,512
Operating revenues
Gross profit
Profit (Loss) from operations	(81)	1,723	(359)	(3,219)
Net loss	$ (81)	$ 1,723	$ (359)	$ (3,219)

VARIABLE INTEREST ENTITY (“VIE”) (Details Narrative)	Jun. 30, 2023
Agape SEA Sdn Bhd [Member]
Ownership interest percentage	100.00%

CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Cash and cash equivalents	$ 653,754	$ 1,438,430
Cash in bank	332,431	523,619
Time deposits	321,323	914,811
Time deposit uninsured	$ 397,809	$ 231,187
Minimum [Member]
Percentage of Interest rate for time deposits	1.22%		1.10%
Maximum [Member]
Percentage of Interest rate for time deposits	1.88%		1.17%

SCHEDULE OF ACCOUNTS RECEIVABLES - RELATED PARTY (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 5,303	$ 2,826
Allowance for doubtful accounts
Total accounts receivable	$ 5,303	$ 2,826

SCHEDULE OF INVENTORIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 66,056	$ 46,277

INVENTORIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INVENTORIES (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventory write-down	$ 0	$ 0	$ 0	$ 0

SCHEDULE OF PREPAID EXPENSES AND DEPOSITS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Prepayments And Deposits
Receivables from sales distributors	$ 28,219	$ 43,596
Deposits to suppliers	94,719	147,504
Subtotal	122,938	191,100
Less: Allowance for doubtful accounts
Total	$ 122,938	$ 191,100

SCHEDULE OF CHANGES IN ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Prepayments And Deposits
Beginning balance		$ 121,095	$ 121,095
Addition
Write off			(120,372)
Exchange rate effect			(723)
Ending balance

SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Subtotal	$ 467,378	$ 488,717
Less: accumulated depreciation	(361,704)	(346,568)
Total	105,674	142,149
Computer And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	88,641	87,428
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Subtotal	109,342	115,789
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Subtotal	181,136	191,965
Vehicle [Member]
Property, Plant and Equipment [Line Items]
Subtotal	$ 88,259	$ 93,535

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 18,124	$ 17,954	$ 36,177	$ 36,661

SCHEDULE OF INTANGIBLE ASSETS, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Computer software	$ 52,225	$ 55,348
Less: accumulated amortization	(32,497)	(31,304)
Total	$ 19,728	$ 24,044

INTANGIBLE ASSETS, NET (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,506	$ 439	$ 3,087	$ 897

SCHEDULE OF INVESTMENT IN MARKETABLE SECURITIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Investment In Marketable Securities
Cost of investment	$ 16,687	$ 89,001
Transfer from non-marketable security		1,500
Dividend income from Greenpro Capital Corp.
Unrealized holding gain (loss)	8,710	(73,519)
Exchange rate effect	(66)	(295)
Investment in marketable securities	$ 25,331	$ 16,687

INVESTMENT IN MARKETABLE SECURITIES (Details Narrative) - USD ($)		14 Months Ended
	Jul. 19, 2022	Jul. 13, 2023	Jun. 30, 2023	Dec. 31, 2022	Jul. 28, 2022	Sep. 27, 2021	Dec. 09, 2020	Nov. 03, 2020	Apr. 03, 2019	Oct. 16, 2018	Jul. 30, 2018	May 17, 2018
Investment amount			$ 16,687	$ 89,001
Stockholders equity reverse stock split	the company’s common stock at the ratio of 10-for-1 effective July 28, 2022. Under the reverse stock split, each 10 pre-split share of common stock outstanding will automatically combine into 1 new share of common stock of the company. As at July 28, 2022, the Company has an investment of 116,646 common stock of Greenpro Capital Corp. The Company’s investment of 116,646 common stock of Greenpro Capital Corp. was reduced to 11,665 subsequent to the reverse stock split
Common Stock [Member] \| Subsequent Event [Member]
Stock issued during period shares new issues		200
Phoenix Plus Corporation [Member]
Investment amount									$ 1,500
Shares issued price per share									$ 0.0001
Equity interest percentage									5.00%
Phoenix Plus Corporation [Member] \| Common Stock [Member]
Shares purchased during period									15,000,000
Greenpro Capital Corp. [Member]
Shares purchased during period	11,665				116,646					33,333	20	83,333
Investment amount										$ 1,000	$ 125	$ 500,000
Shares issued price per share										$ 0.03	$ 6.2613	$ 6
DSwiss Inc. [Member]
Shares purchased during period							16,663	6,667
Investment amount							$ 83,315	$ 76,671
Shares issued price per share							$ 5	$ 11.50
SEATech Ventures Corp. [Member]
Shares purchased during period						11,665
Investment amount						$ 18,874
Shares issued price per share						$ 1.62

SCHEDULE OF INVESTMENT IN NON MARKETABLE SECURITIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Cost of investment	$ 16,687	$ 89,001
Phoenix Plus Corporation [Member]
Cost of investment		1,500
Less: Transfer to investment in marketable securities		(1,500)
Investment in non-marketable securities

INVESTMENT IN NON-MARKETABLE SECURITIES (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Apr. 03, 2019
Investment amount	$ 16,687	$ 89,001
Phoenix Plus Corporation [Member]
Equity interest percentage			5.00%
Investment amount			$ 1,500
Shares issued price per share			$ 0.0001
Phoenix Plus Corporation [Member] \| Common Stock [Member]
Shares purchased during period			15,000,000

SCHEDULE OF CUSTOMER DEPOSITS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Customer Deposits
Customer deposits	$ 265,300	$ 289,487
Unexpired product coupons	46,889	73,531
Total	$ 312,189	$ 363,018

SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES (Details)

6 Months Ended

Jun. 30, 2023

USD ($)

Jun. 30, 2023

MYR (RM)

Dec. 31, 2022

USD ($)

Professional fees

$ 140,672

$ 324,629

Promotion expenses

38,583

Payroll

17,944

21,164

Amounts held in eWallets (a)

^[1]

195,000

216,049

Tax penalty

75,000

Others

8,468

37,852

Total

$ 475,667

$ 713,277

Commission payments descriptions

The eWallet is primarily for the crediting of any commission payment that falls below RM100 (or $22.70)

Commission payable, threshold | RM

RM 100

Maximum [Member]

Commission payable, threshold | RM

RM 100

[1]

SCHEDULE OF RELATED PARTIES (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
SCHEDULE OF RELATED PARTIES (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Purchases	$ 55,826	$ 63,664	$ 134,030	$ 75,431
Purchases	2,654	69	5,920	69
Commission expense	21,942	62,557	55,884	176,666
Office rental expense	2,747		5,428
Other expenses	$ 21,901	$ 5,602	$ 44,081	11,203
TH3 Technology Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3		Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3
Nature	Rental income	Rental income	Prepayment of IT expenses		Prepayment of IT expenses
Due from related parties	$ 1,178		$ 1,178		$ 1,273
Office rental expense	67
DSY Beauty Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship			The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd		The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd
Nature			Deposits for products purchases		Deposits for products purchases
Due from related parties					$ 9,261
DSY Wellness and Longevity Center Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship			Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC		Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC
Nature			Expenses paid for DSYWLC		Expenses paid for DSYWLC
Due from related parties	239		$ 239
Related Party [Member]
Related Party Transaction [Line Items]
Due from related parties	1,417		1,417		10,534
Accounts payable, related parties, current	19,605		19,605		25,611
Due to related parties	1,030		$ 1,030		$ 4,880
CTA Nutriceuticals Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship			The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd		The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd
Nature			Purchases of products for the provision of complementary health therapies		Purchases of products for the provision of complementary health therapies
Accounts payable, related parties, current	19,601		$ 19,601		$ 25,387
DSY Beauty Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship			The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd		The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd
Nature			Purchases of beauty products		Purchases of beauty products
Accounts payable, related parties, current	4		$ 4		$ 224
CTA Nutriceuticals Asia Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship			The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd		The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd
Nature			Purchase of products for general use		Purchase of products for general use
Due to related parties	391		$ 391		$ 2,149
DSY Beauty Sdn Bhd Two [Member]
Related Party Transaction [Line Items]
Relationship			The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd		The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd
Nature			Purchase of products for general use		Purchase of products for general use
Due to related parties	316		$ 316		$ 2,147
How Kok Choong [Member]
Related Party Transaction [Line Items]
Relationship			Mr. How Kok Choong, the CEO and director of the Company		Mr. How Kok Choong, the CEO and director of the Company
Nature			Commission expense		Commission expense
Due to related parties	323		$ 323		$ 584
How Kok Choong [Member] \| Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Commission expense	$ 1,626	$ 2,443	$ 3,538	$ 5,148
CTA Nutriceuticals Sdn Bhd One [Member]
Related Party Transaction [Line Items]
Relationship	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd
Nature	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies
Purchases	$ 55,614	$ 63,142	$ 116,269	$ 74,909
DSY Beauty Sdn Bhd Three [Member]
Related Party Transaction [Line Items]
Relationship	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd
Nature	Purchases of beauty products	Purchases of beauty products	Purchases of beauty products	Purchases of beauty products
Purchases	$ 212	$ 395	$ 17,761	$ 395
D S Y Wellnessand Longevity Center Sdn Bhd Two [Member]
Related Party Transaction [Line Items]
Relationship	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC
Nature	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies	Purchases of products for the provision of complementary health therapies
Purchases		$ 127		$ 127
Other expenses	$ 8,254
CTA Nutriceuticals Asia Sdn Bhd One [Member]
Related Party Transaction [Line Items]
Relationship	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd	The directors and shareholders of CTA are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY International Wellness Sdn Bhd
Nature	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use
Purchases	$ 1,291		$ 2,233
DSY Beauty Sdn Bhd Four [Member]
Related Party Transaction [Line Items]
Relationship	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd	The directors and shareholders of Welltech are related parties to Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd
Nature	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use
Purchases	$ 1,151	$ 69	$ 3,407	$ 69
DSY Beauty Sdn Bhd Five [Member]
Related Party Transaction [Line Items]
Relationship	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC
Nature	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use	Purchase of products for general use
Purchases	$ 212		$ 280
How Kok Choong One [Member]
Related Party Transaction [Line Items]
Relationship	Mr. How Kok Choong, the CEO and director of the Company	Mr. How Kok Choong, the CEO and director of the Company	Mr. How Kok Choong, the CEO and director of the Company	Mr. How Kok Choong, the CEO and director of the Company
Nature	Commission expense	Commission expense	Commission expense	Commission expense
Commission expense	$ 1,626	$ 2,443	$ 3,538	$ 5,148
Ando Design Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando	Mr. How Kok Choong, the CEO and director of the Company is also a director of Ando
Nature	Rental income	Rental income	Rental income	Rental income
Office rental expense	$ 670		$ 1,340
Redboy Picture Sdn Bhd [Member]
Related Party Transaction [Line Items]
Relationship	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy	Mr. How Kok Choong, the CEO and director of the Company is also a director of Redboy
Nature	Rental income	Rental income	Rental income	Rental income
Office rental expense	$ 2,010		$ 4,021
TH3 Technology Sdn Bhd Th3 [Member]
Related Party Transaction [Line Items]
Relationship			Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3
Nature			Rental income	Rental income
Office rental expense			$ 67
TH3 Technology Sdn Bhd Two [Member]
Related Party Transaction [Line Items]
Relationship	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3	Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3
Nature	IT support services fee	IT support services fee	IT support services fee	IT support services fee
Other expenses	$ 13,647		$ 27,718
DSYWellness And Longevity Center SdnBhdDsywlc Two [Member]
Related Party Transaction [Line Items]
Relationship	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC	Mr. Yap Foo Ching (Steve Yap), a director of DSY Wellness International Sdn Bhd is also a director of DSYWLC
Nature	Office rental expense	Office rental expense	Office rental expense
Other expenses		$ 5,602	$ 16,363	$ 11,203
DSYWellnessa And Longev [Member]
Related Party Transaction [Line Items]
Nature				Office rental expense

STOCKHOLDERS’ EQUITY (Details Narrative) - shares	3 Months Ended		6 Months Ended		12 Months Ended
STOCKHOLDERS’ EQUITY (Details Narrative) - shares	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Preferred stock, shares authorized	200,000,000		200,000,000		200,000,000
Preferred stock, shares issued	0		0		0
Preferred stock, shares outstanding	0		0		0
Common stock, shares authorized	1,000,000,000		1,000,000,000		1,000,000,000
Common stock, shares issued	75,452,012		75,452,012		75,452,012
Common stock, shares outstanding	75,452,012		75,452,012		75,452,012
Potentially dilutive securities outstanding	0	0	0	0	0
Share Forfeiture Agreements [Member] \| How Kok Choong [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of shares forfeited			215,008,035
Reduction in outstanding shares			215,008,035

SCHEDULE OF NON CONTROLLING INTEREST (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Paid-in capital	$ 97	$ 97
Retained earnings	7,386	20,384
Accumulated other comprehensive (loss) income	(590)	32
Noncontrolling interest gross	6,893	20,513
ASL
Total	$ 6,893	$ 20,513

SCHEDULE OF COMPONENTS OF INCOME/(LOSS) BEFORE INCOME TAX (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Local – United States	$ (142,912)	$ (187,379)	$ (310,697)	$ (293,804)
Loss before income tax	(381,888)	(403,952)	(820,179)	(694,110)
MALAYSIA
Foreign, Tax Jurisdictions	(241,867)	(189,395)	(516,152)	(354,459)
HONG KONG
Foreign, Tax Jurisdictions	$ 2,891	$ (27,178)	$ 6,670	$ (45,847)

SCHEDULE OF PROVISION FOR INCOME TAX (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Current:
- Local
- Foreign		(392)		(8,680)
Deferred:
- Local
- Foreign	2,439		6,655
Benefit of (Provision for) income tax	$ 2,439	$ (392)	$ 6,655	$ (8,680)

SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Less: valuation allowance	$ (851,545)	$ (693,185)
Deferred tax assets, net	6,382
UNITED STATES
Net operating Loss carry forward	350,216	284,959
Less: valuation allowance	(350,000)	(285,000)
MALAYSIA
Net operating Loss carry forward	507,709	408,226
Less: valuation allowance	$ (501,000)	$ (408,000)

INCOME TAXES (Details Narrative)	6 Months Ended
INCOME TAXES (Details Narrative)	Jun. 30, 2023 MYR (RM)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 MYR (RM)	Dec. 31, 2022 USD ($)
Operating Loss Carryforwards [Line Items]
Tax rate description	In addition, the Tax Cuts and Jobs Act imposed a global intangible low-taxed income (“GILTI”) tax, which is a tax on certain off-shore earnings at an effective rate of 10.5% for tax years (50% deduction of the current enacted tax rate of 21%) with a partial offset for 80% foreign tax credits. If the foreign tax rate is 13.125% or higher, there will be no U.S. corporate tax after the 80% foreign tax credits are applied
Deferred tax valuation allowance			$ 851,545		$ 693,185
2030 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards			35,000
Two Thousand Thirty One [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards			778,000
Two Thousand Thirty Two [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards			858,000
Two Thousand Thirty Three [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards			478,000
UNITED STATES
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards			1,668,000		1,357,000
Deferred tax valuation allowance			350,000		285,000
MALAYSIA
Operating Loss Carryforwards [Line Items]
Tax percentage	17.00%
Operating loss carryforwards			2,149,000		1,723,000
Deferred tax valuation allowance			$ 501,000		$ 408,000
Income tax examination, description	The tax rate for small and medium sized companies (generally companies incorporated in Malaysia with paid-in capital of RM 2,500,000 or less) is 17% for the first RM 600,000 (or approximately $150,000) for the three and six months ended June 30, 2023 and 2022, with the remaining balance being taxed at the 24% rate
Paid in capital \| RM				RM 2,500,000
Additional paid in capital stock split	RM 600,000	$ 150,000
HONG KONG
Operating Loss Carryforwards [Line Items]
Tax percentage	16.50%
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Tax percentage	21.00%
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Tax percentage	35.00%

CONCENTRATIONS OF RISKS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
CONCENTRATIONS OF RISKS (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Concentration Risk [Line Items]
Deposits	$ 630,285		$ 630,285		$ 1,427,963
Time deposit uninsured	$ 397,809		$ 397,809		$ 231,187
No Customer [Member] \| Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage	10.00%	10.00%		10.00%
Two Individual Customers [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			19.90%
Five Individual Customers [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			18.70%		72.00%
Vendor One [Member] \| Cost of Goods and Service Benchmark [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage	43.10%	70.00%
Vendor One [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			47.20%	46.00%	46.60%
Vendor Two [Member] \| Cost of Goods and Service Benchmark [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage	27.50%	17.00%
Vendor Two [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			26.50%	43.00%	25.80%
Vendor Three [Member] \| Cost of Goods and Service Benchmark [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage	26.00%	11.00%
Vendor Three [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			13.60%		23.90%
Vendor Accounted Approximately One [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			62.30%
Vendor Accounted Approximately Two [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			27.80%
Vendor [Member] \| Accounts Payable [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage			27.80%		46.60%
One Sales Distributor [Member] \| Cost of Goods and Service Benchmark [Member] \| Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentrations of risk percentage	10.00%		10.00%	10.00%

SCHEDULE OF LEASE COMMITMENTS (Details) - USD ($)	Jun. 30, 2023	Nov. 01, 2021	Apr. 01, 2020
Commitments and Contingencies Disclosure [Abstract]
2024	$ 111,362
2025	102,501
2026	93,959
Thereafter
Total lease payments	307,822
Less: interest	(22,834)
Present value of lease liabilities	$ 284,988	$ 10,864	$ 490,000

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	May 31, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 01, 2023	Dec. 31, 2022	Nov. 01, 2021	Oct. 01, 2021	Apr. 01, 2020
Property, Plant and Equipment [Line Items]
Operating lease liability		$ 284,988		$ 284,988				$ 10,864		$ 490,000
Reduction in ROU assets and liabilities	$ 3,250					$ 283,220
Operating lease effective interest rate	5.50%					5.50%		5.50%	5.50%
Operating lease term									2 years
Operating right-of-use assets		284,670		284,670			$ 81,133	$ 10,864	$ 9,777
Operating Lease, Right-of-Use Asset		$ 38,683	$ 36,162	$ 78,333	$ 75,241
Operating lease, weighted average remaining lease term		2 years 9 months 21 days		2 years 9 months 21 days
Operating lease payments				$ 16,020
Operating lease, expense		$ 48,727	$ 54,237	$ 99,434	$ 98,312
Training Center [Member]
Property, Plant and Equipment [Line Items]
Lease expiration term	Aug. 31, 2023