Financial Analysis

20. COMMITMENTS AND CONTINGENCIES The Company has no material commitments or contingencies that are required to be disclosed. The Company has evaluated its obligations and contingencies and determined that no material commitments or contingencies exist at this time. The Company will continue to monitor and evaluate any potential future commitments or contingencies and will disclose any material items as required. Legal The Company is not involved in any material legal proceedings and there are no legal matters that are required to be disclosed.

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Disaggregated information of revenues by products and services are as follows: SCHEDULE OF DISAGGREGATED INFORMATION OF REVENUES 2025 2024 For the years ended December 31, 2025 2024 Energized Mineral Concentrate $ 59,024 $ 43,487 Ionized Cal-Mag - 388 LIVO5 7,931 76,465 Soy Protein Isolate Powder 1,859 9,357 Mix Soy Protein Isolate Powder with Black Sesame 2,462 7,353 Others Products for the provision of complementary health therapies 912,239 913,297 Skin care and healthcare products 231,721 22,091 Green Energy 139,727 42,763 Total revenues products 1,354,963 1,115,201 Health and Wellness services 169,299 207,546 Total revenues products and services $ 1,524,262 $ 1,322,747 …

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17. INCOME TAXES The United States and foreign components of loss before income taxes were comprised of the following: SCHEDULE OF COMPONENTS OF LOSS BEFORE INCOME TAXES 2025 2024 For the years ended December 31, 2025 2024 Tax jurisdictions from: Local United States $ (1,535,023 ) $ (1,706,035 ) Foreign Malaysia (774,834 ) (762,788 ) Foreign China (479 ) (3,144 ) Foreign Hong Kong 5,014 (9,143 ) Foreign Tax Jurisdictions 5,014 (9,143 ) Loss before income tax $ (2,305,322 ) $ (2,481,110 ) Income tax expense consisted of the following: SCHEDULE OF INCOME TAX EXPENSE 2025 2024 For the years ended December 31, 2025 2024 Current: - Local $ - $ - - Foreign (2,285 ) (4,934 ) Deferred: - Local - - - Foreign - - Income tax expense $ (2,285 ) $ (4,934 ) 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 subsidiaries that operate in various countries: United States, Malaysia (including Labuan), Hong Kong and China that are subject to taxes in the jurisdictions in which they operate, as follows: 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 is also subject to controlled foreign corporations Subpart F income (Subpart F) tax, which is a tax primarily on passive income from contr …

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19. LEASE Lease commitments On July 11, 2024, the Company leased non-commercial vehicle as lessee under finance leases with 5 years lease terms. The Company recognized finance lease liabilities of approximately $ 72,772 , using an effective interest rate of 4.42 %, which was determined using the incremental borrowing rate. SCHEDULE OF LEASE COST Components of leases As of December 31, 2025 As of December 31, 2024 Operating lease cost $ 172,213 $ 155,828 Amortization of finance lease asset 44,150 29,445 Interest on finance lease liabilities 8,718 7,267 Weighted average remaining lease term (years) Operating lease 0.75 1.49 Finance lease 3.34 4.34 Weighted average discount rate Operating lease 5.37 % 5.5 % Finance lease 6.81 % 6.7 % The five-year maturity of the Companys operating and finance lease liabilities is as follow: SCHEDULE OF LEASE COMMITMENTS Twelve Months Ending December 31, 2025 Operating lease liabilities Finance lease liabilities 2026 $ 95,821 $ 33,038 2027 8,943 33,038 2028 - 33,038 2029 - 47,017 Total lease payments 104,764 146,131 Less: interest (2,222 ) (18,887 ) Present value of lease liabilities $ 102,542 $ 127,244 The Company also leases one office and operation center, one apartment and one shophouse with an expiring term of twelve months or less, which were classified as operating 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 …

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Recent accounting pronouncements Recently issued but not yet adopted AGAPE ATP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Currency expressed in United States Dollars (US$), except for number of shares) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD) The FASB issued ASU 2024-03 and ASU 2025-01 Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, and Clarifying the Effective Date in November 2024 and January 2025 respectively. This new guidance requires disclosures of additional information of the nature of expenses included in the income statement as well as disclosures about specific expense categories in the notes to the financial statements. The requirements of the new guidance are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. This new guidance can be applied either retrospectively to any or all prior periods presented in the consolidated financial statements or prospectively to financial statements issued for reporting period after the effective date of this new guidance. The Company is currently evaluating the effect of adopting this guidance. In November 2024, the FASB issued ASU 2024-04 Debt Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This ASU clarifies the requirements for determining w …

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14. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances SCHEDULE OF RELATED PARTY BALANCES AND TRANSACTIONS Amount due from related parties As of December 31, Name of Related Party Relationship Nature 2025 2024 TH3 Holdings Sdn Bhd (TH3) Mr. How Kok Choong, the CEO and director of the Company is also a director of TH3 Prepayment of IT expenses $ 1,849 $ 1,582 DSY Wellness & 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. General expenses payment on behalf 494 - ATPC Lega Global Sdn Bhd (Lega) Mr. How Kok Choong, the CEO and director of the Company is also a director of Lega General expenses payment on behalf - 730 Total $ 2,343 $ 2,312 Accounts payable related parties As of December 31, Name of Related Party Relationship Nature 2025 2024 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 $ 37,642 $ 30,554 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 998 71 Institute of Complementary and Traditional Medicine (ICTM) Mr. Yap Foo Ching, the director of DSY Wellness Internati …

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21. SEGMENT REPORTING ASC 280 Segment Reporting establishes standards for reporting information about operating segments on a basis consistent with the Groups internal organizational management structure as well as information about geographical areas, business segments, and major customers in the financial statements. Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. Skin care, health and wellness segment includes the provision of health and wellness products and health solution advisory services. Green energy segment includes providing renewable energy products, technical solutions, installations and maintenance services. Operating results by segment include costs or expenses that are directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between the two segments. The table below presents details of our reporting segments: SCHEDULE OF REPORTING SEGMENTS Skin care, Health and Wellness Green Energy Unallocated Expenses Total Year ended December 31, 2025 Revenue 1,384,535 139,727 - 1,524,262 Operating loss (709,343 ) (62,440 ) (1,535,824 ) (2,307,607 ) Total assets 550,289 72,432 23,968,557 24,591,278 Skin care, Health and Wellness Green Energy Unallocated Expenses Total Year ended December 31, 2024 Revenue 1,279 …

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for information pursuant to the rules and regulations of the Securities Exchange Commission (SEC). The consolidated financial statements include the financial statements of the Company, its subsidiaries and its 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. Going concern For the years ended December 31, 2025 and 2024, the Company reported net losses of $ 2,307,607 and $ 2,486,044 respectively. In addition, the Company had accumulated deficit of $ 11,797,836 and $ 9,518,045 as of December 31, 2025 and 2024, respectively. The Company had working capital of $ 22,236,994 among which the Company held cash of $ 140,072 as of December 31, 2025, which is expected to support our operating activities for the next twelve months. The Company had current assets of $ 24,291,508 which comprised $ 23,816,398 deposit paid to Bi Cheng Investment Management Limited to identify and manage investment opportunities on behalf of the Company. As of the reporting date, the investment has yet to be identified, and the financial r …

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15. STOCKHOLDERS EQUITY Preferred stock As of December 31, 2025 and 2024, there were 200,000,000 preferred stocks authorized but none were issued and outstanding. Common stock Pursuant to the resolution passed at the board meeting on January 7, 2025, the Company is authorized to increase the common stock from 50,000,000 shares to 500,000,000 shares. Pursuant to the resolution passed at the board meeting on February 27, 2025, the Company is authorized to issue 46,000,000 shares of common stock at $ 0.0001 per share. On March 20, 2025, the Company issued 46,000,000 shares of common stock and received net cash proceeds of $ 23,000,000 . As of December 31, 2025 and 2024, there were 500,000,000 and 50,000,000 common stocks authorized, 1,000,626 and 79,781 shares issued and outstanding, respectively. Share-based compensation The Company has share-based compensation to the executive director. The share-based compensation expense is recorded in general and administrative expenses. The value of the share is $ 5,000 a month and the number of shares to issue is based on the average market price of the month. The Company will issue the share on half yearly basis. As of December 31, 2025 and 2024, there were 759 and 103 shares issued respectively. Warrants On October 10, 2023, the Company entered into an underwriting agreement with Network 1 Financial Securities, Inc., as underwriter named thereof, in connection with its initial public offering (IPO) of 82,500 shares of common stock, par …

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22. SUBSEQUENT EVENTS On February 10, 2026, the Company effected a 1-for-50 reverse stock split of its common stock (par value $ 0.0001 per share). For the pre-reverse stock split shares of the Companys common stock not evenly divisible by 50 are entitled the number of shares rounded up to the nearest whole share. The Company will issue share of the Post-Reverse Stock Split Common Stock to any stockholder who would have received a fractional share as a result of the Reverse Stock Split. The reverse stock split was approved by the Companys board of directors on January 8, 2026 and shareholders on January 30, 2026. In accordance with U.S. GAAP, all share and per-share amounts presented in these financial statements for the years ended December 31, 2024 and 2025 (including shares outstanding, issuances, weighted-average shares for earnings per share, and related disclosures) have been retroactively restated to reflect the reverse stock split as if it had occurred at the beginning of the earliest period presented. …

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