CXJ Group Co., Ltd operates a franchise-based automotive aftermarket business in China through a VIE structure. Despite expanding its 'Chejiangling / Teenage Hero Car' franchise to over 160 stores and planning significant future growth, the company has sustained deepening operating losses and cash flow deficits through fiscal 2025. CXJ’s reliance on independent suppliers and an untested VIE contractual framework exposes it to significant operational and regulatory risks. Capital allocation remains constrained with minimal asset investment, negative equity, and limited liquidity, raising questions about funding its ambitious expansion plans without material financial restructuring.