# EDGAR Filing Document

**Accession Number:** 0001723980
**File Stem:** 0000000000-23-003283
**Filing Date:** 2023-3
**Character Count:** 21495
**Document Hash:** e18ce665806894f54db36e6be979a877
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-003283.hdr.sgml**: 20230703

**ACCESSION NUMBER**: 0000000000-23-003283

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230331

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** China SXT Pharmaceuticals, Inc.
- **CENTRAL INDEX KEY:** 0001723980
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 178 TAIDONG ROAD NORTH
- **CITY:** TAIZHOU
- **STATE:** F4
- **ZIP:** 225300
- **BUSINESS PHONE:** 8652386298290

**MAIL ADDRESS:**
- **STREET 1:** 178 TAIDONG ROAD NORTH
- **CITY:** TAIZHOU
- **STATE:** F4
- **ZIP:** 225300
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001213900-22-039838

## Text-Extract

```

United States securities and exchange commission logo

                              March 31, 2023

       Feng Zhou
       Chief Executive Officer
       China SXT Pharmaceuticals, Inc.
       178 Taidong Rd North
       Taizhou Jiangsu, China

                                                        Re: China SXT
Pharmaceuticals, Inc.
                                                            Form 20-F for the
Fiscal Year Ended March 31, 2022
                                                            Filed July 18, 2022
                                                            File No. 001-38773

       Dear Feng Zhou:

              We have reviewed your filing and have the following comments. In
some of our
       comments, we may ask you to provide us with information so we may better
understand your
       disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

                                                        After reviewing your
response to these comments, we may have additional comments.

       Form 20-F for the Fiscal Year Ended March 31, 2022

       Part I, page 1

   1.                                                   At the onset of Part I,
please disclose prominently that you are not a Chinese operating
                                                        company but a British
Virgin Islands holding company with operations conducted by your
                                                        subsidiaries and
through contractual arrangements with a variable interest entity (VIE)
                                                        based in China and that
this structure involves unique risks to investors. State, as you have
                                                        on page 27, that these
contracts have not been tested in court. Explain whether the VIE
                                                        structure is used to
provide investors with exposure to foreign investment in China-based
                                                        companies where Chinese
law prohibits direct foreign investment in the operating
                                                        companies, and disclose
that investors may never hold equity interests in the Chinese
                                                        operating company. Your
disclosure should acknowledge that Chinese regulatory
                                                        authorities could
disallow this structure, which would likely result in a material change in
                                                        your operations and/or
a material change in the value of your securities, including that it
                                                        could cause the value
of your securities to significantly decline or become worthless.
 Feng Zhou
FirstName
China SXTLastNameFeng     Zhou
            Pharmaceuticals, Inc.
Comapany
March      NameChina SXT Pharmaceuticals, Inc.
       31, 2023
March2 31, 2023 Page 2
Page
FirstName LastName
         Provide a cross-reference to your detailed discussion of risks facing
the company as a
         result of this structure.
2.       Please revise page 1 to clearly disclose how you will refer to the
holding company,
         subsidiaries, and VIEs when providing the disclosure throughout the
document so that it is
         clear to investors which entity the disclsoure is referencing and
which subsidiaries or
         entities are conducting the business operations, and make conforming
revisions
         throughout as appropriate. Identify clearly the entity in which
investors purchase their
         interest and the entitiy(ies) in which the company's operations are
conducted. Disclose, as
         you have elsewhere, that your subsidiaries and/or the VIE conduct
operations in China,
         that the VIE is consolidated for accounting purposes but is not an
entity in which you own
         equity, and that the holding company does not conduct operations.

3. D. Risk Factors, page 2

3.       In light of recent events indicating greater oversight by the
Cyberspace Administration of
         China (CAC) over data security, particularly for companies seeking to
list on a foreign
         exchange, please state whether you, your subsidiaries, or the VIEs are
covered by
         permissions requirements from the Cyberspace Administration of China
(CAC) or any
         other governmental agency that is required to approve the VIE   s
operations. Revise your
         disclosure to explain how this oversight impacts your business and
your securities, if at
         all, and to what extent you believe that you are compliant with the
regulations or policies
         that have been issued by the CAC to date.
4.       With respect to each permission or approval that you, your
subsidiaries, or the VIEs are
         required to obtain from Chinese authorities to operate your business
and to offer securities
         to foreign investors, describe the consequences to you and your
investors if you, your
         subsidiaries, or the VIEs: (i) do not receive or maintain such
permissions or approvals, (ii)
         inadvertently conclude that such permissions or approvals are not
required, or (iii)
         applicable laws, regulations, or interpretations change and you are
required to obtain such
         permissions or approvals in the future.
ITEM 4. INFORMATION ON THE COMPANY, page 26

5.       Disclose each permission or approval that you, your subsidiaries, or
the VIEs are required
         to obtain from Chinese authorities to operate your business and to
offer securities to
         foreign investors. State whether you, your subsidiaries, or the VIEs
are covered by
         permissions requirements from the Cyberspace Administration of China
(CAC) or any
         other governmental agency that is required to approve the VIE   s
operations. Please also
         describe the consequences to you and your investors if you, your
subsidiaries, or the VIEs:
         (i) do not receive or maintain such permissions or approvals, (ii)
inadvertently conclude
         that such permissions or approvals are not required, or (iii)
applicable laws, regulations, or
         interpretations change and you are required to obtain such permissions
or approvals in the
         future.
 Feng Zhou
China SXT Pharmaceuticals, Inc.
March 31, 2023
Page 3
6.       Provide a clear description of how cash is transferred through your
organization. Disclose
         your intentions to distribute earnings or settle amounts owed under
the VIE agreements.
         Quantify any cash flows and transfers of other assets by type that
have occurred between
         the holding company, its subsidiaries, and the consolidated VIEs, and
direction of transfer.
         Quantify any dividends or distributions that a subsidiary or
consolidated VIE have made
         to the holding company and which entity made such transfer, and their
tax consequences.
         Similarly quantify dividends or distributions made to U.S. investors,
the source, and their
         tax consequences. Your disclosure should make clear if no transfers,
dividends, or
         distributions have been made to date. Describe any restrictions on
foreign exchange and
         your ability to transfer cash between entities, across borders, and to
U.S. investors.
         Describe any restrictions and limitations on your ability to
distribute earnings from the
         company, including your subsidiaries and/or the consolidated VIEs, to
the parent company
         and U.S. investors as well as the ability to settle amounts owed under
the VIE
         agreements.
Item 5. Operating and Financial Review and Prospectus
Consolidation, page 50

7.       We note that the consolidated VIEs constitute a material part of your
consolidated
         financial statements. Please revise to provide in tabular form a
condensed consolidating
         schedule that disaggregates the operations and depicts the financial
position, cash flows,
         and results of operations as of the same dates and for the same
periods for which audited
         consolidated financial statements are required. The schedule should
present major line
         items, such as revenue and cost of goods/services, and subtotals and
disaggregated
         intercompany amounts, such as separate line items for intercompany
receivables and
         investment in subsidiary. The schedule should also disaggregate the
parent company, the
         VIEs and its consolidated subsidiaries, the WFOEs that are the primary
beneficiary of the
         VIEs, and an aggregation of other entities that are consolidated. The
objective of this
         disclosure is to allow an investor to evaluate the nature of assets
held by, and the
         operations of, entities apart from the VIE, as well as the nature and
amounts associated
         with intercompany transactions. Any intercompany amounts should be
presented on a
         gross basis and when necessary, additional disclosure about such
amounts should be
         included in order to make the information presented not misleading.
Item 15. Controls and Procedures
(d) ChangesLastNameFeng
FirstName   in Internal Control
                           Zhouover Financial Reporting, page 85
Comapany
8.         NameChina
      We note that youSXT   Pharmaceuticals,
                        provided              Inc. under Item 15(d) of Form
20-F as of March
                                 your disclosures
March 31, 2021. Please
          2023 Page  3 revise your disclosures under this section to be as of
March 31, 2022.
FirstName LastName
 Feng Zhou
FirstName
China SXTLastNameFeng     Zhou
            Pharmaceuticals, Inc.
Comapany
March      NameChina SXT Pharmaceuticals, Inc.
       31, 2023
March4 31, 2023 Page 4
Page
FirstName LastName
9.       We also note that you have had material weaknesses in your internal
control over financial
         reporting since 2019 that have not been remediated. Please revise to
clarify what specific
         steps remain to be completed in your remediation plan. Also, revise to
disclose how long
         you estimate it will take to complete your remediation plan and
disclose any
         associated material costs that you have incurred or expect to incur.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       You may contact Tara Harkins at (202)-551-3639 or Lynn Dicker, Reviewing
Accountant, at (202)-551-3616 if you have questions regarding comments on the
financial
statements and related matters. Please contact Lauren Sprague Hamill at
(303)-844-1008 or Joe
McCann, Legal Branch Chief, at (202)-551-6262 with any other questions.

                                                             Sincerely,

                                                             Division of
Corporation Finance
                                                             Office of Life
Sciences

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

March 31, 2023

Feng Zhou  
Chief Executive Officer  
China SXT Pharmaceuticals, Inc.  
178 Taidong Rd North  
Taizhou Jiangsu, China

**Re: China SXT Pharmaceuticals, Inc.  
Form 20-F for the Fiscal Year Ended March 31, 2022  
Filed July 18, 2022  
File No. 001-38773**

Dear Feng Zhou:

We have reviewed your filing and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response to these comments, we may have additional comments.

Form 20-F for the Fiscal Year Ended March 31, 2022

Part I, page 1

1. At the onset of Part I, please disclose prominently that you are not a Chinese operating company but a British Virgin Islands holding company with operations conducted by your subsidiaries and through contractual arrangements with a variable interest entity (VIE) based in China and that this structure involves unique risks to investors. State, as you have on page 27, that these contracts have not been tested in court. Explain whether the VIE structure is used to provide investors with exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating companies, and disclose that investors may never hold equity interests in the Chinese operating company. Your disclosure should acknowledge that Chinese regulatory authorities could disallow this structure, which would likely result in a material change in your operations and/or a material change in the value of your securities, including that it could cause the value of your securities to significantly decline or become worthless.

Feng Zhou
China SXT Pharmaceuticals, Inc.
March 31, 2023
Page 2

Provide a cross-reference to your detailed discussion of risks facing the company as a result of this structure.

2. Please revise page 1 to clearly disclose how you will refer to the holding company, subsidiaries, and VIEs when providing the disclosure throughout the document so that it is clear to investors which entity the disclosure is referencing and which subsidiaries or entities are conducting the business operations, and make conforming revisions throughout as appropriate. Identify clearly the entity in which investors purchase their interest and the entity(ies) in which the company's operations are conducted. Disclose, as you have elsewhere, that your subsidiaries and/or the VIE conduct operations in China, that the VIE is consolidated for accounting purposes but is not an entity in which you own equity, and that the holding company does not conduct operations.

# 3.D. Risk Factors, page 2

3. In light of recent events indicating greater oversight by the Cyberspace Administration of China (CAC) over data security, particularly for companies seeking to list on a foreign exchange, please state whether you, your subsidiaries, or the VIEs are covered by permissions requirements from the Cyberspace Administration of China (CAC) or any other governmental agency that is required to approve the VIE's operations. Revise your disclosure to explain how this oversight impacts your business and your securities, if at all, and to what extent you believe that you are compliant with the regulations or policies that have been issued by the CAC to date.

4. With respect to each permission or approval that you, your subsidiaries, or the VIEs are required to obtain from Chinese authorities to operate your business and to offer securities to foreign investors, describe the consequences to you and your investors if you, your subsidiaries, or the VIEs: (i) do not receive or maintain such permissions or approvals, (ii) inadvertently conclude that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and you are required to obtain such permissions or approvals in the future.

# ITEM 4. INFORMATION ON THE COMPANY, page 26

5. Disclose each permission or approval that you, your subsidiaries, or the VIEs are required to obtain from Chinese authorities to operate your business and to offer securities to foreign investors. State whether you, your subsidiaries, or the VIEs are covered by permissions requirements from the Cyberspace Administration of China (CAC) or any other governmental agency that is required to approve the VIE's operations. Please also describe the consequences to you and your investors if you, your subsidiaries, or the VIEs: (i) do not receive or maintain such permissions or approvals, (ii) inadvertently conclude that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and you are required to obtain such permissions or approvals in the future.

Feng Zhou  
China SXT Pharmaceuticals, Inc.  
March 31, 2023  
Page 3

6. Provide a clear description of how cash is transferred through your organization. Disclose your intentions to distribute earnings or settle amounts owed under the VIE agreements. Quantify any cash flows and transfers of other assets by type that have occurred between the holding company, its subsidiaries, and the consolidated VIEs, and direction of transfer. Quantify any dividends or distributions that a subsidiary or consolidated VIE have made to the holding company and which entity made such transfer, and their tax consequences. Similarly quantify dividends or distributions made to U.S. investors, the source, and their tax consequences. Your disclosure should make clear if no transfers, dividends, or distributions have been made to date. Describe any restrictions on foreign exchange and your ability to transfer cash between entities, across borders, and to U.S. investors. Describe any restrictions and limitations on your ability to distribute earnings from the company, including your subsidiaries and/or the consolidated VIEs, to the parent company and U.S. investors as well as the ability to settle amounts owed under the VIE agreements.

# Item 5. Operating and Financial Review and Prospectus  
Consolidation, page 50

7. We note that the consolidated VIEs constitute a material part of your consolidated financial statements. Please revise to provide in tabular form a condensed consolidating schedule that disaggregates the operations and depicts the financial position, cash flows, and results of operations as of the same dates and for the same periods for which audited consolidated financial statements are required. The schedule should present major line items, such as revenue and cost of goods/services, and subtotals and disaggregated intercompany amounts, such as separate line items for intercompany receivables and investment in subsidiary. The schedule should also disaggregate the parent company, the VIEs and its consolidated subsidiaries, the WFOEs that are the primary beneficiary of the VIEs, and an aggregation of other entities that are consolidated. The objective of this disclosure is to allow an investor to evaluate the nature of assets held by, and the operations of, entities apart from the VIE, as well as the nature and amounts associated with intercompany transactions. Any intercompany amounts should be presented on a gross basis and when necessary, additional disclosure about such amounts should be included in order to make the information presented not misleading.

# Item 15. Controls and Procedures  
(d) Changes in Internal Control over Financial Reporting, page 85

8. We note that you provided your disclosures under Item 15(d) of Form 20-F as of March 31, 2021. Please revise your disclosures under this section to be as of March 31, 2022.

Feng Zhou
China SXT Pharmaceuticals, Inc.
March 31, 2023
Page 4

9. We also note that you have had material weaknesses in your internal control over financial reporting since 2019 that have not been remediated. Please revise to clarify what specific steps remain to be completed in your remediation plan. Also, revise to disclose how long you estimate it will take to complete your remediation plan and disclose any associated material costs that you have incurred or expect to incur.

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

You may contact Tara Harkins at (202)-551-3639 or Lynn Dicker, Reviewing Accountant, at (202)-551-3616 if you have questions regarding comments on the financial statements and related matters. Please contact Lauren Sprague Hamill at (303)-844-1008 or Joe McCann, Legal Branch Chief, at (202)-551-6262 with any other questions.

Sincerely,

Division of Corporation Finance
Office of Life Sciences