v3.25.2
Segment Reporting
 6 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

17. SEGMENT REPORTING

 

ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

 

The Company’s chief operating decision maker (“CODM”) has been identified as the Chief Financial Officer. The Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information.

 

Historically, the Company determined it operates in three segments: (1) sales of battery cells and packs, (2) sales of electronic control system and (3) others, which mainly included the sales of second-hand machinery, the provision of maintenance services and photovoltaic engineering contracting.

 

The following tables present a summary of each reportable segment’s revenue and income from continuing operations—excluding the e-bicycle sales segment, which is disclosed as a discontinued operation for the six months ended March 31, 2024, and 2025:

 

   Six months Ended March 31, 2024 
   Battery cells
and packs
sales
segment		   Electronic
control
system sales
segment		   Others   Total 
Revenue from external customers  $5,847,751   $739,390   $216,821   $6,803,962 
Segment loss before tax and share of loss of equity method investments   (172,846)   (1,825,115)   (1,171,071)   (3,169,032)
Segment gross profit margin   4.4%   43.7%   14.4%   8.9%

 

   Six months Ended March 31, 2025 
   Battery cells
and packs
sales
segment		   Electronic
control
system sales
segment		   Others   Total 
Revenue from external customers  $5,518,183   $636,356   $410,828   $6,565,367 
Segment loss before tax and share of loss of equity method investments   (88,207)   (95,106)   (729,628)   (912,941)
Segment gross profit margin   4.5%   41.7%   38.9%   10.2%

The following table presents the reconciliation from reportable segment income to the consolidated income from continuing operations before income taxes for the six months ended March 31, 2024 and 2025:

 

   Six months ended
March 31,		 
   2024   2025 
   (Unaudited)   (Unaudited) 
Net revenues        
Battery cells and packs segment  $5,847,751   $5,518,183 
Electronic control system and intelligent robots sales segment   739,390    636,356 
Others segment   216,821    410,828 
Total net revenues   6,803,962    6,565,367 
           
Cost of revenues          
Battery cells and packs segment   5,592,773    5,271,930 
Electronic control system and intelligent robots sales segment   416,635    370,868 
Others segment   185,670    251,101 
Total cost of revenues   6,195,078    5,893,899 
           
Gross profit          
Battery cells and packs segment   254,978    246,253 
Electronic control system and intelligent robots sales segment   322,755    265,488 
Others segment   31,151    159,727 
Total Gross profit   608,884    671,468 
           
Reconciliation of profit or loss:          
Selling and marketing   (149,223)   (117,772)
General and administrative   (1,837,698)   (1,200,042)
Research and development   (395,435)   (389,572)
Total operating expenses   (2,382,356)   (1,707,386)
           
Loss from operations   (1,773,472)   (1,035,918)
           
Fair value changes in contingent asset   (310,667)   
-
 
Impairment loss of goodwill   (1,362,044)   
-
 
Other (loss) income   277,151    122,977 
Loss from continuing operations before income tax and share of loss of equity method investments  $(3,169,032)  $(912,941)
Loss from discontinued operations before income tax and share of loss of equity method investments   (1,472,451)   (165,626)
Loss before income tax and share of loss of equity method investments   (4,641,483)   (1,078,567)