v3.25.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
SEGMENT REPORTING  
SEGMENT REPORTING

11. SEGMENT REPORTING

 

ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU requires that public entities disclose significant segment expenses for each reportable segment, other segment items for each reportable segment. The Company has single reportable segment based on business unit, retail trading business and two reportable segments based on country, Hong Kong and Non-Hong Kong.

 

The Company’s chief operating decision maker (CODM) has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.

 

The retail trading segment derives revenues from customers by providing health supplements and topical creams. The accounting policies of the retail trading segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the retail trading segment and decides how to allocate resources based on consolidated net income as reported on the income statement. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the retail trading segment or into other parts of the entity, such as for acquisitions.

 

The Company does not have intra-entity sales.

 

 

 

For the period ended and

As of June 30, 2025

(Unaudited)

 

By Business Unit

 

Retail Trading Business

 

 

Total

 

Revenues

 

$76,376

 

 

$76,376

 

Less:

 

 

 

 

 

 

 

 

Cost of revenues

 

 

(43,148 )

 

 

(43,148 )

Segment gross profit

 

$33,228

 

 

$33,228

 

Less:

 

 

 

 

 

 

 

 

Audit fees

 

 

(8,000 )

 

 

(8,000 )

IT fees

 

 

(6,417 )

 

 

(6,417 )

Rental fees

 

 

(7,700 )

 

 

(7,700 )

Consultancy fees

 

 

(39,039 )

 

 

(39,039 )

Other segment items

 

 

(3,226 )

 

 

(3,226 )

 

 

 

 

 

 

 

 

 

Segment loss

 

 

(31,154 )

 

 

(31,154 )

Other income

 

 

-

 

 

 

-

 

Loss before income tax

 

 

(31,154 )

 

 

(31,154 )

Income tax provision

 

 

-

 

 

 

-

 

Segment net loss

 

$(31,154 )

 

$(31,154 )

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

 

 

 

 

-

 

Consolidated net income

 

 $

 

 

 

$(31,154 )

 

 

 

 

 

 

 

 

 

Total consolidated assets

 

$114,715

 

 

$114,715

 

Capital expenditure

 

$-

 

 

$-

 

·

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

·

Other segment items include bank charges, statutory fee, filing fee, printing and stationery.

 

 

 

For the period ended and

As of June 30, 2025

(Unaudited)

 

By Country

 

Hong Kong

 

 

Non-Hong

Kong

 

 

Total

 

Revenues

 

$76,376

 

 

$-

 

 

$76,376

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$(43,148 )

 

$-

 

 

$(43,148 )

Segment gross profit

 

$33,228

 

 

 

-

 

 

 

33,228

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Audit fees

 

 

-

 

 

 

(8,000 )

 

 

(8,000 )

IT fees

 

 

(6,417 )

 

 

-

 

 

 

(6,417 )

Rental fees

 

 

(7,700 )

 

 

-

 

 

 

(7,700 )

Consultancy Fees

 

 

(39,039 )

 

 

-

 

 

 

(39,039 )

Other segment items

 

 

(673 )

 

 

(2,553 )

 

 

(3,226 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income (loss)

 

 

(20,601 )

 

 

(10,553 )

 

 

(31,154 )

Other income

 

 

-

 

 

 

-

 

 

 

-

 

Income (Loss) before income tax

 

 

(20,601 )

 

 

(10,553 )

 

 

(31,154 )

Income tax provision

 

 

-

 

 

 

-

 

 

 

-

 

Segment net income (loss)

 

 

(20,601 )

 

 

(10,553 )

 

 

(31,154 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment gross profit

 

 

 

 

 

 

 

 

 

 

 

 

Total segment gross profit

 

 

 

 

 

 

 

 

 

 

33,228

 

Segment operating expenses

 

 

 

 

 

 

 

 

 

 

(64,382 )

Other income

 

 

 

 

 

 

 

 

 

 

-

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

-

 

Consolidated net income

 

 

 

 

 

 

 

 

 

 

(31,154 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consolidated assets

 

$40,827

 

 

$73,888

 

 

$114,715

 

Capital expenditure

 

$-

 

 

$-

 

 

$-

 

 

·

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

·

Other segment items include bank charges, statutory fee, filing fee, printing and stationery.