| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
23. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The Company performed a test on the restricted
net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in accordance with Securities and Exchange Commission
Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company
to disclose the financial information for the parent company only.
The subsidiaries did not pay any dividends to
the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared
in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the
operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements
of the Company.
As of December 31, 2025, the Company did not have
significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed
in the consolidated financial statements.
| | |
As of
December 31, | | |
As of
June 30, | |
| | |
2025 | | |
2025 | |
| ASSETS | |
| | |
| |
| Cash | |
$ | 39,404 | | |
$ | 1,356,601 | |
| Prepaid expenses and other current assets | |
| 3,047,913 | | |
| 2,457,913 | |
| Due from subsidiaries and the VIE | |
| 58,319,743 | | |
| 8,117,149 | |
| Assets held for sale | |
| - | | |
| 9,999,600 | |
| TOTAL CURRENT ASSETS | |
| 61,407,060 | | |
| 21,931,263 | |
| | |
| | | |
| | |
| Deficits in subsidiaries, consolidated VIE and VIE’s subsidiaries | |
| (2,876,487 | ) | |
| (266,366 | ) |
| TOTAL ASSETS | |
| 58,530,573 | | |
| 21,664,897 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Other Payable | |
$ | 245,776 | | |
$ | 83,271 | |
| TOTAL CURRENT LIABILITIES | |
$ | 245,776 | | |
$ | 83,271 | |
| TOTAL LIABILITIES | |
$ | 245,776 | | |
$ | 83,271 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Ordinary shares (par value $0.01 per share; 264,400,000 Class A ordinary shares authorized; 71,362,733 and 16,362,733 Class A ordinary shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively; 30,600,000 Class B ordinary shares authorized, 10,576,308 and 576,308 Class B ordinary shares issued and outstanding as of December 31, 2025 and June 30, 2025, respectively, 1,000,000 Class C ordinary shares authorized, nil Class C shares issued and outstanding as of December 31, 2025 and June 30, 2025) | |
| 819,390 | | |
| 169,390 | |
| Subscription receivable | |
| (15,441 | ) | |
| (15,441 | ) |
| Additional paid-in capital | |
| 90,043,880 | | |
| 55,369,555 | |
| Retained earnings | |
| (32,140,840 | ) | |
| (32,356,441 | ) |
| Accumulated other comprehensive loss | |
| (422,192 | ) | |
| (1,585,437 | ) |
| TOTAL SHAREHOLDERS’ EQUITY | |
| 58,284,797 | | |
| 21,581,626 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 58,530,573 | | |
$ | 21,664,897 | |
| | |
For the Six Months Ended
December 31, | |
| | |
2025 | | |
2024 | |
| Revenue | |
$ | - | | |
$ | 219,971 | |
| Cost of revenue | |
| - | | |
| (214,249 | ) |
| Gross profit | |
| - | | |
| 5,722 | |
| | |
| | | |
| | |
| General and administrative expenses | |
| 447,987 | | |
| 260,403 | |
| Financial expenses | |
| (815 | ) | |
| (23 | ) |
| Reverse of impairment | |
| (4,460,000 | ) | |
| - | |
| Income (loss) from operation | |
| 4,012,828 | | |
| (254,658 | ) |
| Other income (expenses), net | |
| 464 | | |
| (394 | ) |
| Share of income of subsidiaries, consolidated VIE, and VIE’s subsidiaries | |
| (3,797,691 | ) | |
| 2,795,731 | |
| | |
| | | |
| | |
| Income before income tax expense | |
| 215,601 | | |
| 2,540,679 | |
| Income tax expense | |
| - | | |
| - | |
| Net income | |
$ | 215,601 | | |
$ | 2,540,679 | |
| Other Comprehensive income (loss): | |
| | | |
| | |
| Foreign currency translation income (loss) | |
| 1,163,245 | | |
| (100,093 | ) |
| Total comprehensive income | |
$ | 1,378,846 | | |
$ | 2,440,586 | |
| | |
For the Six Months Ended
December 31, | |
| | |
2025 | | |
2024 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | |
| |
| Net income | |
| 215,601 | | |
| 2,540,679 | |
| Reverse of impairment | |
| (4,460,000 | ) | |
| - | |
| Gain on disposal of equity investment | |
| (400 | ) | |
| - | |
| Equity loss (income) of subsidiaries | |
| 3,797,691 | | |
| (2,795,731 | ) |
| Changes in operating assets and liabilities | |
| | | |
| | |
| Other non-current assets | |
| 4,460,000 | | |
| - | |
| Other current assets | |
| (590,000 | ) | |
| 294,000 | |
| Due from subsidiaries and the VIE | |
| (40,202,594 | ) | |
| (123,020 | ) |
| Other payable | |
| 162,505 | | |
| 130,397 | |
| Net cash (used in) provided by operating activities | |
$ | (36,617,197 | ) | |
| 46,325 | |
| | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | |
| Investment in a subsidiary | |
| - | | |
| (9,999,600 | ) |
| Net cash used in investing activities | |
| - | | |
| (9,999,600 | ) |
| | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
| Issuance of Ordinary Shares | |
| 36,500,000 | | |
| 10,000,000 | |
| Payment for deferred offering costs | |
| (1,200,000 | ) | |
| (35,806 | ) |
| Net cash provided by financing activities | |
| 35,300,000 | | |
| 9,964,194 | |
| | |
| | | |
| | |
| Net increase (decrease) in cash | |
| (1,317,197 | ) | |
| 10,919 | |
| Cash at the beginning of the period | |
| 1,356,601 | | |
| 10,711 | |
| Cash at the end of the period | |
$ | 39,404 | | |
| 21,630 | |
|