v3.26.1
Segment Reporting
 6 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 17 – SEGMENT REPORTING

 

The Company follows FASB ASC Topic 280, Segment Reporting, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), our CEO Mr. Huisen Wang, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.

 

The Company derives its revenues from two sources: (1) revenue from sales of steel piping products, (2) revenue from production service.

 

As the CODM assesses performance for the Company and determines how to allocate resources based on consolidated net income (loss) as reported in the consolidated statements of operations and comprehensive income (loss), the Company considers itself to have a single operating segment and, therefore, only one reportable segment.

 

The CODM’s resource allocation decisions typically affect the overall business rather than any individual product/service line. As a result, the Company does not allocate shared operating expenses to specific service lines for management reporting, and decisions are made based on consolidated financial results. This is supported by the fact that the Company’s financial systems are not designed to budget, track transactions, or allocate shared costs for reporting operating margins at the product/service line level or any other detailed level. The Company believes that presenting financial information as a single operating segment aligns with how management organizes and makes decisions about the business.

The following table includes the significant expense categories and amounts that are regularly provided to the CODM:

 

   For the Six Months Ended
March 31,		 
   2026   2025 
Revenues  $24,538,488   $29,378,727 
Cost of sales   (21,649,978)   (25,296,467)
Gross profit   2,888,510    4,082,260 
Selling expense   1,237,886    1,328,196 
General and administrative expense   2,225,965    2,336,235 
Research and development expense   819,039    1,067,887 
Foreign currency transaction losses (gains)   190,479    (235,965)
(Loss) from operations   (1,584,859)   (414,093)
Other income (expenses), net   277,595    479,623 
(Loss)/Income before income taxes   (1,307,264)   65,530 
Income tax benefit/(provision)   201,535    85,255 
Net (loss) income  $(1,105,729)  $150,785 

 

The following table disaggregates the revenue for the six-month period ended March 31, 2026 and 2025:

 

Revenue by product/service line

 

   For the Six Months Ended
March 31,		 
   2026   2025 
Revenue        
Sales  $24,074,877   $29,073,339 
Production service revenue   463,611    305,388 
Total revenue  $24,538,488   $29,378,727 

 

Revenue by geographical areas

 

The following table presents revenues by geographic areas for the six months ended March 31, 2026: 

 

   March 31, 2026 
   Sales Amount
 (In USD)		   As %
of Sales		 
Top 5 geographic areas:        
China  $22,586,603    92.05%
USA   1,407,618    5.74%
South Korea   198,260    0.81%
The United Mexican States   173,006    0.71%
Algeria   93,079    0.38%
Other foreign countries   79,922    0.31%

The following table presents revenues by geographic areas for the six months ended March 31, 2025. 

 

   March 31, 2025 
   Sales Amount
 (In USD)		   As %
of Sales		 
Top 5 geographic areas:        
China  $21,758,925    74.06%
USA   5,903,553    20.09%
India   727,821    2.48%
Singapore   324,146    1.10%
Australia   308,046    1.05%
Other foreign countries   356,236    1.21%