| Segment reporting |
Note
14 – Segment reporting
ASC
280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organizational structure as well as information about geographical areas, business segments and major
customers in financial statements for details on the Company’s business segments. The Company uses the “management approach”
in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s
chief operating decision maker (“CODM”) for making operating decisions and assessing performance as the source for determining
the Company’s reportable segments. The Company’s CEO is the CODM. Management, including the CODM, reviews operation results
by revenues, gross profit and gross margin, operating expenses and income from operations of different services, while gross profit is
the profitability measure used by the CODM in making decisions about allocating resources and assessing performances. Based on management’s
assessment, the Company has determined that it has two reportable segments as defined by ASC 280, which are transportation services and
warehouse subleasing services.
The
following tables present summary information by segment for the years ended March 31, 2026, 2025 and 2024, respectively:
Schedule
of Summary Information By Segment
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
For the year ended March 31, 2026 | |
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
| | |
| | |
| |
| Revenues - third parties | |
$ | 40,677,991 | | |
$ | 4,699,986 | | |
$ | 45,377,977 | |
| Revenues - a related party | |
| 253,795 | | |
| - | | |
| 253,795 | |
| Cost of revenues - third parties | |
| (36,971,662 | ) | |
| (4,398,942 | ) | |
| (41,370,604 | ) |
| Cost of revenues - related parties | |
| (18,315 | ) | |
| - | | |
| (18,315 | ) |
| Gross profit | |
| 3,941,809 | | |
| 301,044 | | |
| 4,242,853 | |
| Gross margin | |
| 9.6 | % | |
| 6.4 | % | |
| 9.3 | % |
| Selling expenses | |
| (479,282 | ) | |
| (437,619 | ) | |
| (916,901 | ) |
| General and administrative expenses | |
| (2,494,272 | ) | |
| (820,329 | ) | |
| (3,314,601 | ) |
| Insurance indemnity | |
| 135,894 | | |
| - | | |
| 135,894 | |
| Government subsidies | |
| 75,853 | | |
| 48,941 | | |
| 124,794 | |
| Unallocated income (expenses) | |
| | | |
| | | |
| | |
| - Group professional service fees | |
| | | |
| | | |
| (222,389 | ) |
| - Compensation of directors | |
| | | |
| | | |
| (32,500 | ) |
| - Share-based compensation | |
| | | |
| | | |
| (816,950 | ) |
| - Interest expenses, net | |
| | | |
| | | |
| (287,422 | ) |
| - Other income | |
| | | |
| | | |
| 74,519 | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Depreciation (1) | |
$ | 70,008 | | |
$ | 61,172 | | |
$ | 131,180 | |
| Capital expenditures | |
| 554,858 | | |
| 324,091 | | |
| 878,949 | |
| Income tax expenses | |
| (109,724 | ) | |
| (29,676 | ) | |
| (139,400 | ) |
| Segment assets as of March 31, 2026 | |
$ | 21,424,344 | | |
$ | 10,855,477 | | |
$ | 32,279,821 | |
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
For the year ended March 31, 2025 | |
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
| | |
| | |
| |
| Revenues - third parties | |
$ | 34,918,308 | | |
$ | 4,787,785 | | |
$ | 39,706,093 | |
| Revenues - a related party | |
| 335,598 | | |
| - | | |
| 335,598 | |
| Cost of revenues - third parties | |
| (29,756,523 | ) | |
| (4,276,746 | ) | |
| (34,033,269 | ) |
| Cost of revenues - related parties | |
| (8,581 | ) | |
| - | | |
| (8,581 | ) |
| Gross profit | |
| 5,488,802 | | |
| 511,039 | | |
| 5,999,841 | |
| Gross margin | |
| 15.6 | % | |
| 10.7 | % | |
| 15.0 | % |
| Selling expenses | |
| (643,448 | ) | |
| (131,036 | ) | |
| (774,484 | ) |
| General and administrative expenses | |
| (2,069,571 | ) | |
| (485,263 | ) | |
| (2,554,834 | ) |
| Insurance indemnity | |
| 171,718 | | |
| - | | |
| 171,718 | |
| Government subsidies | |
| 16,642 | | |
| - | | |
| 16,642 | |
| Unallocated income (expenses) | |
| | | |
| | | |
| | |
| - Audit and other professional fees | |
| | | |
| | | |
| (371,314 | ) |
| - Compensation of a director | |
| | | |
| | | |
| (32,000 | ) |
| - Interest expenses, net | |
| | | |
| | | |
| (142,812 | ) |
| - Other income | |
| | | |
| | | |
| 58,377 | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Depreciation (1) | |
$ | 76,825 | | |
$ | 11,897 | | |
$ | 88,722 | |
| Capital expenditures | |
| 328,280 | | |
| 69,161 | | |
| 397,441 | |
| Income tax expenses | |
| (539,869 | ) | |
| (51,239 | ) | |
| (591,108 | ) |
| Segment assets as of March 31, 2025 | |
$ | 18,502,486 | | |
$ | 6,279,005 | | |
$ | 24,781,491 | |
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
For the year ended March 31, 2024 | |
| | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| | |
| | |
| | |
| |
| Revenues - third parties | |
$ | 37,295,968 | | |
$ | 2,865,097 | | |
$ | 40,161,065 | |
| Revenues - related parties | |
| 282,564 | | |
| - | | |
| 282,564 | |
| Cost of revenues - third parties | |
| (32,997,049 | ) | |
| (2,427,339 | ) | |
| (35,424,388 | ) |
| Cost of revenues - related parties | |
| - | | |
| (574 | ) | |
| (574 | ) |
| Gross profit | |
| 4,581,483 | | |
| 437,184 | | |
| 5,018,667 | |
| Gross margin | |
| 12.2 | % | |
| 15.3 | % | |
| 12.4 | % |
| Selling expenses | |
| (690,873 | ) | |
| (21,465 | ) | |
| (712,338 | ) |
| General and administrative expenses | |
| (1,954,189 | ) | |
| (819,748 | ) | |
| (2,773,937 | ) |
| Insurance indemnity | |
| 128,442 | | |
| - | | |
| 128,442 | |
| Government subsidies | |
| 27,202 | | |
| - | | |
| 27,202 | |
| Unallocated (expenses) income | |
| | | |
| | | |
| | |
| - Audit fees | |
| | | |
| | | |
| (90,000 | ) |
| - Compensation of a director | |
| | | |
| | | |
| (8,000 | ) |
| - Interest expenses, net | |
| | | |
| | | |
| (94,908 | ) |
| - Other income, net | |
| | | |
| | | |
| 40,361 | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Other segment disclosures | |
Transportation services | | |
Warehouse subleasing services | | |
Total | |
| Depreciation (1) | |
$ | 109,633 | | |
$ | 5,517 | | |
$ | 115,150 | |
| Capital expenditures | |
| 7,384 | | |
| 49 | | |
| 7,433 | |
| Income tax (expenses) benefit | |
| (457,759 | ) | |
| 5,970 | | |
| (451,789 | ) |
| Segment assets as of March 31, 2024 | |
$ | 18,573,064 | | |
$ | 4,418,387 | | |
$ | 22,991,451 | |
| (1) |
the amounts of depreciation
disclosed by reportable segments are included in cost of revenues and general and administrative expenses. |
Substantially
all of the Company’s assets are located in the PRC. For the years ended March 31, 2026, 2025 and 2024, substantially all of the
Company’s revenues were generated within the PRC, respectively. As a result, management deems it not necessary to present revenues
by geographic areas.
|