| SEGMENT REPORTING |
NOTE
3 － SEGMENT REPORTING
In
accordance with ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, the Company
considered whether additional disclosures were required, including significant segment expenses and measures used by the
chief operating decision maker (“CODM”). The Company’s CODM is the Chief Executive Officer, who is responsible for
reviewing performance and making decisions regarding resource
allocation.
For
the six months ended March 31, 2025 and 2026, the Company operates one single business segment, in accordance with ASC Topic 280.
707
CAYMAN HOLDINGS LIMITED AND SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025
Additional
details about each of its corporate income and expenses of the reportable segment were set forth below:
SCHEDULE
OF INCOME AND EXPENSES OF THE REPORTABLE SEGMENT
| | |
2025 | | |
2026 | | |
2026 | |
| | |
Six months ended March 31, | |
| | |
2025 | | |
2026 | | |
2026 | |
| | |
HKD | | |
HKD | | |
USD | |
| | |
| | |
| | |
| |
| Revenue from external customers | |
$ | 44,113,766 | | |
$ | 34,108,979 | | |
$ | 4,350,635 | |
| Revenue from related parties | |
| 762,756 | | |
| 652,405 | | |
| 83,215 | |
| Total revenues, net | |
| 44,876,522 | | |
| 34,761,384 | | |
| 4,433,850 | |
| Cost of revenue | |
| (33,248,621 | ) | |
| (33,248,254 | ) | |
| (4,240,849 | ) |
| Gross profit | |
| 11,627,901 | | |
| 1,513,130 | | |
| 193,001 | |
| Sales and distribution expenses | |
| (58,754 | ) | |
| (2,664,400 | ) | |
| (339,847 | ) |
| Share-based compensation | |
| - | | |
| (65,915,850 | ) | |
| (8,407,634 | ) |
| Personnel and benefit costs | |
| (3,405,500 | ) | |
| (3,884,124 | ) | |
| (495,424 | ) |
| Depreciation and amortization | |
| (1,766,896 | ) | |
| (1,709,224 | ) | |
| (218,013 | ) |
| Legal and professional fee | |
| (719,213 | ) | |
| (2,173,633 | ) | |
| (277,249 | ) |
| Allowance for expected credit losses | |
| (4,290 | ) | |
| - | | |
| - | |
| Allowance for obsolete inventories | |
| (51,579 | ) | |
| (51,579 | ) | |
| (6,579 | ) |
| General and administrative expenses | |
| (1,281,392 | ) | |
| (2,035,107 | ) | |
| (259,580 | ) |
| Total operating expenses | |
| (7,287,624 | ) | |
| (78,433,917 | ) | |
| (10,004,326 | ) |
| Income (loss) from operations | |
| 4,340,277 | | |
| (76,920,787 | ) | |
| (9,811,325 | ) |
| | |
| | | |
| | | |
| | |
| Other income (expense): | |
| | | |
| | | |
| | |
| Interest income | |
| 766 | | |
| 435,970 | | |
| 55,608 | |
| Interest expense | |
| (157,753 | ) | |
| (119,483 | ) | |
| (15,240 | ) |
| Gain on lease modification | |
| - | | |
| 218,223 | | |
| 27,835 | |
| Total other (expenses) incomes, net | |
| (156,987 | ) | |
| 534,710 | | |
| 68,203 | |
| | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Income tax expense | |
| (671,009 | ) | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | |
| SEGMENT PROFIT (LOSS) | |
$ | 3,512,281 | | |
$ | (76,386,077 | ) | |
$ | (9,743,122 | ) |
Based
on the management’s assessment, the Company determined that it has one reportable operating segment, as defined by ASC Topic 280.
For the six months ended March 31, 2025 and 2026, the Company’s revenues are based on the countries in which the customer is located.
Summarized financial information concerning our geographic segments is shown in the following tables:
SCHEDULE
OF FINANCIAL INFORMATION CONCERNING GEOGRAPHIC SEGMENTS
| By geographic region | |
2025 | | |
2026 | | |
2026 | |
| | |
Six months ended March 31, | |
| By geographic region | |
2025 | | |
2026 | | |
2026 | |
| | |
HKD | | |
HKD | | |
USD | |
| | |
| | |
| | |
| |
| Western Europe | |
$ | 10,201,197 | | |
$ | 23,328,803 | | |
$ | 2,975,613 | |
| North America | |
| 18,244,158 | | |
| 10,467,454 | | |
| 1,335,134 | |
| Middle East | |
| 1,821 | | |
| 370,099 | | |
| 47,207 | |
| East Asia | |
| 16,429,346 | | |
| 595,028 | | |
| 75,896 | |
| Total | |
$ | 44,876,522 | | |
$ | 34,761,384 | | |
$ | 4,433,850 | |
Substantially,
all of the Company’s revenues and assets are locally generated in Hong Kong.
|