| BANK LOANS |
Note 7 — BANK LOANS Bank loans represent amounts due to various banks. The principal of the borrowings are due at maturity. Accrued interest is due either monthly or quarterly. Bank loans consisted of the following: | | | March 31,
2026 | | | September 30,
2025 | | | | | | | | (Audited) | | | Zhejiang Wenzhou Lucheng Rural Commercial Bank Company Limited (a) | | $ | 434,909 | | | $ | 421,408 | | | Zhejiang Wenzhou Longwan Rural Commercial Bank (“Longwan RCB”) (b) | | | 2,116,556 | | | | 2,050,850 | | | Wenzhou Minshang Bank (c) | | | 1,014,786 | | | | 1,053,519 | | | Total | | | 3,566,251 | | | | 3,525,777 | | | Less: short-term bank loans | | | (434,909 | ) | | | (421,408 | ) | | Less: Long-term bank loans - current portion | | | (188,460 | ) | | | (182,610 | ) | | Long-term bank loans - non-current portion | | $ | 2,942,882 | | | $ | 2,921,759 | | | (a) | On June 16, 2025, the Company entered into a loan agreement with Zhejiang Wenzhou Lucheng Rural Commercial Bank Company Limited to obtain a short-term working capital loan of $434,909 (RMB3,000,000) for a term of one year at a fixed annual interest rate of 4.8%. WFOE provided a guarantee for the repayment of the loan. Mr. Xueyuan Weng, the Company’s Chief Executive Officer (the “CEO”) and his wife also provided a personal guaranty for the repayment of the loan. On June 12, 2026, this loan was fully repaid. | | (b) | The Company entered into multiple loan agreements with Longwan RCB to support its working capital needs. The loans have maturity dates of three years. The loans bear variable interest rate ranging from 4.7% to 7.2% per annum. WFOE provided a guarantee for the repayment of the loan. The CEO and his family members also provided personal guaranties for the repayment of the loans. The CEO with his wife pledged personal properties as collateral to secure the loans in addition to the personal guaranties they provided for the repayment of the loans. As of March 31, 2026 and September 30, 2025, the outstanding balance of the loans was $2,116,556 (RMB14.6 million) and $2,050,850 (RMB14.6 million), respectively. | | | | | (c) | On February 15, 2023, the Company entered into a loan agreement with Wenzhou Minshang Bank to obtain a loan of $1,193,988 (RMB8,500,000) for a term from February 15, 2023 to February 15, 2028 at a fixed annual interest rate of 7.5%. The CEO and his wife provided a personal guaranty for the repayment of the loan. The CEO’s wife pledged personal property as collateral to secure the loan. As of March 31, 2026 and September 30, 2025, the outstanding balance of the loan was $1,014,786 (RMB7.0 million) and $1,053,519 (RMB7.5 million), respectively. | For the six months ended March 31, 2026 and 2025, the weighted average interest rate for the bank loans was approximately 6.2% and 6.5%, respectively. Interest expenses for the above-mentioned loans amounted to $153,417 and $105,443 for the six months ended March 31, 2026 and 2025, respectively. The repayment schedule for the bank loans is as follows: | Twelve months ended March 31, | | Repayment | | | 2027 | | $ | 623,369 | | | 2028 | | | 1,328,501 | | | 2029 | | | 1,614,381 | | | Total | | $ | 3,566,251 | |
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