v3.26.1
CONCENTRATIONS AND RISKS
 6 Months Ended
Mar. 31, 2026
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND RISKS

Note 20 - CONCENTRATIONS AND RISKS

 

■ Concentrations

 

(a) Customer

 

The following table sets forth information as to each customer that accounted for 10% or more of net revenue:

  

                 
   Six months ended March 31, 
   2026   2025 
Customer  Amount   %   Amount   % 
Customer A  $381,528    20%  $*    * 
Customer B   *    *    101,207    29%
Customer C   *    *    92,299    27%
Customer D   *    *    91,172    26%
Total  $381,528    20%  $284,678    82%

 

The following table sets forth information as to each customer that accounted for 10% or more of total gross accounts receivable:

 

                 
   March 31, 2026   September 30, 2025 
   (Unaudited)     
Customer  Amount   % of Total   Amount   % of Total 
Customer D  $139,662    26%  $176,534    83%
Customer A   85,532    16%   *    * 
Customer E   74,174    14%   *    * 
Customer B   *    *    24,344    11%
Total  $299,368    56%  $200,878    94%

 

(b) Suppliers

 

The following table sets forth information as to each supplier that accounted for 10% or more of purchase for the six months ended March 31, 2026:

 

                 
   Six months ended March 31, 
   2026   2025 
Supplier  Amount   %   Amount   % 
Supplier A  $134,914    31%  $*   * 
Supplier B   63,255    14%   *    * 
Supplier C   53,273    12%   *    * 
Supplier D   *    *    49,589    35%
Supplier E   *    *    27,802    20%
Supplier F   *    *    18,814    13%
Total  $251,442    57%  $96,205    68%

 

 

The following table sets forth information as to each supplier that accounted for 10% or more of total accounts payable:

 

                 
   March 31, 2026   September 30, 2025 
   (Unaudited)     
Supplier  Amount   % of Total   Amount   % of Total 
Supplier A  $23,915    31%  $*    * 
Supplier G   18,121    24%   17,559    51%
Supplier H   13,772    18%   13,345    39%
Supplier C   10,275    13%   *    * 
Supplier F   *    *    3,286    10%
Total  $66,083    86%  $34,190    100%

 

■ Currency risk

 

A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

 

■ Credit risk

 

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of March 31, 2026 and September 30, 2025, substantially all of the Company’s cash were held by major financial institutions located in the PRC, which management believes are of high credit quality.

 

Other credit risk consists principally of accounts receivable, prepaid expenses, loan to a third party and due from a related party. A portion of the Company’s sales are credit sales which are to the customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company performs ongoing credit evaluations of its customers and monitors collection closely to manage credit risk. Historically, the Company has not experienced significant credit losses due to generally short payment terms and timely collections. In addition, the Company manages credit risk associated with its loan receivables by monitoring the repayment status and financial condition of the borrowers.