v3.26.1
Segment Information and Revenue Analysis
 6 Months Ended
Mar. 31, 2026
Segment Information and Revenue Analysis [Abstract]  
SEGMENT INFORMATION AND REVENUE ANALYSIS

3. Segment information and revenue analysis

 

We follow ASC 280, Segment Reporting, which requires that companies to disclose segment data based on how management makes decision about allocating resources to each segment and evaluating their performances. We believe that we operate in two business segments which comprised of sales of yarns and sales of finished garments; and we operate in one geographical location China.

 

Revenues are recognized when control of the goods are transferred to our customers in an amount that reflects the considerations we expect to be entitled to and receive in exchange for good delivered.

 

We disaggregate our revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

 

Sales revenues comprised the following:

 

    Six months ended March 31,  
    2025     2026  
    RMB     % of total     RMB     US$     % of total  
Sales of yarns     16,766,803       92 %     8,837,016       1,281,098       92 %
Sales of finished garments     1,464,160       8 %     757,234       109,776       8 %
      18,230,963       100 %     9,594,250       1,390,874       100 %

 

Direct costs comprised the following:

 

    Six months ended March 31,  
    2025     2026  
    RMB     % of total     RMB     US$     % of total  
Sales of yarns     17,735,008       94 %     8,252,590       1,196,374       93 %
Sales of finished garments     1,188,273       6 %     618,303       89,635       7 %
      18,923,281       100 %     8,870,893       1,286,009       100 %

 

Gross profit comprised the following:

 

    Six months ended March 31,  
    2025     2026  
    RMB     % of total     RMB     US$     % of total  
Sales of yarns     (968,205 )     140 %     584,426       84,724       81 %
Sales of finished garments     275,887       (40 )%     138,931       20,141       19 %
      (692,318 )     100 %     723,357       104,865       100 %