| FINANCIAL INFORMATION OF THE PARENT COMPANY |
| 17. |
FINANCIAL INFORMATION OF THE PARENT COMPANY |
The Company performed a test
on the restricted net assets of consolidated subsidiary in accordance with Rule 4-08 (e)(3) of Regulation S-X, “General
Notes to Financial Statements” and concluded that it was applicable to the Company; therefore, the financial statements for the
parent company are included herein.
The condensed financial information
of the parent company, Decent Holding INC., has been prepared using the same accounting policies as set out in the Company’s unaudited
interim condensed consolidated financial statements except that the parent company has used equity method to account for its investment
in its subsidiaries.
The Company and its subsidiaries
are included in the unaudited interim condensed consolidated financial statements where the inter-company balances and transactions are
eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries
are reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries is reported as
income and losses from subsidiaries in the accompanying condensed financial information of parent company.
As of April 30, 2026 and
October 31, 2025, the Company did not have any outstanding guarantees, long-term obligations, or significant capital and other commitments. PARENT COMPANY BALANCE SHEETS
| | |
April 30,
2026 | | |
October 31,
2025 | |
| | |
Unaudited | | |
| |
| ASSETS | |
| | |
| |
| Current assets | |
| | |
| |
| Cash | |
$ | 1,496,050 | | |
$ | 64,182 | |
| Prepaid expenses, current | |
| 709,814 | | |
| 1,402,714 | |
| Interest receivable | |
| 3,500 | | |
| 10,500 | |
| Due from intercompany entity | |
| 3,586,339 | | |
| 1,395,600 | |
| Non-current assets | |
| | | |
| | |
| Investment in subsidiaries | |
| 7,706,888 | | |
$ | 5,534,567 | |
| Prepaid expenses, non-current | |
| — | | |
| 105,000 | |
| Loan receivable | |
| 600,000 | | |
| 350,000 | |
| Deferred offering cost | |
| — | | |
| 19,884 | |
| Total assets | |
$ | 14,102,591 | | |
$ | 8,882,447 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable | |
| 24,000 | | |
$ | 24,000 | |
| Due to intercompany entity | |
$ | 132,312 | | |
| 1,130,776 | |
| Total liabilities | |
$ | 156,312 | | |
$ | 1,154,776 | |
| | |
| | | |
| | |
| Shareholders’ equity | |
| | | |
| | |
| Class A Ordinary shares (US$0.0025 par value, 19,800,000 shares authorized, 1,615,128 and 450,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) | |
| 4,038 | | |
| 1,125 | |
| Class B Ordinary shares (US$0.0025 par value, 200,000 shares authorized, 200,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) | |
| 500 | | |
| 500 | |
| Subscription receivable | |
| (1,500 | ) | |
| (1,500 | ) |
| Additional paid-in capital | |
| 11,257,406 | | |
| 4,222,882 | |
| Statutory reserve | |
| 666,232 | | |
| 512,732 | |
| Non-controlling interests | |
| (2,217 | ) | |
| — | |
| Retained earnings | |
| 1,893,290 | | |
| 3,118,706 | |
| Accumulated other comprehensive loss | |
| 128,530 | | |
| (126,774 | ) |
| Total shareholders’ equity | |
| 13,946,279 | | |
| 7,727,671 | |
| Total liabilities and shareholders’ equity | |
$ | 14,102,591 | | |
$ | 8,882,447 | |
PARENT COMPANY STATEMENTS OF OPERATION AND COMPREHENSIVE
(LOSS) INCOME
| | |
For the six months ended
April 30, | |
| | |
2026 | | |
2025 | |
| | |
Unaudited | | |
Unaudited | |
| OPERATING EXPENSES | |
$ | (2,252,564 | ) | |
$ | (613,077 | ) |
| INCOME FROM SUBSIDIARIES | |
| 1,178,471 | | |
| 133,912 | |
| | |
| | | |
| | |
| NET LOSS | |
| (1,074,093 | ) | |
| (479,165 | ) |
| FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | |
| 255,264 | | |
| (131,684 | ) |
| COMPREHENSIVE (LOSS) INCOME | |
$ | (818,829 | ) | |
$ | (610,849 | ) |
PARENT COMPANY STATEMENTS OF CASH FLOWS
| | |
For the six months ended
April 30, | |
| | |
2026 | | |
2025 | |
| | |
Unaudited | | |
Unaudited | |
| Net cash used in operating activities | |
$ | (1,672,349 | ) | |
$ | (120,882 | ) |
| Net cash used in investing activities | |
| (3,933,220 | ) | |
| (2,573,000 | ) |
| Net cash provided by financing activities | |
| 7,037,437 | | |
| 3,035,285 | |
|
| 16. |
FINANCIAL
INFORMATION OF THE PARENT COMPANY |
The
Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Rule 4-08 (e)(3) of Regulation S-X,
“General Notes to Financial Statements” and concluded that it was applicable to the Company; therefore, the financial statements
for the parent company are included herein.
The
condensed financial information of the parent company, Decent Holding INC., has been prepared using the same accounting policies as set
out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its
investment in its subsidiaries.
The
Company and its subsidiaries are included in the consolidated financial statements where the inter-company balances and transactions
are eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries
are reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries is reported
as income from subsidiaries in the accompanying condensed financial information of parent company.
As
of October 31, 2025 and 2024, the Company did not have any outstanding guarantees, long-term obligations, or significant capital
and other commitments. PARENT
COMPANY BALANCE SHEETS
| | |
October 31,
2025 | | |
October 31,
2024 | |
| ASSETS | |
| | |
| |
| Current assets | |
| | |
| |
| Cash | |
$ | 64,182 | | |
$ | 85,297 | |
| Prepaid expenses, current | |
| 1,402,714 | | |
| — | |
| Interest receivable | |
| 10,500 | | |
| — | |
| Due from intercompany entity | |
| 1,395,600 | | |
| 6,000 | |
| Non-current assets | |
| | | |
| | |
| Investment in subsidiaries | |
$ | 5,534,567 | | |
$ | 5,696,012 | |
| Prepaid expenses, non-current | |
| 105,000 | | |
| — | |
| Loan receivable | |
| 350,000 | | |
| — | |
| Deferred IPO cost | |
| — | | |
| 967,793 | |
| Deferred offering cost | |
| 19,884 | | |
| — | |
| Total assets | |
$ | 8,882,447 | | |
$ | 6,755,102 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable | |
$ | 24,000 | | |
$ | — | |
| Due to intercompany entity | |
| 1,130,776 | | |
| 1,737,793 | |
| Total liabilities | |
$ | 1,154,776 | | |
$ | 1,737,793 | |
| | |
| | | |
| | |
| Shareholders’ equity | |
| | | |
| | |
| Class A Ordinary shares (US$0.0001 par value, 495,000,000 shares authorized, 11,250,000 and 10,000,000 shares issued and outstanding as of October 31, 2025 and 2024, respectively) | |
| 1,125 | | |
| 1,000 | |
| Class B Ordinary shares (US$0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding as of October 31, 2025 and 2024, respectively) | |
| 500 | | |
| 500 | |
| Subscription receivable | |
| (1,500 | ) | |
| (1,500 | ) |
| Additional paid-in capital | |
| 4,222,882 | | |
| 1,210,094 | |
| Statutory reserve | |
| 512,732 | | |
| 402,621 | |
| Retained earnings | |
| 3,118,706 | | |
| 3,551,019 | |
| Accumulated other comprehensive loss | |
| (126,774 | ) | |
| (146,425 | ) |
| Total shareholders’ equity | |
| 7,727,671 | | |
| 5,017,309 | |
| Total liabilities and shareholders’ equity | |
$ | 8,882,447 | | |
$ | 6,755,102 | |
PARENT
COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| | |
For the years ended
October 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| OPERATING EXPENSES | |
$ | (1,388,694 | ) | |
$ | (247,164 | ) | |
$ | (231,540 | ) |
| INCOME FROM SUBSIDIARIES | |
| 1,066,492 | | |
| 2,350,521 | | |
| 2,091,153 | |
| | |
| | | |
| | | |
| | |
| NET (LOSS) INCOME | |
| (322,202 | ) | |
| 2,103,357 | | |
| 1,859,613 | |
| FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | |
| 19,651 | | |
| 99,298 | | |
| (67,065 | ) |
| COMPREHENSIVE (LOSS) INCOME | |
$ | (302,551 | ) | |
$ | 2,202,655 | | |
$ | 1,792,548 | |
PARENT
COMPANY STATEMENTS OF CASH FLOWS
| | |
For the years ended
October 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Net cash used in operating activities | |
$ | (2,682,408 | ) | |
$ | (27,163 | ) | |
$ | (31,540 | ) |
| Net cash used in investing activities | |
| (1,750,100 | ) | |
| (4,000 | ) | |
| (2,000 | ) |
| Net cash provided by financing activities | |
| 4,141,180 | | |
| 105,000 | | |
| 45,000 | |
|