v3.26.3
Segment Information
 12 Months Ended
Jun. 30, 2026
Segment Information [Abstract]  
SEGMENT INFORMATION

NOTE 20 — SEGMENT INFORMATION

 

The Company follows Financial Accounting Standards Board (FASB”) Accounting Standards codification “ASC”) Topic 280, Segment Reporting, as amended by Accounting Standards Update (“ASU”) No.2023-07. Segment Reporting Topic 280: Improvements to Reportable Segment Disclosures, the Company continually monitors the reportable segments for changes in fact and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment. The Company adopted ASU 2023-07 on July 1, 2024 and applied the amendments retrospectively to all prior periods presented. The adoption affected the Company’s segment disclosures but did not affect the recognition or measurement of amounts in its consolidated financial statements.

  

The Company’s CODM is Mr. Yang Li, the CEO. The Company has determined that it has only one operating segment and therefore one reportable segment after considering several sources of information, including the Company’s internal organizational structure, the basis on which budgets and forecasts are prepared, the financial information that the Company’s CODM reviews in evaluating company performance and determining how resources should be allocated, and how the Company releases information to the public and analysts. The CODM manages all business activities on a consolidated basis, and as a result, the Company has concluded that as of June 30, 2026, there is only one operating segment and therefore one reportable segment.

 

The Company’s one reportable segment serves its customers primarily by providing pharmaceutical products in China. The Company generates a substantial percentage of its revenue from selling pharmaceutical products on a direct basis, whereby it is exposed to the risks and rewards of ownership of the material while in its possession.

 

As the one reportable segment is managed on a consolidated basis, the measure of segment profit or loss is consolidated net loss. The CODM uses consolidated net loss to assess the performance of the Company’s one segment and decide how and where to allocate resources. Net loss, and components of net loss, are used to monitor actual performance and are compared to budgeted and forecasted results to assess the performance of the Company’s one reportable segment and set targets. The measure of consolidated segment assets is reported on the Balance Sheets as total assets.

 

The Company regularly provides the CODM with a reporting package that is structured similarly to the statements of earnings, and the CODM reviews consolidated net earnings (loss) as a key performance measure of profit (loss) for the Company’s single reportable segment and reviews significant expenses on a consolidated basis consistent with the presentation on the consolidated statements of earnings. The CODM’s review is focused on the consolidated results for the Company.

 

The following table presents the significant expenses that are regularly provided to the CODM for the one reportable segment and the required disclosable amounts that are included in consolidated and combined net earnings for the years ended June 30, 2026 and 2025.

 

    For the years ended
June 30,		  
    2026     2025  
Revenue from external customers   $ 5,850,681     $ 2,762,465  
Cost of revenue     2,535,639       1,212,318  
Gross profit     3,315,042       1,550,147  
Selling expense     2,642,667       393,290  
General and administrative expense     5,689,682       2,614,499  
Provision of allowance for expected credit loss on accounts receivable     58,801       32,807  
Write-off of supplier advance     2,859,594       -  
Provision of allowance for expected credit loss on loan receivable     2,256,647       -  
Operating loss     (10,192,349 )     (1,490,449 )
Other income (expense)                
Other income, net     295,299       33,217  
Interest expense     (149,657 )     (229,254 )
Loss before income tax     (10,046,707 )     (1,686,486 )
Income tax expense     91,711       212,296  
Net loss   $ (10,138,418 )   $ (1,898,782 )