CONTRACT COSTS, NET

12 Months Ended

Jun. 30, 2026

NOTE 9. CONTRACT COSTS, NET

Contract costs, net consisted of the following:


		June 30,			June 30,			June 30,
		2025			2026			2026
Third Party		RMB			RMB			US Dollars
Contract costs		¥	57,093,826		¥	27,389,416		$	4,036,700
Allowance for credit losses			(3,546,418)			(2,329,768)			(343,365)
Total contract costs, net		¥	53,547,408		¥	25,059,648		$	3,693,335

As of June 30, 2026, total contracts costs, net amounted to ¥25,059,648 ($3,693,335), of which 8.0%, or ¥2.0 million ($0.3 million) have been subsequently realized as the date of this report, and the remaining balance is expected to be utilized by June 2027.

Provision for credit losses of contract cost was ¥4,532,872 for the year ended June 30, 2024. Net recovery of provision for credit losses of contract cost was ¥4,079,681 for the year ended June 30, 2025. Net recovery of provision for credit losses of contract cost was ¥1,234,861 ($181,996) for the year ended June 30, 2026.

Movement of allowance for credit losses of contract costs is as follows:


		June 30,			June 30,			June 30,
		2025			2026			2026
		RMB			RMB			US Dollars
Beginning balance		¥	8,394,288		¥	3,546,418		$	522,677
Charge to (reversal of) allowance			(4,079,681)			(1,234,861)			(181,996)
Charge to (reversal of) sales			(768,189)			18,211			2,684
Ending balance		¥	3,546,418		¥	2,329,768		$	343,365