Concentrations and Risks |
3 Months Ended | |||
|---|---|---|---|---|
Sep. 30, 2026 | ||||
| Concentrations and Risks [Abstract] | ||||
| CONCENTRATIONS AND RISKS |
Credit Risk
Financial assets of the Company that are potentially subject to credit risk mainly consist of cash, other receivables and amounts due from former subsidiaries.
The Company’s cash deposits are maintained with financial institutions that management believes to be of high credit quality. Management regularly monitors the Company’s exposure to these institutions. As of September 30, 2026, the Company had cash of $213,995. Certain deposits may exceed applicable deposit insurance limits.
The Company maintains allowances for expected credit losses on other receivables and amounts due from former subsidiaries, as described in Note 6.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company manages this risk by monitoring its cash position, expected operating cash needs, anticipated collections of receivables and available sources of financing.
As of September 30, 2026, the Company had cash of $213,995 and working capital of $11,276,618. A substantial portion of the Company’s working capital consisted of amounts due from former subsidiaries. Accordingly, its liquidity depends in part on the timing and amount of collections of those receivables.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when expense is denominated in a foreign currency) and the Company’s net investments in foreign subsidiaries.
Impact of Inflation
Inflation in Hong Kong did not materially affect the Company’s operating results for the three months ended September 30, 2026. However, the Company can provide no assurance that it will be unaffected by higher inflation rates in Hong Kong or globally in the future. |