What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-10-14 compared with 2024-09-30 · 61 added, 54 removed, 193 unchanged (37% of the section changed)

88 unchanged sentences

Interest income

Gain on disposal assets

Interest expense

$ (1,808,994 )

revenues totaled $2,088,028 for the year ended June 30, 2024, an increase of $636,482, or 228%, as compared to the revenue for the year

ended June 30, 2023.

The increase in net revenues was mainly due to an increase in sales of plastic recycle products as a result

of the increase in orders from the third parties.

The Company had 33 clients for the year ended June 30, 2024, increase of

21, as compared to the number of clients for the year ended June 30, 2023.

Meanwhile, the total sales orders also increased from 49 to

250 in two years.

of revenues totaled $2,163,421 for the year ended June 30, 2024, an increase of $1,111,160, or 106%, as compared to for the year ended

June 30, 2023.

The increase in cost of revenue was due to the unit cost is higher in line with our revenue increase.

loss was $75,393 and $415,779 for the years ended June 30, 2024 and 2023 respectively.

Gross loss decreased $340,386 for the year ended

June 30, 2024 primarily due to the improvement of production efficiency

and administrative expenses totaled $643,767 for the year ended June 30, 2024, a slight decrease of $723, as compared to the year

$ (1,010,190 )

revenues totaled $1,338,300 for the year ended June 30, 2025, an decrease of $749,728, or 36%, as compared to the revenue for the year

ended June 30, 2024.

loss totaled $798,804 for the year ended June 30, 2024, an decrease of $278,556, of 26%, as compared to the net loss of $1,077,360

for the year ended June 30, 2023.

The decrease was primarily due to the cost of revenue increase.

The decrease in net revenues was driven by smaller order size or less demanding amounts of plastic recycle products

as a result of the decrease in sales from the third parties.

Sales decreased due to a decline in average order volume, despite growth

in both customer base and total orders.

The number of clients increased from 33 to 38 (a 15% rise), and total orders grew from 250 to

270 (an 8% increase), as compare to for the year ended June 30, 2024.

However, with new clients increasing, the overall quantity of products

sold per transaction dropped, resulting in lower total sales compare to previous period.

Cost of revenues totaled $2,593,124 for the year ended June 30, 2025, an

increase of $429,703, or 20%, as compared to for the year ended June 30, 2024.

The upward trend in cost of revenues is primarily attributable to impurities

contained in purchased raw materials, which have subsequently given rise to a higher incidence of defective raw materials and a corresponding

escalation in overall costs

Gross loss was $1,254,824 and $75,393 for the years ended June 30, 2025

and 2024 respectively.

Gross loss increased $1,179,431 for the year ended June 30, 2025 primarily driven by elevated cost of sales coupled

with lower sales volume.

General and administrative expenses totaled $436,949 for the year ended

June 30, 2025, a decrease of $206,818, or 32%, as compared to the year ended June 30, 2024.

Net loss totaled $1,808,994 for the year ended June 30, 2025, a significantly

increase of $1,010,190, or 126%, as compared to the net loss of $798,804 for the year ended June 30, 2024.

The increase was primarily due

to the sales decreased, but the cost of revenue still increased.

and Capital Resources

Years Ended June 30,

Ended June 30,

Total current assets

4 unchanged sentences

$ (1,763,512 )

of June 30, 2024, We had total current assets of $834,790 consisting of cash on hand of $28,858, accounts receivables of $76,738, inventory

of $664,400, and prepayments and other current assets of $64,794, compared to total current assets of $480,602 as of June 30, 2023.

increase was mainly due to the increase in inventory and account receivable in 2024.

We had current liabilities of $3,514,227 consisting

of accounts payable of $107,466, contract liabilities of $68,048, financing lease liabilities $18,866, convertible note of $750,000 , accrued

liabilities of $156,117, current portion of bank and short-term borrowings of $320,720 and amount due to related parties of $2,093,010

compared to total current liabilities of $1,743,848 as of June 30, 2023.

Company’s net loss was $798,804 and $1,077,360 for the years ended June 30, 2024 and 2023, respectively.

Years Ended June 30,

Cash flows (used in) operating activities

of June 30, 2025, We had total current assets of $279,622 consisting of cash at banks and on hand of $25,272, accounts receivables

of $19,035, inventory of $175,142 and prepayments and other current assets of $60,173, compared to total current assets of $834,790

as of June 30, 2024.

The decrease was mainly due to the decrease in inventory and account receivable in 2025.

We had current

liabilities of $4,722,571 consisting of accounts payable of $89,640, contract liabilities of $22,486, financing lease liabilities

$22,553, convertible note of $750,000, accrued liabilities of $201,407, current portion of bank and short-term borrowings of

$373,621 and amount due to related parties of $3,262,864 compared to total current liabilities of $3,514,227 as of June 30,

Company’s net loss was $1,808,994 and $798,804 for the years ended

June 30, 2025 and 2024, respectively.

Ended June 30,

Cash flows used in operating

Cash flows used in investing activities

Cash flows provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Effect of exchange rate changes on cash

and cash equivalents

Net changes in cash and cash equivalents

1 unchanged sentence

flow used in operating activities for the years ended June 30, 2025 was $845,971 and $727,465 for the year ended June 30, 2024, respectively.

The decrease in net cash used in operating activities was mainly due to the fact that the decrease from the net loss.

The increase in net cash used in operating activities was mainly due to the fact that the increase from the net loss, because the high cost of sales.

Flow from Investing Activities

flow used in investing activities was $38,180 as compared to the amount of $876,102 provide by investing activities for the year ended

June 30, 2023, reflecting an increasement of $291,901.

The increase in net cash flow used in investing activities was mainly due to acquisition

June 30, 2024, reflecting a decline of $837,922.

The decrease in net cash flow used in investing activities was mainly due to less acquisition

of property and equipment.

1 unchanged sentence

flow provided by financing activities was $1,356,399 and $1,458,233 for the year ended June 30, 2025 and 2024, respectively.

increase in net cash provided by financing activities was mainly due to the increase in amount due to related parties and short term

bank borrowing .

in net cash provided by financing activities was mainly due to the decrease in amount due to related parties and short term bank borrowing.

requirement for short term and long term

1 unchanged sentence

details are as follows:

June 30, 2024

June 30, 2023

Loan from XU LIMING

Loan from ZHANG YAFEI

Loan from OCBC Bank in Malaysia

Loan from OCBC Bank

Aggregate outstanding principal balances

23 unchanged sentences

of Presentation

financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States

of America (“U.S.

consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the

United States of America (“U.S.

GAAP”) and are expressed in US dollars.

preparation of financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the

reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported

amounts of revenues and expenses during the reporting period.

The most significant estimates relate to revenue recognition, valuation

of accounts receivable and inventories, income taxes, and contingencies.

The Company bases its estimates on historical experience, known

or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of

the date of these financial statements.

The results of these assumptions provide the basis for making estimates about the carrying amounts

of assets and liabilities that are not readily apparent from other sources.

Actual results could differ from these estimates.

preparation of consolidated financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that

affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial

statements and the reported amounts of revenues and expenses during the reporting period.

The most significant estimates relate to revenue

recognition, valuation of accounts receivable and inventories, income taxes, and contingencies.

The Company bases its estimates on historical

experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information

available as of the date of these financial statements.

The results of these assumptions provide the basis for making estimates about

the carrying amounts of assets and liabilities that are not readily apparent from other sources.

Actual results could differ from these

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No.

35 unchanged sentences

(ii) each director, (iii) our chief executive officer and (iv) all executive officers and directors as a group as of June 30, 2025.

Shares of Common

Directors and officers

3 unchanged sentences

5% Shareholders

Empower International Trading Sdn.

Empower International

Luo Xiong is the beneficial owner and is deemed to hold the voting and dispositive power over the Company’s common stock held by

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis