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What changed in Jin Medical International Ltd.'s 20-F — 2023 vs 2024

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Paragraph-level year-over-year comparison of Jin Medical International Ltd.'s 2023 and 2024 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+241 added−226 removedSource: 20-F (2025-01-24) vs 20-F (2024-04-26)

Top changes in Jin Medical International Ltd.'s 2024 20-F

241 paragraphs added · 226 removed · 192 edited across 4 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

35 edited+5 added−9 removed604 unchanged
Biggest changeAlthough there were significant surges of COVID-19 cases in many cities in China after the lifting of these restrictions, the spread of COVID-19 slowed down and it has been mostly under control since January 2023, and the Company’s business operations have recovered to the level prior to the COVID-19 pandemic.
Biggest changeAlthough there were significant surges of COVID-19 cases in many cities in China after the lifting of these restrictions, the spread of COVID-19 slowed down and it has been mostly under control since January 2023, and the Company’s business operations have recovered to the level prior to the COVID-19 pandemic. 11 Although, the spread of the COVID-19 pandemic was mostly under control as of the date of this Annual Report, the extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted, and we may have to scale back again in the future.
Risk Factors—Risks Related to Our Ordinary Shares—The “Holding Foreign Companies Accountable Act” and the “Accelerating Holding Foreign Companies Accountable Act” call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the Public Company Accounting Oversight Board of the United States (the “PCAOB”).
Risk Factors—Risks Related to Our Ordinary Shares—The “Holding Foreign Companies Accountable Act” and the “Accelerating Holding Foreign Companies Accountable Act” call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the Public Company Accounting Oversight Board of the United States (the “PCAOB”).
The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in emerging markets.
The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in emerging markets.
On December 16, 2021, the PCAOB issued a report on its determination that the PCAOB was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong, a Special Administrative Region of the PRC, because of positions taken by PRC authorities in those jurisdictions.
On December 16, 2021, the PCAOB issued a report on its determination that the PCAOB was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong, a Special Administrative Region of the PRC, because of positions taken by PRC authorities in those jurisdictions.
The Board made these determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCA Act. On August 26, 2022, the CSRC, the MOF, and the PCAOB signed the Protocol, governing inspections and investigations of audit firms based in China and Hong Kong.
The Board made these determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCA Act. On August 26, 2022, the CSRC, the MOF, and the PCAOB signed the Protocol, governing inspections and investigations of audit firms based in China and Hong Kong.
On December 15, 2022, the PCAOB determined that it was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and vacated its previous determinations to the contrary.
On December 15, 2022, the PCAOB determined that it was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and vacated its previous determinations to the contrary.
However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s access in the future, the PCAOB may consider the need to issue a new determination.
However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s access in the future, the PCAOB may consider the need to issue a new determination.
The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors to lose confidence in audit procedures and reported financial information and the quality of financial statements of China-based companies.
The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors to lose confidence in audit procedures and reported financial information and the quality of financial statements of China-based companies.
MarcumAsia was our independent auditor from February 22, 2023 to September 23, 2023. The change in auditors was made due to the combination of Friedman LLP with Marcum LLP effective September 1, 2022, following which MarcumAsia assumed the China practice of Friedman LLP. MarcumAsia is a PCAOB registered public accounting firm headquartered in New York.
MarcumAsia was our independent auditor from February 22, 2023 to September 23, 2023. The change in auditors was made due to the combination of Friedman LLP with Marcum LLP effective September 1, 2022, following which MarcumAsia assumed the China practice of Friedman LLP. MarcumAsia is a PCAOB registered public accounting firm headquartered in New York.
On September 23, 2023, we appointed DNTW Toronto LLP, a PCAOB registered public accounting firm headquartered in Canada as our auditor. On March 1, 2024, our audit committee approved the engagement of Audit Alliance LLP as the Company’s new independent registered public accounting firm.
On September 23, 2023, we appointed DNTW Toronto LLP, a PCAOB registered public accounting firm headquartered in Canada as our auditor. On March 1, 2024, our audit committee approved the engagement of Audit Alliance LLP as the Company’s new independent registered public accounting firm.
Our current and former auditors are subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess an auditor’s compliance with the applicable professional standards, and have been inspected by the PCAOB on a regular basis.
Our current and former auditors are subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess an auditor’s compliance with the applicable professional standards, and have been inspected by the PCAOB on a regular basis.
As such, as of the date of this Annual Report, our listing is not affected by the HFCA Act and related regulations.
As such, as of the date of this Annual Report, our listing is not affected by the HFCA Act and related regulations.
However, the recent developments would add uncertainties to our listing and we cannot assure you whether Nasdaq or regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as related to the audit of our financial statements.
However, the recent developments would add uncertainties to our listing and we cannot assure you whether Nasdaq or regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as related to the audit of our financial statements.
Furthermore, there is a risk that our auditor cannot be inspected by the PCAOB in the future.
Furthermore, there is a risk that our auditor cannot be inspected by the PCAOB in the future.
However, in preparing our consolidated financial statements as of and for the fiscal years ended September 30, 2023 and 2022 and 2021, we and our independent registered public accounting firm have identified material weaknesses in our internal control over financial reporting, as defined in the standards established by the Public Company Accounting Oversight Board of the United States, or “PCAOB,” and other control deficiencies.
However, in preparing our consolidated financial statements as of and for the fiscal years ended September 30, 2024 and 2023 and 2022, we and our independent registered public accounting firm have identified material weaknesses in our internal control over financial reporting, as defined in the standards established by the Public Company Accounting Oversight Board of the United States, or “PCAOB,” and other control deficiencies.
Currently, since we implement strict quality control procedures and the majority of our products are manual wheelchairs that have relatively simple mechanical structures, we have not incurred significant warranty costs. Our warranty costs for the fiscal years ended September 30, 2023, 2022 and 2021 were $nil.
Currently, since we implement strict quality control procedures and the majority of our products are manual wheelchairs that have relatively simple mechanical structures, we have not incurred significant warranty costs. Our warranty costs for the fiscal years ended September 30, 2024, 2023 and 2022 were $nil.
Our former auditor, Friedman LLP, the independent registered public accounting firm that issued the audit report included elsewhere in this prospectus, was a PCAOB-registered public accounting firm headquartered in New York during the time it served as our independent auditor. Friedman LLP was our independent auditor from 2019 to 2023.
Our former auditor, Friedman LLP, the independent registered public accounting firm that issued the audit report included elsewhere in this Annual Report, was a PCAOB-registered public accounting firm headquartered in New York during the time it served as our independent auditor. Friedman LLP was our independent auditor from 2019 to 2023.
Our former auditor, Friedman LLP, the independent registered public accounting firm that issued the audit report included elsewhere in this prospectus, was a PCAOB-registered public accounting firm headquartered in New York during the time it served as our independent auditor. Friedman LLP was our independent auditor from 2019 to 2023.
Our former auditor, Friedman LLP, the independent registered public accounting firm that issued the audit report included elsewhere in this Annual Report, was a PCAOB-registered public accounting firm headquartered in New York during the time it served as our independent auditor. Friedman LLP was our independent auditor from 2019 to 2023.
Our future growth will depend upon our ability to maintain efficient operations at our existing production facilities and our ability to expand our production capacity as needed. The average utilization rate of our production lines was 75%, 77% and 79% for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
Our future growth will depend upon our ability to maintain efficient operations at our existing production facilities and our ability to expand our production capacity as needed. The average utilization rate of our production lines was 70%, 75% and 77% for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Our customers consist solely of qualified dealers. We have one large customer, Nissin, with whom we generated substantial revenue each year. For the fiscal years ended September 30, 2023, 2022 and 2021, Nissin and its wholly owned subsidiaries together represented approximately 78.2%, 80.5% and 83.2% of the Company’s total sales, respectively.
Our customers consist solely of qualified dealers. We have one large customer, Nissin, with whom we generated substantial revenue each year. For the fiscal years ended September 30, 2024, 2023 and 2022, Nissin and its wholly owned subsidiaries together represented approximately 57.3%, 78.2% and 80.5% of the Company’s total sales, respectively.
The NHTE status is valid for three years and may be renewed upon expiration, and entitles Changzhou Zhongjin and Taizhou Zhongjin to a favorable tax rate of 15%, rather than the unified rate of 25%. Changzhou Zhongjin and Taizhou Zhongjin successfully renewed their NHTE status in November 2021 and 2022, respectively.
The NHTE status is valid for three years and may be renewed upon expiration, and entitles Changzhou Zhongjin and Taizhou Zhongjin to a favorable tax rate of 15%, rather than the unified rate of 25%. Changzhou Zhongjin successfully renewed their NHTE status in November 2021 and December 2024.
If we lose one or more of the suppliers, our operation may be disrupted, and our results of operations may be adversely and materially impacted. For the fiscal year ended September 30, 2023, no supplier accounted for more than 10% of the Company’s total purchases.
If we lose one or more of the suppliers, our operation may be disrupted, and our results of operations may be adversely and materially impacted. For the fiscal years ended September 30, 2024, 2023 and 2022, no supplier accounted for more than 10% of the Company’s total purchases.
To the extent we determine that the proposed uses set forth in our prospectus for our initial public offering are no longer in the best interests of our Company, we cannot specify with any certainty the particular uses of such net proceeds that we will receive from our public offering.
To the extent we determine that the proposed uses set forth in our prospectus for our future public offerings are no longer in the best interests of our Company, we cannot specify with any certainty the particular uses of such net proceeds that we will receive from our future public offerings.
Our largest dealer, Nissin, and its wholly-owned subsidiaries together represented approximately 78.2%, 80.5% and 83.2% of our revenues for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. The performance of this dealer is extremely important to us.
Our largest dealer, Nissin, and its wholly-owned subsidiaries together represented approximately 57.3%, 78.2% and 80.5% of our revenues for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. The performance of this dealer is extremely important to us.
An aggregate of 156,547,100 Ordinary Shares are outstanding as of February 12, 2024, and certain of such shares are “restricted securities” as defined in Rule 144. Shares which were once subject to resale restrictions and which become available for future sale may adversely affect the market price of our Ordinary Shares.
An aggregate of 156,547,100 Ordinary Shares are outstanding as of January 14, 2025, and certain of such shares are “restricted securities” as defined in Rule 144. Shares which were once subject to resale restrictions and which become available for future sale may adversely affect the market price of our Ordinary Shares.
The Company has estimated that the additional contributions based on the actual wages of eligible employees amounted to $257,478, $467,246 and $385,935 for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
The Company has estimated that the additional contributions based on the actual wages of eligible employees amounted to $262,365, $257,478 and $467,246 for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
The public offering price for our initial public offering was determined by us and the underwriters, based on numerous factors and may not be indicative of the market price of our Ordinary Shares. Consequently, you may not be able to sell shares of our Ordinary Shares at prices equal to or greater than the price paid by you.
The public offering price for our future securities offerings are determined by us and the underwriters, base on numerous factors and may not be indicative of the market price of our Ordinary Shares. Consequently, you may not be able to sell shares of our Ordinary Shares at prices equal to or greater than the price paid by you.
As of September 30, 2023, we had cash of approximately $6.9 million and short-term investments of $9.8 million, total current assets of approximately $31.1 million and total current liabilities of approximately $8.9 million. We may need to engage in capital-raising transactions in the near future.
As of September 30, 2024, we had cash of approximately $8.1 million and short-term investments of $18.6 million, total current assets of approximately $42.8 million and total current liabilities of approximately $17.2 million. We may need to engage in capital-raising transactions in the near future.
Therefore, our revenue (excluding the impact of foreign currency translation) increased by 11.2% during the fiscal year ended September 30, 2023. 18 Despite the Company’s business operations recovery from the COVID-19 pandemic, the future impact of COVID-19 is still highly uncertain and cannot be predicted, and the extent to which the COVID-19 pandemic may impact our business, operations and financial results will depend on numerous evolving factors that the Company cannot accurately predict at this time, including the uncertainty on the potential resurgence of the COVID-19 cases in China, the continual spread of the virus globally, especially in Japan, the Company’s major international market, and the instability of local and global government policies and restrictions.
Despite the Company’s business operations recovery from the COVID-19 pandemic, the future impact of COVID-19 is still highly uncertain and cannot be predicted, and the extent to which the COVID-19 pandemic may impact our business, operations and financial results will depend on numerous evolving factors that the Company cannot accurately predict at this time, including the uncertainty on the potential resurgence of the COVID-19 cases in China, the continual spread of the virus globally, especially in Japan, the Company’s major international market, and the instability of local and global government policies and restrictions.
We are closely monitoring the development of the COVID-19 pandemic and continuously evaluating any further potential impact on our business, results of operations and financial condition. If the pandemic persists or escalates, we may be subject to further negative impact on our business operations and financial condition.
We are closely monitoring the development of the COVID-19 pandemic and continuously evaluating any further potential impact on our business, results of operations and financial condition.
For the fiscal years ended September 30, 2023, 2022 and 2021, the taxes payable by us would have increased by $374,530, $270,220 and $284,786, respectively, if Changzhou Zhongjin and Taizhou Zhongjin were not certified as NHTE.
In addition, Taizhou Zhongjin also successfully renewed their NHTE status in November 2022, respectively. For the fiscal years ended September 30, 2024, 2023 and 2022, the taxes payable by us would have increased by $651,510, $374,530 and $270,220, respectively, if Changzhou Zhongjin and Taizhou Zhongjin were not certified as NHTE.
Risks Related to Our Corporate Structure We control and receive the economic benefits of the business operations of the VIE through the VIE Agreements among our WFOE, the VIE and the VIE’s shareholders to operate our business solely because we met the conditions for consolidation of the VIE under U.S.
If the pandemic persists or escalates, we may be subject to further negative impact on our business operations and financial condition. 18 Risks Related to Our Corporate Structure We control and receive the economic benefits of the business operations of the VIE through the VIE Agreements among our WFOE, the VIE and the VIE’s shareholders to operate our business solely because we met the conditions for consolidation of the VIE under U.S.
If we fail to regain compliance with Nasdaq’s listing rules, we could be subject to suspension and delisting proceedings. If Jin Med’s securities lose their listed status on The Nasdaq Capital Market, our securities would likely trade in the over-the-counter market.
If Jin Med’s securities lose their listed status on The Nasdaq Capital Market, our securities would likely trade in the over-the-counter market.
The VIE Agreements have not been tested in a court of law and may not be effective in providing control over the VIE, and we are subject to risks due to the uncertainty of the interpretation and application of the laws and regulations of the PRC. 2 During the fiscal years ended September 30, 2023 and 2022, no cash transfer or transfer of other assets have occurred among our Company, its subsidiaries, or the VIE and the VIE’s subsidiaries.
The VIE Agreements have not been tested in a court of law and may not be effective in providing control over the VIE, and we are subject to risks due to the uncertainty of the interpretation and application of the laws and regulations of the PRC. 2 During the fiscal year ended September 30, 2024, our holding company, Jin Med, via Zhongjin HK, transferred cash in the amount of approximately $1.3 million to Anhui Zhongjin, our wholly owned subsidiary in PRC, for capital injection.
Under mainland China laws and regulations, we are subject to restrictions on foreign exchange and cross-border cash transfers, including to Jin Med and U.S. investors. Our ability to distribute earnings to Jin Med and U.S. investors is also limited.
During the fiscal years ended September 30, 2023 and 2022, no cash transfer or transfer of other assets have occurred among our Company, its subsidiaries, or the VIE and the VIE’s subsidiaries. Under mainland China laws and regulations, we are subject to restrictions on foreign exchange and cross-border cash transfers, including to Jin Med and U.S. investors.
Removed
Therefore, our revenue (excluding the impact of foreign currency translation) increased by 11.2% during the fiscal year ended September 30, 2023. 11 Although, the spread of the COVID-19 pandemic was mostly under control as of the date of this Annual Report, the extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted, and we may have to scale back again in the future.
Added
Our ability to distribute earnings to Jin Med and U.S. investors is also limited.
Removed
For the fiscal year ended September 30, 2022, one supplier accounted for 10% of the Company’s total purchases. For the fiscal year ended September 30, 2021, one supplier accounted for 15.7% of the Company’s total purchases.
Added
The Company filed its annual report on Form 20-F for fiscal year 2023 on April 26, 2024, and On May 9, 2024, the Company received a letter from Nasdaq informing the Company that it has regained compliance with the filing requirement in Listing Rule 5250(c) regarding the filing of the Annual Report, as required by the Panel’s decision dated March 28, 2024.
Removed
The global coronavirus COVID-19 pandemic has caused significant disruptions in our business, which may continue to materially and adversely affect our results of operations and financial condition. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic.
Added
The Company was also notified that the Panel has determined to monitor the Company’s compliance with the filing requirement in Listing Rule 5250(c) through May 9, 2025, in accordance with Nasdaq Listing Rule 5815(d)(4)(B) (the “Panel Monitor”).
Removed
Many businesses and social activities in China and other countries and regions were severely disrupted in 2020, including those of our suppliers, customers and employees. This pandemic has also caused market panics, which materially and negatively affected the global financial markets, such as the plunge of global stocks on major stock exchanges in March 2020.
Added
During the period of the Panel Monitor, in the event the Company becomes non-compliant with the Filing Rule, and notwithstanding Nasdaq Listing Rule 5810(c)(2), the Company will not be permitted to provide a compliance plan for the Staff’s review and the Staff will not be permitted to grant additional time to the Company to regain compliance with the Filing Rule.
Removed
Such disruption and slowdown of the world’s economy in 2020 and beyond had, and may continue to have, a material adverse effect on our results of operations and financial condition.
Added
Instead, the Staff will be obligated to issue a delist determination, at which time the Company may request a new hearing before a hearing panel. If we fail to regain compliance with Nasdaq’s listing rules, we could be subject to suspension and delisting proceedings.
Removed
We and our customers experienced significant business disruptions and suspension of operations due to quarantine measures to contain the spread of the pandemic, which caused shortage in the supply of raw materials, reduced our production capacity, increased the likelihood of default from our customers and delayed our product delivery.
Removed
All of these had resulted in a material adverse effect on our results of operations and financial condition in the fiscal year 2020. In early December 2022, China announced a nationwide loosening of its zero-COVID policy, and most of the travel restrictions and quarantine requirements were lifted since December 2022.
Removed
Although there were significant surges of COVID-19 cases in many cities in China after the lifting of these restrictions, the spread of COVID-19 slowed down and it has been mostly under control since January 2023, and the Company’s business operations have recovered to the level prior to the COVID-19 pandemic.
Removed
The Company, however, still had an outstanding deficiency due to its failure to file its annual report on Form 20-F for the period ended September 30, 2023 and, consequently, does not meet the filing requirement in Listing Rule 5250(c). Therefore, the Hearing was held as scheduled regarding such deficiency.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

54 edited+15 added−1 removed352 unchanged
Biggest changeRevenue $16,348,133, or 82.5%, for the fiscal years ended September 30, 2023 $15,622,273, or 81.4%, for fiscal year 2022 $2,770,392, or 14.0%, for the fiscal years ended September 30, 2023 $2,969,705, or 15.5%, for fiscal year 2022 $702,932, or 3.5%, for the fiscal years ended September 30, 2023 $598,563, or 3.1%, for fiscal year 2022 $18,205,458, or 87.7%, for fiscal year 2021 $2,497,772, or 12.0%, for fiscal year 2021 $61,043, or 0.3%, for fiscal year 2021 Selected Products 53 Although the vast majority of our customers are in Japan and China, we sell our products around the world.
Biggest changeRevenue $14,866,699, or 63.3%, for the fiscal year 2024 $16,348,133, or 82.5%, for the fiscal year 2023 $15,622,273, or 81.4%, for the fiscal year 2022 $1,883,761, or 8.0%, for the fiscal year 2024 $2,770,392, or 14.0%, for the fiscal year 2023 $2,969,705, or 15.5%, for the fiscal year 2022 $2,329,062, or 9.8%, for the fiscal year 2024 $605,655, or 3.0%, for the fiscal year 2023 $598,563, or 3.1%, for the fiscal year 2022 $1,589,742, or 6.8%, for the fiscal year 2024 $nil, or 0.0%, for the fiscal year 2023 $nil, or 0.0%, for the fiscal year 2022 $2,081,310, or 8.9%, for the fiscal year 2024 $nil, or 0.0%, for the fiscal year 2023 $nil, or 0.0%, for the fiscal year 2022 $751,436, or 3.2%, for the fiscal year 2024 $97,277, or 0.5%, for the fiscal year 2023 $nil, or 0.0%, for the fiscal year 2022 53 Wheelchairs Wheelchair Components Living Aids Products Oxygen Chamber Beauty Instruments Nano Products Selected Products 54 Although the vast majority of our customers are in Japan and China, we sell our products around the world.
Users can also customize the basic model into a sports model, which can be further enhanced with 4/5-inch PU universal wheel and 24-inch quick release rear wheel for better athletic performance. 55 Electric Wheelchairs Product Name Product Image Specs and Features Lightweight Electric Wheelchair (Model DYN30A-LY-ZJ) Specs Material : Aluminum alloy Maximum Load Capacity : 100KG Product Weight : 17KG Unfolded Dimensions : 83CM*56.5CM*90CM Folded Dimensions :46CM*56.5CM*67CM Features Model DYN30A-LY-ZJ features one-click folding/deployment function, removable premium lithium battery, a 15km cruising range and maximum speed of 4.5km/h.
Users can also customize the basic model into a sports model, which can be further enhanced with 4/5-inch PU universal wheel and 24-inch quick release rear wheel for better athletic performance. 56 Electric Wheelchairs Product Name Product Image Specs and Features Lightweight Electric Wheelchair (Model DYN30A-LY-ZJ) Specs Material : Aluminum alloy Maximum Load Capacity : 100KG Product Weight : 17KG Unfolded Dimensions : 83CM*56.5CM*90CM Folded Dimensions :46CM*56.5CM*67CM Features Model DYN30A-LY-ZJ features one-click folding/deployment function, removable premium lithium battery, a 15km cruising range and maximum speed of 4.5km/h.
Changzhou Zhongjin and its subsidiaries have contributed to the social security premium and housing funds for all eligible employees at least at the minimum wage level and have received letters from the local governing SSBs in Jiangsu Province, where Changzhou Zhongjin and its subsidiaries are located, confirming that the Company is not in violation of any employment or social benefit regulations for the period from January 2017 to August 2021. 73 PRC Laws and Regulations on Cybersecurity The Cybersecurity Review Measures, which became effective on February 15, 2022 and replaced the former Measures for Cybersecurity Review (2020), provide that, in addition to critical information infrastructure operators (“CIIOs”) that intend to purchase Internet products and services, data processing operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC.
Changzhou Zhongjin and its subsidiaries have contributed to the social security premium and housing funds for all eligible employees at least at the minimum wage level and have received letters from the local governing SSBs in Jiangsu Province, where Changzhou Zhongjin and its subsidiaries are located, confirming that the Company is not in violation of any employment or social benefit regulations for the period from January 2017 to August 2021. 77 PRC Laws and Regulations on Cybersecurity The Cybersecurity Review Measures, which became effective on February 15, 2022 and replaced the former Measures for Cybersecurity Review (2020), provide that, in addition to critical information infrastructure operators (“CIIOs”) that intend to purchase Internet products and services, data processing operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC.
A foreign-invested enterprise established through return investment shall complete relevant foreign exchange registration formalities in accordance with the prevailing foreign exchange administration regulations on foreign direct investment and truthfully disclose information on the actual controller of its shareholders. 69 If any shareholder who is a PRC resident (as determined by the Circular No. 37) holds any interest in an offshore SPV and fails to fulfil the required foreign exchange registration with the local SAFE branches, the PRC subsidiaries of that offshore SPV may be prohibited from distributing their profits and dividends to their offshore parent company or from carrying out other subsequent cross-border foreign exchange activities.
A foreign-invested enterprise established through return investment shall complete relevant foreign exchange registration formalities in accordance with the prevailing foreign exchange administration regulations on foreign direct investment and truthfully disclose information on the actual controller of its shareholders. 73 If any shareholder who is a PRC resident (as determined by the Circular No. 37) holds any interest in an offshore SPV and fails to fulfil the required foreign exchange registration with the local SAFE branches, the PRC subsidiaries of that offshore SPV may be prohibited from distributing their profits and dividends to their offshore parent company or from carrying out other subsequent cross-border foreign exchange activities.
Additional Information—Taxation—People’s Republic of China Enterprise Taxation.” 71 Value-added Tax Pursuant to the Provisional Regulations on Value-added Tax of the PRC, or the VAT Regulations, which were promulgated by the State Council on December 13, 1993, took effect on January 1, 1994, and were amended on November 10, 2008, February 6, 2016, and November 19, 2017, respectively, and the Rules for the Implementation of the Provisional Regulations on Value-added Tax of the PRC, which were promulgated by the MOF on December 25, 1993, and were amended on December 15, 2008, and October 28, 2011, respectively, entities and individuals that sell goods or labor services of processing, repair or replacement, sell services, intangible assets, or immovables, or import goods within the territory of the People’s Republic of China are taxpayers of value-added tax.
Additional Information—Taxation—People’s Republic of China Enterprise Taxation.” 75 Value-added Tax Pursuant to the Provisional Regulations on Value-added Tax of the PRC, or the VAT Regulations, which were promulgated by the State Council on December 13, 1993, took effect on January 1, 1994, and were amended on November 10, 2008, February 6, 2016, and November 19, 2017, respectively, and the Rules for the Implementation of the Provisional Regulations on Value-added Tax of the PRC, which were promulgated by the MOF on December 25, 1993, and were amended on December 15, 2008, and October 28, 2011, respectively, entities and individuals that sell goods or labor services of processing, repair or replacement, sell services, intangible assets, or immovables, or import goods within the territory of the People’s Republic of China are taxpayers of value-added tax.
Changzhou Zhongjin has obtained its Pollutant Discharging License valid from April 30, 2020 to April 29, 2025, and Taizhou Zhongjin has obtained the Pollutant Discharging License valid from March 1, 2020 to February 28, 2025, as required by the Air Pollution Prevention Law of the PRC as well as the Water Pollution Prevention Law of the PRC . 64 Regulations on Mergers & Acquisitions and Overseas Listings On August 8, 2006, six PRC regulatory agencies, including the CSRC, MOFCOM, the State-owned Assets Supervision and Administration Commission, the SAT, the State Administration of Industry and Commerce and SAFE, adopted the M&A Rules, which became effective on September 8, 2006, and were amended on June 22, 2009.
Changzhou Zhongjin has obtained its Pollutant Discharging License valid from April 30, 2020 to April 29, 2025, and Taizhou Zhongjin has obtained the Pollutant Discharging License valid from March 1, 2020 to February 28, 2025, as required by the Air Pollution Prevention Law of the PRC as well as the Water Pollution Prevention Law of the PRC . 68 Regulations on Mergers & Acquisitions and Overseas Listings On August 8, 2006, six PRC regulatory agencies, including the CSRC, MOFCOM, the State-owned Assets Supervision and Administration Commission, the SAT, the State Administration of Industry and Commerce and SAFE, adopted the M&A Rules, which became effective on September 8, 2006, and were amended on June 22, 2009.
Laws concerning government-provided benefits related to assistive products for persons with disability Long-Term Care Insurance Act The Long-Term Care Insurance Act, promulgated on December 17, 1997 and most recently amended on June 12, 2020, aims to provide long-term care to society as a whole so that people can live with peace of mind even if they are in need of long-term care. 77 The long-term care insurance system stipulated in the Long-Term Care Insurance Act is a system in which participants pay a share of insurance premiums, need to be certified by local municipalities when they need long-term care, and use the necessary long-term care services provided by the long-term care service providers.
Laws concerning government-provided benefits related to assistive products for persons with disability Long-Term Care Insurance Act The Long-Term Care Insurance Act, promulgated on December 17, 1997 and most recently amended on June 12, 2020, aims to provide long-term care to society as a whole so that people can live with peace of mind even if they are in need of long-term care. 81 The long-term care insurance system stipulated in the Long-Term Care Insurance Act is a system in which participants pay a share of insurance premiums, need to be certified by local municipalities when they need long-term care, and use the necessary long-term care services provided by the long-term care service providers.
Erqi Wang, is the core leader of our R&D department. Dr. Wang pioneered a tailor-made concept for “rehabilitation wheelchair” design in China that allows users to adjust wheelchair functions according to their individual conditions.
Our CEO, Dr. Erqi Wang, is the core leader of our R&D department. Dr. Wang pioneered a tailor-made concept for “rehabilitation wheelchair” design in China that allows users to adjust wheelchair functions according to their individual conditions.
The NHC combines the responsibilities of the former NHFPC, the Leading Group Overseeing Medical and Healthcare Reform under the State Council, the China National Working Commission on Aging, partial responsibilities of the Ministry of Industry and Information Technology in relation to tobacco control, and partial responsibilities from the State Administration of Work Safety in relation to occupational safety. 62 Medical Devices Administration Laws and Regulations The Regulation on the Supervision and Administration of Medical Devices as amended by the State Council on February 9, 2021 and became effective on June 1, 2021, regulates entities that engage in the research and development, production, operation, use as well as supervision and administration of medical devices in the PRC.
The NHC combines the responsibilities of the former NHFPC, the Leading Group Overseeing Medical and Healthcare Reform under the State Council, the China National Working Commission on Aging, partial responsibilities of the Ministry of Industry and Information Technology in relation to tobacco control, and partial responsibilities from the State Administration of Work Safety in relation to occupational safety. 66 Medical Devices Administration Laws and Regulations The Regulation on the Supervision and Administration of Medical Devices as amended by the State Council on February 9, 2021 and became effective on June 1, 2021, regulates entities that engage in the research and development, production, operation, use as well as supervision and administration of medical devices in the PRC.
This circular further provides that applicants who intend to prove his or her status of the “beneficial owner” shall submit the relevant documents to the relevant tax bureau according to the Announcement of State Taxation Administration on Promulgation of the Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits. 72 We have not commenced the application process for a Hong Kong tax resident certificate from the relevant Hong Kong tax authority, and there is no assurance that we will be granted such a Hong Kong tax resident certificate.
This circular further provides that applicants who intend to prove his or her status of the “beneficial owner” shall submit the relevant documents to the relevant tax bureau according to the Announcement of State Taxation Administration on Promulgation of the Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits. 76 We have not commenced the application process for a Hong Kong tax resident certificate from the relevant Hong Kong tax authority, and there is no assurance that we will be granted such a Hong Kong tax resident certificate.
Our application for listing in Nasdaq does not fall under the circumstance that such overseas listing is prohibited by the Trial Measures, nor do we need to go through the review such as security review or clearance approval from relevant authorities. 65 According to the CSRC Notice, the domestic companies that have already been listed overseas before the effective date of the Trial Measures (namely, March 31, 2023) shall be deemed as Existing Issuers.
Our application for listing in Nasdaq does not fall under the circumstance that such overseas listing is prohibited by the Trial Measures, nor do we need to go through the review such as security review or clearance approval from relevant authorities. 69 According to the CSRC Notice, the domestic companies that have already been listed overseas before the effective date of the Trial Measures (namely, March 31, 2023) shall be deemed as Existing Issuers.
Changzhou Zhongjin is a PRC domestic company, and it is not subject to the record-filling or examination applicable to FIEs. 67 Regulation on Foreign Investment Restriction on Value-Added Telecommunications Services According to the 2020 Negative List, the equity ratio of foreign investment in the value-added telecommunications enterprises is subject to the cap of 50% except for the investment in the e-commerce operation business, a domestic multi-party communication business, an information storage and retransmission business and a call center business.
Changzhou Zhongjin is a PRC domestic company, and it is not subject to the record-filling or examination applicable to FIEs. 71 Regulation on Foreign Investment Restriction on Value-Added Telecommunications Services According to the 2020 Negative List, the equity ratio of foreign investment in the value-added telecommunications enterprises is subject to the cap of 50% except for the investment in the e-commerce operation business, a domestic multi-party communication business, an information storage and retransmission business and a call center business.
The Renminbi converted from the foreign capital will be kept in a designated account and if a foreign-invested enterprise needs to make any further payment from such account, it will still need to provide supporting documents and to complete the review process with its bank. 70 Furthermore, Circular 19 stipulates that foreign-invested enterprises shall make bona fide use of their capital for their own needs within their business scopes.
The Renminbi converted from the foreign capital will be kept in a designated account and if a foreign-invested enterprise needs to make any further payment from such account, it will still need to provide supporting documents and to complete the review process with its bank. 74 Furthermore, Circular 19 stipulates that foreign-invested enterprises shall make bona fide use of their capital for their own needs within their business scopes.
As of the date of the Annual Report, due to the relative small number of sales of our living aids products, we procure part of our living aids products from third party suppliers, and produce the rest at our facility located in Taizhou City, Jiangsu Province. 58 Production Facilities Changzhou Zhongjin and its subsidiaries operate two manufacturing plants in Changzhou and Taizhou, Jiangsu Province, China, with approximately 228,257 square feet in the aggregate.
As of the date of the Annual Report, due to the relative small number of sales of our living aids products, we procure part of our living aids products from third party suppliers, and produce the rest at our facility located in Taizhou City, Jiangsu Province. 62 Production Facilities Changzhou Zhongjin and its subsidiaries operate two manufacturing plants in Changzhou and Taizhou, Jiangsu Province, China, with approximately 228,257 square feet in the aggregate.
At the same time, measures such as collecting and providing information on product accidents are taken with the aim of protecting the interests of general consumers. 75 Consumer products are defined as “any product supplied mainly for use by general consumers for their routine everyday activities.” All products that are usually sold to general consumers in the market for the purpose of being used for the daily life of general consumers are subject to the Consumer Product Safety Act.
At the same time, measures such as collecting and providing information on product accidents are taken with the aim of protecting the interests of general consumers. 79 Consumer products are defined as “any product supplied mainly for use by general consumers for their routine everyday activities.” All products that are usually sold to general consumers in the market for the purpose of being used for the daily life of general consumers are subject to the Consumer Product Safety Act.
We expect to continue to invest in our R&D to conduct research and development activities, especially seeking to develop more new products to meet customer demands and expand our product offering. 59 Sales and Marketing We believe the best marketing is through: (1) making quality products that consistently meet and exceed customer expectations, and (2) providing excellent customer services to establish long-term relationships with satisfied customers.
We expect to continue to invest in our R&D to conduct research and development activities, especially seeking to develop more new products to meet customer demands and expand our product offering. 63 Sales and Marketing We believe the best marketing is through: (1) making quality products that consistently meet and exceed customer expectations, and (2) providing excellent customer services to establish long-term relationships with satisfied customers.
We are in compliance with the Product Quality Law. 63 Regulations Related to Foreign Trade Pursuant to the Foreign Trade Law of the PRC, promulgated on May 12, 1994 and amended on April 6, 2004 and November 7, 2016, respectively, and the Measures for the Record Filing and Registration of Foreign Trade Business Operators promulgated by the Ministry of Commerce of the PRC on June 25, 2004 and effective on July 1, 2004, which was last amended on May 10, 2021.
We are in compliance with the Product Quality Law. 67 Regulations Related to Foreign Trade Pursuant to the Foreign Trade Law of the PRC, promulgated on May 12, 1994 and amended on April 6, 2004 and November 7, 2016, respectively, and the Measures for the Record Filing and Registration of Foreign Trade Business Operators promulgated by the Ministry of Commerce of the PRC on June 25, 2004 and effective on July 1, 2004, which was last amended on May 10, 2021.
In the event that a patent is owned by two or more co-owners without an agreement regarding the distribution of revenue generated from the exploitation of any co-owner of the patent, such revenue shall be distributed among all the co-owners. 68 Existing patents can become narrowed, invalid or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies in patent application.
In the event that a patent is owned by two or more co-owners without an agreement regarding the distribution of revenue generated from the exploitation of any co-owner of the patent, such revenue shall be distributed among all the co-owners. 72 Existing patents can become narrowed, invalid or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies in patent application.
For the fiscal years ended September 30, 2023 and 2022, Nissin was our only customer that accounted for more than 10% of our total revenues.
For the fiscal years ended September 30, 2024, 2023 and 2022, Nissin was our only customer that accounted for more than 10% of our total revenues.
Since we implement strict quality control procedures and the majority of our products are manual wheelchairs that have relatively simple mechanical structures, we have not incurred significant warranty costs. The warranty cost for fiscal years 2023, 2022 and 2021 was $nil. Research and Development We believe research and development capabilities are essential to ensure success and competitiveness of our business.
Since we implement strict quality control procedures and the majority of our products are manual wheelchairs that have relatively simple mechanical structures, we have not incurred significant warranty costs. The warranty cost for fiscal years 2024, 2023 and 2022 was $nil. Research and Development We believe research and development capabilities are essential to ensure success and competitiveness of our business.
As a result, we are not able to hold any equity of Zhongjin Jing’ao. 66 On March 15, 2019, the National People’s Congress approved the Foreign Investment Law of the PRC, or the Foreign Investment Law, which came into effect on January 1, 2020, repealing simultaneously the Law of the PRC on Sino-foreign Equity Joint Ventures, the Law of the PRC on Wholly Foreign-owned Enterprises and the Law of the PRC on Sino-foreign Cooperative Joint Ventures.
As a result, we are not able to hold any equity of Zhongjin Jing’ao. 70 On March 15, 2019, the National People’s Congress approved the Foreign Investment Law of the PRC, or the Foreign Investment Law, which came into effect on January 1, 2020, repealing simultaneously the Law of the PRC on Sino-foreign Equity Joint Ventures, the Law of the PRC on Wholly Foreign-owned Enterprises and the Law of the PRC on Sino-foreign Cooperative Joint Ventures.
In addition, (i) wrongful use of a flag, crest, etc. of a foreign state (ii) wrongful use of a mark of an international organization, and (iii) bribery of foreign public officials are also prohibited by the Act based on international agreements. 78 As of the date of this Annual Report, the Company is in full compliance with the Unfair Competition Prevention Act.
In addition, (i) wrongful use of a flag, crest, etc. of a foreign state (ii) wrongful use of a mark of an international organization, and (iii) bribery of foreign public officials are also prohibited by the Act based on international agreements. 82 As of the date of this Annual Report, the Company is in full compliance with the Unfair Competition Prevention Act.
JIS are established or amended by the competent minister through procedures under the Industrial Standardization Act. When intending to display the JIS mark on a product, it is necessary to obtain certification by an independent body registered in Japan. 76 Regarding wheelchairs, there are JIS for manual wheelchairs, electric wheelchairs, and handle-type electric wheelchairs.
JIS are established or amended by the competent minister through procedures under the Industrial Standardization Act. When intending to display the JIS mark on a product, it is necessary to obtain certification by an independent body registered in Japan. 80 Regarding wheelchairs, there are JIS for manual wheelchairs, electric wheelchairs, and handle-type electric wheelchairs.
Key Information—Risk Factors—Risks Related to Our Business—Our success depends on our ability to protect our intellectual property.” 60 Seasonality We have not experienced, and do not expect to experience, any seasonal fluctuations in our results of operations for either our wheelchair business or living aids products business.
Key Information—Risk Factors—Risks Related to Our Business—Our success depends on our ability to protect our intellectual property.” 64 Seasonality We have not experienced, and do not expect to experience, any seasonal fluctuations in our results of operations for either our wheelchair business or living aids products business.
We believe that we maintain a good working relationship with our employees, and we have not experienced any significant labor disputes. 61 Properties and Facilities Changzhou Zhongjin and its subsidiaries maintain the below corporate office space listed below in Changzhou, Jiangsu, and manufacturing properties in the cities of Changzhou and Taizhou, Jiangsu Province, China.
We believe that we maintain a good working relationship with our employees, and we have not experienced any significant labor disputes. 65 Properties and Facilities Changzhou Zhongjin and its subsidiaries maintain the below corporate office space listed below in Changzhou, Jiangsu, and manufacturing properties in the cities of Changzhou and Taizhou, Jiangsu Province, China.
For quality control and testing, we have fatigue testing machines, tensile strength testing machines, rust testing machines, and a computer system to record and manage quality control data. The equipment at our factory was valued at approximately $0.3 million as of September 30, 2023, net of depreciation costs.
For quality control and testing, we have fatigue testing machines, tensile strength testing machines, rust testing machines, and a computer system to record and manage quality control data. The equipment at our factory was valued at approximately $0.3 million as of September 30, 2024, net of depreciation costs.
The English translation of the sales framework contract is filed as Exhibit 10.8 to this registration statement of which this Annual Report is a part. 57 Raw Materials and Suppliers All of the raw materials and components we use are sourced from PRC domestic suppliers.
The English translation of the sales framework contract is filed as Exhibit 10.8 to this registration statement of which this Annual Report is a part. 61 Raw Materials and Suppliers All of the raw materials and components we use are sourced from PRC domestic suppliers.
For the fiscal years ended September 30, 2023 and 2022, Nissin was the only customer that accounted for more than 10% of our revenue. Our research and development (“R&D”) capabilities have always been a cornerstone of our success. Changzhou Zhongjin’s R&D department currently has 55 employees, many of whom own advanced degrees in engineering and related fields. Our CEO, Dr.
For the fiscal years ended September 30, 2024, 2023 and 2022, Nissin was the only customer that accounted for more than 10% of our revenue. Our research and development (“R&D”) capabilities have always been a cornerstone of our success. Changzhou Zhongjin’s R&D department currently has 55 employees, many of whom own advanced degrees in engineering and related fields.
The unique R-shaped leg frames help further reduce stress in the users’ lumbar area, therefore alleviating sitting fatigue. 54 Convertible Aluminum Alloy Wheelchair (Model NA-118B) Specs Material : Aviation grade titanium-aluminum alloy Maximum Load Capacity : 100KG Product Weight : 14.9KG Unfolded Dimensions : 96CM*64CM*92CM Folded Dimensions :94CM*30CM*69CM Features Model NA-118B features a convertible seat design with detachable armrests, leg rests, and footrests that can turn this wheelchair into a bed.
The unique R-shaped leg frames help further reduce stress in the users’ lumbar area, therefore alleviating sitting fatigue. 55 Product Name Product Image Specs and Features Convertible Aluminum Alloy Wheelchair (Model NA-118B) Specs Material : Aviation grade titanium-aluminum alloy Maximum Load Capacity : 100KG Product Weight : 14.9KG Unfolded Dimensions : 96CM*64CM*92CM Folded Dimensions :94CM*30CM*69CM Features Model NA-118B features a convertible seat design with detachable armrests, leg rests, and footrests that can turn this wheelchair into a bed.
Therefore, to bolster victim protection, the Product Liability Act introduced liability for compensation for damages, which eliminates the requirement of intentional act or negligence. 74 In the Product Liability Act, a “product” is defined as movable property manufactured or processed.
Therefore, to bolster victim protection, the Product Liability Act introduced liability for compensation for damages, which eliminates the requirement of intentional act or negligence. 78 In the Product Liability Act, a “product” is defined as movable property manufactured or processed.
In addition, Nissin’s wholly-owned subsidiaries represented approximate 8.4%, 7.5% and 5.0% of our total sales for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. The relationship with Nissin is based on mutual trust and cooperation that has lasted for more than ten years.
In addition, Nissin’s wholly-owned subsidiaries represented approximate 9.7%, 8.4% and 7.5% of our total sales for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. The relationship with Nissin is based on mutual trust and cooperation that has lasted for more than ten years.
In addition, 8.4% , 7.5% and 5.0% of our total revenue was attributed to Nissin’s wholly-owned subsidiaries, Colours’n Motion Inc (“Colors”), Nissin Medical Co., Ltd. (“Nissin Korea”) and Nissin Medical Vietnam Co., Ltd. (“Nissin Vietnam”) aggregately, for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
In addition, 9.7%, 8.4% and 7.5% of our total revenue was attributed to Nissin’s wholly-owned subsidiaries, Colours’n Motion Inc (“Colors”), Nissin Co., Ltd. (“Nissin Korea”) and Nissin Medical Vietnam Co., Ltd. (“Nissin Vietnam”) aggregately, for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Changzhou Zhongjin and its subsidiaries own approximately 119 patents and are in the process of registering approximately 13 additional patents with the Patent Administration Department of the PRC. We are committed to further invest in R&D efforts to deliver innovative products to meet the needs of our customers.
Changzhou Zhongjin and its subsidiaries own approximately 123 patents and are in the process of registering approximately 9 additional patents with the Patent Administration Department of the PRC. We are committed to further invest in R&D efforts to deliver innovative products to meet the needs of our customers.
Changzhou Zhongjin and its subsidiaries own a portfolio of intellectual property, including 119 patents, confidential technical information and technological expertise in manufacturing wheelchairs and living aids products. Changzhou Zhongjin and its subsidiaries also own 18 registered trademarks in China for certain trade names, brands, and products.
Changzhou Zhongjin and its subsidiaries own a portfolio of intellectual property, including 123 patents, confidential technical information and technological expertise in manufacturing wheelchairs and living aids products. Changzhou Zhongjin and its subsidiaries also own 19 registered trademarks in China for certain trade names, brands, and products.
For the fiscal years 2023 and 2022, Changzhou Zhongjin and its subsidiaries did not file any material insurance claims in relation to their businesses . Employees We, our subsidiaries and the VIE, had a total of 245, 269, and 291 employees on September 30, 2023, September 30, 2022, and 2021, respectively. As of January 20, 2024, we had 245 employees.
For the fiscal years 2024, 2023 and 2022, Changzhou Zhongjin and its subsidiaries did not file any material insurance claims in relation to their businesses . Employees We, our subsidiaries and the VIE, had a total of 269, 245, and 269 employees on September 30, 2024, 2023, and 2022, respectively. As of January 14, 2025, we had 269 employees.
Since the inception of Changzhou Zhongjin, Nissin has been its largest dealer and the sole Japanese dealer, with whom it generated substantial revenue each year. For the fiscal years ended September 30, 2023, 2022 and 2021, Nissin represented approximately 69.8%, 73.0% and 78.2% of the total sales, respectively.
Since the inception of Changzhou Zhongjin, Nissin has been its largest dealer and the sole Japanese dealer, with whom it generated substantial revenue each year. For the fiscal years ended September 30, 2024, 2023 and 2022, Nissin represented approximately 47.6%, 69.8% and 73.0% of the total sales, respectively.
For the fiscal years ended September 30, 2023, 2022 and 2021, sales of wheelchairs and wheelchair components represented approximately 96.5%, 96.9% and 99.7%, respectively, of our revenue, while sales of living aids products such as oxygen concentrators and bathing machines represented approximately 3.5%, 3.1% and 0.3%, respectively, of our revenue.
For the fiscal years ended September 30, 2024, 2023 and 2022, sales of wheelchairs and wheelchair components represented approximately 71.3%, 96.5% and 96.9%, respectively, of our revenue, while sales of living aids products such as oxygen concentrators and bathing machines represented approximately 9.8%, 3.1% and 0.3%, respectively, of our revenue.
For the fiscal year 2022, our revenue was $19,190,541, a 7.6% decrease compared to the same period of the fiscal year 2021, and our net income was $2,706,527, a 2.8% increase compared to the same period of the fiscal year 2021.
For the fiscal year 2022, our revenue was $19,190,541, a 7.6% decrease compared to the same period of the fiscal year 2021, and our net income attributable to Jin Medical International Ltd. was $2,706,527, a 2.8% increase compared to the same period of the fiscal year 2021.
Despite the number of dealers we work with, the majority of our sales, or approximately 69.8%, 73.0% and 78.2% of our revenues for the fiscal years ended September 30, 2023, 2022 and 2021, respectively, were attributed to Nissin.
Despite the number of dealers we work with, the majority of our sales, or approximately 47.6%, 69.8% and 73.0% of our revenues for the fiscal years ended September 30, 2024, 2023 and 2022, respectively, were attributed to Nissin.
The cost of the raw materials and components constituted approximately 87%, 82% and 87% of the total cost of production for the fiscal years ended September 30, 2023 , 2022 and 2021, respectively. For the fiscal year 2023, no supplier accounted for more than 10% of our total purchases.
The cost of the raw materials and components constituted approximately 86%, 87% and 82% of the total cost of production for the fiscal years ended September 30, 2024, 2023 and 2022 , respectively. For the fiscal years ended September 30, 2024, 2023 and 2022, no supplier accounted for more than 10% of the Company’s total purchases, respectively.
For the fiscal years ended September 30, 2023, our revenue was $19,821,457, a 3.3% increase compared to the same period of the fiscal years ended September 30, 2022, and our net income was $2,878,230, a 6.3% increase compared to the same period of fiscal years ended September 30, 2022.
For the fiscal year ended September 30, 2023, our revenue was $19,821,457, a 3.3% increase compared to the same period of the fiscal year ended September 30, 2022, and our net income attributable to Jin Medical International Ltd. was $2,878,230, a 6.3% increase compared to the same period of fiscal year ended September 30, 2022.
The following chart sets forth summary information regarding our product categories and end markets information: Wheelchairs Wheelchair Components Living Aids Products Overview Our wheelchair product category includes a wide range of products at various prices. Our mid to high end wheelchairs are mostly geared towards customers in Japan. Our relatively lower end wheelchairs are mainly for customers in China.
The following chart sets forth summary information regarding our product categories and end markets information: Wheelchairs Wheelchair Components Living Aids Products Oxygen Chamber Beauty Instruments Nano Products Overview Our wheelchair product category includes a wide range of products at various prices. Our mid to high end wheelchairs are mostly geared towards customers in Japan.
Since 2006, Changzhou Zhongjin has been designing and manufacturing wheelchairs. Almost all of its wheelchairs currently for sale are manual wheelchairs. Changzhou Zhongjin only started selling electric wheelchairs in 2018, and electric wheelchairs accounted for approximately 0.2%, 0.4% and 1.0% of its revenue for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
Almost all of its wheelchairs currently for sale are manual wheelchairs. Changzhou Zhongjin only started selling electric wheelchairs in 2018, and electric wheelchairs accounted for approximately 0.5%, 0.2% and 0.4% of its revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
The following table sets forth the number of our employees by function as of January 20, 2024: Department Number of Employees R&D 55 Sales and Marketing 4 Accounting Department 7 Procurement - Warehousing Department 15 Quality Control Department 10 Production Department 141 Administration and Human Resources 13 Total 245 The majority of our employees are employed in Mainland China.
The following table sets forth the number of our employees by function as of January 14, 2025: Department Number of Employees R&D 55 Sales and Marketing 7 Accounting Department 9 Procurement - Warehousing Department 16 Quality Control Department 10 Production Department 149 Administration and Human Resources 13 Total 269 The majority of our employees are employed in Mainland China.
The research and development expenses were $1,542,894, $1,892,532 and $1,566,860 for the fiscal years ended September 30, 2023, 2022 and 2021, representing 7.8%, 9.9% and 7.5% of the total revenues for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
The research and development expenses were $1,497,325, $1,542,894 and $1,892,532 for the fiscal years ended September 30, 2024, 2023 and 2022, representing 6.4%, 7.8% and 9.9% of the total revenues for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Geographic Distribution of Revenues Generated 2023 2022 2021 Country and Region Revenue (in US$) % of Total Revenue Revenue (in US$) % of Total Revenue Revenue (in US$) % of Total Revenue Japan 13,837,712 69.81 % 14,002,735 72.97 % 16,370,882 78.84 % Mainland China 2,739,459 13.82 % 2,743,257 14.29 % 2,545,663 12.26 % U.S. 1,436,978 7.25 % 847,330 4.42 % 685,996 3.30 % Hong Kong 43,962 0.22 % 498,753 2.60 % 474,278 2.28 % Singapore 952,761 4.81 % 125,415 0.65 % 100,367 0.48 % Korean 619,477 3.13 % 649,976 3.39 % 19,255 0.09 % Australia - - 181,762 0.95 % 276,163 1.33 % Others 191,108 0.96 % 141,313 0.73 % 291,669 1.42 % Total 19,821,457 100.00 % $ 19,190,541 100.00 % $ 20,764,273 100.00 % The following are detailed description of some of the Company’s products: Manual Wheelchairs Product Name Product Image Specs and Features Foldable Aluminum Alloy Wheelchair (Model NA-413) Specs Material : Aviation grade titanium-aluminum alloy Maximum Load Capacity : 100KG Product Weight : 9.3KG Unfolded Dimensions : 80CM*61.5CM*89CM Folded Dimensions :40.5CM*61.5CM*59CM Features Model NA-413 adopts an ergonomic design to reduce stress in the user’s lumbar area, therefore alleviating sitting fatigue.
Geographic Distribution of Revenues Generated 2024 2023 2022 Country and Region Revenue (in US$) % of Total Revenue Revenue (in US$) % of Total Revenue Revenue (in US$) % of Total Revenue Japan 11,196,118 47.64 % 13,837,712 69.81 % 14,002,735 72.97 % Mainland China 8,610,981 36.64 % 2,739,459 13.82 % 2,743,257 14.29 % U.S. 1,626,369 6.92 % 1,436,978 7.25 % 847,330 4.42 % Hong Kong 547,502 2.33 % 43,962 0.22 % 498,753 2.60 % Singapore 182,465 0.78 % 952,761 4.81 % 125,415 0.65 % Korean 852,093 3.63 % 619,477 3.13 % 649,976 3.39 % Australia 217,093 0.92 % - - 181,762 0.95 % Others 269,389 1.14 % 191,108 0.96 % 141,313 0.73 % Total 23,502,010 100.00 % $ 19,821,457 100.00 % $ 19,190,541 100.00 % The following are detailed description of some of the Company’s products: Manual Wheelchairs Product Name Product Image Specs and Features Foldable Aluminum Alloy Wheelchair (Model NA-413) Specs Material : Aviation grade titanium-aluminum alloy Maximum Load Capacity : 100KG Product Weight : 9.3KG Unfolded Dimensions : 80CM*61.5CM*89CM Folded Dimensions :40.5CM*61.5CM*59CM Features Model NA-413 adopts an ergonomic design to reduce stress in the user’s lumbar area, therefore alleviating sitting fatigue.
For the fiscal years ended September 30, 2023, 2022 and 2021 approximately 82%, 86% and 88% of the product sales were OEM product sales, respectively, and approximately 18%, 1 4% and 12% are Zhongjin Changzhou’s branded products, respectively.
For the fiscal years ended September 30, 2024, 2023 and 2022 approximately 63%, 82% and 86% of the product sales were OEM product sales, respectively, and approximately 37%, 1 8% and 14% are Zhongjin Changzhou’s branded products, respectively.
Our financial and operating results for the last three fiscal years were as follows: our revenue was $19,821,457, $19,190,541 and $20,764,273 for the fiscal years ended September 30, 2023, 2022, and 2021, respectively; our net income was $2,878,230, $2,706,527 and $2,631,706 for the fiscal years ended September 30, 2023, 2022, and 2021, respectively.
Our financial and operating results for the last three fiscal years were as follows: our revenue was $23,502,010, $19,821,457 and $19,190,541 for the fiscal years ended September 30, 2024, 2023 and 2022, respectively; our net income attributable to Jin Medical International Ltd. was $3,675,927, $2,878,230 and $2,706,527 for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Real Property Locations Approximate Square Feet Segments Owned or Leased Changzhou City, Jiangsu Province, China 120,618 Manual wheelchairs, electric wheelchairs Owned Taizhou City, Jiangsu Province, China 107,639 Manual wheelchairs, living aids products Leased (exp. 4/30/2043) Changzhou City, Jiangsu Province, China 14,208 Staff dormitory Leased (exp. 12/31/2023) Taizhou City, Jiangsu Province, China 1,848 Staff dormitory Owned Total 244,313 Legal Proceedings We are currently not a party to any material legal or administrative proceedings.
Real Property Locations Approximate Square Feet Segments Owned or Leased Changzhou City, Jiangsu Province, China 120,618 Manual wheelchairs, electric wheelchairs Owned Taizhou City, Jiangsu Province, China 107,639 Manual wheelchairs, living aids products Leased (exp. 4/30/2043) Changzhou City, Jiangsu Province, China 14,025 Staff dormitory Leased (exp. 12/31/2024) Taizhou City, Jiangsu Province, China 1,848 Staff dormitory Owned Changzhou City, Jiangsu Province, China 13,627 Warehouse Leased (exp. 7/14/2025) Changzhou City, Jiangsu Province, China 9,149 Warehouse Leased (exp. 5/31/2025) Changzhou City, Jiangsu Province, China 17,427 Pension, rehabilitation products Leased (exp. 12/31/2026) Shanghai, China 3,213 Office Leased (exp. 9/21/2026) Shanghai, China 5,050 Office Leased (exp. 12/31/2025) Total 292,596 Legal Proceedings We are currently not a party to any material legal or administrative proceedings.
Currently, our living aids products are only sold to a few selected customers to test the markets for these products. The majority of our products are sold to dealers in Japan and China, while a small number of our products are also sold to dealers located in other regions including the United States, Canada, Australia, Korea, Israel, Singapore, and others.
The majority of our products are sold to dealers in Japan and China, while a small number of our products are also sold to dealers located in other regions including the United States, Canada, Australia, Korea, Israel, Singapore, and others. Since 2006, Changzhou Zhongjin has been designing and manufacturing wheelchairs.
Our wheelchair components are primarily “easy wear” products, such as wheels and brakes sold to customers for after-sales service. A small number of wheelchair components are sold to customers as tailor made parts for our customizable wheelchairs. The living aids product category consists of oxygen concentrators, bath aids, rehabilitative devices, and infrastructures for shared wheelchairs and other shared health products.
Our relatively lower end wheelchairs are mainly for customers in China. Our wheelchair components are primarily “easy wear” products, such as wheels and brakes sold to customers for after-sales service. A small number of wheelchair components are sold to customers as tailor made parts for our customizable wheelchairs.
However, the increase was partially offset by the depreciation of the RMB against U.S. dollars of 7.1%, which caused an increase in revenue by 3.3%, during the year ended September 30, 2023 as compared to the same period last year. 50 Our Strengths We believe that the following strengths enable us to capture business opportunities and differentiate us from our competitors: Quality Products that Focus on Customer Needs Our portfolio of both wheelchairs and living aids products is comprised of products that focuses on customer needs.
However, the increase was partially offset by the depreciation of the RMB against U.S. dollars of 7.1%, which caused an increase in revenue by 3.3%, during the year ended September 30, 2023 as compared to the same period last year.
For the fiscal year 2022, no supplier accounted for more than 10% of our total purchases. For the fiscal year 2021, one supplier accounted for 15.7% of our total purchases. Production process The following diagram sets forth the general workflow of our wheelchair and wheelchair components production and assembly process.
Production process The following diagram sets forth the general workflow of our wheelchair and wheelchair components production and assembly process.
It is also equipped with side guards and armrests for efficient and safe operations. 56 Quality Certifications and Accreditations In a continuous effort to meet various international production and quality manufacturing standards, Changzhou Zhongjin has obtained ISO and JIS certificate certifications: (1) to show evidence of high quality manufacturing standards applied to the production and management processes; and (2) to access domestic and foreign markets.
Nano thermo therapy chamber (Model bed ) Specs Product Weight : 16KG Dimensions :W55CM*H50CM*L190CM Features The bed nano temperature therapy module enables the elderly to enjoy a comfortable bathing experience without leaving the bed, and solves the problems that the elderly cannot wash normally due to cardiovascular diseases, respiratory diseases and dizziness and fainting. 60 Quality Certifications and Accreditations In a continuous effort to meet various international production and quality manufacturing standards, Changzhou Zhongjin has obtained ISO and JIS certificate certifications: (1) to show evidence of high quality manufacturing standards applied to the production and management processes; and (2) to access domestic and foreign markets.
Removed
For the fiscal year 2021, as our business and the overall economy continue to recover from the COVID-19 pandemic, our revenue and net income increased by 28.2% and 19.3%, respectively, compared to the same period of the fiscal year 2020.
Added
For the fiscal year ended 2024, the company introduced new products, including oxygen chambers, beauty instruments, and nano products, which represent 6.8%, 8.9%, and 3.2% of our revenue, respectively. Currently, our living aids products are only sold to a few selected customers to test the markets for these products.
Added
For the fiscal year ended September 30, 2024, our revenue was $23,502,010, a 18.6% increase compared to the same period of the fiscal year ended September 30, 2023, and our net income attributable to Jin Medical International Ltd. was $3,675,927, a 27.7% increase compared to the same period of fiscal year ended September 30, 2023.
Added
The increase was mainly due to the increased revenues from newly launched portable nano-thermal therapy bath products, micro hyperbaric oxygen chamber products and facial beauty devices, as well as the increased revenue from sales of electric scooter resulted from the expansion of our production lines during the year ended September 30, 2024. 50 Our Strengths We believe that the following strengths enable us to capture business opportunities and differentiate us from our competitors: Quality Products that Focus on Customer Needs Our portfolio of both wheelchairs and living aids products is comprised of products that focuses on customer needs.
Added
The living aids product category consists of oxygen concentrators, bath aids, rehabilitative devices, and infrastructures for shared wheelchairs and other shared health products.
Added
Our oxygen chamber category includes two models of micro hyperbaric oxygen chambers (Model S and Model M) that provide various health benefits, including cell repair, immune enhancement, aging prevention, and improvement of cardiovascular and neurological conditions, among others.
Added
Our beauty instruments category includes Superconductor carving instrument, Super wave brightening instrument, and Super body health equipment, each offering a range of functions designed to enhance beauty and overall well-being. Our nano products category includes the Nano Shampoo Instrument, Nano Thermal Therapy Chamber (Model Wing S), and Nano Thermal Therapy Chamber (Model Bed).
Added
Our nano products aim to provide an alternative for individuals who are unable to bathe independently.
Added
It is also equipped with side guards and armrests for efficient and safe operations. 57 Oxygen Chamber Product Name Product Image Specs and Features micro hyperbaric oxygen chamber products(Model S) Specs Body dimensions: 106CM*210CM*181CM Indoor dimensions: 94CM*199CM*169 CM Total weight : 670kg Operating table size : 35CM*30CM*80CM Pressure setting: 1.2/1.25/1.35 air pressure Air flow rate : 160L/ min Oxygen concentration: 27.3% at 1.35 pressure Power supply : 220V 50Hz Power consumption : 850W Features (1) For cell tonic repair of damaged cells; (2) inhibit anaerobic bacteria to enhance immunity; (3) beauty beauty to delay aging; (4) Prevent and improve cardiovascular diseases; (5) prevent and alleviate senile dementia; (6) improve plateau related diseases;(7) Relieve fatigue and improve sleep. micro hyperbaric oxygen chamber products(Model M) Specs Body dimensions: 152CM*210CM*181CM Indoor dimensions: 140CM*198CM*170 CM Total weight : 900kg Operating table size : 35CM*30CM*80CM Pressure setting: 1.2/1.25/1.35 air pressure Air flow rate : 160L/ min Oxygen concentration: 27.3% at 1.35 pressure Power supply : 220V 50Hz Power consumption : 850W Features (1) For cell tonic repair of damaged cells; (2) inhibit anaerobic bacteria to enhance immunity; (3) beauty beauty to delay aging; (4) Prevent and improve cardiovascular diseases; (5) prevent and alleviate senile dementia; (6) improve plateau related diseases;(7) Relieve fatigue and improve sleep. 58 Beauty Instruments Product Name Product Image Specs and Features Superconductor carving instrument Specs Product Weight : 5.5KG Dimensions : 42CM*29.2CM*11.5CM Operating voltage : DC24V Maximum power consumption: 50.4W Features Original superconducting technology, breaking through the boundary of fat burning.
Added
“TPT” technology, internal fat reduction muscle, external plastic body compact. Super wave brightening instrument Specs Product Weight : 5.4KG Dimensions :37.6CM*29.2CM*11.5CM Operating voltage : DC24V Maximum power consumption: 31.2W Features 5 cutting-edge technologies, 3 luxury beauty functions.
Added
(1) Suitable frequency ultrasonic wave, improve skin vitality; (2) EP refinement to improve skin permeability; (3) HFM technology to create a new compact state;(4) FINE 3DDABE, soften stiff cutin, improve skin elasticity;(5) DEEP 3DABE, optimize the contour, strengthen the lifting and tightening.
Added
Super body health equipment Specs Product Weight : 4.5KG Dimensions :30.2CM*29.2CM*11.5CM Operating voltage : DC24V Maximum power consumption: 19.2W Features The new generation of physiotherapy technology, open up the whole body, relieve and prevent loose. (1) Dual mode: ①MASSAGE mode, dredging the body deep siltation to prevent loose stiff muscles; ②BUST mode, improve the chest microcirculation, reshape the chest shape.
Added
(2) 3DABE technology, type 3 band output, from shallow to deep to mobilize muscle activity. 59 Nano Products Product Name Product Image Specs and Features Nano shampoo instrument Specs Product Weight : 20KG Dimensions :W37CM*H25CM*D50CM Operating voltage : 220v 50Hz power: 600W Features The nano-water particle shampoo instrument can effectively and quickly remove the deep dirt in the pores and skin Spaces that are difficult to be removed by ordinary shampoo, and has the effect of prevention and treatment of hair folliculitis.
Added
Nano water particle shampoo instrument, ultra-fine particles into the pores, the scalp space of dirt, for cleaning, do not need shampoo can also wash away dirt. By mixing nano-water particles, dirt can be cleaned away that was previously difficult to clean thoroughly. Studies have shown that nano-water particles have better cleaning ability than traditional shampoo and conditioner.
Added
Nano thermal therapy chamber (Model wing S ) Specs Product Weight : 27KG Dimensions :W75.6CM*H172.6CM*D92CM Operating voltage : 220v 50Hz power: 600-1200W Features Nano thermotherapy is a new type of bath that does not need to be immersed in the bathtub. It can be dressed into the bath without bath liquid and rinse.
Added
Nano temperature therapy effect: ① clean, emulsify dirt, improve metabolism; ② Moisturizing, directly to the bottom of the skin, penetrating deep moisturizing and hydrating; ③ Nano thermotherapy produces HSP and helps the human body synthesize HSP heat stress proteins.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

66 edited+22 added−19 removed114 unchanged
Biggest changePrior to the execution of the VIE Agreements, Jin Med, Zhongjin HK and WFOE were all inactive. 79 SELECTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Year Ended September 30, 2023 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 19,821,457 $ - $ 19,821,457 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 3,438,466 $ - $ (3,438,466 ) $ - Income for equity method investment $ 3,438,272 $ 3,438,364 $ - $ - $ (6,876,636 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (3,438,466 ) $ 3,438,466 $ - Net income $ 2,878,230 $ 3,438,272 $ 3,438,364 $ - $ (6,876,636 ) $ 2,878,230 Comprehensive income (loss) $ 2,878,230 $ 3,212,257 $ 3,212,349 $ (267,217 ) $ (6,650,621 ) $ 2,384,998 For the Year Ended September 30, 2022 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 19,190,541 $ - $ 19,190,541 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 2,706,527 $ - $ (2,706,527 ) $ - Income for equity method investment $ 2,706,527 $ 2,706,527 $ - $ - $ (5,413,054 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (2,706,527 ) $ 2,706,527 $ - Net income $ 2,706,527 $ 2,706,527 $ 2,706,527 $ - $ (5,413,054 ) $ 2,706,527 Comprehensive income (loss) $ 2,706,527 $ 2,290,947 $ 2,290,947 $ (1,084,141 ) $ (4,997,474 ) $ 1,206,806 For the Year Ended September 30, 2021 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 20,764,273 $ - $ 20,764,273 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 2,193,088 $ - $ (2,193,088 ) $ - Income for equity method investment $ 2,193,088 $ 2,193,088 $ - $ - $ (4,386,176 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (2,193,088 ) $ 2,193,088 $ - Net income $ 2,193,088 $ 2,193,088 $ 2,193,088 $ 438,618 $ (4,386,176 ) $ 2,631,706 Comprehensive income $ 2,193,088 $ 2,210,222 $ 2,210,222 $ 1,016,200 $ (4,403,310 ) $ 3,226,422 80 SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2023 Jin Med Subsidiary (Hong Kong) WFOE (PRC) VIE Eliminations Consolidated Total Cash $ 1,363,617 $ 108 $ 532 $ 5,565,251 $ - $ 6,929,508 Consulting fee receivable due from VIE and VIE’s subsidiaries $ - $ - $ 7,713,617 $ - $ (7,713,617 ) $ - Intercompany receivable $ - $ - $ - $ 758,693 $ (758,693 ) $ - Total current assets $ 6,723,617 $ 108 $ 7,714,149 $ 25,150,251 $ (8,472,310 ) $ 31,115,815 Investments in a subsidiary $ 8,337,887 $ 7,713,518 $ - $ - $ (16,051,405 ) $ - Accumulated benefits through VIE and VIE’s subsidiaries $ - $ - $ - $ - $ - $ - Total non-current assets $ 8,337,887 $ 7,713,518 $ - $ 1,787,635 $ (16,051,405 ) $ 1,787,635 Total Assets $ 15,061,504 $ 7,713,626 $ 7,714,149 $ 26,937,886 $ (24,523,715 ) $ 32,903,450 Consulting fee payable due to WFOE $ - $ - $ - $ 7,713,617 $ (7,713,617 ) $ - Intercompany payable $ 758,493 $ 200 $ - $ - $ (758,693 ) $ - Total Liabilities $ 918,493 $ 200 $ 631 $ 16,477,331 $ (8,472,310 ) $ 8,924,345 Total Shareholders’ Equity $ 14,143,011 $ 7,713,426 $ 7,713,518 $ 10,460,555 $ (16,051,405 ) $ 23,979,105 Total Liabilities and Shareholders’ Equity $ 15,061,504 $ 7,713,626 $ 7,714,149 $ 26,937,886 $ (24,523,715 ) $ 32,903,450 As of September 30, 2022 Jin Med Subsidiary (Hong Kong) WFOE (PRC) VIE Eliminations Consolidated Total Cash $ - $ - $ - $ 4,792,632 $ - $ 4,792,632 Consulting fee receivable due from VIE and VIE’s subsidiaries $ - $ - $ 4,501,169 $ - $ (4,501,169 ) $ - Intercompany receivable $ 6,750 $ - $ - $ - $ (6,750 ) $ - Total current assets $ 6,750 $ - $ 4,501,169 $ 18,903,147 $ (4,507,919 ) $ 18,903,147 Investments in a subsidiary $ 4,899,615 $ 4,501,169 $ - $ - $ (9,400,784 ) $ - Accumulated benefits through VIE and VIE’s subsidiaries $ - $ - $ - $ - $ - $ - Total non-current assets $ 4,899,615 $ 4,501,169 $ - $ 2,036,387 $ (9,400,784 ) $ 2,036,387 Total Assets $ 4,906,365 $ 4,501,169 $ 4,501,169 $ 20,939,534 $ (13,908,703 ) $ 20,939,534 Consulting fee payable due to WFOE $ - $ - $ - $ 4,501,169 $ (4,501,169 ) $ - Intercompany payable $ - $ - $ - $ 6,750 $ (6,750 ) $ - Total Liabilities $ - $ - $ - $ 10,211,762 $ (4,507,919 ) $ 5,703,843 Total Shareholders’ Equity $ 4,906,365 $ 4,501,169 $ 4,501,169 $ 10,727,772 $ (9,400,784 ) $ 15,235,691 Total Liabilities and Shareholders’ Equity $ 4,906,365 $ 4,501,169 $ 4,501,169 $ 20,939,534 $ (13,908,703 ) $ 20,939,534 Key Financial Performance Indicators We consider a variety of financial and operating measures in assessing the performance of our business.
Biggest changePrior to the execution of the VIE Agreements, Jin Med, Zhongjin HK and WFOE were all inactive. 83 SELECTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Year Ended September 30, 2024 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 23,502,010 $ - $ 23,502,010 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 4,765,073 $ - $ (4,765,073 ) $ - Income for equity method investment $ 4,633,491 $ 4,634,159 $ - $ - $ (9,267,650 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (4,765,073 ) $ 4,765,073 $ - Net income attributable to Jin Medical International Ltd. $ 3,675,927 $ 4,633,491 $ 4,634,159 $ - $ (9,267,650 ) $ 3,675,927 Comprehensive income attributable to Jin Medical International Ltd. $ 3,675,927 $ 5,092,441 $ 6,351,109 $ 389,207 $ (10,984,600 ) $ 4,524,084 For the Year Ended September 30, 2023 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 19,821,457 $ - $ 19,821,457 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 3,438,466 $ - $ (3,438,466 ) $ - Income for equity method investment $ 3,438,272 $ 3,438,364 $ - $ - $ (6,876,636 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (3,438,466 ) $ 3,438,466 $ - Net income attributable to Jin Medical International Ltd. $ 2,878,230 $ 3,438,272 $ 3,438,364 $ - $ (6,876,636 ) $ 2,878,230 Comprehensive income (loss) attributable to Jin Medical International Ltd. $ 2,878,230 $ 3,212,257 $ 3,212,349 $ (267,217 ) $ (6,650,621 ) $ 2,384,998 For the Year Ended September 30, 2022 Jin Med (Cayman Islands) Subsidiary (Hong Kong) WFOE (PRC) VIE (PRC) Eliminations Consolidated Total Revenue $ - $ - $ - $ 19,190,541 $ - $ 19,190,541 Consulting fee income from VIE and VIE’s subsidiaries $ - $ - $ 2,706,527 $ - $ (2,706,527 ) $ - Income for equity method investment $ 2,706,527 $ 2,706,527 $ - $ - $ (5,413,054 ) $ - Consulting fee in relation to services rendered by WFOE $ - $ - $ - $ (2,706,527 ) $ 2,706,527 $ - Net income attributable to Jin Medical International Ltd. $ 2,706,527 $ 2,706,527 $ 2,706,527 $ - $ (5,413,054 ) $ 2,706,527 Comprehensive income (loss) attributable to Jin Medical International Ltd. $ 2,706,527 $ 2,290,947 $ 2,290,947 $ (1,084,141 ) $ (4,997,474 ) $ 1,206,806 84 SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2024 Jin Med Subsidiary (Hong Kong) WFOE (PRC) VIE Eliminations Consolidated Total Cash $ 231,811 $ 1,540 $ 143,470 $ 7,759,358 $ - $ 8,136,179 Consulting fee receivable due from VIE and VIE’s subsidiaries $ - $ - $ 12,911,547 $ - $ (12,911,547 ) $ - Intercompany receivable $ 1,260,100 $ - $ - $ 794,942 $ (2,055,042 ) $ - Total current assets $ 6,055,661 $ 1,540 $ 13,088,646 $ 38,636,958 $ (14,966,589 ) $ 42,816,216 Investments in a subsidiary $ 12,971,378 $ 14,064,627 $ - $ - $ (27,036,005 ) $ - Total non-current assets $ 12,971,378 $ 14,064,627 $ 1,012,872 $ 1,971,681 $ (27,036,005 ) $ 2,984,553 Total Assets $ 19,027,039 $ 14,066,167 $ 14,101,518 $ 40,608,639 $ (42,002,594 ) $ 45,800,769 Consulting fee payable due to WFOE $ - $ - $ - $ 12,911,547 $ (12,911,547 ) $ - Intercompany payable $ 758,493 $ 1,260,300 $ 36,249 $ - $ (2,055,042 ) $ - Total Liabilities $ 896,106 $ 1,260,300 $ 36,891 $ 30,021,601 $ (14,966,589 ) $ 17,248,309 Total Shareholders’ Equity $ 18,130,933 $ 12,805,867 $ 14,064,627 $ 10,849,762 $ (27,036,005 ) $ 28,815,184 Non-controlling interest $ - $ - $ - $ (262,724 ) $ - $ (262,724 ) Total Equity $ 18,130,933 $ 12,805,867 $ 14,064,627 $ 10,587,038 $ (27,036,005 ) $ 28,552,460 Total Liabilities and Shareholders’ Equity $ 19,027,039 $ 14,066,167 $ 14,101,518 $ 40,608,639 $ (42,002,594 ) $ 45,800,769 As of September 30, 2023 Jin Med Subsidiary (Hong Kong) WFOE (PRC) VIE Eliminations Consolidated Total Cash $ 1,363,617 $ 108 $ 532 $ 5,565,251 $ - $ 6,929,508 Consulting fee receivable due from VIE and VIE’s subsidiaries $ - $ - $ 7,713,617 $ - $ (7,713,617 ) $ - Intercompany receivable $ - $ - $ - $ 758,693 $ (758,693 ) $ - Total current assets $ 6,723,617 $ 108 $ 7,714,149 $ 25,150,251 $ (8,472,310 ) $ 31,115,815 Investments in a subsidiary $ 8,337,887 $ 7,713,518 $ - $ - $ (16,051,405 ) $ - Total non-current assets $ 8,337,887 $ 7,713,518 $ - $ 1,787,635 $ (16,051,405 ) $ 1,787,635 Total Assets $ 15,061,504 $ 7,713,626 $ 7,714,149 $ 26,937,886 $ (24,523,715 ) $ 32,903,450 Consulting fee payable due to WFOE $ - $ - $ - $ 7,713,617 $ (7,713,617 ) $ - Intercompany payable $ 758,493 $ 200 $ - $ - $ (758,693 ) $ - Total Liabilities $ 918,493 $ 200 $ 631 $ 16,477,331 $ (8,472,310 ) $ 8,924,345 Total Shareholders’ Equity $ 14,143,011 $ 7,713,426 $ 7,713,518 $ 10,460,555 $ (16,051,405 ) $ 23,979,105 Total Liabilities and Shareholders’ Equity $ 15,061,504 $ 7,713,626 $ 7,714,149 $ 26,937,886 $ (24,523,715 ) $ 32,903,450 85 Key Financial Performance Indicators We consider a variety of financial and operating measures in assessing the performance of our business.
Research and development expenses Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing new wheelchair products, depreciation and other miscellaneous expenses.
Research and development expenses Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing new wheelchair products, depreciation and other miscellaneous expenses.
Investing Activities Net cash used in investing activities amounted to $7,730,248 for the year ended September 30, 2023, and primarily included the payments for short-term investments of $12,052,957, which were partially offset by the redemption of short-term investments of $4,426,508.
Net cash used in investing activities amounted to $7,730,248 for the year ended September 30, 2023, and primarily included the payments for short-term investments of $12,052,957, which were partially offset by the redemption of short-term investments of $4,426,508.
In early December 2022, China announced a nationwide loosening of its zero-covid policy, and most of the travel restrictions and quarantine requirements were lifted since December 2022.
In early December 2022, China announced a nationwide loosening of its zero-covid policy, and most of the travel restrictions and quarantine requirements were lifted since December 2022.
For the years ended September 30, Variance 2023 2022 Amount % Revenue $ 19,821,457 $ 19,190,541 $ 630,916 3.3 % Cost of revenue and related tax 13,036,623 12,992,023 44,600 0.3 % Gross profit 6,784,834 6,198,518 586,316 9.5 % OPERATING EXPENSES Selling expenses 453,311 402,013 51,298 12.8 % General and administrative expenses 1,921,367 1,773,449 147,918 8.3 % Research and development expenses 1,542,894 1,892,532 (349,638 ) (18.5 )% Total operating expenses 3,917,572 4,067,994 (150,422 ) (3.7 )% INCOME FROM OPERATIONS 2,867,262 2,130,524 736,738 34.6 % OTHER INCOME (EXPENSES) Interest income, net 182,682 181,605 1,077 0.6 % Foreign exchange gain (loss) (50,406 ) 186,394 (236,800 ) (127.0 )% Other income, net 222,399 244,115 (21,716 ) (8.9 )% Total other income, net 354,675 612,114 (257,439 ) (42.1 )% INCOME BEFORE INCOME TAX PROVISION 3,221,937 2,742,638 479,299 17.5 % INCOME TAX PROVISION 343,707 36,111 307,596 851.8 % NET INCOME $ 2,878,230 $ 2,706,527 $ 171,703 6.3 % 83 Revenues We generate revenue primarily from wheelchair products and wheelchair components and living aids products sold in Japan, China and other countries.
For the years ended September 30, Variance 2023 2022 Amount % Revenue $ 19,821,457 $ 19,190,541 $ 630,916 3.3 % Cost of revenue and related tax 13,036,623 12,992,023 44,600 0.3 % Gross profit 6,784,834 6,198,518 586,316 9.5 % OPERATING EXPENSES Selling expenses 453,311 402,013 51,298 12.8 % General and administrative expenses 1,921,367 1,773,449 147,918 8.3 % Research and development expenses 1,542,894 1,892,532 (349,638 ) (18.5 )% Total operating expenses 3,917,572 4,067,994 (150,422 ) (3.7 )% INCOME FROM OPERATIONS 2,867,262 2,130,524 736,738 34.6 % OTHER INCOME (EXPENSES) Interest income, net 182,682 181,605 1,077 0.6 % Foreign exchange gain (loss) (50,406 ) 186,394 (236,800 ) (127.0 )% Other income, net 222,399 244,115 (21,716 ) (8.9 )% Total other income, net 354,675 612,114 (257,439 ) (42.1 )% INCOME BEFORE INCOME TAX PROVISION 3,221,937 2,742,638 479,299 17.5 % INCOME TAX PROVISION 343,707 36,111 307,596 851.8 % NET INCOME $ 2,878,230 $ 2,706,527 $ 171,703 6.3 % Revenues We generate revenue primarily from wheelchair products and wheelchair components and living aids products sold in Japan, China and other countries.
The following table sets forth the breakdown of our cost of revenue and related tax for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Change Amount Amount Amount % Wheelchair $ 11,062,231 $ 10,770,689 $ 291,542 2.7 % Wheelchair components and others 1,974,392 2,221,334 (246,942 ) (11.1 )% Total cost of revenue and related tax $ 13,036,623 12,992,023 44,600 0.3 % 84 Cost of revenue and related tax from wheelchair products increased by $291,542, or 2.7%, from $10,770,689 for the year ended September 30, 2022 to $11,062,231 for the year ended September 30, 2023.
The following table sets forth the breakdown of our cost of revenue and related tax for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Change Amount Amount Amount % Wheelchair $ 11,062,231 $ 10,770,689 $ 291,542 2.7 % Wheelchair components and others 1,974,392 2,221,334 (246,942 ) (11.1 )% Total cost of revenue and related tax $ 13,036,623 12,992,023 44,600 0.3 % Cost of revenue and related tax from wheelchair products increased by $291,542, or 2.7%, from $10,770,689 for the year ended September 30, 2022 to $11,062,231 for the year ended September 30, 2023.
The following table sets forth the breakdown of our revenue for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Change Amount Amount Amount % Wheelchair $ 16,348,133 $ 15,622,273 $ 725,860 4.6 % Wheelchair components and other products 3,473,324 3,568,268 (94,944 ) (2.7 )% Total revenue $ 19,821,457 $ 19,190,541 $ 630,916 3.3 % Revenue from wheelchair products accounted for 82.5% and 81.4% of our total revenue for the years ended September 30, 2023 and 2022, respectively.
The following table sets forth the breakdown of our revenue for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Change Amount Amount Amount % Wheelchair $ 16,348,133 $ 15,622,273 $ 725,860 4.6 % Wheelchair components and other products 3,473,324 3,568,268 (94,944 ) (2.7 )% Total revenue $ 19,821,457 $ 19,190,541 $ 630,916 3.3 % 92 Revenue from wheelchair products accounted for 82.5% and 81.4% of our total revenue for the years ended September 30, 2023 and 2022, respectively.
Operating expenses The following table sets forth the breakdown of our operating expenses for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Variance Amount % of revenue Amount % of revenue Amount % Total revenue $ 19,821,457 100.0 % $ 19,190,541 100.0 % $ 630,916 3.3 % Operating expenses: Selling expenses 453,311 2.3 % 402,013 2.1 % 51,298 12.8 % General and administrative expenses 1,921,367 9.7 % 1,773,449 9.2 % 147,918 8.3 % Research and development expenses 1,542,894 7.8 % 1,892,532 9.9 % (349,638 ) (18.5 )% Total operating expenses $ 3,917,572 19.8 % $ 4,067,994 21.2 % $ (150,422 ) (3.7 )% 85 Selling expenses Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
Operating expenses The following table sets forth the breakdown of our operating expenses for the years ended September 30, 2023 and 2022, respectively: For the years ended September 30, 2023 2022 Variance Amount % of revenue Amount % of revenue Amount % Total revenue $ 19,821,457 100.0 % $ 19,190,541 100.0 % $ 630,916 3.3 % Operating expenses: Selling expenses 453,311 2.3 % 402,013 2.1 % 51,298 12.8 % General and administrative expenses 1,921,367 9.7 % 1,773,449 9.2 % 147,918 8.3 % Research and development expenses 1,542,894 7.8 % 1,892,532 9.9 % (349,638 ) (18.5 )% Total operating expenses $ 3,917,572 19.8 % $ 4,067,994 21.2 % $ (150,422 ) (3.7 )% 94 Selling expenses Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
Net income As a result of the foregoing, we reported a net income of $2,878,230 for the year ended September 30, 2023, representing a $171,703, or 6.3% increase from a net income of $2,706,527 for the year ended September 30, 2022.
Net income As a result of the foregoing, we reported a net income of $2,878,230 for the year ended September 30, 2023, representing a $171,703, or 6.3% increase from a net income of $2,706,527 for the year ended September 30, 2022. B.
Our Ordinary Shares commenced trading under the symbol “ZJYL” on the Nasdaq Capital Market on March 28, 2023. 90 On January 30, 2024, the Company’s shareholders approved a 20-for-1 forward split of the Company’s ordinary shares to subdivide each of the issued and unissued ordinary shares with a par value of US$0.001 each in the capital of the Company into twenty (20) ordinary shares with a par value of US$0.00005 each (the “Subdivision”), such that, following the Subdivision, the authorized share capital of the Company is US$50,000 divided into 1,000,000,000 shares with a par value of US$0.00005 each.
Our Ordinary Shares commenced trading under the symbol “ZJYL” on the Nasdaq Capital Market on March 28, 2023. 96 On January 30, 2024, the Company’s shareholders approved a 20-for-1 forward split of the Company’s ordinary shares to subdivide each of the issued and unissued ordinary shares with a par value of US$0.001 each in the capital of the Company into twenty (20) ordinary shares with a par value of US$0.00005 each (the “Subdivision”), such that, following the Subdivision, the authorized share capital of the Company is US$50,000 divided into 1,000,000,000 shares with a par value of US$0.00005 each.
Impairment of long-lived assets We evaluate our long-lived assets, including property, plant and equipment and land use right for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable.
Impairment of long-lived assets We evaluate our long-lived assets, including property, plant and equipment, operating lease right-of-use assets and land use right for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable.
As such, the extent to which the COVID-19 pandemic may impact our operations and financial results in the long-run will depend on its further developments in China and worldwide, which we cannot predict with a reasonable degree of certainty. E. Critical Accounting Estimates We prepare our consolidated financial statements in accordance with U.S.
As such, the extent to which the COVID-19 pandemic may impact our operations and financial results in the long-run will depend on its further developments in China and worldwide, which we cannot predict with a reasonable degree of certainty. C. Critical Accounting Estimates We prepare our consolidated financial statements in accordance with U.S.
In addition, continued turbulence in the international markets may adversely affect our ability to access capital markets to meet liquidity needs. 94 COVID-19 Impact Our business has been adversely affected by the COVID-19 pandemic. The World Health Organization declared the COVID-19 a pandemic on March 11, 2020, after the virus speeded from China to other countries around the world.
In addition, continued turbulence in the international markets may adversely affect our ability to access capital markets to meet liquidity needs. 100 COVID-19 Impact Our business has been adversely affected by the COVID-19 pandemic. The World Health Organization declared the COVID-19 a pandemic on March 11, 2020, after the virus speeded from China to other countries around the world.
Selected Condensed Consolidated Financial Schedule of Jin Med and Its Subsidiaries and VIE The following tables present selected condensed consolidated financial data of Jin Med and its subsidiaries and the VIE for the fiscal years ended September 30, 2023, 2022 and 2021, and balance sheet data as of September 30, 2023 and 2022, which have been derived from our audited financial statements for those periods.
Selected Condensed Consolidated Financial Schedule of Jin Med and Its Subsidiaries and VIE The following tables present selected condensed consolidated financial data of Jin Med and its subsidiaries and the VIE for the fiscal years ended September 30, 2024, 2023 and 2022, and balance sheet data as of September 30, 2024 and 2023, which have been derived from our audited financial statements for those periods.
The key measures that we use to evaluate the performance of our business are set forth below and are discussed in greater details under “A. Operating Results”. 81 Revenue Our revenue is derived primarily from sales of wheelchairs and wheelchair components and living aids products.
The key measures that we use to evaluate the performance of our business are set forth below and are discussed in greater details under “A. Operating Results”. Revenue Our revenue is derived primarily from sales of wheelchairs, wheelchair components and living aids products, and healthcare products.
Should this happen, our net revenues would decline and our growth prospectus would be severely impaired. 93 Our Ability to Increase Awareness of Our Brands and Develop Customer Loyalty Our portfolio of both wheelchairs and living aids products is comprised of quality products. Our brands are integral to our sales and marketing efforts.
Should this happen, our net revenues would decline and our growth prospectus would be severely impaired. 99 Our Ability to Increase Awareness of Our Brands and Develop Customer Loyalty Our portfolio of both wheelchairs and living aids products is comprised of quality products. Our brands are integral to our sales and marketing efforts.
Operating Results Comparison of Results of Operations for the Fiscal Years Ended September 30, 2023 and 2022 The following table summarizes the results of our operations during the fiscal years ended September 30, 2023 and 2022, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such years.
Operating Results Comparison of Results of Operations for the Fiscal Years Ended September 30, 2024 and 2023 The following table summarizes the results of our operations during the fiscal years ended September 30, 2024 and 2023, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such years.
Financing Activities Net cash provided by financing activities amounted to $6,910,619 for the year ended September 30, 2023, which included gross proceeds from initial public offerings of $8,000,000 and proceeds from short-term bank loans of $5,672,000, which was partially offset by payments to related parties of $4,467,240.
Net cash provided by financing activities amounted to $6,910,619 for the year ended September 30, 2023, which included gross proceeds from initial public offerings of $8,000,000 and proceeds from short-term bank loans of $5,672,000, which was partially offset by payments to related parties of $4,467,240. 98 Net cash provided by financing activities amounted to $121,855 for the year ended September 30, 2022, which included proceeds from amounts due to related parties of $121,855.
Accordingly, for the fiscal year ended September 30, 2023, 2022 and 2021, WFOE recognized the consulting fee income from VIE and VIE’s subsidiaries representing the fees earned by the WFOE since the commencement of the VIE Agreements and the correspondence consulting fee receivable due from VIE and VIE’s subsidiaries as these fees were not paid through the date of this prospectus.
Accordingly, for the fiscal years ended September 30, 2024, 2023 and 2022, WFOE recognized the consulting fee income from VIE and VIE’s subsidiaries representing the fees earned by the WFOE since the commencement of the VIE Agreements and the correspondence consulting fee receivable due from VIE and VIE’s subsidiaries as these fees were not paid through the date of this report.
Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements as of September 30, 2023 and 2022. Inflation Inflation does not materially affect our business or the results of our operations.
Off-Balance Sheet Arrangements We did not have any off-balance sheet arrangements as of September 30, 2024 and 2023. Inflation Inflation does not materially affect our business or the results of our operations.
The percentage decrease in cost of revenue and related tax from wheelchair components and others products was more than the percentage decrease in revenue from wheelchair components and others products, as discussed in greater details below.
The percentage increase in cost of revenue and related tax from wheelchair components and others products was less than the percentage increase in revenue from wheelchair components and others products, as discussed in greater details below.
As of September 30, 2023, our working capital balance was approximately $22.2 million. In assessing our liquidity, management monitors and analyzes our cash on-hand, our ability to generate sufficient revenue in the future, and our operating and capital expenditure commitments.
As of September 30, 2024, our working capital balance was approximately $25.7 million. In assessing our liquidity, management monitors and analyzes our cash on-hand, our ability to generate sufficient revenue in the future, and our operating and capital expenditure commitments.
One major dealer and its subsidiaries represented 78.2%, 80.5% and 83.2% of our revenue for the fiscal years 2023, 2022 and 2021, respectively. There may be consolidation and changes in the dealership landscape over time which could affect the performance of our existing dealers.
One major dealer and its subsidiaries represented 57.6%, 78.2% and 80.5% of our revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. There may be consolidation and changes in the dealership landscape over time which could affect the performance of our existing dealers.
As a percentage of revenues, research and development expenses were 9.9% and 7.5% of our revenue for the years ended September 30, 2022 and 2021, respectively. Other income (expenses) Our other income (expenses) primarily includes interest expenses incurred on our short-term bank loans, interest income from our short-term investments, foreign exchange transaction gain, government subsidies and others.
As a percentage of revenues, research and development expenses accounted for 7.8% and 9.9% of our total revenue for the years ended September 30, 2023 and 2022, respectively. 95 Other income (expenses) Our other income (expenses) primarily includes interest expenses incurred on our short-term bank loans, interest income from our short-term investments, foreign exchange transaction gain (loss), government subsidies and others.
Operating Income Operating income is the difference between gross profit and operating expenses. Operating income excludes interest expenses, other income (expenses), and income tax expenses. We use operating income as an indicator of the productivity of our business and our ability to manage expenses. A.
Operating income excludes interest income, other income, and income tax expenses. We use operating income as an indicator of the productivity of our business and our ability to manage expenses. A.
General and administrative expenses were 9.7%, 9.2% and 8.1% of our revenue for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
General and administrative expenses were 13.9%, 9.7% and 9.2% of our revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Research and development expenses were 7.8%, 9.9% and 7.5% of our revenue for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
Research and development expenses were 6.4%, 7.8% and 9.9% of our revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Collected accounts receivable will be used as working capital in our operations. As of September 30, 2023, we had $4,113,000 in a short-term bank loan. The management expects that the Company will be able to renew its existing bank loans upon their maturity based on past experience and its good credit history.
Collected accounts receivable will be used as working capital in our operations. As of September 30, 2024, we had $11,322,440 in short-term bank loans. The management expects that the Company will be able to renew its existing bank loans upon their maturity based on past experience and its good credit history.
Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
Operating Expenses Our operating expenses consist of selling expenses, general and administrative expenses and research and development expenses. 86 Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
To achieve this, we seek to maintain continued focus on our R&D efforts that we believe will enhance our existing market positions and allow us to compete into new, attractive, wheelchair and other living aids products categories. Operating Expenses Our operating expenses consist of selling expenses, general and administrative expenses and research and development expenses.
To achieve this, we seek to maintain continued focus on our R&D efforts that we believe will enhance our existing market positions and allow us to compete into new, attractive, wheelchair and other living aids products categories.
Although there were significant surges of COVID-19 cases in many cities in China after the lifting of these restrictions, the spread of the COVID-19 was slowed down and it was successfully under control since January 2023, and the Company’s business operations have been recovered from COVID-19 pandemic. Therefore, our revenue (excluding the impact of foreign currency translation) increased by 11.2%.
Although there were significant surges of COVID-19 cases in many cities in China after the lifting of these restrictions, the spread of the COVID-19 was slowed down and it was successfully under control since January 2023, and the Company’s business operations have been recovered from COVID-19 pandemic.
Our gross margin remained relatively stable with a slighted increase of 1.9 percentage points from 32.3% for the year ended September 30, 2022 to 34.2% for the year ended September 30, 2023.
The increase was mainly attributable to the increased gross profit from wheelchair products and wheelchair components and others. Our gross margin remained relatively stable with a slighted increase of 1.9 percentage points from 32.3% for the year ended September 30, 2022 to 34.2% for the year ended September 30, 2023.
Income taxes We are required to make estimates and apply our judgements in determining the provision for income tax expenses for financial reporting purpose based on tax laws in various jurisdictions in which we operate.
In the event we recover amounts previously reserved for, we will reduce the specific allowance for credit losses. Income taxes We are required to make estimates and apply our judgements in determining the provision for income tax expenses for financial reporting purpose based on tax laws in various jurisdictions in which we operate.
Our foreign exchange transaction loss was $50,406 for the year ended September 30, 2023, as compared to a foreign exchange transaction gain of $186,394 for the year ended September 30, 2022, primarily due to the significant fluctuation in foreign exchange rate on our cash in bank, accounts receivables and accounts payable that denominated in foreign currencies such as U.S. dollars and Japanese Yen during the year ended September 30, 2023. 86 Provision for income taxes Our provision for income taxes was $343,707 for the year ended September 30, 2023, an increase of $307,596, or 851.8%, from $36,111 for the year ended September 30, 2022, primarily due to our increased taxable income of generated by the Company during the year ended September 30, 2023.
Our foreign exchange transaction loss was $50,406 for the year ended September 30, 2023, as compared to a foreign exchange transaction gain of $186,394 for the year ended September 30, 2022, primarily due to the significant fluctuation in foreign exchange rate on our cash in bank, accounts receivables and accounts payable that denominated in foreign currencies such as U.S. dollars and Japanese Yen during the year ended September 30, 2023.
While facing uncertainties in regards to the size and timing of capital raises, we are confident that we can continue to meet operational needs mainly by utilizing cash flows generated from our operating activities and shareholder working capital funding, as necessary. 91 Cash Flows Years ended September 30, 2023, 2022 and 2021 The following table sets forth summary of our cash flows for the periods indicated: For the years ended September 30, 2023 2022 2021 Net cash provided by operating activities $ 3,106,403 $ 1,580,656 $ 5,843,292 Net cash used in investing activities (7,730,248 ) (120,904 ) (1,067,640 ) Net cash provided by (used in) financing activities 6,910,619 121,855 (2,870,219 ) Effect of exchange rate change on cash (149,898 ) (461,235 ) 103,303 Net increase in cash 2,136,876 1,120,372 2,008,736 Cash, beginning of year 4,792,632 3,672,260 1,663,524 Cash, end of year $ 6,929,508 $ 4,792,632 $ 3,672,260 Operating Activities Net cash provided by operating activities was $3,106,403 for the year ended September 30, 2023, mainly derived from a net income of $2,878,230 for the year, and net changes in our operating assets and liabilities, which mainly included an increase in inventories of $1,555,441 and a decrease in prepaid expenses and other current assets of $716,356 and decrease in accounts payable of $646,886 during the year ended September 30, 2023.
While facing uncertainties in regards to the size and timing of capital raises, we are confident that we can continue to meet operational needs mainly by utilizing cash flows generated from our operating activities and shareholder working capital funding, as necessary. 97 Cash Flows Years ended September 30, 2024, 2023 and 2022 The following table sets forth summary of our cash flows for the periods indicated: For the years ended September 30, 2024 2023 2022 Net cash (used in) provided by operating activities $ (1,207,305 ) $ 3,106,403 $ 1,580,656 Net cash used in investing activities (9,514,007 ) (7,730,248 ) (120,904 ) Net cash provided by financing activities 11,654,357 6,910,619 121,855 Effect of exchange rate change on cash 273,626 (149,898 ) (461,235 ) Net increase in cash 1,206,671 2,136,876 1,120,372 Cash, beginning of year 6,929,508 4,792,632 3,672,260 Cash, end of year $ 8,136,179 $ 6,929,508 $ 4,792,632 Operating Activities Net cash used in operating activities was $1,207,305 for the year ended September 30, 2024, mainly derived from a net income of $3,419,835 for the year, and net changes in our operating assets and liabilities, which mainly included an increase in accounts receivable of $3,907,489, an increase in prepaid expenses and other current assets of $1,362,669 and an increase in taxes payable of $820,023 during the year ended September 30, 2024.
Our selling expenses accounted for 2.3%, 2.1% and 2.4% of our total revenue for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.
As a percentage of revenues, our selling expenses accounted for 4.7% and 2.3% of our total revenue for the years ended September 30, 2024 and 2023, respectively.
As of September 30, 2023, our future lease payments totaled $7,118. (2) Represents the outstanding principal balance of short-term loan from bank.
As of September 30, 2024, our future lease payments totaled $287,776. (2) Represents the outstanding principal balance of short-term loans from banks.
Although our research and development expenses decreased for the fiscal years ended September 30, 2023, we have launched new research and development projects, however, we will continue to develop new products and diversify our product offerings to satisfy customer demand, we expect our research and development expenses to increase in the foreseeable future.
Our research and development expenses decreased slightly for the year ended September 30, 2024, however, we will continue to develop new products and diversify our product offerings to satisfy customer demand, we expect our research and development expenses to increase in the foreseeable future. Operating Income Operating income is the difference between gross profit and operating expenses.
As of September 30, 2023 and 2022, we recorded deferred tax assets of $168,163 and $259,460, net of valuation allowance of $15,688 and $14,248, respectively.
As of September 30, 2024 and 2023, we recorded deferred tax assets of $499,942 and $168,163, net of valuation allowance of $378,620 and $15,688, respectively. 102
Gross profit Our gross profit increased by $586,316, or 9.5%, from $6,198,518 for the year ended September 30, 2022 to $6,784,834 for the year ended September 30, 2023. The increase was mainly attributable to the increased gross profit from wheelchair products and wheelchair components and others.
The percentage decrease in cost of revenue and related tax from wheelchair components and others products was more than the percentage decrease in revenue from wheelchair components and others products, as discussed in greater details below. 93 Gross profit Our gross profit increased by $586,316, or 9.5%, from $6,198,518 for the year ended September 30, 2022 to $6,784,834 for the year ended September 30, 2023.
As of September 30, 2023, we had $6,929,508 in cash as compared to $4,792,632 as of September 30, 2022, and $9,768,835 in short-term investments as compared to $2,276,158 as of September 30, 2022. We also had $4,231,215 in accounts receivable as compared to $4,084,349 as of September 30, 2022.
As of September 30, 2024, we had $8,136,179 in cash as compared to $6,929,508 as of September 30, 2023, and $18,621,251 in short-term investments as compared to $9,768,835 as of September 30, 2023. We also had $8,458,393 in accounts receivable as compared to $4,231,215 as of September 30, 2023.
The decrease in cost of revenue and related tax from wheelchair products was largely in line with the decrease in revenue from wheelchair products. Cost of revenue and related tax from wheelchair components and other products increased by $593,127, or 36.4%, from $1,628,207 for the year ended September 30, 2021 to $2,221,334 for the year ended September 30, 2022.
The decrease in cost of revenue and related tax from wheelchair products was largely in line with the decrease in revenue from wheelchair products. Cost of revenue and related tax from wheelchair components and other products increased by $2,050,613, or 103.9%, from $1,974,392 for the year ended September 30, 2023 to $4,025,005 for the year ended September 30, 2024.
Cost of revenues and related tax generally changes as our production costs change, which are affected by factors including the market price of raw materials, labor productivity, etc. Our overall cost of revenue and related tax decreased by $1,411,114, or 9.8%, from $14,403,137 for the year ended September 30, 2021 to $12,992,023 for the year ended September 30, 2022.
Cost of revenues and related tax generally changes as our production costs change, which are affected by factors including the market price of raw materials, labor productivity, etc. Our overall cost of revenue and related tax increased by $962,618, or 7.4%, from $13,036,623 for the year ended September 30, 2023 to $13,999,241 for the year ended September 30, 2024.
The gross profit of wheelchair components and other products increased by $416,326, or 44.7%, from $930,608 for the year ended September 30, 2021 to $1,346,934 for the year ended September 30, 2022, which was in line with the increase in revenue from wheelchair components and other products.
The gross profit of wheelchair components and other products increased by $3,111,374, or 207.6%, from $1,498,932 for the year ended September 30, 2023 to $4,610,306 for the year ended September 30, 2024, which was in line with the increase in the revenue of wheelchair components and other products.
General and administrative expenses Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses and professional service expenses. 89 Our general and administrative expenses increased by $99,673, or 6.0%, from $1,673,776 for the year ended September 30, 2021 to $1,773,449 for the year ended September 30, 2022.
General and administrative expenses Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses and professional service expenses.
Net income As a result of the foregoing, we reported a net income of $2,706,527 for the year ended September 30, 2022, representing a $74,821, or 2.8% increase from a net income of $2,631,706 for the year ended September 30, 2021. B.
Net income As a result of the foregoing, we reported a net income of $3,419,835 for the year ended September 30, 2024, representing a $541,605, or 18.8% increase from a net income of $2,878,230 for the year ended September 30, 2023.
We expect that our overall selling expenses, including but not limited to, advertising expenses and brand promotion expenses, will continue to increase in the foreseeable future if our business further grows. 82 Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meal expenses and professional service expenses.
Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meal expenses and professional service expenses.
Other income (expenses) Our other income (expenses) primarily includes interest expenses incurred on our short-term bank loans, interest income from our short-term investments, foreign exchange transaction gain (loss), government subsidies and others.
As a percentage of revenues, research and development expenses accounted for 6.4% and 7.8% of our total revenue for the years ended September 30, 2024 and 2023, respectively. 90 Other income (expenses) Our other income (expenses) primarily includes interest expenses incurred on our short-term bank loans, interest income from our short-term investments, foreign exchange transaction gain (loss), government subsidies and others.
As a percentage of revenues, our general and administrative expenses accounted for 9.2% and 8.1% of our total revenue for the years ended September 30, 2022 and 2021, respectively.
The increase was also attributable to general and administrative expenses incurred by our newly incorporated subsidiary Zhongjin Kangma. As a percentage of revenues, our general and administrative expenses accounted for 13.9% and 9.7% of our total revenue for the years ended September 30, 2024 and 2023, respectively.
Net cash provided by financing activities amounted to $121,855 for the year ended September 30, 2022, which included proceeds from amounts due to related parties of $121,855.
Financing Activities Net cash provided by financing activities amounted to $11,654,357 for the year ended September 30, 2024, which included proceeds from short-term bank loans of $12,426,600 and proceeds from amounts due to related parties of $4,475,762, which was partially offset by repayments of short-term bank loans of $5,560,000.
Comparison of Results of Operations for the Fiscal Years Ended September 30, 2022 and 2021 The following table summarizes the results of our operations during the fiscal years ended September 30, 2022 and 2021, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such years.
As a result of the foregoing, we reported a net income attributable to Jin Medical International Ltd. of $3,675,927 for the year ended September 30, 2024, representing a $797,697, or 27.7% increase from a net income attributable to Jin Medical International Ltd. of $2,878,230 for the year ended September 30, 2023. 91 Comparison of Results of Operations for the Fiscal Years Ended September 30, 2023 and 2022 The following table summarizes the results of our operations during the fiscal years ended September 30, 2023 and 2022, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such years.
Net cash used in investing activities amounted to $1,067,640 for the year ended September 30, 2021, and primarily included the payments for short-term investments of $4,956,930 and advances made to related parties of $215,029, which were partially offset by the redemption of short-term investments of $4,147,200.
Investing Activities Net cash used in investing activities amounted to $9,514,007 for the year ended September 30, 2024, and primarily included the payments for short-term investments of $21,054,500 and purchase of land-use right of $979,283, which were partially offset by the redemption of short-term investments of $12,664,377.
The following table sets forth the breakdown of our cost of revenue and related tax for the years ended September 30, 2022 and 2021, respectively: For the years ended September 30, 2022 2021 Change Amount Amount Amount % Wheelchair $ 10,770,689 $ 12,774,930 $ (2,004,241 ) (15.7 )% Wheelchair components and others 2,221,334 1,628,207 593,127 36.4 % Total cost of revenue and related tax $ 12,992,023 14,403,137 (1,411,114 ) (9.8 )% Cost of revenue and related tax from wheelchair products decreased by $2,004,241, or 15.7%, from $12,774,930 for the year ended September 30, 2021 to $10,770,689 for the year ended September 30, 2022.
The following table sets forth the breakdown of our cost of revenue and related tax for the years ended September 30, 2024 and 2023, respectively: For the years ended September 30, 2024 2023 Change Amount Amount Amount % Wheelchair $ 9,974,236 $ 11,062,231 $ (1,087,995 ) (9.8 )% Wheelchair components and others 4,025,005 1,974,392 2,050,613 103.9 % Total cost of revenue and related tax $ 13,999,241 $ 13,036,623 $ 962,618 7.4 % Cost of revenue and related tax from wheelchair products decreased by $1,087,995, or 9.8%, from $11,062,231 for the year ended September 30, 2023 to $9,974,236 for the year ended September 30, 2024.
Given no events or changes in circumstances indicating the carrying amount of long-lived assets may not be recovered through the related future net cash flows, we did not recognize any impairment loss on long-lived assets for the years ended September 30, 2023, 2022 and 2021. 95 Allowance for doubtful accounts We determine the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trend.
Given no events or changes in circumstances indicating the carrying amount of long-lived assets may not be recovered through the related future net cash flows, we did not recognize any impairment loss on long-lived assets for the years ended September 30, 2024, 2023 and 2022. 101 Credit Losses On October 1, 2023, we adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology.
Provision for income taxes Our provision for income taxes was $36,111 for the year ended September 30, 2022, a decrease of $212,530, or 85.5%, from $248,641 for the year ended September 30, 2021, primarily due to our decreased taxable income of Changzhou Zhongjin.
Provision for income taxes Our provision for income taxes was $343,707 for the year ended September 30, 2023, an increase of $307,596, or 851.8%, from $36,111 for the year ended September 30, 2022, primarily due to our increased taxable income of generated by the Company during the year ended September 30, 2023.
The decrease was mainly attributable to the decreased gross profit from wheelchair products, and was partially offset by the increased gross profit from wheelchair components and others.
Gross profit Our gross profit increased by $2,717,935, or 40.1%, from $6,784,834 for the year ended September 30, 2023 to $9,502,769 for the year ended September 30, 2024. The increase was mainly attributable to the increased gross profit from wheelchair components and others, which was partially offset by the decreased gross profit from wheelchair products.
The decrease was also due to the depreciation of RMB against U.S. dollar as mentioned above. As a percentage of revenues, research and development expenses accounted for 7.8% and 9.9% of our total revenue for the years ended September 30, 2023 and 2022, respectively.
Our research and development expenses (excluding the impact of foreign currency translation) remained relatively stable with a slight decrease by 1.0% for the year ended September 30, 2024 as compared to the same period last year. The decrease was mainly due to the depreciation of RMB against U.S. dollar as mentioned above.
Operating expenses The following table sets forth the breakdown of our operating expenses for the years ended September 30, 2022 and 2021: For the years ended September 30, 2022 2021 Variance Amount % of revenue Amount % of revenue Amount % Total revenue $ 19,190,541 100.0 % $ 20,764,273 100.0 % $ (1,573,732 ) (7.6 )% Operating expenses: Selling expenses 402,013 2.1 % 488,998 2.4 % (86,985 ) (17.8 )% General and administrative expenses 1,773,449 9.2 % 1,673,776 8.1 % 99,673 6.0 % Research and development expenses 1,892,532 9.9 % 1,566,860 7.5 % 325,672 20.8 % Total operating expenses $ 4,067,994 21.2 % $ 3,729,634 18.0 % $ 338,360 9.1 % Selling expenses Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
The increase was mainly due to the increased sales of newly launched nano products, micro hyperbaric oxygen chamber products and facial beauty instruments with higher gross margin during the year ended September 30, 2024. 89 Operating expenses The following table sets forth the breakdown of our operating expenses for the years ended September 30, 2024 and 2023, respectively: For the years ended September 30, 2024 2023 Variance Amount % of revenue Amount % of revenue Amount % Total revenue $ 23,502,010 100.0 % $ 19,821,457 100.0 % $ 3,680,553 18.6 % Operating expenses: Selling expenses 1,104,944 4.7 % 453,311 2.3 % 651,633 143.7 % General and administrative expenses 3,261,752 13.9 % 1,921,367 9.7 % 1,340,385 69.8 % Research and development expenses 1,497,325 6.4 % 1,542,894 7.8 % (45,569 ) (3.0 )% Total operating expenses $ 5,864,021 25.0 % $ 3,917,572 19.8 % $ 1,946,449 49.7 % Selling expenses Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for export and custom clearance, our business travel, meals and other sales promotion and marketing activities related expenses.
Our gross margin increased by 1.7 percentage points from 30.6% for the year ended September 30, 2021 to 32.3% for the year ended September 30, 2022. 88 The following table sets forth the breakdown of our gross profit for the years ended September 30, 2022 and 2021, respectively: For the years ended September 30, Variance 2022 Margin % 2021 Margin % Amount % Wheelchair $ 4,851,584 31.1 % $ 5,430,528 29.8 % $ (578,944 ) (10.7 )% Wheelchair components and others 1,346,934 37.7 % 930,608 36.4 % 416,326 44.7 % Total Gross Profit and Margin % $ 6,198,518 32.3 % $ 6,361,136 30.6 % $ (162,618 ) (2.6 )% The gross profit of wheelchair products decreased by $578,944, or 10.7%, from $5,430,528 for the year ended September 30, 2021 to $4,851,584 for the year ended September 30, 2022, which was in line with the decrease in revenue from wheelchair products.
The following table sets forth the breakdown of our gross profit for the years ended September 30, 2024 and 2023, respectively: For the years ended September 30, Variance 2024 Margin % 2023 Margin % Amount % Wheelchair $ 4,892,463 32.9 % $ 5,285,902 32.3 % $ (393,439 ) (7.4 )% Wheelchair components and others 4,610,306 53.4 % 1,498,932 43.2 % 3,111,374 207.6 % Total Gross Profit and Margin % $ 9,502,769 40.4 % $ 6,784,834 34.2 % $ 2,717,935 40.1 % The gross profit of wheelchair products decreased by $393,439, or 7.4%, from $5,285,902 for the year ended September 30, 2023 to $4,892,463 for the year ended September 30, 2024, which was due to the decrease in revenue from wheelchair products.
Net cash provided by operating activities was $5,843,292 for the year ended September 30, 2021, mainly derived from a net income of $2,631,706 for the year, and net changes in our operating assets and liabilities, which mainly included a decrease in accounts receivable due from related parties of $2,918,346 as we have enhanced our procedure on the collection of accounts receivable balances due from third parties, as well as an increase in deferred revenue of $647,856 during the year ended September 30, 2021.
Net cash provided by operating activities was $3,106,403 for the year ended September 30, 2023, mainly derived from a net income of $2,878,230 for the year, and net changes in our operating assets and liabilities, which mainly included an increase in inventories of $1,555,441, a decrease in prepaid expenses and other current assets of $716,356 and a decrease in accounts payable of $646,886 during the year ended September 30, 2023.
Cost of Revenues and Related Tax Our cost of revenues and related tax primarily consists of inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead) and business tax.
The increase was mainly due to the increased revenues from newly launched nano products, micro hyperbaric oxygen chamber products and facial beauty instruments, as well as the increased revenue from sales of electric scooter resulted from the expansion of our production lines during the year ended September 30, 2024. 88 Cost of Revenues and Related Tax Our cost of revenues and related tax primarily consists of inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead) and business tax.
The gross margin of wheelchair components and other products increased by 1.3 percentage points from 36.4% for the year ended September 30, 2021 to 37.7% for the year ended September 30, 2022. The increase in gross margin was mainly due to the increased revenue from our bathing machines that have higher gross margin.
The gross margin of wheelchair components and other products increased by 10.2% from 43.2% for the year ended September 30, 2023 to 53.4% for the year ended September 30, 2024.
The increase in interest income was primarily due to the decreased interest expense which was in line with the decreased weighted average loan balance, as well as increased interest income due to more short-term investment we invested during the year ended September 30, 2022.
Our net interest income increased by $283,842, or 155.4%, from net interest income of $182,682 for the year ended September 30, 2023 to net interest income of $466,524 for the year ended September 30, 2024. The increase in interest income was primarily due to more short-term investments we invested in during the year ended September 30, 2024.
During the year ended September 30, 2022, promotion expenses and exhibition expenses were lower, due to the 2022 Resurgence in China. As a percentage of revenues, our selling expenses accounted for 2.1% and 2.4% of our total revenue for the years ended September 30, 2022 and 2021, respectively.
Our selling expenses accounted for 4.7%, 2.3% and 2.1% of our total revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. We expect that our overall selling expenses, including but not limited to, advertising expenses and brand promotion expenses, will continue to increase in the foreseeable future if our business further grows.
The following table sets forth the breakdown of our revenue for the years ended September 30, 2022 and 2021, respectively: For the years ended September 30, 2022 2021 Change Amount Amount Amount % Wheelchair $ 15,622,273 $ 18,205,458 $ (2,583,185 ) (14.2 )% Wheelchair components and other products 3,568,268 2,558,815 1,009,453 39.5 % Total revenue $ 19,190,541 $ 20,764,273 $ (1,573,732 ) (7.6 )% 87 Revenue from wheelchair products accounted for 81.4% and 87.7% of our total revenue for the years ended September 30, 2022 and 2021, respectively.
The following table sets forth the breakdown of our revenue for the years ended September 30, 2024 and 2023, respectively: For the years ended September 30, 2024 2023 Change Amount Amount Amount % Wheelchair $ 14,866,699 $ 16,348,133 $ (1,481,434 ) (9.1 )% Wheelchair components and other products 8,635,311 3,473,324 5,161,987 148.6 % Total revenue $ 23,502,010 $ 19,821,457 $ 3,680,553 18.6 % Revenue from wheelchair products accounted for 63.3% and 82.5% of our total revenue for the years ended September 30, 2024 and 2023, respectively.
Our wheelchair products consist primarily of manual wheelchairs. Our other products consist of wheelchair components and living aids products such as oxygen concentrators, bath aids and rehabilitative devices. Total revenue decreased by $1,573,732, or 7.6%, from $20,764,273 for the year ended September 30, 2021 to $19,190,541 for the year ended September 30, 2022.
Our wheelchair products consist primarily of manual wheelchairs. Our other products consist of wheelchair components and living aids products such as oxygen concentrators, bath aids, rehabilitative devices and shared healthcare products and related infrastructures, as well as healthcare products including micro hyperbaric chambers and scientific cosmetic products.
Removed
For the years ended September 30, Variance 2022 2021 Amount % Revenue $ 19,190,541 $ 20,764,273 $ (1,573,732 ) (7.6 )% Cost of revenue and related tax 12,992,023 14,403,137 (1,411,114 ) (9.8 )% Gross profit 6,198,518 6,361,136 (162,618 ) (2.6 )% OPERATING EXPENSES Selling expenses 402,013 488,998 (86,985 ) (17.8 )% General and administrative expenses 1,773,449 1,673,776 99,673 6.0 % Research and development expenses 1,892,532 1,566,860 325,672 20.8 % Total operating expenses 4,067,994 3,729,634 338,360 9.1 % INCOME FROM OPERATIONS 2,130,524 2,631,502 (500,978 ) (19.0 )% OTHER INCOME (EXPENSES) Interest income (expense), net 181,605 (9,492 ) 191,097 (2,013.2 )% Foreign exchange gain 186,394 63,355 123,039 194.2 % Other income, net 244,115 194,982 49,133 25.2 % Total other income, net 612,114 248,845 363,269 146.0 % INCOME BEFORE INCOME TAX PROVISION 2,742,638 2,880,347 (137,709 ) (4.8 )% INCOME TAX PROVISION 36,111 248,641 (212,530 ) (85.5 )% NET INCOME $ 2,706,527 $ 2,631,706 $ 74,821 2.8 % Revenues We generate revenue primarily from wheelchair products and wheelchair components and living aids products sold in Japan, China and other countries.
Added
For the years ended September 30, Variance 2024 2023 Amount % Revenue $ 23,502,010 $ 19,821,457 $ 3,680,553 18.6 % Cost of revenue and related tax 13,999,241 13,036,623 962,618 7.4 % Gross profit 9,502,769 6,784,834 2,717,935 40.1 % OPERATING EXPENSES Selling expenses 1,104,944 453,311 651,633 143.7 % General and administrative expenses 3,261,752 1,921,367 1,340,385 69.8 % Research and development expenses 1,497,325 1,542,894 (45,569 ) (3.0 )% Total operating expenses 5,864,021 3,917,572 1,946,449 49.7 % INCOME FROM OPERATIONS 3,638,748 2,867,262 771,486 26.9 % OTHER INCOME (EXPENSES) Interest income, net 466,524 182,682 283,842 155.4 % Foreign exchange loss (26,774 ) (50,406 ) 23,632 (46.9 )% Other income, net 105,216 222,399 (117,183 ) (52.7 )% Total other income, net 544,966 354,675 190,291 53.7 % INCOME BEFORE INCOME TAX PROVISION 4,183,714 3,221,937 961,777 29.9 % INCOME TAX PROVISION 763,879 343,707 420,172 122.2 % NET INCOME 3,419,835 2,878,230 541,605 18.8 % Less: net loss attributable to non-controlling interest (256,092 ) - (256,092 ) (100.0 )% NET INCOME ATTRIBUTABLE TO JIN MEDICAL INTERNATIONAL LTD. 3,675,927 2,878,230 797,697 27.7 % 87 Revenues We generate revenue primarily from wheelchair products and wheelchair components and living aids products, as well as healthcare products, and these products are sold in Japan, China and other countries.
Removed
Revenue from wheelchair products decreased by $2,583,185, or 14.2%, from $18,205,458 for the year ended September 30, 2021 to $15,622,273 for the year ended September 30, 2022. Due to the 2022 Resurgence in China, there had been delays in delivering products to the domestic customers in China on a timely basis as a consequence of the travel restrictions.
Added
Total revenue increased by $3,680,553, or 18.6%, from $19,821,457 for the year ended September 30, 2023 to $23,502,010 for the year ended September 30, 2024.
Removed
Meanwhile, shipments and customer clearance for the overseas sales were also delayed due to the stricter border control protocols. Although the situation has eased since mid-May 2022, the number of orders placed by the customers was affected.
Added
Revenue from wheelchair products decreased by $1,481,434, or 9.1%, from $16,348,133 for the year ended September 30, 2023 to $14,866,699 for the year ended September 30, 2024. The decrease was mainly due to our sales transactions denominated in Japanese Yen. We sell our wheelchair products to our largest customer in Japanese Yen.
Removed
Therefore, our revenue from wheelchair products was negatively affected by the 2022 Resurgence during the year ended September 30, 2022 and did not grow as expected. Revenue from wheelchair components and other products accounted for 18.6% and 12.3% of our total revenue for the years ended September 30, 2022 and 2021, respectively.
Added
However, due to weakening of the Japanese Yen, our revenue decreased after we translate Japanese Yen into our functional currency RMB. The decrease was also due to the depreciation of RMB against U.S. dollars.
Removed
Revenue from wheelchair components and other products increased by $1,009,453, or 39.5%, from $2,558,815 for the year ended September 30, 2021 to $3,568,268 for the year ended September 30, 2022. The increase was mainly due to more sales orders of wheelchair components, such as chair stakes, bed stakes and trundles, we received during the year ended September 30, 2022.
Added
The average translation rate for the years ended September 30, 2024 and 2023 was at RMB 1=US$0.1390 and RMB 1=US$0.1418, respectively, resulting in a decrease of 2.0%. Revenue from wheelchair components and other products accounted for 36.7% and 17.5% of our total revenue for the years ended September 30, 2024 and 2023, respectively.
Removed
The increase was also due to the increased revenues from bathing machines of approximately $0.2 million. Management expects that revenues from bathing machines will increase significantly in the future. As a result, revenue from wheelchair components and other products increased during the year ended September 30, 2022, as compared to the year ended September 30, 2021.
Added
Revenue from wheelchair components and other products increased by $5,161,987, or 148.6%, from $3,473,324 for the year ended September 30, 2023 to $8,635,311 for the year ended September 30, 2024.
Removed
The increase in cost of revenue and related tax from wheelchair components and others products was largely in line with the increase in revenue from wheelchair components and others products. Gross profit Our gross profit decreased by $162,618, or 2.6%, from $6,361,136 for the year ended September 30, 2021 to $6,198,518 for the year ended September 30, 2022.
Added
Our gross margin increased by 6.2 percentage points from 34.2% for the year ended September 30, 2023 to 40.4% for the year ended September 30, 2024.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

37 edited+7 added−5 removed48 unchanged
Biggest changeIn connection with the loan, a related party, the Company’s major shareholders Mr. Erqi Wang and his wife, signed a joint guarantee agreement with Bank of China to provide a guarantee on a maximum RMB 5.0 million ($762,500) of loans that the Company may borrow from Bank of China for a period of two years.
Biggest changeThe loan has a fixed interest rate of 2.80% per annum and matures in one year. The Company’s major shareholder Mr. Erqi Wang, signed a maximum guarantee agreement with China Merchants Bank to provide personal credit guarantees for the loan.
Our compensation committee consists of Jourdan B. Frain, Oliver St. Clair Franklin and Yanru Guo. Yanru Guo is the chairperson of our compensation committee. The compensation committee assists the board of directors in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers.
Compensation Committee . Our compensation committee consists of Jourdan B. Frain, Oliver St. Clair Franklin and Yanru Guo. Yanru Guo is the chairperson of our compensation committee. The compensation committee assists the board of directors in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers.
Nominating and Corporate Governance Committee . Our nominating and corporate governance committee consists of Jourdan B. Frain, Oliver St. Clair Franklin, and Yanru Guo. Yanru Guo is the chairperson of our nominating and corporate governance committee.
Our nominating and corporate governance committee consists of Jourdan B. Frain, Oliver St. Clair Franklin, and Yanru Guo. Yanru Guo is the chairperson of our nominating and corporate governance committee.
Frain also served as a district representative for a sitting Congressman in Pennsylvania’s 7th District from January 2011 to February 2012. Mr. Frain holds undergraduate degrees in Life Science from Valley Forge Military College and the University of Pennsylvania, and an MBA from Columbia Business School graduating with Dean’s Honors. Mr. Oliver St. Clair Franklin is an independent director.
Frain also served as a district representative for a sitting Congressman in Pennsylvania’s 7th District from January 2011 to February 2012. Mr. Frain holds undergraduate degrees in Life Science from Valley Forge Military College and the University of Pennsylvania, and an MBA from Columbia Business School graduating with Dean’s Honors. 103 Mr. Oliver St. Clair Franklin is an independent director.
Wang graduated from Hangzhou Institute of Electronic Technology with a Bachelor’s degree in Industrial Management in 1992, and was certified as a Senior Economist by the Department of Human Resources and Social Security of Jiangsu Province in 2013. 96 Ms. Yanru Guo is an independent director. Ms.
Wang graduated from Hangzhou Institute of Electronic Technology with a Bachelor’s degree in Industrial Management in 1992, and was certified as a Senior Economist by the Department of Human Resources and Social Security of Jiangsu Province in 2013. Ms. Yanru Guo is an independent director. Ms.
None of our directors has a service contract with us that provides for benefits upon termination of service. Committees of the Board of Directors We have established three committees under the board of directors: an audit committee, a compensation committee, and a nominating and corporate governance committee. We have adopted a charter for each of the three committees.
None of our directors has a service contract with us that provides for benefits upon termination of service. 105 Committees of the Board of Directors We have established three committees under the board of directors: an audit committee, a compensation committee, and a nominating and corporate governance committee. We have adopted a charter for each of the three committees.
The audit committee is responsible for, among other things: ● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; ● reviewing and approving all proposed related party transactions; ● meeting separately and periodically with management and the independent auditors; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. 99 Compensation Committee .
The audit committee is responsible for, among other things: ● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; ● reviewing and approving all proposed related party transactions; ● meeting separately and periodically with management and the independent auditors; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.
During and after the last completed fiscal year ended September 30, 2023, the Company was not required to prepare an accounting restatement, or any accounting restatement that required recovery of erroneously awarded compensation pursuant to the Company’s compensation recovery policy required by the Nasdaq listing rules, and there was no outstanding balance as of the end of the last completed fiscal year of erroneously awarded compensation to be recovered from the application of the policy to any prior restatement.
During and after the last completed fiscal year ended September 30, 2024, the Company was not required to prepare an accounting restatement, or any accounting restatement that required recovery of erroneously awarded compensation pursuant to the Company’s compensation recovery policy required by the Nasdaq listing rules, and there was no outstanding balance as of the end of the last completed fiscal year of erroneously awarded compensation to be recovered from the application of the policy to any prior restatement.
(2) Gorgeous Abundant Enterprises Limited is wholly-owned and controlled by Jin Xiao, who beneficially and indirectly owns 11,596,500 Ordinary Shares of the Company through Gorgeous Abundant Enterprises Limited. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our Company. 101 F.
(2) Gorgeous Abundant Enterprises Limited is wholly-owned and controlled by Jin Xiao, who beneficially and indirectly owns 11,596,500 Ordinary Shares of the Company through Gorgeous Abundant Enterprises Limited. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our Company. 108 F.
Compensation Compensation of Directors and Executive Officers The following table sets forth certain information with respect to compensation for the fiscal year ended September 30, 2023, earned by or paid to our chief executive officer and principal executive officer, our principal financial officer, and our other most highly compensated executive officers whose total compensation exceeded US$100,000 (the “named executive officers”).
Compensation Compensation of Directors and Executive Officers The following table sets forth certain information with respect to compensation for the fiscal year ended September 30, 2024, earned by or paid to our chief executive officer and principal executive officer, our principal financial officer, and our other most highly compensated executive officers whose total compensation exceeded US$100,000 (the “named executive officers”).
The compensation committee is responsible for, among other things: ● reviewing and approving the total compensation package for our most senior executive officers; ● approving and overseeing the total compensation package for our executives other than the most senior executive officers; ● reviewing and recommending to the board of directors with respect to the compensation of our directors; ● reviewing periodically and approving any long-term incentive compensation or equity plans; ● selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person’s independence from management; and ● reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans.
The compensation committee is responsible for, among other things: ● reviewing and approving the total compensation package for our most senior executive officers; ● approving and overseeing the total compensation package for our executives other than the most senior executive officers; ● reviewing and recommending to the board of directors with respect to the compensation of our directors; ● reviewing periodically and approving any long-term incentive compensation or equity plans; ● selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person’s independence from management; and ● reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans. 106 Nominating and Corporate Governance Committee .
An entity controlled by the CEO 50,711 33,285 - Other Directors of the Company - 2,972 - Total due from related parties $ 4,240,524 $ 36,257 $ 409,601 The Company advanced cash to related parties for business purpose and recorded advances as due from related parties in the consolidated financial statements.
An entity controlled by the CEO 101,906 50,711 33,285 Other Directors of the Company - - 2,972 Total due from related parties $ 101,906 $ 4,240,524 $ 36,257 The Company advanced cash to related parties for business purpose and recorded advances as due from related parties in the consolidated financial statements.
These advances are non-interest bearing and due on demand. d. Deferred revenue – related parties Name Related party relationship September 30, 2023 September 30, 2022 September 30, 2021 Jin Med Medical (Korea) Co., Ltd. An entity controlled by the CEO $ 117,424 $ - $ - Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.
These advances are non-interest bearing and due on demand. d. Deferred revenue – related parties Name Related party relationship September 30, 2024 September 30, 2023 September 30, 2022 Jin Med Medical (Korea) Co., Ltd. An entity controlled by the CEO $ 121,269 $ 117,424 $ - Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.
On March 31, 2023, Changzhou Zhongjin signed a loan agreement with Bank of Jiangsu to borrow RMB 10.0 million ($1,456,000) as working capital for one year, with a maturity date of March 28, 2024. The loan had a fixed interest rate of 3.65% per annum. The loan was paid off in May 2023.
Loan guarantee provided by related parties On March 31, 2023, Changzhou Zhongjin signed a loan agreement with Bank of Jiangsu to borrow RMB 10.0 million ($1,456,000) as working capital for one year, with a maturity date of March 28, 2024. The loan had a fixed interest rate of 3.65% per annum. The loan was paid off in May 2023.
An entity controlled by the CEO $ 4,189,813 $ - $ 409,601 Huaniaoyuan Catering Management (Changzhou) Co. Ltd.
An entity controlled by the CEO $ - $ 4,189,813 $ - Huaniaoyuan Catering Management (Changzhou) Co. Ltd.
Share Ownership The following table sets forth information concerning the beneficial ownership within the meaning of Rule 13d-3 under the Exchange Act, of our Ordinary Shares as of April 17, 2024 by: ● each of our directors and executive officers; and ● each person known to us to beneficially own more than 5.0% of our ordinary shares.
Share Ownership The following table sets forth information concerning the beneficial ownership within the meaning of Rule 13d-3 under the Exchange Act, of our Ordinary Shares as of January 14, 2025 by: ● each of our directors and executive officers; and ● each person known to us to beneficially own more than 5.0% of our ordinary shares.
We have entered into directors’ service contracts with our directors providing for benefits upon termination of employment. 98 Compensation of Directors For the fiscal year ended September 30, 2023, we accrued aggregate compensation for the directors of approximately $37,500, payable in cash. Equity Incentive Plan The Company has not adopted any equity incentive plan. C.
We have entered into directors’ service contracts with our directors providing for benefits upon termination of employment. Compensation of Directors For the fiscal year ended September 30, 2024, we accrued aggregate compensation for the directors of approximately $63,911, payable in cash. Equity Incentive Plan The Company has not adopted any equity incentive plan. C.
Percentage of beneficial ownership of each listed person is based on 156,547,100 Ordinary Shares outstanding as of April 17, 2024. Information with respect to beneficial ownership has been furnished by each director, officer, or beneficial owner of 5% or more of our Ordinary Shares.
Percentage of beneficial ownership of each listed person is based on 156,547,100 Ordinary Shares outstanding as of January 14, 2025. Information with respect to beneficial ownership has been furnished by each director, officer, or beneficial owner of 5% or more of our Ordinary Shares.
Purchases from a related party The Company made purchases from related parties that are controlled by the Company’s Chairman and CEO, in the total amount of $Nil and $14,220 and $48,099, for the period of fiscal years 2023, 2022 and 2021, respectively. 103 g.
Purchases from a related party The Company made purchases from related parties that are controlled by the Company’s Chairman and CEO, in the total amount of $Nil, $Nil and $14,220, for the period of fiscal years 2024, 2023 and 2022, respectively. 110 g.
The Company first started hiring executives in January, 2020. 100 Terms of Directors and Officers Each of our directors holds office until a successor has been duly elected and qualified unless the director was appointed by the board of directors, in which case such director holds office until the next following annual meeting of shareholders at which time such director is eligible for re-election.
Terms of Directors and Officers Each of our directors holds office until a successor has been duly elected and qualified unless the director was appointed by the board of directors, in which case such director holds office until the next following annual meeting of shareholders at which time such director is eligible for re-election.
An entity controlled by the CEO 630 - 6,192 Changzhou Zhongjian Kanglu Information Technology Co., Ltd An entity controlled by the CEO 494 - 186 Total due to related parties $ 1,124 $ 118,066 $ 6,378 Balance due to related parties was comprised of advances from entities controlled by the Company’s CEO and used for working capital during the Company’s normal course of business.
An entity controlled by the CEO 656 630 - Changzhou Zhongjian Kanglu Information Technology Co., Ltd An entity controlled by the CEO 684 494 - Total due to related parties $ 280,553 $ 1,124 $ 118,066 Balance due to related parties was mainly comprised of advances from entities controlled by the Company’s CEO and used for working capital during the Company’s normal course of business.
The calculations in the table below are based on 156,547,100 ordinary shares outstanding as of April 17, 2024. Beneficial ownership is determined in accordance with the rules and regulations of the SEC.
The calculations in the table below are based on 156,547,100 ordinary shares outstanding as of January 14, 2025. Beneficial ownership is determined in accordance with the rules and regulations of the SEC.
An entity controlled by the CEO 1,371 - - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd. An entity controlled by the CEO 325 - - Total deferred revenue – related parties $ 119,120 $ - $ - e.
An entity controlled by the CEO - 1,371 - Jinmed International Co., Ltd. An entity controlled by the CEO 4,394 - - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd. An entity controlled by the CEO - 325 - Total deferred revenue – related parties $ 125,663 $ 119,120 $ - e.
Directors and Executive Officers Age Position/Title Erqi Wang 55 Chief Executive Officer, Director, Chairman of the Board Ziqiang Wang 54 Chief Financial Officer and Director Yanru Guo 48 Independent Director Jourdan B. Frain 40 Independent Director Oliver St. Clair Franklin 78 Independent Director Mr.
Directors and Executive Officers Age Position/Title Erqi Wang 56 Chief Executive Officer, Director, Chairman of the Board Ziqiang Wang 55 Chief Financial Officer and Director Yanru Guo 49 Independent Director Jourdan B. Frain 41 Independent Director Oliver St. Clair Franklin 79 Independent Director Mr.
Name and Principal Position Year Salary (US$) Bonus (US$) Stock Awards (US$) Option Awards (US$) Non-Equity Incentive Plan Compensation Deferred Compensation Earnings Other Total (US$) Erqi Wang, Director and Chief Executive Officer 2023 126,364 - - - - - - 126,364 Ziqiang Wang, Director and Chief Financial Officer 2023 41,171 - - - - - - 41,171 Agreements with Named Executive Officers On January 14, 2020, we entered into employment agreements with our executive officers, Erqi Wang and Ziqiang Wang.
Name and Principal Position Year Salary (US$) Bonus (US$) Stock Awards (US$) Option Awards (US$) Non-Equity Incentive Plan Compensation Deferred Compensation Earnings Other Total (US$) Erqi Wang, Director and Chief Executive Officer 2024 123,302 - - - - - - 123,302 Ziqiang Wang, Director and Chief Financial Officer 2024 42,801 - - - - - - 42,801 104 Agreements with Named Executive Officers On January 14, 2020, we entered into employment agreements with our executive officers, Erqi Wang and Ziqiang Wang.
Such advances were non-interest bearing and due upon demand. 102 c. Due to related parties Name Related party relationship September 30, 2023 September 30, 2022 September 30, 2021 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. An entity controlled by the CEO $ - $ 118,066 $ - Huaniaoyuan Environmental Engineering (Changzhou) Co., Ltd.
Such advances were non-interest bearing and due upon demand. 109 c. Due to related parties Name Related party relationship September 30, 2024 September 30, 2023 September 30, 2022 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. An entity controlled by the CEO $ 257,359 $ - $ 118,066 Shanghai Situma Intelligent Technology Co., Ltd.
An entity controlled by the CEO - 34,794 16,243 Total accounts receivable, net - related parties $ 947,949 $ 253,473 $ 372,130 b. Due from related parties Name Related party relationship September 30, 2023 September 30, 2022 September 30, 2021 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.
An entity controlled by the CEO 1,340 - 1,468 Total accounts receivable, net - related parties $ 2,546,358 $ 947,949 $ 253,473 b. Due from related parties Name Related party relationship September 30, 2024 September 30, 2023 September 30, 2022 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.
An entity controlled by the CEO - 1,621 - Total revenue from related parties $ 1,022,358 $ 1,111,023 $ 657,060 f.
An entity controlled by the CEO 50,240 - - Total revenue from related parties $ 2,906,759 $ 1,022,358 $ 1,111,023 f.
Involvement in Certain Legal Proceedings To the best of our knowledge, none of our directors or executive officers has, during the past 10 years, been involved in any legal proceedings described in subparagraph (f) of Item 401 of Regulation S-K. 97 Diversity Matrix of Board of Directors Board Diversity Matrix as at the date of this Annual Report Country of Principal Executive Offices: China Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 Female Male Non-Binary Did Not Disclose Gender Part I: Gender Identity Directors 1 4 0 0 Part II: Demographic Background Underrepresented Individual in China 3 LGBTQ+ 0 Did Not Disclose Demographic Background 0 B.
Diversity Matrix of Board of Directors Board Diversity Matrix as at the date of this Annual Report Country of Principal Executive Offices: China Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 Female Male Non-Binary Did Not Disclose Gender Part I: Gender Identity Directors 1 4 0 0 Part II: Demographic Background Underrepresented Individual in China 3 LGBTQ+ 0 Did Not Disclose Demographic Background 0 B.
Revenue from related parties For the Years Ended September 30, Name Related party relationship 2023 2022 2021 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. An entity controlled by the CEO $ 858,743 $ 737,450 $ 578,302 Jinmed International Co., Ltd. An entity controlled by the CEO 146,268 - - Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.
Revenue from related parties Related party For the Years Ended September 30, Name relationship 2024 2023 2022 Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd. An entity controlled by the CEO $ 1,697,061 $ 6,759 $ 276,429 Zhongjin Hongkang Medical Technology (Shanghai) Co., Ltd. An entity controlled by the CEO 742,762 - 70,816 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.
An entity controlled by the CEO 364,750 162,024 340,513 Jinmed International Co., Ltd. An entity controlled by the CEO 141,131 - - Zhongjin Hongkang Medical Technology (Shanghai) Co., Ltd. An entity controlled by the CEO 49,000 55,187 - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd. An entity controlled by the CEO - 1,468 15,374 Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.
An entity controlled by the CEO 911,987 49,000 55,187 Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. An entity controlled by the CEO 141,007 364,750 162,024 Shanghai Situma Intelligent Technology Co., Ltd. Minority shareholder of the Company - 393,068 - Jinmed International Co., Ltd. An entity controlled by the CEO - 141,131 - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd.
Business Overview—Corporate History and Structure.” Other Transactions with Related Parties a. Accounts receivable, net - related parties Name Related party relationship September 30, 2023 September 30, 2022 September 30, 2021 Shanghai Situma Intelligent Technology Co., Ltd. Minority shareholder of the Company $ 393,068 $ - $ - Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.
Business Overview—Corporate History and Structure.” Other Transactions with Related Parties a. Accounts receivable, net - related parties Name Related party relationship September 30, 2024 September 30, 2023 September 30, 2022 Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd. An entity controlled by the CEO $ 1,492,024 $ - $ 34,794 Zhongjin Hongkang Medical Technology (Shanghai) Co., Ltd.
All of our executive officers are appointed by and serve at the discretion of our board of directors. D. Employees See “Item 4. Information on the Company—B. Business Overview—Employees.” E.
D. Employees See “Item 4. Information on the Company—B. Business Overview—Employees.” E.
Changzhou Zhongjian Kanglu Information Technology Co., Ltd, also signed a maximum guarantee agreement with Bank of Jiangsu and a maximum pledge agreement with Bank of Jiangsu. Employment Agreements See “Item 6. Directors, Senior Management and Employees-C. Board Practices—Agreements with Named Executive Officers.” Share Incentive Plan Not applicable. C. Interests of Experts and Counsel Not applicable.
In addition, Taizhou Zhongjin pledged its patent rights as collateral to guarantee the Company’s loan from Bank of Nanjing. Employment Agreements See “Item 6. Directors, Senior Management and Employees-C. Board Practices—Agreements with Named Executive Officers.” Share Incentive Plan Not applicable. C. Interests of Experts and Counsel Not applicable.
An entity controlled by the CEO 6,759 276,429 52,274 Zhongjin Hongkang Medical Technology (Shanghai) Co., Ltd. An entity controlled by the CEO - 70,816 - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd. An entity controlled by the CEO 10,588 24,707 26,484 Huaniaoyuan Catering Management (Changzhou) Co. Ltd.
An entity controlled by the CEO 416,696 858,743 737,450 Jinmed International Co., Ltd. An entity controlled by the CEO - 146,268 - Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd. An entity controlled by the CEO - 10,588 24,707 Huaniaoyuan Catering Management (Changzhou) Co. Ltd. An entity controlled by the CEO - - 1,621 Jin Med Medical (Korea) Co., Ltd.
On May 11, 2020, Changzhou Zhongjin signed a loan agreement with Bank of Jiangsu to borrow RMB 10.0 million ($1,525,000) as working capital for one year, with a maturity date of May 10, 2021. The loan had a fixed interest rate of 4.35% per annum. The loan was subsequently fully repaid upon maturity in May 2021.
On August 28, 2024, Taizhou Zhongjin entered into a loan agreement with Bank of Nanjing to borrow $1,354,700 (RMB 9.5 million) as working capital for one year, with a maturity date of August 27, 2025. The loan has a fixed interest rate of 3.45% per annum. The loan is guaranteed by the Company’s major shareholder Mr. Erqi Wang.
In connection with the borrowings with Bank of Jiangsu, a related party, Changzhou Zhongjian Kanglu Information Technology Co., Ltd, signed a guarantee agreement with Bank of Jiangsu to provide a guarantee on a maximum RMB 33 million ($5.0 million) of loans that the Company may borrow from Jiangsu Bank during the period of April 30, 2020 to April 29, 2021.
Changzhou Zhongjian Kanglu Information Technology Co., Ltd, also signed a maximum guarantee agreement with Bank of Jiangsu and a maximum pledge agreement with Bank of Jiangsu. On January 3, 2024, Changzhou Zhongjin entered into a loan agreement with China Merchants Bank to borrow $1,426,000 (RMB 10.0 million) as working capital.
Removed
Loan guarantee provided by related parties On April 22, 2020, Changzhou Zhongjin signed a loan agreement with Bank of China to borrow RMB 5.0 million ($762,500) as working capital for one year, with a maturity date of April 21, 2021. The loan was subsequently fully repaid upon maturity in April 2021.
Added
Involvement in Certain Legal Proceedings To the best of our knowledge, none of our directors or executive officers has, during the past 10 years, been involved in any legal proceedings described in subparagraph (f) of Item 401 of Regulation S-K.
Removed
On March 23, 2020, Taizhou Zhongjin signed a line of credit agreement with Nanjing Bank Taizhou Branch to borrow up to RMB 3 million ($440,962) as working capital for one year, with a maturity date of March 22, 2021.
Added
The Company first started hiring executives in January, 2020.
Removed
Taizhou Zhongjin made its first withdrawal in an amount of RMB 1 million ($146,988) on March 27, 2020 and second withdrawal in an amount of RMB 2 million ($293,974) on April 13, 2020.
Added
All of our executive officers are appointed by and serve at the discretion of our board of directors. Nasdaq Home Country Practices As a Cayman Islands exempted company listed on the Nasdaq Capital Market, we are subject to the Nasdaq Stock Market Rules corporate governance listing standards.
Removed
Of the RMB 3 million loan, RMB 2.99 million ($439,493) was repaid to Nanjing Bank on October 13, 2020 and the remaining RMB 10,000 ($1,469) was repaid on the maturity date. In connection with the loans, the Company’s major shareholder, Mr.
Added
However, Nasdaq Stock Market Rules permit a foreign private issuer like us to follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq Stock Market Rules.
Removed
Erqi Wang, signed guarantee agreements with the banks to provide personal credit guarantee for these loans, and the Company’s related party, Changzhou Zhongjian Kanglu Information Technology Co., Ltd., also signed a pledge agreement with ABC bank for these loans.
Added
Pursuant to Nasdaq Rule 5615(a)(3) (Exemptions from Certain Corporate Governance Requirements),the Company intends adopt and follow certain Cayman Islands practices in lieu of certain requirements under Nasdaq Rules 5605(b)(2), 5620, 5635, 5250(b)(3) and 5250(d).
Added
As such, in lieu of Nasdaq corporate governance requirements, the Company intends: ● not to have regularly scheduled meetings at which only Independent Directors (as defined under Nasdaq Marketplace Rule 5605(a)(2)) are present; ● not to hold annual meeting of shareholders; 107 ● to issue securities in connection with (i) the acquisition of the stock or assets of another company(ii) equity-based compensation of officers, directors, employees or consultants; (ii) a change of control; and (iv) transactions other than public offerings, each of the foregoing as defined under Nasdaq Rules 5635(a)(b)(c)(d) without shareholders’ approval; ● not to disclose the material terms of all agreement nominee for director, and any person or entity other than the Company, relating to compensation other payment in connection with such person’s candidacy or service as a director of the Company; and ● not to distribute annual and interim reports to shareholders.
Added
Minority shareholder of the Company 21,854 - - Huaniaoyuan Environmental Engineering (Changzhou) Co., Ltd.