Revenue Performance - Revenue decreased by approximately $2.1 million, or 13.7%, from approximately $15.5 million for fiscal year 2024 to approximately $13.4 million for fiscal year 2025[379] - Total revenues decreased by approximately $2.1 million, or 13.7%, to approximately $13.4 million for the fiscal year ended September 30, 2025, compared to approximately $15.5 million for the fiscal year ended September 30, 2024[395] - Revenue from projects increased by approximately $4.9 million, or 65.2%, to approximately $12.3 million for the fiscal year ended September 30, 2025, compared to approximately $7.5 million for the fiscal year ended September 30, 2024[397] - Revenue from products decreased by approximately $6.9 million, or 89.5%, to approximately $0.8 million for the fiscal year ended September 30, 2025, compared to approximately $7.7 million for the fiscal year ended September 30, 2024[399] - Revenue from services decreased by approximately $57,000, or 15.7%, due to a decline in service contracts from sporadic customers[419] - Revenue generated from real estate property development projects was approximately $12.5 million for fiscal year 2025, representing approximately 93.7% of total revenue[389] Profitability - Gross profit margin decreased from 18.6% for fiscal year 2024 to 8.8% for fiscal year 2025[379] - Gross profit decreased by approximately $1.7 million, or 59.3%, to approximately $1.2 million for the fiscal year ended September 30, 2025, with a gross margin of 8.8% compared to 18.6% for the fiscal year ended September 30, 2024[405] - The gross profit margin for projects decreased from 23.7% for the fiscal year ended September 30, 2024, to 8.1% for the fiscal year ended September 30, 2025[406] - Net loss for fiscal year 2025 was approximately $3.3 million, compared to a net profit of approximately $1.0 million for fiscal year 2024[380] - Net loss for the fiscal year ended September 30, 2025, was approximately $3.3 million, compared to a net income of approximately $1.0 million for the fiscal year ended September 30, 2024[413] - Net income decreased by approximately $0.5 million, from approximately $1.5 million in 2023 to approximately $1.0 million in 2024[433] Costs and Expenses - General and administrative expenses increased by approximately $3.2 million, or 403.8%, for the fiscal year ended September 30, 2025, primarily due to increased employment costs and professional service fees[409] - Cost of revenues decreased by approximately $0.4 million, or 3.3%, to approximately $12.2 million for the fiscal year ended September 30, 2025, compared to approximately $12.6 million for the fiscal year ended September 30, 2024[401] - Total cost of revenues increased by approximately $418,322, or 3.4%, to $12,639,984 for the fiscal year ended September 30, 2024[421] - Selling expenses decreased by approximately $0.1 million, or 75.1%, due to strict expenditure control[429] - Subcontracting fees constituted 12.9% of total cost of sales for fiscal year 2025[391] Backlog and Project Awards - Backlog as of September 30, 2025, was approximately $8.6 million, down from approximately $18.3 million as of September 30, 2024[383] - Project awards for fiscal year 2025 totaled approximately $4.4 million[383] Impairment and Other Losses - Credit and impairment losses recognized were approximately $1.0 million for fiscal year 2025[380] - Impairment losses decreased by approximately $0.7 million for the fiscal year ended September 30, 2025, as no such events occurred during this period[410] - Other expenses, net, increased by approximately $80,000, or 148.3%, primarily due to the absence of a similar income situation in the fiscal year 2025[411] - Impairment losses for the fiscal year ended September 30, 2024, were approximately $0.7 million, related to contract fulfillment costs for a project with a real estate customer facing liquidity issues[430] Business Development - The company incorporated a new subsidiary, Chengdu Wufang Boyuan Innovation Technology Co., Ltd., in April 2025 to explore new business opportunities in the consumer market[383] - The company has implemented stricter client vetting and advance payment terms to mitigate default risks from real estate developer clients[381]

Financial Performance - Nextpower reported revenues of $2.7 billion for the nine-month period ended December 31, 2025, compared to $3.0 billion for the fiscal year 2025, indicating a strong performance in the solar tracker market [128]. - Revenue for the three-month period ended December 31, 2025, increased by $230.0 million, or 34%, compared to the same period in 2024, driven by a 26% increase in GW delivered [157]. - Revenue increased by $644.0 million, or 32%, for the nine-month period ended December 31, 2025, driven by a 31% increase in GW delivered, particularly in the U.S. [170]. - U.S. revenue increased by approximately $284.6 million, or 63%, during the three-month period ended December 31, 2025, while revenue from the Rest of the World decreased by $54.6 million, or 24% [158]. - Gross profit for the three-month period ended December 31, 2025, increased by $47.2 million, or 20%, compared to the same period in 2024, attributed to increased shipment volume in the U.S. and the impact of the 45X Credit [160]. - Gross profit increased by $159.6 million, or 23%, during the nine-month period ended December 31, 2025, primarily from revenue growth in the U.S. and the impact of the 45X Credit [172]. - Adjusted net income for the three-month period ended December 31, 2025, was $169.618 million, with an adjusted net income margin of 18.7% [153]. Market Position and Strategy - The company has shipped over 150 GW of solar tracker systems globally, maintaining its position as the market leader for ten consecutive years [126][124]. - Nextpower's capital allocation strategy emphasizes growth through both organic means and disciplined mergers and acquisitions [134]. - The company anticipates continued growth driven by market expansion and the introduction of new products that enhance performance and cost efficiency [140]. - The company recognized revenue from various product lines, including TrueCapture and robotic solutions, diversifying its revenue streams beyond solar tracker systems [136]. Acquisitions and Joint Ventures - Nextpower's recent acquisitions, including Bentek and OnSight, totaled approximately $116.6 million, enhancing its capabilities in electrical infrastructure and autonomous inspection technologies [133][131]. - The company established a joint venture, Nextpower Arabia, with Abunayyan Holding, contributing $2.7 million to support solar tracker system equipment in the MENA region [130]. Research and Development - Research and development expenses are expected to increase over time as the company focuses on new product innovations and improvements to existing technologies [144]. - Research and development expenses rose by $21.9 million, or 39%, to $77.7 million for the nine-month period ended December 31, 2025, reflecting continued investment in innovation and expansion of the engineering team [174]. Costs and Expenses - Cost of sales increased by $182.8 million, or 42%, during the three-month period ended December 31, 2025, primarily due to the increase in GW delivered and higher headcount costs from recent acquisitions [159]. - Selling, general and administrative expenses increased by $37.8 million, or 19%, to $241.3 million for the nine-month period ended December 31, 2025, primarily due to expansion of the sales organization and acquisition-related costs [173]. - Cost of sales increased by $484.4 million, or 36%, during the nine-month period ended December 31, 2025, primarily due to the increase in GW delivered and higher tariffs [171]. Financial Structure and Liquidity - The company enhanced its capital structure with a $1.0 billion unsecured revolving credit facility, expanding total liquidity to approximately $1.8 billion as of December 31, 2025 [178]. - Total liquidity as of December 31, 2025, was approximately $1.8 billion, primarily from unutilized amounts under the New Revolving Credit Facility [194]. - The New Credit Agreement provides for a $1.0 billion unsecured New Revolving Credit Facility maturing on September 8, 2030, with approximately $891.4 million available as of December 31, 2025 [195]. Customer Concentration and Risks - The top five largest customers contributed 37% of total revenue for the nine-month period ended December 31, 2025, compared to 36% for the same period in 2024 [203]. - The company is exposed to commodity price risk, particularly with steel, which could impact operating margins if price increases cannot be passed on to customers [204]. - Foreign currency exchange risk is managed through a policy that includes techniques such as currency of invoice and receivables management [206]. - A 10% appreciation or depreciation of the U.S. dollar is not expected to have a material effect on the company's financial position in the near term [207].

Corporate Structure and Regulatory Environment - The company operates through its PRC subsidiaries, which include Work (Hangzhou) Medical Treatment Technology Co., Ltd. and several others, affecting its overall business operations[20]. - Investors hold equity in WORK Medical Technology Group LTD, a Cayman Islands holding company, which indirectly owns a majority of the equity interests in its PRC subsidiaries[21]. - The company is not currently using a variable interest entity (VIE) structure, which could mitigate certain regulatory risks[21]. - Recent regulatory actions by the PRC government may impact the company's operations and ability to accept foreign investments, although the company believes it is not directly subject to these actions[22]. - The company has not received any denial to list on a U.S. exchange, but future regulatory changes could adversely affect its ability to offer securities[25]. - The company’s Hong Kong subsidiary, Work Medical Technology, is expected to operate as an investment holding company without substantive operations, limiting its exposure to regulatory risks in Hong Kong[28]. - The company’s securities may face delisting risks under the Holding Foreign Companies Accountable Act if the PCAOB cannot inspect its auditors for two consecutive years[31]. - The PCAOB has recently secured access to inspect registered public accounting firms in mainland China and Hong Kong, which may alleviate some concerns regarding audit inspections[31]. - The company has appointed HTL International, LLC as its independent registered public accounting firm, effective July 30, 2025[31]. - The company is subject to legal and operational risks associated with being based in China, which could materially affect its operations and the value of its securities[22]. Financial Operations and Currency Risks - The Company transferred a total of $7,373,839 from its IPO proceeds through Work BVI to Work Medical Technology in the fiscal year ended September 30, 2024, with $5,404,654 remaining available after reimbursing PRC subsidiaries for IPO-related expenses[33]. - The aggregate principal amounts of funds transferred among the PRC subsidiaries were $22,069,242, $2,459,263, and $8,262,606 for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[33]. - As of the date of the annual report, no dividends or distributions have been made from the PRC subsidiaries to the Company or U.S. investors[33]. - Current PRC regulations allow indirect PRC subsidiaries to pay dividends to Work Medical Technology only from their accumulated profits, which must be determined according to Chinese accounting standards[34]. - Each PRC subsidiary is required to set aside at least 10% of its after-tax profits to fund a statutory reserve until it reaches 50% of its registered capital[34]. - The Company may face difficulties in obtaining and remitting foreign currency for dividend payments due to PRC government controls on currency conversion[36]. - Cash dividends on Class A Ordinary Shares will be paid in U.S. dollars, and payments from PRC subsidiaries to Work Medical Technology are subject to a 25% PRC enterprise income tax[37]. - The withholding tax rate on dividends may be reduced to 5% under the Double Tax Avoidance Arrangement if certain conditions are met, but the Company has not yet applied for the tax resident certificate necessary for this[38]. - Cash located in the PRC may not be available for funding operations outside of the PRC due to government restrictions[39]. - The Company has not established other cash management policies or procedures for fund transfers beyond those described[33]. Operational and Compliance Risks - The PRC subsidiaries face significant risks related to compliance with various environmental, fire protection, and construction laws, which could adversely affect operations and financial condition[46]. - Failure to renew medical device licenses or registration certificates in a timely manner could negatively impact the reputation and financial results of the PRC subsidiaries[46]. - The PRC subsidiaries' growth rates may decline due to factors such as decreasing customer demand and increasing competition, which could adversely affect investor perceptions and share price[50]. - Maintaining product quality and safety is critical, as any failure could lead to liability claims and negatively impact the financial condition and reputation of the PRC subsidiaries[51]. - The PRC subsidiaries rely on third-party distributors, which may limit control over product placement and sales[46]. - Regulatory approval requirements for acquisitions may hinder growth strategies for the PRC subsidiaries[47]. - The PRC subsidiaries may face challenges in collecting timely payments from customers, impacting overall financial health[46]. - The company may incur substantial costs as a public entity, affecting profitability and shareholder returns[49]. - Fluctuations in exchange rates could result in foreign currency losses, impacting the value of dividends payable to shareholders[47]. - The dual class share structure may limit the influence of Class A shareholders on corporate matters, potentially affecting share value[49]. Revenue and Market Dynamics - The net revenue from sales of masks decreased from $5,091,331 (approximately 37.53% of total net revenue) for the fiscal year ended September 30, 2023, to $1,559,750 (approximately 13.56% of total net revenue) for the fiscal year ended September 30, 2024[64]. - The net revenue from sales of masks is projected to further decrease to $640,428 (approximately 6.50% of total net revenue) for the fiscal year ended September 30, 2025[64]. - The PRC subsidiaries face risks related to fluctuations in the cost, availability, and quality of raw materials, which could adversely affect their results of operations[66]. - The PRC subsidiaries do not have long-term contracts with suppliers, which allows suppliers to reduce order quantities or terminate sales at any time, potentially impacting revenue and financial condition[71]. - The overall tightening of the labor market and increases in labor costs may adversely affect the PRC subsidiaries' business operations and financial performance[72]. - The medical device industry is intensely competitive, and the PRC subsidiaries may struggle to compete against companies with greater resources, which could negatively impact their market share and profitability[73]. - The PRC subsidiaries intend to develop and commercialize additional products through research and development or by acquiring technologies and patents, which is critical for their growth strategy[78]. - Changes in payment terms with customers and suppliers may materially affect the PRC subsidiaries' operating cash flows, posing a risk to their financial condition[85]. - The PRC subsidiaries' products may be subject to recalls if they fail to meet quality requirements, which could lead to significant costs and harm their financial condition[59]. - The impact of geopolitical conflicts on the global economy and the PRC subsidiaries' financial condition remains indeterminate, despite stable supply chains for raw materials[70]. Legal and Compliance Challenges - The company may incur significant liabilities if its products are found to infringe upon third-party rights, which could adversely affect operations and financial condition[89]. - Economic recessions could significantly impact the PRC subsidiaries' business, affecting discretionary spending and order volumes[94]. - Changes in U.S. and international trade policies, including tariffs, may adversely affect the PRC subsidiaries' business and operating results[95]. - The company is vulnerable to disruptions from pandemics, natural disasters, and geopolitical uncertainties, which could materially affect operations and financial results[99]. - The company requires substantial additional financing for business expansion and development, which may not be available on favorable terms[98]. - The PRC subsidiaries are subject to various environmental laws, and failure to comply could result in fines and liabilities, adversely affecting the Group[104]. - Hangzhou Shanyou failed to obtain the necessary Environmental Impact Statement approval before construction, risking penalties between RMB0.2 million and RMB2 million[108]. - The company has not provided fire protection design drawings or prepared Inspection and Acceptance Reports of Fire Protection, which could lead to fines between RMB30,000 and RMB300,000[111]. - Hangzhou Shanyou did not obtain a construction license prior to construction, potentially incurring fines of approximately $77,500 to $169,100 for various compliance failures[114]. - The PRC subsidiaries have leased properties without valid property ownership certificates, posing risks of dispossession and operational disruptions[117]. Revenue and Supplier Relationships - The leased land for warehouses requires approval from collective members, and non-compliance could lead to lease termination and operational disruptions[118]. - The PRC subsidiaries could face fines of up to RMB10,000 for each unregistered property lease if compliance is not rectified[119]. - Total revenues for the Group were $9,848,715, $11,506,440, and $13,565,951 for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[124]. - Revenues from related party sales accounted for 0.4%, 5%, and 8% of total revenues for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[124]. - The Group made a significantly greater amount of bad debt provision in the fiscal year ended September 30, 2022, due to customers' lack of working capital[126]. - The company cannot assure timely collection of payments from customers, which could adversely affect its financial condition and results of operations[126]. - As of September 30, 2025, the PRC subsidiaries had approximately 1,026 domestic distributors, an increase from 953 in 2024 and 892 in 2023[127]. - The top three significant suppliers represented approximately 16%, 11%, and 8% of total supplies purchased for the fiscal year ended September 30, 2025, compared to 15%, 10%, and 7% in 2024, and 13%, 11%, and 9% in 2023[129]. - The PRC subsidiaries' ability to maintain relationships with existing suppliers and establish new supplier agreements is critical for production[129]. - The PRC subsidiaries face risks from potential non-compliance by distributors, which could negatively affect brand demand and relationships with other distributors[128]. Governmental Influence and Regulatory Compliance - The PRC government exerts substantial influence over business operations, which may change rapidly and impact the subsidiaries' financial performance[145]. - The New Administrative Rules Regarding Overseas Listings require Chinese domestic companies to complete filing procedures with the CSRC within three working days of IPO or subsequent offerings[141]. - The PRC subsidiaries had 169, 141, and 143 suppliers for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[129]. - The PRC subsidiaries' revenue is significantly affected by economic, political, and legal developments in China, as well as U.S.-China relations[131]. - The PRC government may impose new regulations that could require additional compliance efforts and expenditures[147]. - The PRC subsidiaries' operations and ability to raise capital may be materially affected by changes in laws and regulations governing foreign investment[145]. - The PRC subsidiaries are subject to various government and regulatory interferences, which may increase compliance costs and penalties for non-compliance[148]. - As of December 21, 2023, the company completed all required filing procedures with the CSRC regarding its IPO, and is currently not required to obtain further approvals from PRC authorities[151]. - The New Administrative Rules Regarding Overseas Listings, effective March 31, 2023, require Chinese companies to complete filing procedures with the CSRC within three working days of submitting IPO or listing applications[151]. - The company believes it is not classified as a special purpose vehicle (SPV) under the M&A Rules, thus not requiring CSRC approval for securities offerings[159]. Legal Challenges and Compliance Costs - The PRC subsidiaries have obtained necessary licenses and permissions to operate, including Medical Device Registration Certificates and Business Licenses[162]. - The PRC government may impose additional oversight on overseas offerings, potentially hindering the company's ability to offer securities outside China[162]. - The company may face difficulties in enforcing foreign judgments or legal processes in China due to the lack of reciprocal recognition treaties[152]. - Shareholder claims related to securities law in the U.S. are challenging to pursue in China due to significant legal obstacles[153]. - The M&A safety review rules require foreign investors to file applications for M&A safety reviews in specific sensitive sectors, which could impact future acquisitions[160]. - The company may incur additional costs and face procedural obstacles in enforcing judgments in Hong Kong, as U.S. judgments are not directly enforceable there[155]. - PRC subsidiaries may face significant regulatory hurdles in pursuing acquisitions, including potential delays from MOFCOM and scrutiny from national security reviews[163]. - The PRC subsidiaries' ability to expand through acquisitions could be materially affected by compliance with anti-monopoly laws, particularly if target companies have revenues exceeding RMB400 million[172]. - As of the latest report, the PRC subsidiaries have not been involved in any cybersecurity reviews or received sanctions, but future regulations may impose new compliance requirements[166]. - The Cyberspace Administration of China has established that operators with personal data of over one million users must undergo cybersecurity reviews for foreign listings, but the company does not currently meet this threshold[166]. Regulatory Uncertainties and Compliance Obligations - The new administrative rules regarding overseas listings require domestic companies to file with the CSRC within three working days after submitting applications overseas, which could impact future capital raising efforts[166]. - Regulatory uncertainties regarding approvals for overseas listings may significantly hinder the company's ability to offer securities to investors[167]. - The company has notified PRC-resident beneficial owners of their filing obligations under SAFE Circular 37, but compliance cannot be guaranteed for all[175]. - PRC regulations may limit the company's ability to inject capital into PRC subsidiaries or distribute profits, potentially affecting liquidity and expansion plans[173]. - The company is subject to governmental control over currency conversion, which may delay the use of IPO proceeds for loans or capital contributions to PRC subsidiaries[176]. - The regulatory landscape in China is evolving, with potential implications for data security and overseas listings that could materially affect the company's operations and financial condition[164]. - Loans to the WFOE in China are subject to PRC regulations and cannot exceed statutory limits, requiring registration with SAFE[177]. - As of September 30, 2025, restricted assets in PRC subsidiaries amounted to $3,235,308, up from $972,494 in 2024[184]. - PRC regulations require subsidiaries to set aside at least 10% of after-tax profits for statutory reserves until reaching 50% of registered capital[184]. - A 10% PRC withholding tax applies to dividends payable to non-resident investors, which may affect the value of investments in Class A Ordinary Shares[188]. Currency and Taxation Risks - Fluctuations in the RMB against the U.S. dollar can impact the value of dividends payable and may result in foreign currency exchange losses[194]. - SAFE Circular 28 allows foreign-invested enterprises to use capital funds for equity investments in China, but its practical implementation remains uncertain[181]. - Restrictions on currency exchange may limit the ability to utilize revenue effectively, particularly for funding business activities outside of China[193]. - The PRC government may impose limitations on foreign currency purchases for current account transactions, affecting liquidity and funding capabilities[180]. - If deemed a PRC resident enterprise, the company could be subject to a 25% income tax on global income, impacting profitability[187]. - Indirect transfers of equity interests may be subject to PRC enterprise income tax, introducing additional compliance challenges[189]. - PRC subsidiaries failed to make required contributions to social insurance and housing provident funds, with unmade contributions of $227,789, $300,945, and $287,629 for the fiscal years 2025, 2024, and 2023 respectively[196]. - Contributions for the housing provident fund that should have been made but were not total $99,552, $94,815, and $90,620 for the fiscal years 2025, 2024, and 2023 respectively[196]. - The company may incur additional costs to comply with PRC laws and regulations regarding employee benefits, which could adversely affect its financial condition and results of operations[197]. Market Compliance and Listing Risks - The Class A Ordinary Shares may face delisting under the Holding Foreign Companies Accountable Act if the PCAOB cannot inspect the auditors, which could materially affect investment value[198]. - The SEC has proposed rules that could impact the company if its auditor is not subject to PCAOB inspection, potentially leading to earlier delisting than required by the HFCA Act[207]. - The trading price of Class A Ordinary Shares is likely to be volatile due to factors including performance of other Chinese companies listed in the U.S. and general market conditions[211]. - A decline in the closing price of Class A Ordinary Shares could breach Nasdaq's continued listing requirements, leading to potential suspension or delisting[213]. - The company’s former auditor was replaced by HTL, which is currently subject to PCAOB inspection, adding uncertainties to the company's offerings[204]. - New laws and regulations in the U.S. and China could affect the company's ability to maintain its Nasdaq listing, impacting market price and trading[208]. - The enactment of the Hong Kong National Security Law and the U.S. Hong Kong Autonomy Act could materially affect the operations and financial position of the company's Hong Kong subsidiary[209]. - The Company received a notification from Nasdaq on April 7, 2025, indicating non-compliance with the minimum bid price requirement, needing to maintain a closing bid price of at least $1.00 for 10 consecutive business days[216]. - The compliance deadline was initially set for October 6, 2025, with a potential extension of an additional 180 days until April 6, 2026, if necessary[216]. - The Company regained compliance on November 4, 2025, by maintaining a minimum closing bid price of $1.00 or greater from October 10, 2025, to November 3, 2025[217]. - Future compliance issues may arise, and if delisted, the Company could face significant consequences under the Nasdaq Excessive Reverse Share Split Rule[218]. - Under the Nasdaq Excessive Reverse Share Split Rule, companies are limited in the number of reverse share splits they can perform within a year to regain compliance[218]. - If the Class A Ordinary Shares fall out of compliance within a year after a reverse share split, the Company may receive a delisting determination without a compliance period[218]. - The Company has previously faced compliance challenges, highlighting the importance of maintaining stockholder equity and share price[215]. - The Nasdaq rules require ongoing adherence to various listing standards, including minimum market value of publicly held shares[215]. - The Company must remain vigilant to avoid potential delisting, which could negatively impact the securities' market price[215]. - The appeal process is available if a delisting determination is issued, allowing for a stay on any suspension or delisting actions[218].

Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. for the three months ended December 31, 2025, was $186.5 million, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, reflecting a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Liabilities - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, up from $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, indicating strong growth in equity[14] - The total long-lived assets, net as of December 31, 2025, were $1,335.9 million, a decrease from $1,355.8 million as of September 30, 2025[95] Cash Flow - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - Net cash used in operating activities was $(24.4) million for the three months ended December 31, 2025, compared to $16.6 million in 2024[13] - Net cash provided by investing activities was $427.3 million, a significant increase compared to $(22.4) million in the same period of 2024[13] - Proceeds from the issuance of long-term debt amounted to $540.3 million during the quarter[13] Dividends and Share Repurchase - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a per-share dividend of $0.56 for Class A shares and $0.83 for Class B shares[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - Customized Polymer Solutions generated $305.1 million in net sales, while Durable Metal Solutions generated $354.8 million, Sustainable Fiber Solutions generated $311.9 million, and Innovative Closure Solutions generated $23.0 million for the three months ended December 31, 2025[92] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is now classified as discontinued operations, impacting the company's financial results[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and qualifies as discontinued operations due to its strategic impact[31] Accounting and Compliance - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million in the same period of 2024[38] Taxation - Income tax expense for the quarter was $58.9 million, up from $6.8 million in the prior year, primarily due to a one-time discrete tax expense of $49.3 million related to the Soterra Divestiture[74] Other Comprehensive Income - The Company reported accumulated other comprehensive income of $(238.9) million as of December 31, 2025, compared to $(385.8) million as of December 31, 2024, showing improvement in this area[14] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]

Financial Performance - Net income for the three months ended December 31, 2025, was $180.9 million, a significant increase from $26.7 million in the same period of 2024, representing a growth of 577.5%[9] - Comprehensive income attributable to Greif, Inc. was $186.5 million for the three months ended December 31, 2025, compared to a loss of $16.2 million in 2024[9] - As of December 31, 2025, Greif, Inc. reported a net income of $174.6 million, compared to $22.0 million for the same period in 2024, indicating a significant increase in profitability[14] - Comprehensive income for the three months ended December 31, 2025, was reported at $186.5 million, compared to a loss of $16.2 million for the same period in 2024[14] - For the three months ended December 31, 2025, total net sales reached $994.8 million, a decrease from $1,016.7 million in the same period of 2024, representing a decline of approximately 2.2%[92][93] - Operating profit for the three months ended December 31, 2025, was $256.6 million, compared to $34.1 million in the same period of 2024, indicating a significant increase[92][93] Assets and Equity - Total assets decreased to $5,502.5 million as of December 31, 2025, down from $5,766.8 million as of September 30, 2025[12] - Total shareholders' equity increased to $2,978.5 million as of December 31, 2025, compared to $2,952.4 million as of September 30, 2025[12] - The total shareholders' equity as of December 31, 2025, was $2,978.5 million, up from $2,077.1 million as of December 31, 2024, reflecting a growth of approximately 43.4% year-over-year[14] Debt and Cash Flow - Long-term debt decreased to $655.1 million as of December 31, 2025, from $914.8 million as of September 30, 2025, reflecting a reduction of 28.4%[12] - Cash and cash equivalents at the end of the period were $243.5 million, down from $256.7 million at the beginning of the period[13] - The company reported net cash used in operating activities of $24.4 million for the three months ended December 31, 2025, compared to net cash provided of $16.6 million in 2024[13] - The Company had $288.9 million in short-term debt as of December 31, 2025, compared to $287.7 million as of September 30, 2025[50] Dividends and Share Repurchase - The company paid dividends of $32.5 million to Greif, Inc. shareholders during the three months ended December 31, 2025[13] - The company declared dividends of $31.7 million to Greif, Inc. shareholders for the quarter, with a dividend per Class A share of $0.56 and Class B share of $0.83[14] - The Company repurchased 1,813,600 shares of Class A Common Stock and 110,088 shares of Class B Common Stock under the 2017 Authorization during the three months ended December 31, 2025[84] - The Company has authorized a new share repurchase program for up to $300.0 million under the 2025 Authorization, which will commence after completing the 2017 Authorization[83] Segment Performance - The Customized Polymer Solutions segment reported net sales of $305.1 million in Q4 2025, up from $294.4 million in Q4 2024, reflecting a growth of approximately 2.4%[92][93] - The Durable Metal Solutions segment achieved net sales of $354.8 million in Q4 2025, compared to $355.9 million in Q4 2024, showing a slight decline of about 0.3%[92][93] - The Sustainable Fiber Solutions segment reported net sales of $311.9 million in Q4 2025, down from $344.0 million in Q4 2024, reflecting a decline of about 9.3%[92][93] - The Innovative Closure Solutions segment generated net sales of $23.0 million in Q4 2025, compared to $22.4 million in Q4 2024, indicating a growth of approximately 2.7%[92][93] Restructuring and Divestitures - Greif, Inc. completed the divestiture of its containerboard business on August 31, 2025, which is classified as discontinued operations, impacting the company's financial results significantly[19] - The Company completed the Soterra Divestiture on October 1, 2025, selling approximately 173,000 acres of timberland for $462.0 million, resulting in a gain of $216.2 million[30] - The Containerboard Business was divested for $1,804.7 million, with transaction costs of $23.4 million, and this divestiture qualifies as discontinued operations due to its significant impact on the Company's financial results[31] - The Company recorded restructuring charges of $8.2 million for the three months ended December 31, 2025, compared to $3.3 million for the same period in 2024[38] - The Company incurred $4.5 million in employee separation costs as part of its restructuring efforts during the three months ended December 31, 2025[38] - The Company has remaining expected restructuring costs of $26.6 million as of December 31, 2025[40] Accounting and Reporting Changes - The company has reclassified its financial results to reflect the new reportable segments, including the change from Integrated Solutions to Innovative Closure Solutions, effective October 1, 2025[21] - The fiscal year for Greif, Inc. now begins on October 1 and ends on September 30, aligning with the recent changes in reporting structure[24] - The Company adopted new accounting standards related to segment reporting in November 2023, which did not materially impact its financial position or results[25] - The Company is in the process of adopting new accounting standards, including ASU 2023-09 for income tax disclosures, effective October 1, 2025[28] - The Company is evaluating the impact of adopting new accounting standards on its financial position and results of operations[27] Other Financial Metrics - The Company recorded realized gains of $0.3 million and unrealized net losses of $(0.8) million for the three months ended December 31, 2025, under foreign exchange hedges[61] - The Company wrote down long-lived assets with a carrying value of $0.7 million to a fair value of $0.5 million, resulting in recognized asset impairment charges of $0.2 million for the three months ended December 31, 2025[66] - The Company granted 131,518 restricted stock units (RSUs) on November 3, 2025, with a weighted average fair value of $56.75[69] - The Company granted 215,586 performance stock units (PSUs) on November 3, 2025, with a weighted average fair value of $53.71[71] - The Company reported a basic and diluted EPS of $6.59 and $6.59, respectively, for the three months ended December 31, 2025[80] - The Company’s accumulated other comprehensive income (loss) as of December 31, 2025, was $(238.9) million, an improvement from $(250.8) million as of September 30, 2025[86]

Acquisition and Financing - The company entered into a framework agreement to acquire approximately 82% of Blessing Logistics, an oil trading company, for an expected value of approximately $2.0 million[39]. - The company issued a secured promissory note to Streeterville Capital for a principal amount of $7,510,000, resulting in gross proceeds of $7,000,000[41]. - The company sold 1,977,302 Class A Ordinary Shares at a price of $2.30 per share, generating approximately $4,547,800 in gross proceeds[45]. - The company plans to negotiate a definitive share purchase agreement for the acquisition of Blessing Logistics within 60 days of the framework agreement[40]. - The company has a collateral package for the secured promissory note, including a pledge of equity interests and cash collateral[42]. Nasdaq Compliance and Delisting - The company conducted a 1-for-25 reverse stock split on May 19, 2025, to regain compliance with Nasdaq's bid price rule[59]. - Nasdaq confirmed compliance with its listing rule after the company's shares traded at $1.00 or greater for ten consecutive business days[60]. - The company received a delisting notice from Nasdaq due to the bid price falling below $1.00 for 30 consecutive business days[61]. - The company submitted a hearing request to appeal the delisting determination, which allows its shares to continue trading on Nasdaq during the appeal process[62]. - The company has been actively monitoring compliance with Nasdaq's listing requirements and is considering options to resolve deficiencies[58]. Financial Performance and Dividends - As of the date of the annual report, CN Energy has transferred $56.9 million to its subsidiaries through Energy Holdings, CN Energy USA, and Zhejiang CN Energy[74]. - None of CN Energy's subsidiaries have made any dividends or distributions to the company, and it does not anticipate paying cash dividends in the foreseeable future[76]. - Current PRC regulations allow indirect PRC subsidiaries to pay dividends to MZ HK only from accumulated profits, and they must set aside at least 10% of after-tax profits for statutory reserves until it reaches 50% of registered capital[79]. - The company faces a 25% PRC enterprise income tax on payments from subsidiaries to parent companies, which could impact dividend distributions[82]. - Dividends paid by PRC subsidiaries to MZ HK may be subject to a withholding tax rate of up to 10%, potentially reduced to 5% under certain conditions[83]. Regulatory Environment and Compliance - The company is not subject to additional permissions or approval requirements from PRC authorities for its current operations, and it has received all necessary licenses and approvals[68]. - The Chinese government has strengthened anti-monopoly supervision, but as of the date of the report, these actions have not impacted the company's ability to conduct business or accept foreign investments[67]. - Future regulatory changes in China could require the company to obtain additional approvals for its operations, which may adversely affect its financial condition[69]. - The company does not anticipate collecting over one million users' personal information, which would subject it to cybersecurity reviews by the CAC[65]. - The company has not been involved in any investigations related to cybersecurity reviews initiated by PRC regulatory authorities as of the date of the report[65]. Market and Operational Risks - The U.S. robotics market is highly competitive, and the company may face challenges in establishing effective local operations and meeting customer requirements[86]. - The company is exposed to risks related to supply chain disruptions, which could adversely affect its ability to meet customer demand[89]. - Increases in raw material prices could significantly raise production costs, impacting the company's financial results[90]. - The operating entities are affected by the PRC's Work Plan for Greenhouse Gas Emission Control, which may promote demand for activated carbon products but its impact remains uncertain[103]. - Increased compliance costs for utilities may limit production and delay demand for the operating entities' products, adversely affecting financial results[104]. Competition and Industry Challenges - The activated carbon industry is highly competitive, with significant competition from other PRC producers, which may affect market share and profitability[118]. - The operating entities face risks related to the protection of trade secrets and intellectual property, which could lead to increased competition and financial losses[105]. - The operating entities must continuously hire and train qualified employees to maintain service quality, as competition for talent is intense[121]. - Future regulations on greenhouse gas emissions will become more stringent, potentially increasing operational costs for the operating entities[114]. - The operating entities do not currently carry environmental insurance, which may expose them to significant liabilities in the event of environmental claims[113]. Financial Reporting and Governance - A material weakness in internal control over financial reporting was identified, raising concerns about the accuracy of financial results[219]. - The Company plans to hire qualified accounting personnel and implement training programs to address the identified material weakness[220]. - The Company is classified as an "emerging growth company," which may complicate performance comparisons with other public companies[222]. - The Company may face reduced liquidity and trading activity due to its Class A ordinary shares being classified as "penny stock"[212]. - The Company’s governance practices differ from Nasdaq standards, potentially affording shareholders less protection[201]. Shareholder and Market Considerations - The company does not expect to pay any cash dividends in the foreseeable future, relying instead on price appreciation for returns on investment[186]. - The trading price of Class A ordinary shares may be volatile due to various factors, including market conditions and the performance of other companies listed in the U.S. with operations in China[190]. - The lack of independent analyst coverage could negatively impact the trading price of Class A ordinary shares[189]. - The company intends to retain most of its available funds for business development, which may limit its ability to pay dividends[187]. - The SEC and PCAOB have highlighted risks associated with investing in companies based in emerging markets, including potential fraud and lack of auditor access[155].

Financial Performance - For the fiscal year ended September 30, 2023, the company reported revenues of RMB 93,307,000, which is expected to increase to RMB 113,381,000 in 2024, but projected to decline to RMB 91,290,000 in 2025, indicating a fluctuation in revenue trends [64]. - The gross profit for 2023 was RMB 17,247,000, which decreased to RMB 16,067,000 in 2024 and is projected to further decline to RMB 6,393,000 in 2025, reflecting challenges in maintaining profitability [64]. - The company incurred a net loss of RMB 57,964,000 in 2025, following a net income of RMB 62,669,000 in 2023 and RMB 18,678,000 in 2024, highlighting a significant downturn in financial performance [64]. - Total assets decreased from RMB 131,562,000 in 2024 to RMB 100,647,000 in 2025, while total liabilities also reduced from RMB 190,161,000 to RMB 162,163,000 during the same period [65]. - The company reported a current working capital deficit of RMB 84,535,000 in 2024, slightly improving to RMB 83,256,000 in 2025, indicating ongoing liquidity challenges [66]. Capital and Investment - The company has raised approximately $5.36 million (RMB 38.26 million) through the sale of shares under an "at the market" arrangement, but still requires additional capital to sustain operations [75]. - The company entered into a Cooperation Framework Agreement with BC-TID, resulting in an investment of RMB 137.7 million (US$20.2 million) for a new entity, with BC-TID owning 51% and the company owning 49% [186]. - The company has established three new seed distribution joint ventures in Xuzhou, Anhui, and Hubei, each held at 65% [189]. Market and Competition - The company faces competition from traditional seed products and international players in the GM seed market, necessitating a focus on innovation and market adaptation [72]. - The company is a leader in corn seed biotechnology in China, but faces competition from multinational corporations with greater resources and advanced technologies, which could affect product acceptance [86]. - The GM seed market outside China is dominated by major companies like Monsanto and Corteva Agriscience, which hold approximately 70% of the U.S. market, posing a threat to the company's sales and licensing opportunities [87]. - The seed business is highly competitive, with both domestic and international players, and pricing pressures from traditional seed producers may negatively impact financial results [85]. - The company faces significant challenges in obtaining necessary approvals for genetically modified (GM) corn products, which could adversely impact future development and recovery of R&D costs [78]. Regulatory Environment - Regulatory uncertainties regarding genetically modified organisms (GMOs) in China could adversely affect the company's ability to commercialize its biotech products, impacting overall business strategy [77]. - Compliance with foreign regulatory requirements is costly and may hinder the company's ability to distribute products outside China, where rigorous testing and pre-approval are mandatory [79]. - Compliance with evolving PRC regulations is critical; failure to adhere could result in fines or operational restrictions, adversely affecting revenues [101]. - The PRC government may impose penalties or require restructuring of operations if the VIE agreements are found non-compliant with regulations [145]. - The Foreign Investment Law, effective January 1, 2020, introduces uncertainties regarding the classification of VIEs and their compliance with market access requirements for foreign investment [160]. Research and Development - The company plans to continue developing new seed traits to maintain its biotech pipeline, which is crucial for future growth and competitiveness in the market [72]. - The company has developed transgenic corn seed products, including first-generation biotech products and stacked traits of Bt and glyphosate tolerance genes [182]. - The company has established several plant genetic engineering technology platforms focusing on traits such as herbicide tolerance, insect resistance, and drought stress tolerance in corn [200]. - The company has created a corn gene editing experimental platform since 2017, developing traits like high lutein and high lysine, currently under verification [209]. - The company is in the process of applying for GMO Biosafety certificates and is actively discussing requirements with relevant authorities [234]. Intellectual Property - Intellectual property rights are crucial for the company, and potential infringement claims could lead to substantial legal expenses and disrupt business operations [94]. - Intellectual property protection in China remains underdeveloped, increasing risks for the company in safeguarding its innovations [97]. - The company holds four Chinese patents and 27 trademarks related to its seed products, with additional patents pending [203]. - Hainan Aoyu and Origin Agriculture hold all intellectual property rights, managed through Exclusive Master Service Agreements and Business Cooperation Agreements [257]. Operational Risks - The company utilizes joint ventures in China for its seed business, which presents financial, managerial, and operational risks that could adversely affect revenues and cash flows [81]. - The company operates through variable interest entities (VIEs) in China, facing regulatory uncertainties that could adversely affect financial performance and enforceability of agreements [139]. - The legality and enforceability of the VIE arrangements have not been tested in court, posing risks to the company's reported ownership and financial statements [142]. - Any failure by the VIE or its shareholders to perform obligations could materially affect the company's business and financial condition [151]. - Shareholders of the VIE may have conflicts of interest that could adversely affect the company's control and economic benefits from the VIE [154]. Taxation and Financial Compliance - The applicable enterprise income tax rate for the company and its operating entities is 25% under the new EIT law [241]. - The company is subject to a 10% withholding tax on dividends payable to foreign investors from PRC sources, with no tax treaty currently existing with the British Virgin Islands [116]. - Potential adverse tax consequences may arise from transfer pricing adjustments by PRC tax authorities, impacting the company's financial condition [102]. - Changes in tax treatment for subsidiaries could increase overall tax liabilities, affecting profitability in future fiscal years [103]. Market Introduction and Approval Processes - The approval process for new seed varieties in China requires a minimum yield increase of 8% compared to control seeds, with successful candidates undergoing two growing seasons of testing in at least five locations [229]. - It typically takes a minimum of six years to bring a new seed variety to market, including three years for approval and three years for crop development [231]. - The introduction of the Corn Seed Green Pass Test System allows for faster market introduction of new hybrid varieties, with field tests conducted by the company itself [230].

Financial Performance - Revenue for the three months ended January 2, 2026, was $3,025 million, a 61% increase from $1,876 million for the same period in 2024[192] - Gross profit increased to $1,541 million, representing a gross margin of 50.9%, compared to 32.3% in the prior year[192] - Operating income rose to $1,065 million, a significant increase of 446% from $195 million in the previous year[192] - Net income for the quarter was $803 million, up 672% from $104 million in the same quarter of the previous year[192] - Net revenue increased 42% to $5,333 million for the six months ended January 2, 2026, compared to $3,759 million for the same period in the prior year, driven by a 26% increase in exabytes sold and a 13% increase in average selling prices (ASP) per gigabyte[195] - Datacenter revenue rose 29% to $1,061 million for the six months ended January 2, 2026, primarily due to a 41% increase in exabytes sold, despite a 9% decrease in ASP per gigabyte[196] - Edge revenue increased 46% to $3,065 million for the six months ended January 2, 2026, driven by a 24% increase in exabytes sold and an 18% increase in ASP per gigabyte[197] - Gross profit increased by $896 million for the six months ended January 2, 2026, resulting in a gross margin increase of 600 basis points to 41.8%[200] Expenses and Costs - Research and development expenses increased by $81 million for the six months ended January 2, 2026, primarily due to a $46 million increase in compensation and benefits and a $9 million increase in spending for R&D projects[203] - Selling, general and administrative expenses increased by $46 million for the six months ended January 2, 2026, mainly due to a $28 million increase in compensation and benefits and a $26 million increase in outside service costs[205] - Interest and other expense, net increased by $134 million for the six months ended January 2, 2026, primarily due to the settlement of legal matters and an increase in interest expense[212] Tax and Legal Matters - The company recorded a $10 million tax benefit related to the impact of the One Big Beautiful Bill Act on the Company's 2025 tax provision[213] - For the three months ended January 2, 2026, the effective tax rate was 14%, with an income tax expense of $134 million on income before taxes of $937 million[216] - The Company recorded a tax indemnification liability of $112 million on February 21, 2025, with a remaining liability of $128 million classified as Other liabilities as of January 2, 2026[234] - The liability for unrecognized tax benefits as of January 2, 2026, was approximately $196 million, with potential cash payments of about $195 million[232] Cash Flow and Investments - Net cash provided by operating activities for the six months ended January 2, 2026, was $1,507 million, a significant increase from a cash outflow of $36 million in the same period the previous year[218] - Net cash used in investing activities for the six months ended January 2, 2026, was $180 million, primarily due to $89 million in capital expenditures[224] - Net cash used in financing activities for the six months ended January 2, 2026, totaled $1,273 million, mainly from term loan repayments of $1,250 million[225] - As of January 2, 2026, the company held $476 million in cash and cash equivalents outside of the U.S., with no material tax consequences for repatriation[220] - The total known material cash requirements as of January 2, 2026, amounted to $9,138 million, including long-term debt and commitments related to Flash Ventures[227] Business Operations and Agreements - The company expects demand for NAND storage to continue to outpace supply through calendar year 2026 and beyond, driven by AI infrastructure growth[184] - A five-year supply agreement with SDSS includes a minimum annual commitment of $550 million, which may lead to a modest reduction in annual operating expenses[180] - The company entered into a loan agreement for a $2.0 billion Term Loan Facility and a $1.5 billion Revolving Credit Facility[182] - The business separation from Western Digital Corporation was completed on February 21, 2025, with 80.1% of shares distributed to WDC stockholders[176] - The company anticipates increased capital investments in fiscal year 2026 to transition to newer nodes to meet product demand[218] - The Company has entered into indemnification agreements with directors and certain officers, requiring indemnification against certain liabilities arising from their service[235] - Historically, the Company has not incurred material costs from obligations under indemnification agreements[236] - There have been no material changes in critical accounting policies and estimates from those disclosed in the Annual Report on Form 10-K for the year ended June 27, 2025[239] Performance Metrics - Sales incentive and marketing programs represented 14% of gross revenues for the three months ended January 2, 2026, down from 22% in the prior year[199] - The company experienced a 1900 basis points increase in gross margin for the three months ended January 2, 2026, attributed to higher ASP and increased exabytes sold[200] - The cash conversion cycle improved to 105 days for the three months ended January 2, 2026, down from 151 days in the prior year, driven by a decrease in days sales outstanding and days in inventory[222]

Deregistration and Compliance - Linkage Cayman is in the process of deregistration of HQT NETWORK, which ceased operations in April 2025[29]. - The PRC subsidiaries have not provided critical data and personal information outside the territory of the PRC, ensuring compliance with the Personal Information Protection Law[32]. - The Company is not required to complete filing procedures with the CSRC for continued offerings, as the PRC subsidiaries' contributions are under 50% of total financial metrics[33]. - The Company has not received any inquiries or sanctions from the CSRC regarding its planned overseas listing as of the report date[33]. - No permission is required from PRC authorities for the overseas listing of Class A Ordinary Shares, but cybersecurity review may be necessary[46][51]. - The Cybersecurity Review Measures require data processing operators with over one million users to undergo a cybersecurity review before foreign listings[48]. - The Overseas Listing Trial Measures require domestic companies to complete filing procedures with the CSRC within three working days of submitting an application for overseas listing[50]. - The company is not classified as a domestic company under PRC law, thus not subject to certain filing requirements for overseas offerings[51]. - The PRC subsidiaries have not provided personal information outside of China and are believed to be compliant with existing data protection laws[177]. Financial Performance and Dividends - As of the date of the report, no dividends or distributions have been made to shareholders, with future earnings intended to finance business expansion[38]. - Cash dividends on Class A Ordinary Shares may be subject to a withholding tax rate of up to 10% from PRC subsidiaries[41]. - The withholding tax rate may be reduced to 5% if a Hong Kong resident enterprise owns at least 25% of a PRC project, subject to specific requirements[42]. - The value of Class A Ordinary Shares may significantly decline if the company fails to obtain necessary permissions or approvals in the future[51]. - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business operation and expansion[126]. - The company relies on dividends from its PRC subsidiaries for cash and financing, which are subject to PRC laws that restrict dividend payments to retained earnings[194]. - Current PRC regulations allow dividends to be paid only from accumulated profits, with at least 10% of profits required to be set aside for reserve funds until reaching 50% of registered capital[218]. Market and Competition - Revenues decreased from $12.73 million in the fiscal year ended September 30, 2023, to $10.29 million in the fiscal year ended September 30, 2024, and further decreased to $5.10 million for the year ended September 30, 2025, primarily due to a decrease in cross-border sales[59]. - The Operating Entities operate in a highly competitive market, facing competition from both offline and online supply chain providers, retailers, and wholesalers, which could adversely affect their results of operations[58]. - The market price of the Class A Ordinary Shares may be volatile or decline regardless of the company's operating performance, making it difficult for prospective investors to assess the rapidly changing value[55]. - The company has no long-term supply agreements with major suppliers, making it reliant on maintaining good relationships to ensure a sufficient selection and volume of products[66]. Regulatory Environment - Recent regulatory changes in China may impose additional compliance requirements for companies seeking to list overseas, impacting future operations[33]. - The enactment of the Hong Kong National Security Law could impact the company's subsidiaries in Hong Kong, introducing legal and operational uncertainties[57]. - The U.S. government has removed Hong Kong's preferential trade status, which could lead to similar tariffs and trade restrictions as those imposed on mainland China[155]. - The Competition Ordinance in Hong Kong prohibits anti-competitive conduct, and the Hong Kong subsidiaries have complied with these regulations[158]. - Changes in China's economic, political, or social conditions could materially affect the PRC subsidiaries' business and operations[160]. - The PRC legal system's rapid evolution and uncertainties in law enforcement may limit legal protections for the company and its subsidiaries[163]. - The interpretation and enforcement of PRC laws may change quickly, leading to uncertainties that could materially affect business operations[164]. - Recent policies from the Chinese government have impacted various industries, including the internet sector, and future regulations could adversely affect the business and financial condition of PRC subsidiaries[169]. Operational Risks - System interruptions or performance failures in technology infrastructure could damage the company's reputation and results of operations, particularly affecting customer data and order fulfillment[61]. - The Operating Entities may face difficulties in attracting and retaining key personnel, which could adversely affect their business plan implementation[77]. - The Operating Entities are materially dependent on third-party manufacturers, and any disruptions could adversely affect their financial performance[71]. - The Operating Entities' international expansion may encounter various risks, including compliance with different legal and regulatory standards in Southeast Asia[75]. - The Operating Entities face potential disruptions and significant relocation expenses due to increases in rental expenses or lease terminations for their warehouse and offices[88]. - Cybersecurity risks pose a significant threat to the Operating Entities, potentially leading to operational disruptions and financial data misstatements[99][100]. - The Operating Entities have established measures to address cybersecurity threats, but there is no assurance that these measures will be fully effective[102]. Corporate Governance and Compliance - The audit committee is responsible for reviewing and approving all material related party transactions, which may present potential conflicts of interest[105]. - The Operating Entities have engaged in substantial transactions with related parties, with amounts due to related parties being $426,043, $314,544, and $1,413,604 for the fiscal years ended September 30, 2025, 2024, and 2023 respectively[103]. - The company may face challenges in maintaining compliance with SEC regulations, which could strain its management and financial resources[123]. - The company is classified as an "emerging growth company" and may take advantage of reduced reporting requirements until it no longer meets the criteria[122]. Currency and Taxation - Fluctuations in exchange rates could materially affect the company's results of operations and the value of investments, with the RMB having appreciated over 20% against the USD since 2005[207]. - The company's financial statements are presented in U.S. dollars, and changes in RMB/USD exchange rates affect asset values and operational results[208]. - The PRC government imposes controls on the convertibility of RMB into foreign currencies, which may restrict the company's ability to pay dividends in foreign currencies[195]. - The PRC tax authority may challenge the company's qualification for preferential tax treatment, potentially subjecting it to a higher withholding tax rate[221]. - If classified as a PRC "resident enterprise," the company could face a 25% enterprise income tax on worldwide income, adversely affecting net income and shareholder returns[210]. Future Outlook and Strategic Plans - The company plans to venture into the Southeast Asian market, indicating a strategy for international expansion[63]. - The Operating Entities plan to expand integrated e-commerce services into Southeast Asia, starting with Thailand, Malaysia, and Indonesia over the next two years[74]. - The company's historical performance may not be sustainable, and it cannot guarantee future growth, with potential negative impacts from inflation and changing economic conditions[59]. - The company is currently evaluating options to regain compliance with Nasdaq's continued listing requirements[138].

Financial Performance - For the three months ended December 31, 2025, net income was $1.3 million, or $0.41 per share, compared to $1.2 million, or $0.38 per share for the same period in 2024, representing a 8.3% increase in net income year-over-year [2] - Net interest income for the three months ended December 31, 2025, was $6.0 million, up from $5.0 million in the same period of 2024, reflecting a 20% increase [3] - Noninterest income increased to $1.4 million for the three months ended December 31, 2025, compared to $1.3 million for the same period in 2024, a growth of 7.7% [3] - Noninterest expense rose to $5.5 million for the three months ended December 31, 2025, from $5.0 million in the same period of 2024, primarily due to increased professional services related to the merger [3] - The return on average assets improved to 0.64% for the six months ended December 31, 2025, compared to 0.49% for the year ended June 30, 2025 [11] Asset and Deposit Changes - Total assets decreased to $830.4 million at December 31, 2025, down from $887.7 million at June 30, 2025, a decline of approximately 6.4% [5] - Deposits decreased to $649.6 million at December 31, 2025, from $721.3 million at June 30, 2025, a reduction of about 9.9% due to the withdrawal of $59.3 million in deposits from a public entity [5] Credit Quality - The provision for credit losses was $34,000 for the three months ended December 31, 2025, compared to a credit of $450,000 for the same period in 2024, indicating a significant improvement in asset quality [3] Merger Announcement - The company announced a pending merger with ServBanc Holdco, Inc., valued at approximately $89.8 million, expected to close in the first quarter of 2026 [6] Stockholders' Equity - Stockholders' equity increased to $87.4 million at December 31, 2025, from $81.8 million at June 30, 2025, an increase of approximately 6.9% [5]