Customer and Supplier Concentration - For the year ended June 30, 2023, one customer accounted for 12.5% of total revenues, while for the year ended June 30, 2025, one customer accounted for 37.9% of total revenues[238]. - Three suppliers accounted for 25.4%, 18.3%, and 11.5% of total purchases for the year ended June 30, 2025[239]. - The company relies on a limited number of suppliers, which presents significant risks if those suppliers fail to meet their obligations[239]. - If the company is unable to maintain relationships with major clients, it may materially and adversely affect its business[238]. Economic and Market Risks - A severe or prolonged downturn in the Chinese or global economy could materially and adversely affect the company's business and financial condition[237]. - The trading price of the Ordinary Shares is likely to be volatile, which could result in substantial losses to investors[241]. - The company may experience extreme stock price volatility, making it difficult for prospective investors to assess the rapidly changing value of its Ordinary Shares[246]. Financial Reporting and Compliance - The company is required to maintain effective internal controls over financial reporting as per the Sarbanes-Oxley Act, and failure to do so could lead to inaccuracies in financial statements[235]. - The company is classified as an "emerging growth company" with revenues below $1.235 billion for the last fiscal year, allowing it to take advantage of reduced reporting requirements[257]. - The company does not plan to "opt out" of exemptions afforded to emerging growth companies, which may result in financial statements that are not comparable to those of public companies[258]. Currency and Interest Rate Risks - Substantially all revenues and expenses are denominated in RMB, indicating exposure to foreign exchange risk[625]. - The company has not used derivative financial instruments to manage interest rate risk, and does not anticipate material risks due to changes in market interest rates[626]. Credit and Price Risks - Credit risk exposure is primarily related to bank deposits and receivables from brokers and dealers, with maximum exposure equaling the carrying amount of these financial assets[627]. - The company has adopted a credit policy to deal only with creditworthy counterparties, which are continuously monitored[629]. - Price risk is associated with financial instruments held for proprietary trading, limited to the carrying amount of the financial instruments[630]. Shareholder Considerations - The company may face difficulties in protecting shareholder interests due to its incorporation under Cayman Islands law, which has less developed securities laws compared to the U.S.[253]. - Shareholders may experience dilution of their holdings due to the company's rights offerings, as there is no obligation to file a registration statement[252]. - Certain judgments obtained against the company by shareholders may not be enforceable due to the location of assets and the residency of directors and officers outside the U.S.[256]. Dividend Policy - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation of its Ordinary Shares for returns on investment[249].
U-Bx Technology(UBXG) - 2025 Q4 - Annual Report