UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
For the quarterly period
ended
or
For the transition period from _____________ to ____________
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification Number) |
Avenue
Office:
(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)
Room 202, Gate 6, Building 9, Yayuan, Anhui Bellli
Chaoyang District, Beijing, China 100000
(Former address, if changes since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
| None | Not Applicable |
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☐ | Smaller reporting company | ||
| Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12 b-2 of the Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of the date of filing of this report, there were outstanding
* * * * *
TABLE OF CONTENTS
| Page | |||
| PART I—FINANCIAL INFORMATION | |||
| Item 1 | Financial Statements | 1 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 2 | |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 6 | |
| Item 4. | Controls and Procedures | 6 | |
| PART II—OTHER INFORMATION | |||
| Item 1. | Legal Proceedings | 7 | |
| Item 1A. | Risk Factors | 7 | |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 7 | |
| Item 3. | Defaults Upon Senior Securities | 7 | |
| Item 4. | Mine Safety Disclosure | 7 | |
| Item 5. | Other Information | 7 | |
| Item 6. | Exhibits | 8 |
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
1
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN US DOLLARS)
| As of March 31, | As of September 30, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Receivable from payment collection service institution | ||||||||
| Prepayments | ||||||||
| Other receivables | ||||||||
| Inventories | ||||||||
| Total current assets | ||||||||
| Restricted Cash | ||||||||
| Property and equipment, net | ||||||||
| Right-of-use assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Advance from customers | ||||||||
| Accrued expenses | ||||||||
| Due to related parties | ||||||||
| Deferred tax liability | ||||||||
| Other payables | ||||||||
| Income tax payable | ||||||||
| Operating lease liabilities, current | ||||||||
| Total current liabilities | ||||||||
| Total liabilities | ||||||||
| Equity (Deficit): | ||||||||
| Preferred stock; $ | ||||||||
| Common stock; $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income (loss) | ||||||||
| Total stockholders’ equity (deficit) | ( | ) | ||||||
| Total liabilities and equity (deficit) | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-1
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (INCOME)
(UNAUDITED) (EXPRESSED IN US DOLLARS)
| For the Three Months Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Gross profit | ||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||
| Income from operations | ( | ) | ( | ) | ( | ) | ||||||||||
| Other income (expense) | ||||||||||||||||
| Income before provision for income taxes | ( | ) | ( | ) | ( | ) | ||||||||||
| Provision for income taxes | ( | ) | ( | ) | ||||||||||||
| Net income | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
| Comprehensive income: | ||||||||||||||||
| Net income | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
| Foreign currency translation adjustment | ( | ) | ||||||||||||||
| Comprehensive income | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
| Basic and diluted earnings per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
| Weighted average number of shares outstanding | ||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements
F-2
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY/(DEFICIT)
(UNAUDITED) (EXPRESSED IN US DOLLARS, EXCEPT SHARES)
| Common stock | Additional | Capital stock | Accumulated Other | Total Stockholders’ | ||||||||||||||||||||||||
| Number of Shares | Amount | Paid-in Capital | subscription receivable | Accumulated Deficit | Comprehensive Loss | Equity (Deficit) | ||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||
| Capital subscription received | - | |||||||||||||||||||||||||||
| Net profit | - | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Shares issued | ||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
| Common stock | Additional | Capital stock | Retained Earnings | Accumulated Other | Total Stockholders’ | |||||||||||||||||||||||
| Number of Shares | Amount | Paid-in Capital | Subscription Receivable | (Accumulated Deficit) | Comprehensive Income (Loss) | Equity (Deficit) | ||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
| Net profit (loss) | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||
| Net profit (loss) | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Share-based compensation in exchange for services from employees and directors | ||||||||||||||||||||||||||||
| Exchange rate reclassification | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements
F-3
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (EXPRESSED IN US DOLLARS)
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Income / (Loss) before provision for income taxes | $ | ( | ) | $ | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Operating lease expense | ||||||||
| Interest expense | ||||||||
| Share based compensation expenses | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepayments | ( | ) | ||||||
| Inventories | ( | ) | ||||||
| Other receivable | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Deferred Tax Liability | - | |||||||
| Customer deposits | ( | ) | ( | ) | ||||
| Receivable from payment collection service institution | ( | ) | ||||||
| Accrued expenses | ( | ) | ( | ) | ||||
| Lease payment | ( | ) | ( | ) | ||||
| Income tax payable | ( | ) | ||||||
| Other payables | ( | ) | ( | ) | ||||
| Net cash provided by (used in) operating activities | ( | ) | ( | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Loans from related parties | ||||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rate fluctuation on cash and cash equivalents and restricted cash | ( | ) | ||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ) | ( | ) | ||||
| Cash and cash equivalents and restricted cash , beginning of year | ||||||||
| Cash and cash equivalents and restricted cash, end of period | $ | $ | ||||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for income taxes | $ | $ | ||||||
| Cash paid for interest expense | $ | $ | ||||||
| Supplemental disclosure of non-cash activities | ||||||||
| Right-of-use assets and related lease liabilities | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-4
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Maitong Sunshine Cultural Development Co., Limited (“MGSD”, together as a group with its subsidiaries referred to as “Maitong Sunshine”, “Company”, “us” or “we”) was incorporated in the State of Nevada on October 26, 2023.
MGSD through its operating subsidiary Tongzhilian, which has headquarters in Jiaxing, China, has provided cultural tourism (including Education Tours and Family Tours) and the sale of gift products, Chinese cultural and creative products, as well as a hotel reservation service. MGSD plans to market arts expositions in the future. The Company currently has 1 full-time employees.
MGSD’s subsidiaries includes:
| Maitong Sunshine Cultural Development Co., Limited (Samoa) (“MGSD Samoa”), initially named Oriental Culture Development Co., Limited, was established on September 7, 2023 under the laws of Samoa. On November 27, 2023, MGSD issued | |
| Maitong Sunshine Cultural Development Co., Limited (Hong Kong) (“MGSD HK”), initially named Oriental Culture Development Co., Limited, was established on September 13, 2023 under the laws of Hong Kong. MGSD Samoa holds a | |
Jiaxing Tongzhilian Cultural Development Co., Limited (“Tongzhilian”) is a privately held Limited Company that was approved on September 13, 2023 and registered on October 11, 2023 in Beijing, China. On March 13, 2026, the Company changed its name from “BeiJing Tongzhilian Cultural Development Co., Limited” to “Jiaxing Tongzhilian Cultural Development Co., Limited”, and relocated its address to Jiaxing, Zhejiang. MGSD HK holds a |
The transactions summarized above are treated in our financial statements as a corporate restructuring (reorganization) of entities under common control, as each of the four entities has at all times been under the control of Ms. Huang Fang. Therefore, in accordance with ASC 805-50-45-5, the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and the entities under common control are presented on a combined basis for all periods. Since all of the subsidiaries were under common control for all periods presented, the results of these subsidiaries are included in the Company’s financial statements for all periods.
F-5
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
| A. | Basis of presentation |
The accompanying consolidated financial statements are expressed in U.S. Dollars and have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
| B. | Principles of consolidation |
The consolidated financial statements include the accounts of MGSD
and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements
include
MGSD’s subsidiaries as of March 31, 2026 are listed as follows:
| Name | Place of Incorporation | Attributable equity interest % | Authorized capital | |||||||
| Maitong Sunshine Cultural Development Co., Limited | USD | |||||||||
| Maitong Sunshine Cultural Development Co., Limited | HKD | |||||||||
| Jiaxing Tongzhilian Cultural Development Co., Ltd | RMB | |||||||||
| C. | Use of estimates |
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from these estimates.
| D. | Functional currency and foreign currency translation |
An entity’s functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determining the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Based on that assessment, the functional currency of the Company is the Chinese Renminbi (“RMB’). The functional currency of MGSD HK is the Hong Kong Dollar and the functional currency of MGSD Samoa and MGSD is the United States dollar (“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars.
The financial statements of MGSD’s subsidiaries, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using weighted average rates prevailing during each reporting period, and stockholders’ equity (deficit) is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or expense.
F-6
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations.
The exchange rates used for foreign currency translation are as follows:
| For the Three Months Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (USD to RMB/ USD to HKD) | (USD to RMB/ USD to HKD) | (USD to RMB/ USD to HKD) | (USD to RMB/ USD to HKD) | |||||||||||||||
| Assets and liabilities | period end exchange rate | |||||||||||||||||
| Revenue and expenses | period weighted average | |||||||||||||||||
| E. | Concentration of credit risk |
Financial instruments that potentially subject the Company to concentrations of credit risk are due from related parties and other receivables arising from its normal business activities. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The deposits placed with financial institutions are not protected by statutory or commercial insurance. In the event of bankruptcy of one of these financial institutions, the Company may be unlikely to reclaim its deposits in full. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Company places its cash in what it believes to be credit-worthy financial institutions.
The Company has a diversified customer base. The majority of sales are cash receipt in advance. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.
During the six-month period ending on March 31, 2026, the company had four customers whose revenue accounted for more than 10% of the Company’s total revenue. However, for the six-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
| For the Six Months Ended March 31, 2026 | For the Six Months Ended March 31, 2025 | |||||||||||||||
| Revenue | Percentage of revenue | Revenue | Percentage of revenue | |||||||||||||
| Customer A | $ | % | $ | |||||||||||||
| Customer B | % | |||||||||||||||
| Customer C | % | |||||||||||||||
| Customer D | % | |||||||||||||||
During the three-month period ending on March 31, 2026, the company had one customer whose revenue accounted for more than 10% of the Company’s total revenue. However, for the three-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
| For the Three Months Ended March 31, 2026 | For the Three Months Ended March 31, 2025 | |||||||||||||||
| Revenue | Percentage of revenue | Revenue | Percentage of revenue | |||||||||||||
| Customer A | $ | % | $ | |||||||||||||
| Customer B | ||||||||||||||||
| Customer C | ||||||||||||||||
| Customer D | ||||||||||||||||
F-7
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
For the six-month periods ended March 31, 2026 and March 31, 2025, the Company had 4 major suppliers and 1 major supplier, respectively, each accounting for more than 10% of the Company’s total cost of revenue.
| For the Six Months Ended March 31, 2026 | For the Six Months Ended March 31, 2025 | |||||||||||||||
| Cost of Revenue | Percentage of Cost of revenue | Cost of Revenue | Percentage of Cost of revenue | |||||||||||||
| Supplier A | $ | % | $ | % | ||||||||||||
| Supplier B | % | |||||||||||||||
| Supplier C | % | |||||||||||||||
| Supplier D | % | |||||||||||||||
For the three-month periods ended March 31, 2026 and 2025, the Company had 3 and 2 major suppliers in each respective year, and the purchase amount from each of these suppliers accounted for more than 10% of the Company’s total revenue.
| For the Three Months Ended March 31, 2026 | For the Three Months Ended March 31, 2025 | |||||||||||||||
| Cost of Revenue | Percentage of Cost of revenue | Cost of Revenue | Percentage of Cost of revenue | |||||||||||||
| Supplier A | $ | % | $ | |||||||||||||
| Supplier B | % | |||||||||||||||
| Supplier C | % | |||||||||||||||
| Supplier D | % | |||||||||||||||
| Supplier E | % | |||||||||||||||
| F. | Fair value measurements |
The Company applies the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 820, Fair Value Measurements (“ASC 820”), for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements.
Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.
ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices, other than those in Level 1, in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability,
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
There were no transfers between level 1, level 2 or level 3 measurements during the six months ended March 31, 2026 and 2025.
F-8
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial assets and liabilities of the Company are primarily comprised of cash, receivable from payment collection service institution, prepayments, other receivables, accounts payable, advance from customers, accrued expenses, other payables, income tax payable and due to related parties. As of March 31, 2026 and 2025, the carrying values of these financial instruments approximated their fair values due to the short-term maturity of these instruments.
| G. | Segment information and geographic data |
The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting. The company’s revenues are from customers in People’s Republic of China (“PRC”). Most assets of the Company are located in the PRC.
| H. | Revenue recognition |
The Company adopted FASB ASC Section 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the sales of products and services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue as each performance obligation is satisfied.
The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities as described below.
Service Revenue
The Company provides cultural tourism services, small-scale training services and hotel reservation services. The Company’s policy is to recognize revenue at that time the services have been performed.
Cost of service revenue consists primarily of the purchase cost, staff cost and other cost to fulfill a contract with a customer.
Products sales revenue
Products sales revenue mainly includes sales of cultural and creative products and sales of gift products. The Company’s policy is to recognize the sales when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds, if not prepaid, is reasonably assured, all of which generally occur when the customer receives the products. Accordingly, revenue is recognized at the point in time when delivery is made.
Cost of product sale consists primarily of the cost of product procurement, and other cost to fulfill a contract with a customer
| I. | Income taxes |
The Company follows FASB ASC Section 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met.
F-9
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance.
As a result of the implementation of ASC 740-10, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by ASC 740-10. The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation.
| J. | Earnings (loss) per share |
The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding during the period.
Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS.
| K. | Leases |
In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary.
| L. | Cash and cash equivalents |
As of March 31, 2026, cash consists of bank deposits and deposits in Alipay, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash.
| M. | Restricted Cash |
As of March 31, 2026 and September 30, 2025, restricted cash includes bank deposits held at Zhongguancun Bank, which are subject to restrictions on withdrawal and use. These funds are classified as restricted cash because they may not be released or become available for general use within one year. The Company is currently applying to lift the restrictions on these funds; however, the timing of any release remains uncertain.
| N. | Recently adopted accounting pronouncements |
We do not believe that any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows.
F-10
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 3. PREPAYMENTS
At March 31, 2026 and September 30, 2025, prepayments consisted of:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Hainan Jintongyuan Technology Co., Ltd. | $ | $ | ||||||
| Beijing Shuangjiang Huixin Trading Co., Ltd | ||||||||
| Dongfang Tong (Beijing) Technology Co., Ltd | ( | ) | ||||||
| Beijing Yiguanjia Health Technology Co., Ltd | ||||||||
| Shenzhen Huayu Feng Technology Co., Ltd. | ||||||||
| Dongguan Jiasheng Daily Plastic Products Co., Ltd. | ||||||||
| Hainan Wanshun Da Technology Co., Ltd. | ||||||||
| Shenzhen Hongyuexing Technology Co., Ltd | ||||||||
| Wuchang City Airun Agriculture Co., Ltd. | ||||||||
| Handan Haiying Youpin Food Co., Ltd. | ||||||||
| Xingcheng Xingwan Seafood Farming Co., Ltd. | ||||||||
| Yongfengyuan Ceramics Valley Culture (Beijing) Co., Ltd. | ||||||||
| Chen Deying | ||||||||
| The Sound of Flowers (Beijing) Brand Management Co., Ltd. | ||||||||
| Guangzhou Fu Youyuan Health Management Co., Ltd. | ||||||||
| Jinjiu International Consulting Services (Beijing) Co., Ltd. | ||||||||
| Jiaxing Bozhong Finance and Taxation Consulting Co., Ltd | ||||||||
| Jindou Enterprise (Beijing) Business Management Co., LTD | ||||||||
| VStock Transfer, LLC | ||||||||
| Total Prepayments | $ | $ | ||||||
NOTE 4. OTHER RECEIVABLES
At March 31, 2026 and September 30, 2025, other receivables consisted of:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Shanghai Ctrip International Travel Agency Co., Ltd | $ | $ | ||||||
| Value-added Tax | ||||||||
| Person | ||||||||
| Total other receivables | $ | $ | ||||||
NOTE 5. INVENTORIES
At March 31, 2026 and September 30, 2025, Inventories consisted of the following:
| March 31, 2026 |
September 30, 2025 |
|||||||
| Inventories | $ | $ | ||||||
| Total | $ | $ | ||||||
F-11
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 6. ADVANCE FROM CUSTOMERS
At March 31, 2026 and September 30, 2025, advance from customers consisted of the following:
| Name | March 31, 2026 | September 30, 2025 | ||||||
| Pre-collected member funds | $ | $ | ||||||
| Total | $ | $ | ||||||
As of March 31, 2026 and September 30, 2025,
advances from customers totaled $
NOTE 7. DUE TO RELATED PARTIES
Due to related parties consists of the following:
| Name of related party | March 31, 2026 | September 30, 2025 | ||||||
| Interest-free loan and payment of company expenses: | ||||||||
| Huang Fang | $ | $ | ||||||
| Beijing Devoter Oriental Co., Ltd. | ||||||||
| Shanghai Maitong Cultural Technology Co., Ltd | ||||||||
| Total | $ | $ | ||||||
As of March 31, 2026 and September 30, 2025, the Company owed Huang
Fang a balance of $
As of March 31, 2026 and September 30, 2025, the Company had a balance
of $
As of March 31, 2026 and September 30, 2025, the Company had a balance
of $
Huang Fang is the President, CEO, Chairwoman of the Board and a major shareholder of the Company. She is also the CEO and controlling shareholder of Beijing Devoter Oriental Co., Ltd and she is a major shareholder of Shanghai Maitong Cultural Technology Co., Ltd.
NOTE 8. ACCRUED EXPENSES
At March 31, 2026 and September 30, 2025, accrued expenses consisted of:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Professional service fee payable | $ | $ | ||||||
| Payroll payable | ||||||||
| Social security payable | ||||||||
| PragerMetis | ||||||||
| Total accrued expenses | $ | $ | ||||||
As of March 31, 2026 and September 30, 2025, the Company recorded payables
to its auditor of $
As of March 31, 2026 and September 30, 2025, the Company recorded payroll
payable of $
As of March 31, 2026, and September 30,2025, the Company recorded social
security payable of $
F-12
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 9. OTHER PAYABLES
At March 31, 2026 and September 30, 2025, other payables consisted of:
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Value added tax and surtax | $ | $ | ||||||
| Total | $ | $ | ||||||
NOTE 10. LEASE
On September 1, 2023, Huang Fang, the CEO
of the holding company of Tongzhilian, arranged to lease an office for the soon-to-be-established company, and Tongzhilian signed and
confirmed the agreement when it was officially established. Under the terms of the agreement, Tongzhilian leased office space (approximately
For the six months ended March 31, 2026 and 2025, the lease amortization
expense was $
Huang Fang is the President, CEO, Chairwoman of the Board and a major
shareholder of the Company. She is also the CEO and controlling shareholder of Beijing Devoter Oriental Co., Ltd, and Beijing Devoter
Oriental Co., Ltd owns
As of March 31, 2026 and September 30, 2025, the Company had the following amounts with respect to its lease recorded on the Company’s consolidated balance sheet:
| As of | ||||||||
| March 31, 2026 | September 30, 2025 | |||||||
| Assets | ||||||||
| Right-of-use asset | $ | $ | ||||||
| Total | $ | $ | ||||||
| Liabilities | ||||||||
| Operating lease liability, current | $ | $ | ||||||
| Operating lease liability, less current portion | ||||||||
| Total | $ | $ | ||||||
Future annual minimum lease payments for non-cancellable operating leases are as follows:
| Period Ending March 31, | ||||
| 2026 | $ | |||
| Thereafter | ||||
| Total | ||||
| Less: imputed interest | ||||
| Total | $ | |||
F-13
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 11. INCOME TAXES
United States
MGSD is a Nevada corporation subject to U.S. federal and state taxes.
Pursuant to the Tax Cuts and Jobs Act enacted on December 31, 2017, the U.S. federal corporate income tax rate was reduced to
Samoa
MGSD Samoa was incorporated in Samoa and, under the current laws of Samoa, is not subject to income tax.
Hong Kong
MGSD HK was incorporated in Hong Kong and is subject to Hong Kong
profits tax. MGSD HK is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong
Kong. The applicable statutory tax rate is
China
Tongzhilian is subject to a
A reconciliation of income before income taxes for domestic and foreign locations for the six months ended March 31, 2026 and 2025 is as follows:
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| United States | $ | ( | ) | $ | ( | ) | ||
| Foreign | ( | ) | ||||||
| Before income taxes | $ | ( | ) | $ | ||||
The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows:
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Income tax (benefit) at USA statutory rate | % | % | ||||||
| U.S. valuation allowance | ( | )% | ( | )% | ||||
| Effective combined tax rate | % | % | ||||||
F-14
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 11. INCOME TAXES (continued)
The difference between the PRC statutory income tax rate and the PRC effective tax rate was as follows:
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Income tax (benefit) at PRC statutory rate | % | % | ||||||
| PRC valuation allowance | % | % | ||||||
| Tax preference | % | ( | )% | |||||
| Effective combined tax rate | % | % | ||||||
The Company did not recognize deferred tax assets since it is not likely to incur taxes against which such deferred tax assets may be offset. The deferred tax would apply to MGSD in the U.S. and Tongzhilian in China.
The Company incurred losses from its United States operations during
the six months ended March 31, 2026 and 2025 of $
The Company is subject to examination by the Internal Revenue Service
(IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax
years under examination vary by jurisdiction.
| The year as of | ||
| U.S. Federal | ||
| China |
F-15
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 2026 AND 2025
(UNAUDITED) (AMOUNTS IN US DOLLARS)
NOTE 12. CONTINGENCIES
Contingencies
Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.
Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.
The Company was not subject to any material loss contingency as of March 31, 2026.
NOTE 13. BASIC AND DILUTED EARNINGS PER SHARE
Basic net income per share is computed using the weighted average number
of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares
and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise
of share-based awards, using the treasury stock method.
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Numerator: | ||||||||
| Net (loss) attributable to common stockholders | $ | ( | ) | $ | ( | ) | ||
| Denominator: | ||||||||
| Basic and diluted weighted-average number of shares outstanding | ||||||||
| Net income (loss) per share: | ||||||||
| Basic and diluted | $ | ( | ) | $ | ( | ) | ||
| For the Six Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Numerator: | ||||||||
| Net income (loss) attributable to common stockholders | $ | ( | ) | $ | ||||
| Denominator: | ||||||||
| Basic and diluted weighted-average number of shares outstanding | ||||||||
| Net income (loss) per share: | ||||||||
| Basic and diluted | $ | ( | ) | $ | ||||
NOTE 14. SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date on which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of March 31, 2026 have been incorporated into these consolidated financial statements and there are no other subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”
F-16
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of such financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. On an ongoing basis, we evaluate these estimates, including those related to useful lives of real estate assets, bad debts, impairment, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates.
Application of Critical Accounting Policies
The discussion and analysis of the Company’s financial condition and results of operations is based upon its condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. The preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These items are monitored and analyzed by management for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates if past experience or other assumptions do not turn out to be substantially accurate.
In connection with the preparation of our financial statements for the six months ended March 31, 2026, there was no accounting estimate made which was (a) subject to a high degree of uncertainty and (b) material to our results.
Results of Operations
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
The following table summarizes our operating results for three months ended March 31, 2026 and 2025.
| For the Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||
| (Unaudited) | (Unaudited) | $ | % | |||||||||||||
| Revenue | $ | 647 | $ | 71,892 | $ | (71,245 | ) | (99 | )% | |||||||
| Cost of revenue | 368 | 44,878 | (44,510 | ) | (99 | )% | ||||||||||
| Gross Profit | 279 | 27,014 | (26,735 | ) | (99 | )% | ||||||||||
| Selling, general and administrative expenses | 206,395 | 152,280 | 54,115 | 36 | % | |||||||||||
| Income (loss) from operations | (206,116 | ) | (125,266 | ) | (80,850 | ) | 65 | % | ||||||||
| Other income(expense) | 14 | - | 14 | - | ||||||||||||
| Income before provision for income taxes | (206,102 | ) | (125,266 | ) | (80,836 | ) | 65 | % | ||||||||
| Provision for income taxes | (414 | ) | - | (414 | ) | - | ||||||||||
| Net (Loss) | $ | (205,688 | ) | $ | (125,266 | ) | $ | (80,422 | ) | 64 | % | |||||
2
Tongzhilian’s revenue was $ 647 during the three months ended March 31, 2026. All of our revenue was generated by our subsidiary Tongzhilian, which engaged solely in product sales throughout the quarter.
Revenue during the three months ended March 31, 2026 decrease by 99% compared to the operating revenue of $71,892 for the three months ended March 31, 2025. Recent revenue was primarily attributable to our sale of products, with 100% of our revenue, or $647, during the three months ended March 31, 2026, derived from such sales. The cost of revenue attributable to the sale of products was $368, which was our procurement cost for products sold.
For the three months ended March 31, 2026, we realized a gross profit margin of 43%, as our gross profit amounted to $279.
In the three months ended March 31, 2026, our total revenue experienced a significant decline of 97% when compared to the operating revenue of $ 24,905 recorded in the three months ended December 31, 2025. This disparity can primarily be attributed to the domestic economic slowdown, shrinking household consumption and complicated international situations, which have driven pessimistic market expectations and conservative consumer spending.
As our core business, mid-to-high-end customized travel belongs to non-essential consumption, and has been greatly impacted with weakened customer willingness and fewer intended orders. The nearly 20-day Spring Festival holiday also reduced effective operation time and hindered business progress.
Meanwhile, due to limited manpower, we focused on in-depth service and loyalty improvement for existing prepaid members, and suspended new market and customer expansion. Affected by the overlapping impacts of external consumption weakness, long holidays and internal operational adjustments, our first-quarter performance declined notably.
Operating expenses for the three months ended March 31, 2026 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $206,395 in operating expenses during this period were primarily attributable to:
| ● | $15,357 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States. |
| ● | $53,154 in salaries and benefits, |
| ● | $128,047 in office expenses.which included $79,920 represented by the fair value of 3,600,000 shares of the Company’s common stock that we issued to EHCLGLOBAL in exchange for investor and public relations services. |
| ● | $8,393 in Rentals and leases. |
For the reasons described above, our net loss for the three months ended March 31, 2026 was $206,116.
Six Months Ended March 31, 2026 Compared to Six Months Ended March 31, 2025.
The following table summarizes our operating results for six months ended March 31, 2026 and 2025.
| For the Six Months Ended | ||||||||||||||||
| March 31, | ||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||
| (Unaudited) | (Unaudited) | $ | % | |||||||||||||
| Revenue | $ | 25,552 | $ | 1,094,047 | $ | (1,068,495 | ) | (98 | )% | |||||||
| Cost of revenue | 13,174 | 687,225 | (674,051 | ) | (98 | )% | ||||||||||
| Gross Profit | 12,378 | 406,822 | (394,444 | ) | (97 | )% | ||||||||||
| Selling, general and administrative expenses | 339,239 | 258,195 | 81,044 | 31 | % | |||||||||||
| Income (loss) from operations | (326,861 | ) | 148,627 | (475,488 | ) | (320 | )% | |||||||||
| Other income(expense) | 104 | - | 104 | - | ||||||||||||
| Income before provision for income taxes | (326,757 | ) | 148,627 | (475,384 | ) | (320 | )% | |||||||||
| Provision for income taxes | (468 | ) | 106,900 | (107,368 | ) | (100 | )% | |||||||||
| Net Income (Loss) | $ | (326,289 | ) | $ | 41,727 | $ | (368,016 | ) | (882 | )% | ||||||
3
Tongzhilian’s revenue was $25,552 during the six months ended March 31, 2026. All our revenue was generated by our subsidiary Tongzhilian, which was solely derived from product sales throughout the period.
During the six-month period ending on March 31, 2026, the revenue decreased by 98% compared to the $1,094,047 in the six-month period ending on March 31, 2025. During the six-month period ending on March 31, 2026, all of our revenue (totaling $25,552) came from product sales. The sales cost related to these product sales was $13,174, which is the cost of purchasing the sold products.
For the six months ended March 31, 2026, we realized a gross profit margin of 48%, as our gross profit amounted to $12,378.
Operating expenses for the six months ended March 31, 2026 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $339,239 in operating expenses during this period were primarily attributable to:
| ● | $22,187 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States. |
| ● | $105,429 in salaries and benefits, |
| ● | $193,974 in office expenses, including the $79,920 of stock compensation described above. |
| ● | $16,737 in Rentals and leases. |
Based on the above reasons, for the six-month period ending on March 31, 2026, our net loss was $326,289.00.
Liquidity and Capital Resources
On March 31, 2026, the Company had $1,710 in cash and cash equivalents, a decrease of $2,722 during the six months then ended. The main reason for the decrease in our cash balance was an increase of $1,036 in the balance of other receivables.
The Company had a working capital deficit of $(287,288) as of March 31, 2026. Included in total liabilities is $382,088 payable to our Chief Executive Officer and entities under her control. Excluding this related-party liability, the Company’s working capital as of March 31, 2026 would have been $94,800, consisting primarily of prepayments. Accordingly, the Company is able to finance its near-term operating activities, but will need additional capital infusion to support future growth.
We anticipate that our future liquidity requirements will arise from the need to fund our growth, pay current obligations and future capital expenditures. The primary sources of funding for such requirements are expected to be cash generated from operations plus additional funds sourced from a public offering and/or debt financing. In the near term, we expect Huang Fang, our President, to continue to provide support, if needed. We do not, however, have any formal agreement with Ms. Huang requiring her to provide financing to the Company nor any method of enforcing our expectation. Therefore, we can provide no assurances that we will be able to generate sufficient cash flows from operations and/or obtain additional financing on terms satisfactory to us, if at all.
4
Cash Flows
The following unaudited table summarizes our cash flows for the six months ended March 31, 2026 and 2025.
| For the Six Months Ended March 31, | Change | |||||||||||
| 2026 | 2025 | $ | ||||||||||
| Net cash provided by (used in) operating activities | $ | (121,861 | ) | $ | (285.969 | ) | $ | (54,240 | ) | |||
| Net cash (used in) Investing activities | - | - | - | |||||||||
| Net cash provided by financing activities | 119,084 | 189,300 | 148,177 | |||||||||
| Effect of exchange rate fluctuation on cash and cash equivalents | 1,864 | (24,580 | ) | (26,444 | ) | |||||||
| Net increase in cash and cash equivalents | (868 | ) | (121,249 | ) | 120,381 | |||||||
| Cash and cash equivalents, beginning of period | 73,368 | 698,307 | (624,939 | ) | ||||||||
| Cash and cash equivalents, end of period | $ | 72,500 | $ | 577,058 | $ | (504,558 | ) | |||||
During the six months ended March 31, 2026, our operations used net cash of $121,816. The main reason for the net cash outflow in the operations is that prepayments increased by $208,541, partially offset by share-based compensation expenses of $79,920, resulting in a net cash outflow from operating activities.
Our financing activities during the six months ended March 31, 2026 generated $119,083. This reflects an additional $119,083 in interest-free loans provided to the Company by our CEO, Huang Fang, and her affiliate entities. Our financing activities during the six months ended March 31, 2025 generated $189,300. This reflects an additional $189,300 in interest-free loans provided to the Company by our CEO, Huang Fang, and her affiliate entity.
Trends, Events and Uncertainties
The Company is expanding its product offerings to include more products. In addition, our marketing personnel are developing new customers with the intention of building a stable base of customers. In this manner, the Company hopes to increase sales to support the future operations and development of the Company. There is no guarantee that the Company’s new strategy will be successful.
The U.S. government, including the SEC, has made statements and taken actions that have led to changes in relations between the U.S. and China, and will impact companies with connections to the United States or China. Those actions by the U.S. government included imposing several rounds of tariffs affecting certain products manufactured in China and imposing sanctions and restrictions in relation to China. Actions by the SEC included issuing statements indicating that it would make enhanced review of companies with significant China-based operations. It is unknown whether and to what extent new legislation, executive orders, tariffs, laws or regulations will be adopted, or the effect that any such actions would have on U.S.-domiciled companies with significant connections to China, our industry or on us. Any unfavorable government policies on cross-border relations, including increased scrutiny on companies with significant China-based operations, capital controls or tariffs, may affect our ability to raise capital and the market price of our shares. If any new legislation, executive orders, tariffs, laws and/or regulations are implemented, if existing trade agreements are renegotiated or if the U.S. or Chinese governments take retaliatory actions due to the recent U.S.-China tensions, such changes could have an adverse effect on our business, financial condition and results of operations, our ability to raise capital and the market price of our shares. Changes in United States and China relations and/or regulations may adversely impact our business, our operating results, our ability to raise capital and the market price of our shares.
Other than the factors listed above we do not know of any trends, events or uncertainties that have had or are reasonably expected to have a material impact on our net sales or revenues or income from continuing operations.
5
Recent Accounting Pronouncements
There were no recent accounting pronouncements that we expect to have a material effect on the Company’s financial position or results of operations. Please refer to Note 2 of our condensed consolidated financial statements included in this quarterly report.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management maintains disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to provide reasonable assurance that the material information required to be disclosed by us in our periodic reports filed or submitted under the Exchange Act are processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management team, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of March 31, 2026. Based on this evaluation, we concluded that our disclosure controls and procedures have the following material weaknesses:
| ● | The relatively small number of employees who are responsible for accounting functions prevents us from segregating duties within our internal control system. |
| ● | Our internal financial staff lack expertise in identifying and addressing complex accounting issue under U.S. Generally Accepted Accounting Principles. |
| ● | Our Chief Financial Officer is not familiar with the accounting and reporting requirements of a U.S. public company. |
| ● | We have not developed sufficient documentation concerning our existing financial processes, risk assessment and internal controls. |
Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s system of disclosure controls and procedures were not effective as of March 31, 2026 for the purposes described in this paragraph.
Changes in Internal Control over Financial Reporting
No changes in the Company’s internal control over financial reporting came to management’s attention during the quarter ended March 31, 2026 that have materially affected, or are likely to materially affect, the Company’s internal control over financial reporting.
6
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
Item 1A. Risk Factors.
There have been no material changes from the risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, as filed with the SEC on January 9, 2026.
Item 2. Unregistered Sale of Equity Securities and Use of Proceeds.
During the quarter ended March 31, 2026, the Company did not complete any unregistered sales of equity securities.
The Company did not repurchase any of its equity securities that were registered under Section 12 of the Securities Act during the quarter ended March 31, 2026.
Item 3. Defaults upon Senior Securities.
Not applicable
Item 4. Mine Safety Disclosure
Not applicable.
Item 5. Other Information.
During the quarter ended March 31, 2026, no director or officer
7
Item 6. Exhibits
INDEX TO EXHIBITS
8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED
| Signature | Title | Date | |||
| By: | /s/ Huang Fang | Chief Executive Officer | May 20, 2026 | ||
| Huang Fang | (Principal Executive Officer) | ||||
| By: | /s/ Shang Jia | Chief Financial Officer | May 20, 2026 | ||
| Shang Jia | (Principal Financial and Accounting Officer) | ||||
9
Exhibit 31.1
Certification of Principal Executive Officer
Section 302 Certification
I, Huang Fang, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q of MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | May 20, 2026 | /s/ Huang Fang |
| Huang Fang, Chief Executive Officer (Principal Executive Officer) |
Exhibit 31.2
Certification of Principal Financial Officer
Section 302 Certification
I, Shang Jia, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q of MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | May 20, 2026 | /s/ Shang Jia |
| Shang Jia, Chief Financial Officer (Principal Financial Officer) |
Exhibit 32.1
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED (the “Company”) on Form 10-Q for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Huang Fang, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:
| 1. | The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| By: | /s/ Huang Fang | Dated: May 20, 2026 | |
| Huang Fang | |||
| Title: | Chief Executive Officer (Principal Executive Officer) |
Exhibit 32.2
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MAITONG SUNSHINE CULTURAL DEVELOPMENT CO., LIMITED (the “Company”) on Form 10-Q for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shang Jia, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
| By: | /s/ Shang Jia | Dated: May 20, 2026 | |
| Shang Jia | |||
| Title: | Chief Financial Officer (Principal Financial Officer) |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized (in Shares) | 1,000,000 | 1,000,000 |
| Preferred stock, shares issued (in Shares) | ||
| Preferred stock, shares outstanding (in Shares) | ||
| Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in Shares) | 150,000,000 | 150,000,000 |
| Common stock, shares issued (in Shares) | 64,125,000 | 60,500,000 |
| Common stock, shares outstanding (in Shares) | 64,125,000 | 60,500,000 |
Consolidated Statements of Operations and Comprehensive (Income) (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Income Statement [Abstract] | ||||
| Revenue | $ 647 | $ 71,892 | $ 25,552 | $ 1,094,047 |
| Cost of revenue | 368 | 44,878 | 13,174 | 687,225 |
| Gross profit | 279 | 27,014 | 12,378 | 406,822 |
| Selling, general and administrative expenses | 206,395 | 152,280 | 339,239 | 258,195 |
| Income from operations | (206,116) | (125,266) | (326,861) | 148,627 |
| Other income (expense) | 14 | 104 | ||
| Income before provision for income taxes | (206,102) | (125,266) | (326,757) | 148,627 |
| Provision for income taxes | (414) | (468) | 106,900 | |
| Net income | (205,688) | (125,266) | (326,289) | 41,727 |
| Comprehensive income: | ||||
| Net income | (205,688) | (125,266) | (326,289) | 41,727 |
| Foreign currency translation adjustment | 4,157 | 1,835 | 7,274 | (6,738) |
| Comprehensive income | $ (201,531) | $ (123,431) | $ (319,015) | $ 34,989 |
| Basic earnings per share (in Dollars per share) | $ (0.0033) | $ (0.0021) | $ (0.0053) | $ 0.0007 |
| Diluted earnings per share (in Dollars per share) | $ (0.0033) | $ (0.0021) | $ (0.0053) | $ 0.0007 |
| Weighted average number of shares outstanding (in Shares) | 62,393,056 | 60,188,889 | 61,436,126 | 60,093,407 |
Nature of Operations and Basis of Presentation |
6 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||
| Nature of Operations and Basis of Presentation [Abstract] | |||||||||||
| NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Maitong Sunshine Cultural Development Co., Limited (“MGSD”, together as a group with its subsidiaries referred to as “Maitong Sunshine”, “Company”, “us” or “we”) was incorporated in the State of Nevada on October 26, 2023.
MGSD through its operating subsidiary Tongzhilian, which has headquarters in Jiaxing, China, has provided cultural tourism (including Education Tours and Family Tours) and the sale of gift products, Chinese cultural and creative products, as well as a hotel reservation service. MGSD plans to market arts expositions in the future. The Company currently has 1 full-time employees.
MGSD’s subsidiaries includes:
The transactions summarized above are treated in our financial statements as a corporate restructuring (reorganization) of entities under common control, as each of the four entities has at all times been under the control of Ms. Huang Fang. Therefore, in accordance with ASC 805-50-45-5, the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and the entities under common control are presented on a combined basis for all periods. Since all of the subsidiaries were under common control for all periods presented, the results of these subsidiaries are included in the Company’s financial statements for all periods. |
Summary of Significant Accounting Policies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements are expressed in U.S. Dollars and have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
The consolidated financial statements include the accounts of MGSD and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of these subsidiaries.
MGSD’s subsidiaries as of March 31, 2026 are listed as follows:
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from these estimates.
An entity’s functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determining the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Based on that assessment, the functional currency of the Company is the Chinese Renminbi (“RMB’). The functional currency of MGSD HK is the Hong Kong Dollar and the functional currency of MGSD Samoa and MGSD is the United States dollar (“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars.
The financial statements of MGSD’s subsidiaries, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using weighted average rates prevailing during each reporting period, and stockholders’ equity (deficit) is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or expense. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations.
The exchange rates used for foreign currency translation are as follows:
Financial instruments that potentially subject the Company to concentrations of credit risk are due from related parties and other receivables arising from its normal business activities. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The deposits placed with financial institutions are not protected by statutory or commercial insurance. In the event of bankruptcy of one of these financial institutions, the Company may be unlikely to reclaim its deposits in full. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Company places its cash in what it believes to be credit-worthy financial institutions.
The Company has a diversified customer base. The majority of sales are cash receipt in advance. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.
During the six-month period ending on March 31, 2026, the company had four customers whose revenue accounted for more than 10% of the Company’s total revenue. However, for the six-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
During the three-month period ending on March 31, 2026, the company had one customer whose revenue accounted for more than 10% of the Company’s total revenue. However, for the three-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
For the six-month periods ended March 31, 2026 and March 31, 2025, the Company had 4 major suppliers and 1 major supplier, respectively, each accounting for more than 10% of the Company’s total cost of revenue.
For the three-month periods ended March 31, 2026 and 2025, the Company had 3 and 2 major suppliers in each respective year, and the purchase amount from each of these suppliers accounted for more than 10% of the Company’s total revenue.
The Company applies the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 820, Fair Value Measurements (“ASC 820”), for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements.
Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.
ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices, other than those in Level 1, in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability,
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
There were no transfers between level 1, level 2 or level 3 measurements during the six months ended March 31, 2026 and 2025. Financial assets and liabilities of the Company are primarily comprised of cash, receivable from payment collection service institution, prepayments, other receivables, accounts payable, advance from customers, accrued expenses, other payables, income tax payable and due to related parties. As of March 31, 2026 and 2025, the carrying values of these financial instruments approximated their fair values due to the short-term maturity of these instruments.
The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting. The company’s revenues are from customers in People’s Republic of China (“PRC”). Most assets of the Company are located in the PRC.
The Company adopted FASB ASC Section 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the sales of products and services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue as each performance obligation is satisfied.
The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities as described below.
Service Revenue
The Company provides cultural tourism services, small-scale training services and hotel reservation services. The Company’s policy is to recognize revenue at that time the services have been performed.
Cost of service revenue consists primarily of the purchase cost, staff cost and other cost to fulfill a contract with a customer.
Products sales revenue
Products sales revenue mainly includes sales of cultural and creative products and sales of gift products. The Company’s policy is to recognize the sales when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds, if not prepaid, is reasonably assured, all of which generally occur when the customer receives the products. Accordingly, revenue is recognized at the point in time when delivery is made.
Cost of product sale consists primarily of the cost of product procurement, and other cost to fulfill a contract with a customer
The Company follows FASB ASC Section 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance.
As a result of the implementation of ASC 740-10, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by ASC 740-10. The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation.
The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding during the period.
Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS.
In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary.
As of March 31, 2026, cash consists of bank deposits and deposits in Alipay, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash.
As of March 31, 2026 and September 30, 2025, restricted cash includes bank deposits held at Zhongguancun Bank, which are subject to restrictions on withdrawal and use. These funds are classified as restricted cash because they may not be released or become available for general use within one year. The Company is currently applying to lift the restrictions on these funds; however, the timing of any release remains uncertain.
We do not believe that any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
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Prepayments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepayments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PREPAYMENTS | NOTE 3. PREPAYMENTS
At March 31, 2026 and September 30, 2025, prepayments consisted of:
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Other Receivables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER RECEIVABLES | NOTE 4. OTHER RECEIVABLES
At March 31, 2026 and September 30, 2025, other receivables consisted of:
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Inventories |
6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | ||||||||||||||||||||||||||||
| Inventories [Abstract] | ||||||||||||||||||||||||||||
| INVENTORIES | NOTE 5. INVENTORIES
At March 31, 2026 and September 30, 2025, Inventories consisted of the following:
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Advance from Customers |
6 Months Ended | |||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||
| Advance from Customers [Abstract] | ||||||||||||||||||||||||||||
| ADVANCE FROM CUSTOMERS | NOTE 6. ADVANCE FROM CUSTOMERS
At March 31, 2026 and September 30, 2025, advance from customers consisted of the following:
As of March 31, 2026 and September 30, 2025, advances from customers totaled $4,489 and 26,098. The Company receives prepayments from customers who subscribe for a membership in the Company. These pre-collected member funds can be used by customers to offset purchases of the company’s products. |
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Due to Related Parties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Due to Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DUE TO RELATED PARTIES | NOTE 7. DUE TO RELATED PARTIES
Due to related parties consists of the following:
As of March 31, 2026 and September 30, 2025, the Company owed Huang Fang a balance of $300,451 and $182,463 which represented expenses paid on behalf of the Company and the interest-free loan she provided to the Company.
As of March 31, 2026 and September 30, 2025, the Company had a balance of $9,626 and $9,626 due to Beijing Devoter Oriental Co., Ltd, which represented expenses paid on behalf of the Company.
As of March 31, 2026 and September 30, 2025, the Company had a balance of $72,011 and $70,156 due to Shanghai Maitong Cultural Technology Co., Ltd,a which represented expenses paid on behalf of the Company.
Huang Fang is the President, CEO, Chairwoman of the Board and a major shareholder of the Company. She is also the CEO and controlling shareholder of Beijing Devoter Oriental Co., Ltd and she is a major shareholder of Shanghai Maitong Cultural Technology Co., Ltd. |
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Accrued Expenses |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCRUED EXPENSES | NOTE 8. ACCRUED EXPENSES
At March 31, 2026 and September 30, 2025, accrued expenses consisted of:
As of March 31, 2026 and September 30, 2025, the Company recorded payables to its auditor of $6,000 and $75,000 for services in connection with the audit and review of the Company’s financial statements for the quarter ended March 31, 2026 and the year ended September 30, 2025.
As of March 31, 2026 and September 30, 2025, the Company recorded payroll payable of $11,704 and $10,726.
As of March 31, 2026, and September 30,2025, the Company recorded social security payable of $4,626 and 4,933. |
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Other Payables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||
| Other Payables [Abstract] | |||||||||||||||||||||||||||||||||||||
| OTHER PAYABLES | NOTE 9. OTHER PAYABLES
At March 31, 2026 and September 30, 2025, other payables consisted of:
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Lease |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASE | NOTE 10. LEASE
On September 1, 2023, Huang Fang, the CEO of the holding company of Tongzhilian, arranged to lease an office for the soon-to-be-established company, and Tongzhilian signed and confirmed the agreement when it was officially established. Under the terms of the agreement, Tongzhilian leased office space (approximately 144 square meters) under an operating lease agreement with Devoter (Beijing) Technology Co., Ltd, and was committed to make lease payments of approximately $44,482 (RMB 324,506) for the period between September 1, 2023 and November 30, 2024. On October 9, 2024, Tongzhilian renewed the operating lease agreement for the period from December 1, 2024 to November 30, 2025. Under the terms of the agreement, Tongzhilian committed to make lease payments of approximately $36,000 (RMB 259,605) for that period. On December 1, 2025, Tongzhilian further renewed the operating lease agreement for the period from December 1, 2025 to November 30, 2026,Tongzhilian committed to make lease payments of approximately $36,689 (RMB 259,605) for that period.
For the six months ended March 31, 2026 and 2025, the lease amortization expense was $17,406 and $17,649, respectively.
Huang Fang is the President, CEO, Chairwoman of the Board and a major shareholder of the Company. She is also the CEO and controlling shareholder of Beijing Devoter Oriental Co., Ltd, and Beijing Devoter Oriental Co., Ltd owns 85% of the registered equity of Devoter (Beijing) Technology Co., Ltd. For this reason, Devoter (Beijing) Technology Co., Ltd is a related party of Tongzhilian.
As of March 31, 2026 and September 30, 2025, the Company had the following amounts with respect to its lease recorded on the Company’s consolidated balance sheet:
Future annual minimum lease payments for non-cancellable operating leases are as follows:
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Income Taxes |
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | NOTE 11. INCOME TAXES
United States
MGSD is a Nevada corporation subject to U.S. federal and state taxes. Pursuant to the Tax Cuts and Jobs Act enacted on December 31, 2017, the U.S. federal corporate income tax rate was reduced to 21%.
Samoa
MGSD Samoa was incorporated in Samoa and, under the current laws of Samoa, is not subject to income tax.
Hong Kong
MGSD HK was incorporated in Hong Kong and is subject to Hong Kong profits tax. MGSD HK is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%. The Company did not have any income (loss) subject to the Hong Kong profits tax.
China
Tongzhilian is subject to a 25% standard enterprise income tax in the PRC. There was no income tax expense accrued for the six months ended March 31, 2026.
A reconciliation of income before income taxes for domestic and foreign locations for the six months ended March 31, 2026 and 2025 is as follows:
The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows:
The difference between the PRC statutory income tax rate and the PRC effective tax rate was as follows:
The Company did not recognize deferred tax assets since it is not likely to incur taxes against which such deferred tax assets may be offset. The deferred tax would apply to MGSD in the U.S. and Tongzhilian in China.
The Company incurred losses from its United States operations during the six months ended March 31, 2026 and 2025 of $48,452 and $126,665. The Company’s United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration expenses. Accordingly, management provided a 100% valuation allowance of $98,945 against the deferred tax assets related to the Company’s United States operations as of March 31, 2026, because the deferred tax benefits of the net operating loss carry forwards in the United States are not likely to be utilized. The US valuation allowance has increased by $10,175 for the six months ended March 31, 2026.
The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction.
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Contingencies |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Contingencies [Abstract] | |
| CONTINGENCIES | NOTE 12. CONTINGENCIES
Contingencies
Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.
Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.
The Company was not subject to any material loss contingency as of March 31, 2026. |
Basic and Diluted Earnings Per Share |
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic and Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BASIC AND DILUTED EARNINGS PER SHARE | NOTE 13. BASIC AND DILUTED EARNINGS PER SHARE
Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise of share-based awards, using the treasury stock method. The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows:
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Subsequent Events |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 14. SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date on which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of March 31, 2026 have been incorporated into these consolidated financial statements and there are no other subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
Pay vs Performance Disclosure - USD ($) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Mar. 31, 2026 |
Dec. 31, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2026 |
Mar. 31, 2025 |
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| Pay vs Performance Disclosure | ||||||
| Net Income (Loss) | $ (205,688) | $ (120,601) | $ (125,266) | $ 166,993 | $ (326,289) | $ 41,727 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy (Policies) |
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| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of presentation |
The accompanying consolidated financial statements are expressed in U.S. Dollars and have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
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| Principles of consolidation |
The consolidated financial statements include the accounts of MGSD and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of these subsidiaries. MGSD’s subsidiaries as of March 31, 2026 are listed as follows:
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| Use of estimates |
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from these estimates. |
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| Functional currency and foreign currency translation |
An entity’s functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determining the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Based on that assessment, the functional currency of the Company is the Chinese Renminbi (“RMB’). The functional currency of MGSD HK is the Hong Kong Dollar and the functional currency of MGSD Samoa and MGSD is the United States dollar (“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of MGSD’s subsidiaries, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using weighted average rates prevailing during each reporting period, and stockholders’ equity (deficit) is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or expense. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows:
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| Concentration of credit risk |
Financial instruments that potentially subject the Company to concentrations of credit risk are due from related parties and other receivables arising from its normal business activities. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The deposits placed with financial institutions are not protected by statutory or commercial insurance. In the event of bankruptcy of one of these financial institutions, the Company may be unlikely to reclaim its deposits in full. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company has a diversified customer base. The majority of sales are cash receipt in advance. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. During the six-month period ending on March 31, 2026, the company had four customers whose revenue accounted for more than 10% of the Company’s total revenue. However, for the six-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
During the three-month period ending on March 31, 2026, the company had one customer whose revenue accounted for more than 10% of the Company’s total revenue. However, for the three-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
For the six-month periods ended March 31, 2026 and March 31, 2025, the Company had 4 major suppliers and 1 major supplier, respectively, each accounting for more than 10% of the Company’s total cost of revenue.
For the three-month periods ended March 31, 2026 and 2025, the Company had 3 and 2 major suppliers in each respective year, and the purchase amount from each of these suppliers accounted for more than 10% of the Company’s total revenue.
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| Fair value measurements |
The Company applies the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 820, Fair Value Measurements (“ASC 820”), for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices, other than those in Level 1, in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability, Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the six months ended March 31, 2026 and 2025. Financial assets and liabilities of the Company are primarily comprised of cash, receivable from payment collection service institution, prepayments, other receivables, accounts payable, advance from customers, accrued expenses, other payables, income tax payable and due to related parties. As of March 31, 2026 and 2025, the carrying values of these financial instruments approximated their fair values due to the short-term maturity of these instruments. |
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| Segment information and geographic data |
The Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting. The company’s revenues are from customers in People’s Republic of China (“PRC”). Most assets of the Company are located in the PRC. |
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| Revenue recognition |
The Company adopted FASB ASC Section 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the sales of products and services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue as each performance obligation is satisfied. The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met for each of the Company’s activities as described below. Service Revenue The Company provides cultural tourism services, small-scale training services and hotel reservation services. The Company’s policy is to recognize revenue at that time the services have been performed. Cost of service revenue consists primarily of the purchase cost, staff cost and other cost to fulfill a contract with a customer. Products sales revenue Products sales revenue mainly includes sales of cultural and creative products and sales of gift products. The Company’s policy is to recognize the sales when the products, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds, if not prepaid, is reasonably assured, all of which generally occur when the customer receives the products. Accordingly, revenue is recognized at the point in time when delivery is made. Cost of product sale consists primarily of the cost of product procurement, and other cost to fulfill a contract with a customer |
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| Income taxes |
The Company follows FASB ASC Section 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. As a result of the implementation of ASC 740-10, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by ASC 740-10. The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. |
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| Earnings (loss) per share |
The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding during the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
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| Leases |
In February 2016, the FASB issued ASU 2016-02–Leases (Topic 842), which increases transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU maintains a distinction between finance leases and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Retaining this distinction allows the recognition, measurement and presentation of expenses and cash flows arising from a lease to remain similar to the previous accounting treatment. A lessee is permitted to make an accounting policy election by class of underlying asset to exclude from balance sheet recognition any lease assets and lease liabilities with a term of 12 months or less, and instead to recognize lease expense on a straight-line basis over the lease term. For both financing and operating leases, the ROU asset and lease liability is initially measured at the present value of the lease payments in the consolidated balance sheet. In July 2018, the FASB issued ASU 2018-11 which provides entities with the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if necessary. |
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| Cash and cash equivalents |
As of March 31, 2026, cash consists of bank deposits and deposits in Alipay, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash. |
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| Restricted Cash |
As of March 31, 2026 and September 30, 2025, restricted cash includes bank deposits held at Zhongguancun Bank, which are subject to restrictions on withdrawal and use. These funds are classified as restricted cash because they may not be released or become available for general use within one year. The Company is currently applying to lift the restrictions on these funds; however, the timing of any release remains uncertain. |
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| Recently adopted accounting pronouncements |
We do not believe that any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
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Summary of Significant Accounting Policies (Tables) |
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| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of MGSD’s Subsidiaries | MGSD’s subsidiaries as of March 31, 2026 are listed as follows:
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| Schedule of Exchange Rates Used for Foreign Currency Translation | The exchange rates used for foreign currency translation are as follows:
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| Schedule of Major Customers and Suppliers | During the six-month period ending on March 31, 2026, the company had four customers whose revenue accounted for more than 10% of the Company’s total revenue. However, for the six-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
During the three-month period ending on March 31, 2026, the company had one customer whose revenue accounted for more than 10% of the Company’s total revenue. However, for the three-month period ending on March 31, 2025, there was no record of any single customer contributing more than 10% of the company’s revenue.
For the six-month periods ended March 31, 2026 and March 31, 2025, the Company had 4 major suppliers and 1 major supplier, respectively, each accounting for more than 10% of the Company’s total cost of revenue.
For the three-month periods ended March 31, 2026 and 2025, the Company had 3 and 2 major suppliers in each respective year, and the purchase amount from each of these suppliers accounted for more than 10% of the Company’s total revenue.
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Prepayments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepayments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepayments | At March 31, 2026 and September 30, 2025, prepayments consisted of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Other Receivables | At March 31, 2026 and September 30, 2025, other receivables consisted of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories (Tables) |
6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | ||||||||||||||||||||||||||||
| Inventories [Abstract] | ||||||||||||||||||||||||||||
| Schedule of Inventories | At March 31, 2026 and September 30, 2025, Inventories consisted of the following:
|
|||||||||||||||||||||||||||
Advance from Customers (Tables) |
6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | ||||||||||||||||||||||||||||
| Advance from Customers [Abstract] | ||||||||||||||||||||||||||||
| Schedule of Advance from Customers | At March 31, 2026 and September 30, 2025, advance from customers consisted of the following:
|
|||||||||||||||||||||||||||
Due to Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Due to Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Due to Related Parties | Due to related parties consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Expenses | At March 31, 2026 and September 30, 2025, accrued expenses consisted of:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Payables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||
| Other Payables [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Other Payables | At March 31, 2026 and September 30, 2025, other payables consisted of:
|
||||||||||||||||||||||||||||||||||||
Lease (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Consolidated Balance Sheet | As of March 31, 2026 and September 30, 2025, the Company had the following amounts with respect to its lease recorded on the Company’s consolidated balance sheet:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Future Annual Minimum Lease Payments | Future annual minimum lease payments for non-cancellable operating leases are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Reconciliation of Income Before Income Taxes for Domestic and Foreign Locations | A reconciliation of income before income taxes for domestic and foreign locations for the six months ended March 31, 2026 and 2025 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earliest Tax Year Subject to Examination by Major Jurisdiction | The table below presents the earliest tax year that remain subject to examination by major
jurisdiction.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Federal Statutory Income Tax Rate [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Effective Tax Rate | The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PRC Statutory Income Tax Rate [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Effective Tax Rate | The difference between the PRC statutory income tax rate and the PRC effective tax rate was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic and Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Basic and Diluted Earnings Per Share Computations for Income from Continuing Operations | The reconciliation of the numerators and denominators of the basic and diluted
earnings per share computations for income from continuing operations is shown as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies (Details) |
Mar. 31, 2026 |
|---|---|
| MGSD's Subsidiaries [Member] | |
| Summary of Significant Accounting Policies [Line Items] | |
| Subsidiary ownership percentage | 100.00% |
Summary of Significant Accounting Policies - Schedule of MGSD’s Subsidiaries (Details) - 6 months ended Mar. 31, 2026 |
USD ($) |
HKD ($) |
|---|---|---|
| Maitong Sunshine Cultural Development Co., Limited [Member] | ||
| Schedule of MGSD’s Subsidiaries [Line Items] | ||
| Place of Incorporation | Samoa | |
| Attributable equity interest % | 100.00% | |
| Authorized capital | $ 1,000,000 | |
| Maitong Sunshine Cultural Development Co., Limited [Member] | ||
| Schedule of MGSD’s Subsidiaries [Line Items] | ||
| Place of Incorporation | Hong Kong | |
| Attributable equity interest % | 100.00% | |
| Authorized capital | $ 10,000 | |
| Jiaxing Tongzhilian Cultural Development Co., Ltd [Member] | ||
| Schedule of MGSD’s Subsidiaries [Line Items] | ||
| Place of Incorporation | China | |
| Attributable equity interest % | 100.00% | |
| Authorized capital | $ 1,000,000 |
Other Receivables - Schedule of Other Receivables (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Other Receivables [Line Items] | ||
| Total other receivables | $ 2,325 | $ 703 |
| Shanghai Ctrip International Travel Agency Co., Ltd [Member] | ||
| Schedule of Other Receivables [Line Items] | ||
| Total other receivables | 723 | 703 |
| Value-added Tax [Member] | ||
| Schedule of Other Receivables [Line Items] | ||
| Total other receivables | 1,047 | |
| Person [Member] | ||
| Schedule of Other Receivables [Line Items] | ||
| Total other receivables | $ 555 |
Inventories - Schedule of Inventories (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Inventories [Abstract] | ||
| Inventories | $ 172 | $ 183 |
| Total | $ 172 | $ 183 |
Advance from Customers (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Advance from Customers [Abstract] | ||
| Advances from customer | $ 4,489 | $ 26,098 |
Advance from Customers - Schedule of Advance from Customers (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Advance from Customers [Line Items] | ||
| Total advance from customers | $ 4,489 | $ 26,098 |
| Pre-collected member funds [Member] | ||
| Schedule of Advance from Customers [Line Items] | ||
| Total advance from customers | $ 4,489 | $ 26,098 |
Due to Related Parties (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Huang Fang [Member] | ||
| Due to Related Parties [Line Items] | ||
| Due to related parties | $ 300,451 | $ 182,463 |
| Beijing Devoter Oriental Co., Ltd [Member] | ||
| Due to Related Parties [Line Items] | ||
| Due to related parties | 9,626 | 9,626 |
| Shanghai Maitong Cultural Technology Co., Ltd. [Member] | ||
| Due to Related Parties [Line Items] | ||
| Due to related parties | $ 72,011 | $ 70,156 |
Due to Related Parties - Schedule of Due to Related Parties (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Huang Fang [Member] | ||
| Interest-free loan and payment of company expenses: | ||
| Due to related parties | $ 300,451 | $ 182,463 |
| Beijing Devoter Oriental Co., Ltd. [Member] | ||
| Interest-free loan and payment of company expenses: | ||
| Due to related parties | 9,626 | 9,626 |
| Shanghai Maitong Cultural Technology Co., Ltd [Member] | ||
| Interest-free loan and payment of company expenses: | ||
| Due to related parties | 72,011 | 70,156 |
| Related Party [Member] | ||
| Interest-free loan and payment of company expenses: | ||
| Due to related parties | $ 382,088 | $ 262,245 |
Accrued Expenses (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Accrued Expenses [Abstract] | ||
| Payables to auditor fees | $ 6,000 | $ 75,000 |
| Payroll payable | 11,704 | 10,726 |
| Social security payable | $ 4,626 | $ 4,933 |
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Accrued Expenses [Abstract] | ||
| Professional service fee payable | $ 6,000 | $ 75,000 |
| Payroll payable | 11,704 | 10,726 |
| Social security payable | 4,626 | 4,933 |
| PragerMetis | 2,500 | |
| Total accrued expenses | $ 22,330 | $ 93,159 |
Other Payables - Schedule of Other Payables (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Other Payables [Abstract] | ||
| Value added tax and surtax | $ 46 | $ 5,170 |
| Total | $ 46 | $ 5,170 |
Lease (Details) |
6 Months Ended | 12 Months Ended | 15 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|---|
|
Mar. 31, 2026
USD ($)
|
Mar. 31, 2025
USD ($)
|
Nov. 30, 2026
USD ($)
|
Nov. 30, 2026
CNY (¥)
|
Nov. 30, 2025
USD ($)
|
Nov. 30, 2025
CNY (¥)
|
Nov. 30, 2024
USD ($)
|
Nov. 30, 2024
CNY (¥)
|
Sep. 01, 2023
m²
|
|
| Lease [Line Items] | |||||||||
| Office space (in Square Meters) | m² | 144 | ||||||||
| Lease payments | $ 36,000 | ¥ 259,605 | $ 44,482 | ¥ 324,506 | |||||
| Lease amortization expense | $ | $ 17,406 | $ 17,649 | |||||||
| Forecast [Member] | |||||||||
| Lease [Line Items] | |||||||||
| Lease payments | $ 36,689 | ¥ 259,605 | |||||||
| Beijing Devoter Oriental Co., Ltd [Member] | |||||||||
| Lease [Line Items] | |||||||||
| Ownership, percentage | 85.00% | ||||||||
Lease - Schedule of Consolidated Balance Sheet (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Assets | ||
| Right-of-use asset | $ 22,748 | $ 6,081 |
| Total | 22,748 | 6,081 |
| Liabilities | ||
| Operating lease liability, current | 22,748 | 6,081 |
| Operating lease liability, less current portion | ||
| Total | $ 22,748 | $ 6,081 |
Lease - Schedule of Future Annual Minimum Lease Payments (Details) - USD ($) |
Mar. 31, 2026 |
Sep. 30, 2025 |
|---|---|---|
| Schedule of Future Annual Minimum Lease Payments [Abstract] | ||
| 2026 | $ 17,210 | |
| Thereafter | 5,737 | |
| Total | 22,947 | |
| Less: imputed interest | 199 | |
| Total | $ 22,748 | $ 6,081 |
Income Taxes (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Dec. 31, 2017 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| United States [Member] | |||
| Income Taxes [Line Items] | |||
| Federal corporate income tax rate | 21.00% | ||
| Incurred losses | $ 48,452 | $ 126,665 | |
| Valuation allowance, percentage | 100.00% | ||
| Valuation allowance against the deferred tax assets | $ 98,945 | ||
| US valuation allowance | $ 10,175 | ||
| Hong Kong [Member] | |||
| Income Taxes [Line Items] | |||
| Statutory tax rate, percentage | 16.50% | ||
| China [Member] | |||
| Income Taxes [Line Items] | |||
| Statutory tax rate, percentage | 25.00% | ||
Income Taxes - Schedule of Reconciliation of Income Before Income Taxes for Domestic and Foreign Locations (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Schedule of Reconciliation Before Income Taxes for Domestic and Foreign Locations [Abstract] | ||||
| United States | $ (128,372) | $ (126,665) | ||
| Foreign | (198,385) | 275,292 | ||
| Before income taxes | $ (206,102) | $ (125,266) | $ (326,757) | $ 148,627 |
Income Taxes - Schedule of Effective Tax Rate (Details) - U.S. federal statutory income tax rate [Member] |
6 Months Ended | |
|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Schedule of Effective Tax Rate [Line Items] | ||
| Income tax (benefit) at USA statutory rate | 21.00% | 21.00% |
| U.S. valuation allowance | (21.00%) | (21.00%) |
| Effective combined tax rate | 0.00% | 0.00% |
Income Taxes - Schedule of Effective Tax Rate (Details) - PRC statutory income tax rate [Member] |
6 Months Ended | |
|---|---|---|
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Schedule of Effective Tax Rate [Line Items] | ||
| Income tax (benefit) at PRC statutory rate | 25.00% | 25.00% |
| PRC valuation allowance | 0.00% | 39.00% |
| Tax preference | 25.00% | (51.00%) |
| Effective combined tax rate | 0.00% | 13.00% |
Income Taxes - Schedule of Earliest Tax Year Subject to Examination by Major Jurisdiction (Details) |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| U.S. Federal [Member] | |
| Schedule of Earliest Tax Year Subject to Examination by Major Jurisdiction [Line Items] | |
| Tax year | Sep. 30, 2025 |
| China [Member] | |
| Schedule of Earliest Tax Year Subject to Examination by Major Jurisdiction [Line Items] | |
| Tax year | Dec. 31, 2026 |
Basic and Diluted Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share Computations for Income from Continuing Operations (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Mar. 31, 2026 |
Dec. 31, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2026 |
Mar. 31, 2025 |
|
| Numerator: | ||||||
| Net Income (Loss) | $ (205,688) | $ (120,601) | $ (125,266) | $ 166,993 | $ (326,289) | $ 41,727 |
| Denominator: | ||||||
| Basic weighted-average number of shares outstanding | 62,393,056 | 60,188,889 | 61,436,126 | 60,093,407 | ||
| Diluted weighted-average number of shares outstanding | 62,393,056 | 60,188,889 | 61,436,126 | 60,093,407 | ||
| Net income (loss) per share: | ||||||
| Basic | $ (0.0033) | $ (0.0021) | $ (0.0053) | $ 0.0007 | ||
| Diluted | $ (0.0033) | $ (0.0021) | $ (0.0053) | $ 0.0007 | ||
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