Full Press Release Details
JIN MEDICAL INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | September 30, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 11,131,890 | $ | 8,136,179 | ||||
| Short-term investments | 19,824,675 | 18,621,251 | ||||||
| Accounts receivable, net | 4,238,724 | 5,912,035 | ||||||
| Accounts receivable - related parties | 1,385,555 | 2,546,358 | ||||||
| Inventories | 4,455,065 | 5,173,458 | ||||||
| Due from related parties | 137,550 | 101,906 | ||||||
| Prepaid expenses and other current assets | 2,607,496 | 2,325,029 | ||||||
| TOTAL CURRENT ASSETS | 43,780,955 | 42,816,216 | ||||||
| Operating lease right-of-use assets | 175,803 | 256,117 | ||||||
| Property, plant and equipment, net | 3,337,796 | 1,460,286 | ||||||
| Land use right, net | 1,094,493 | 1,146,828 | ||||||
| Deferred tax assets, net | 134,447 | 121,322 | ||||||
| TOTAL ASSETS | $ | 48,523,494 | $ | 45,800,769 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank loans | $ | 15,726,649 | $ | 11,322,440 | ||||
| Accounts payable | 3,056,059 | 3,012,334 | ||||||
| Accrued liabilities and other payables | 450,453 | 431,003 | ||||||
| Deferred revenue | 346,410 | 671,414 | ||||||
| Deferred revenue - related parties | 114,030 | 125,663 | ||||||
| Taxes payable | 608,316 | 1,123,573 | ||||||
| Due to related parties | 275,741 | 280,553 | ||||||
| Operating lease liabilities, current | 159,420 | 185,154 | ||||||
| TOTAL CURRENT LIABILITIES | 20,737,078 | 17,152,134 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Operating lease liabilities, non-current | 30,095 | 96,175 | ||||||
| 30,095 | 96,175 | |||||||
| TOTAL LIABILITIES | 20,767,173 | 17,248,309 | ||||||
| COMMITMENTS AND CONTINGENCIES | ' | |||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Ordinary shares, $ 0.00005 par value, 1,000,000,000 shares authorized, 156,547,100 shares were issued and outstanding as of March 31, 2025 and September 30, 2024, respectively* | 7,827 | 7,827 | ||||||
| Additional paid-in capital | 6,749,144 | 6,749,144 | ||||||
| Statutory reserves | 2,664,549 | 2,593,076 | ||||||
| Retained earnings | 19,860,865 | 20,021,346 | ||||||
| Accumulated other comprehensive loss | ( 1,369,835 | ) | ( 556,209 | ) | ||||
| TOTAL SHAREHOLDERS' EQUITY | 27,912,550 | 28,815,184 | ||||||
| Non-controlling interest | ( 156,229 | ) | ( 262,724 | ) | ||||
| TOTAL EQUITY | 27,756,321 | 28,552,460 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 48,523,494 | $ | 45,800,769 |
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements.
JIN MEDICAL INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (LOSS)
| For the Six Months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| REVENUE | ||||||||
| Revenue - third party | $ | 9,678,459 | $ | 9,380,513 | ||||
| Revenue - related party | 203,046 | 1,176,378 | ||||||
| Total revenue | 9,881,505 | 10,556,891 | ||||||
| COST OF REVENUE AND RELATED TAX | ||||||||
| Cost of revenue | 7,348,488 | 6,759,586 | ||||||
| Business and sales related tax | 130,495 | 60,975 | ||||||
| Total cost of revenue and related tax | 7,478,983 | 6,820,561 | ||||||
| GROSS PROFIT | 2,402,522 | 3,736,330 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | 747,258 | 358,768 | ||||||
| General and administrative expenses | 1,448,590 | 1,538,680 | ||||||
| Research and development expenses | 660,886 | 609,645 | ||||||
| Total operating expenses | 2,856,734 | 2,507,093 | ||||||
| (LOSS) INCOME FROM OPERATIONS | ( 454,212 | ) | 1,229,237 | |||||
| OTHER INCOME | ||||||||
| Interest income, net | 301,535 | 681,588 | ||||||
| Foreign exchange gain | 58,857 | 414 | ||||||
| Other income, net | 122,384 | 102,164 | ||||||
| Total other income, net | 482,776 | 784,166 | ||||||
| INCOME BEFORE INCOME TAX PROVISION | 28,564 | 2,013,403 | ||||||
| PROVISION FOR INCOME TAXES | 19,566 | 309,013 | ||||||
| NET INCOME | 8,998 | 1,704,390 | ||||||
| Less: net income (loss) attributable to non-controlling interest | 98,006 | ( 89,704 | ) | |||||
| NET (LOSS) INCOME ATTRIBUTABLE TO JIN MEDICAL INTERNATIONAL LTD. | $ | ( 89,008 | ) | $ | 1,794,094 | |||
| COMPREHENSIVE INCOME (LOSS) | ||||||||
| Net income | 8,998 | 1,704,390 | ||||||
| Foreign currency translation (loss) gain | ( 805,137 | ) | 159,423 | |||||
| Comprehensive (loss) income | ( 796,139 | ) | 1,863,813 | |||||
| Less: comprehensive income (loss) attributable to non-controlling interest | 106,495 | ( 89,253 | ) | |||||
| COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO JIN MEDICAL INTERNATIONAL LTD. | $ | ( 902,634 | ) | $ | 1,953,066 | |||
| Earnings per common share - basic and diluted | $ | 0.00 | $ | 0.01 | ||||
| Weighted average shares - basic and diluted* | 156,547,100 | 156,401,198 |
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements.
JIN MEDICAL INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND
| Accumulated | ||||||||||||||||||||||||||||||||||||
| Additional | Other | Total | Non- | |||||||||||||||||||||||||||||||||
| Ordinary Shares* | Paid in | Statutory | Retained | Comprehensive | Shareholders' | controlling | Total | |||||||||||||||||||||||||||||
| Shares | Amount | Capital | Reserves | Earnings | Income (Loss) | Equity | Interest | Equity | ||||||||||||||||||||||||||||
| Balance at September 30, 2023 | 155,947,100 | $ | 7,797 | $ | 6,437,179 | $ | 2,010,890 | $ | 16,927,605 | $ | ( 1,404,366 | ) | $ | 23,979,105 | $ | - | $ | 23,979,105 | ||||||||||||||||||
| Issuance of ordinary shares | 30,000 | 30 | 311,965 | - | - | - | 311,995 | - | 311,995 | |||||||||||||||||||||||||||
| Net income (loss) | - | - | - | - | 1,794,094 | - | 1,794,094 | ( 89,704 | ) | 1,704,390 | ||||||||||||||||||||||||||
| Statutory reserve | - | - | - | 266,540 | ( 266,540 | ) | - | - | - | - | ||||||||||||||||||||||||||
| Foreign currency translation gain | - | - | - | - | - | 158,972 | 158,972 | 451 | 159,423 | |||||||||||||||||||||||||||
| Balance at March 31, 2024 | 155,977,100 | $ | 6,780 | $ | 391,775 | $ | 2,277,430 | $ | 18,455,159 | $ | ( 1,245,394 | ) | $ | 26,244,166 | $ | ( 89,253 | ) | $ | 26,154,913 | |||||||||||||||||
| Balance at September 30, 2024 | 156,547,100 | $ | 7,827 | $ | 6,749,144 | $ | 2,593,076 | $ | 20,021,346 | $ | ( 556,209 | ) | $ | 28,815,184 | $ | ( 262,724 | ) | $ | 28,552,460 | |||||||||||||||||
| Net income (loss) | - | - | - | - | ( 89,008 | ) | - | ( 89,008 | ) | 98,006 | 8,998 | |||||||||||||||||||||||||
| Statutory reserve | - | - | - | 71,473 | ( 71,473 | ) | - | - | - | - | ||||||||||||||||||||||||||
| Foreign currency translation gain (loss) | - | - | - | - | - | ( 813,626 | ) | ( 813,626 | ) | 8,489 | ( 805,137 | ) | ||||||||||||||||||||||||
| Balance at March 31, 2025 | 156,547,100 | $ | 7,827 | $ | 6,749,144 | $ | 2,664,549 | $ | 19,860,865 | $ | ( 1,369,835 | ) | $ | 27,912,550 | $ | ( 156,229 | ) | $ | 27,756,321 |
The accompanying notes are
an integral part of these unaudited condensed consolidated financial statements.
JIN MEDICAL INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
| For the Six Months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 8,998 | $ | 1,704,390 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Amortization of operating lease right-of-use assets | 72,050 | 48,105 | ||||||
| Depreciation and amortization | 131,260 | 120,046 | ||||||
| Gain on disposition of property and equipment | - | 2,590 | ||||||
| Provision for (net recovery of) credit losses | 27,919 | ( 87,627 | ) | |||||
| Deferred income tax (benefit) provision | ( 17,271 | ) | 23,711 | |||||
| Short-term investments income | ( 47,500 | ) | ( 11,655 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,451,739 | ( 454,837 | ) | |||||
| Accounts receivable - related parties | 1,078,992 | ( 569,807 | ) | |||||
| Inventories | 546,225 | 566,734 | ||||||
| Prepaid expenses and other current assets | 177,882 | ( 1,308,346 | ) | |||||
| Accounts payable | 145,648 | ( 278,216 | ) | |||||
| Accrued liabilities and other payables | ( 103,533 | ) | 206,416 | |||||
| Deferred revenue | ( 303,500 | ) | ( 171,223 | ) | ||||
| Deferred revenue - related parties | ( 7,430 | ) | 11,241 | |||||
| Taxes payable | ( 516,710 | ) | 291,899 | |||||
| Operating lease liabilities | ( 82,740 | ) | ( 43,424 | ) | ||||
| Net cash provided by operating activities | 2,562,029 | 49,997 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | ( 2,051,134 | ) | ( 83,680 | ) | ||||
| Additions to land use right | - | ( 980,692 | ) | |||||
| Proceeds from disposal of property and equipment | - | 348 | ||||||
| Prepayment for business acquisition | ( 500,000 | ) | - | |||||
| Payments for short-term investments | ( 5,280,383 | ) | ( 16,136,000 | ) | ||||
| Redemption of short-term investments | 3,642,753 | 8,810,675 | ||||||
| Repayment of advances made to related parties | - | 4,240,111 | ||||||
| Net cash used in investing activities | ( 4,188,764 | ) | ( 4,149,238 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of ordinary shares, net of issuance costs | - | 311,995 | ||||||
| Net proceeds from short-term bank loans | 9,335,497 | 5,554,080 | ||||||
| Repayment of short-term bank loans | ( 4,532,805 | ) | - | |||||
| Proceeds from amount due to related parties | 98,397 | 138,223 | ||||||
| Net cash provided by financing activities | 4,901,089 | 6,004,298 | ||||||
| Effect of exchange rate changes on cash | ( 278,643 | ) | 40,337 | |||||
| Net increase in cash | 2,995,711 | 1,945,394 | ||||||
| Cash, beginning of period | 8,136,179 | 6,929,508 | ||||||
| Cash, end of period | $ | 11,131,890 | $ | 8,874,902 | ||||
| Supplemental disclosure information: | ||||||||
| Cash paid for income tax | $ | 31,633 | $ | 2,234 | ||||
| Cash paid for interest | $ | 208,991 | $ | 93,256 | ||||
| Non-cash operating, investing and financing activities | ||||||||
| Right of use assets obtained in exchange for operating lease liabilities | $ | - | $ | 312,767 |
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
JIN MEDICAL INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION
JIN MEDICAL INTERNATIONAL LTD. ("Jin Med"
or the "Company") was established under the laws of the Cayman Islands on January 14, 2020 as a holding company.
Jin Med owns 100% equity interest of Zhongjin
International Limited ("Zhongjin HK"), an entity incorporated on February 25, 2020 in accordance with the laws and regulations
Erhua Medical Technology (Changzhou) Co., Ltd.
("Erhua Med") was formed on September 24, 2020, as a Wholly Foreign-Owned Enterprise ("WFOE") in the People's
Republic of China ("PRC"). Zhongjin HK owns 100% equity interest of Erhua Med.
Jin Med, Zhongjin HK and Erhua Med are currently
not engaging in any active business operations and merely acting as holding companies.
Changzhou Zhongjin Medical Equipment Co., Ltd.
("Changzhou Zhongjin") was incorporated on January 26, 2006 in accordance with PRC laws. Changzhou Zhongjin has two wholly-owned
subsidiaries, Zhongjin Medical Equipment Taizhou Co., Ltd. ("Taizhou Zhongjin"), incorporated on June 17, 2013, and Changzhou
Zhongjin Jing'ao Trading Co., Ltd ("Zhongjin Jing'ao"), incorporated on December 18, 2014 in accordance with PRC
Zhongjin Kangma Information Technology (Jiangsu)
Co., Ltd. ("Zhongjin Kangma") was incorporated on August 21, 2023 in accordance with PRC laws. Changzhou Zhongjin owns an
equity interest of 80% of Zhongjin Kangma, and the remaining 20% equity interest is owned by one shareholder.
Zhongjin Kangma Health Technology (Shanghai) Co.,
Ltd. ("Kangma Health") was incorporated on February 19, 2025 in accordance with PRC laws. Zhongjin Kangma owns 100% equity
interest of Kangma Health.
Changzhou Zhongjin, Taizhou Zhongjin, Zhongjin
Jing'ao, Zhongjin Kangma and Kangma Health are collectively referred to as the "Zhongjin Operating Companies" below.
Zhongjin Medical Equipment Anhui Co., Ltd. ("Anhui
Zhongjin") was incorporated on October 7, 2023, as a WFOE in the PRC. Zhongjin HK owns 100% equity interest of Anhui Zhongjin.
Anhui Zhongjin is currently not engaging in any active business operations.
The Company, through its wholly-owned subsidiaries
and entities controlled through contractual arrangements, is primarily engaged in the design, development, manufacturing and sales of
wheelchair and other living aids products to be used by people with disabilities or impaired mobility. The Company's products are
sold to distributors in both China and in the overseas markets.
A reorganization of the
legal structure of the Company ("Reorganization") was completed on November 26, 2020. The Reorganization involved the incorporation
of Jin Med, Zhongjin HK and Erhua Med, and signing of certain contractual arrangements (collectively, the "VIE Agreements")
between Zhongjin Technology, the shareholders of Changzhou Zhongjin and Changzhou Zhongjin. Consequently, the Company became the ultimate
holding company of Zhongjin HK, Erhua Med, and through the contractual arrangements, WFOE, or Erhua Med, became the primary beneficiary
of the Variable Interest Entity ("VIE"), Changzhou Zhongjin, and its subsidiaries. Pursuant to the VIE Agreements, Erhua Med
has gained effective control over Changzhou Zhongjin. Therefore, Changzhou Zhongjin should be treated as a VIE under the Statements of
Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 Consolidation. Since
Taizhou Zhongjin and Zhongjin Jing'ao are wholly-owned subsidiaries of Changzhou Zhongjin, they are further referenced as VIE's
NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION (continued)
Reorganization (continued)
together with its wholly owned subsidiaries, the VIE and the VIE's subsidiaries, are effectively controlled by the same shareholders
before and after the Reorganization and therefore the Reorganization is considered as a recapitalization of entities under common control.
The consolidation of the Company, its subsidiaries, the VIE and the VIE's subsidiaries has been accounted for at historical cost.
condensed consolidated financial statements of the Company include the following entities:
| Name of Entity | Date of Incorporation | Place of Incorporation | % of Ownership | Principal Activities | ||||||||
| Jin Med | January 14, 2020 | Cayman Island | Parent | Investment holding | ||||||||
| Zhongjin HK | February 25, 2020 | Hong Kong | 100% | Investment holding | ||||||||
| Erhua Med | September 24, 2020 | PRC | 100% | WFOE, Investment holding | ||||||||
| Changzhou Zhongjin | January 26, 2006 | PRC | VIE | Design, development, manufacturing and sales of wheelchair and other mobility products | ||||||||
| Taizhou Zhongjin | June 17, 2013 | PRC | 100% controlled subsidiary of the VIE | Design, development, manufacturing and sales of wheelchair and other mobility products | ||||||||
| Zhongjin Jing'ao | December 18, 2014 | PRC | 100% controlled subsidiary of the VIE | Design, development, manufacturing and sales of wheelchair and other mobility products | ||||||||
| Zhongjin Kangma | August 21, 2023 | PRC | 80% controlled subsidiary of the VIE | Sales of wheelchair and other mobility products | ||||||||
| Anhui Zhongjin | October 7, 2023 | PRC | 100% | Newly incorporated - not in operation yet | ||||||||
| Kangma Health | February 19, 2025 | PRC | 100% controlled subsidiary of the Zhongjin Kangma | Newly incorporated - not in operation yet |
NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION (continued)
The VIE contractual arrangements
The Company's main operating entities, Changzhou
Zhongjin and its subsidiaries Taizhou Zhongjin, Zhongjin Jing'ao, Zhongjin Kangma and Kangma Health (or the "Zhongjin Operating
Companies" as referred above), are controlled through contractual arrangements in lieu of direct equity ownership by the Company.
A VIE is an entity which has a total equity investment
that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics
of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation
to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE
is deemed to be the primary beneficiary of, and must consolidate, the VIE, because it met the condition under the accounting principles
generally accepted in the United States of America ("U.S. GAAP") to consolidate the VIE.
Erhua Med, is deemed to have a controlling financial
interest in and be the primary beneficiary of the Zhongjin Operating Companies because it has both of the following characteristics:
Pursuant to these contractual arrangements, the
Zhongjin Operating Companies shall pay service fees equal to all of their net profits after tax payments to Erhua Med. At the same time,
Erhua Med has the right to receive substantially all of their economic benefits for accounting purposes. Such contractual arrangements
are designed so that the operations of the Zhongjin Operating Companies are solely for the benefit of Erhua Med and ultimately, the Company,
and therefore the Company must consolidate the Zhongjin Operating Companies under U.S. GAAP.
Risks associated with the VIE structure
The Company believes that the contractual arrangements
with the VIE and the shareholders of the VIE are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties
in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the legal structure and contractual
arrangements were found to be in violation of PRC laws and regulations, the PRC government could:
NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION (continued)
The Company's ability to conduct its businesses
may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. In such case, the Company may
not be able to consolidate the VIE and the VIE's subsidiaries in its unaudited condensed consolidated financial statements as it
may lose the ability to exert effective control over the VIE and its shareholders and it may lose the ability to receive economic benefits
from the VIE and the VIE's subsidiaries for accounting purposes under U.S. GAAP. The Company, however, does not believe such actions
would result in the liquidation or dissolution of the Company, its PRC subsidiaries and the VIE and the VIE's subsidiaries.