8. Investment

For the years ended December 31, 2025, 2024 and 2023, Jiangsu Huadong owns 25% ownership interest of Zhongxiangxin. Zhongxiangxin manufactures and sells medical materials in the PRC. The Company accounted for the investments using the equity method, because the Company has significant influence but does not own a majority equity interest or otherwise control over the equity investee. For the years ended December 31, 2025, 2024 and 2023, the investment gain from Zhongxiangxin was $3,137, $6,578 and $4,832, respectively.

On February 26, 2024, the Company transferred its 45% equity interest in Hainan Guoxie Technology Group Co,Ltd (“Hainan Guoxie”) from Kangfu to Jiangsu Huadong, and the remaining 10% equity interest was sold to a third party, Yangzhou Boxin Medical Equipment Co., Ltd. (“Boxin”) in exchange for $637,940 (RMB4.4 million) in consideration. After the transaction, the Company no longer controls Hainan Guoxie. The Company accounted for the investments using the equity method, because the Company has significant influence but does not own a majority equity interest in or otherwise exercise control over the equity investee. During March 1, 2024 to December 31, 2024, the investment gain from Hainan Guoxie was $83,856. For the year ended December 31, 2025, the investment gain from Hainan Guoxie was $52,140.

On November 5, 2024, Jiangsu Huadong invested $13.7 million (RMB 100 million) into Jiangsu Guomai and obtained 40% ownership interest of Jiangsu Guomai with an equity method goodwill of $7.9 million (RMB57.6 million). Jiangsu Guomai manufactures and sells medical materials in the PRC. The Company accounted for the investments using the equity method, because the Company has significant influence but does not own a majority equity interest or otherwise control over the equity investee. The difference between the carrying value of the equity interests in Jiangsu Guomai and the Group’s share of the carrying value of Jiangsu Guomai’s net assets is a basis difference, which was mainly allocated to amortizable land use right of $0.3 million (or RMB2.0 million) with a amortization period of 27 years, goodwill of $7.9 million (or RMB57.6 million) and deferred tax liabilities of $0.07 million (or RMB0.5 million) as of December 31, 2024. For the year ended December 31, 2025 and 2024, the investment gain from Jiangsu Guomai was $24,930 and $3,749.

On December 18, 2025, Ruiying invested into Hainan Anbes Toy Co., Ltd.(“Anhes”) and toy sales in the PRC. The Company accounted for the investments using the equity method, because the Company has significant influence but does not own a majority equity interest or otherwise control over the equity investee. For the year ended December 31, 2025, Anhes currently has no substantive operations.

On March 3, 2011, Jiangsu Yada invested RMB 6 million into Yangzhou Juyuan Guarantee Co., Ltd. (“Juyuan”) and obtained 12% equity interest of Juyuan. Juyuan mainly provides financing guarantee services and relevant consulting services to customers. Juyuan has only one executive director and one supervisor. Neither the executive director nor supervisor is related to Jiangsu Yada. Therefore, Jiangsu Yada has neither control nor significant influence over Juyuan. For the Company’s passive and without significant influence or control equity investment in a private company which does not have readily determinable fair values, the Company has elected the measurement alternative defined as cost, less impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. On January 5, 2023, majority shareholder of Juyuan purchased 5% equity interest of Juyuan from Jiangsu Yada for a consideration of RMB 2.5 million ($353,062). The carrying value of the investment amounted to $500,493 as of December 31, 2025.

For the years ended December 31, 2025, 2024 and 2023, no impairment indicators were identified and no loss related to revaluation of its investment in the private company was recorded.