| Advances to suppliers, net |
Note 5 – Advances to suppliers, net Advances to suppliers represent prepayments made to ensure continuous high-quality supply and favorable purchase prices. Advances to suppliers consisted of the following: | | As of | | | As of | | | | March 31, | | | September 30, | | | | 2026 | | | 2025 | | | | (unaudited) | | | (audited) | | Advances for raw materials purchase | | $ | 19,701,633 | | | $ | 21,446,203 | | Less: allowance for credit losses | | | (14,565,884 | ) | | | - | | Advances to suppliers, net | | $ | 5,135,749 | | | $ | 21,446,203 | |
The movement of allowance for credit losses was as follows: | | For the Six | | | For the | | | | Months Ended | | | Year Ended | | | | March 31, | | | September 30, | | | | 2026 | | | 2025 | | | | (unaudited) | | | (audited) | | Balance as of beginning of period | | | - | | | $ | 1,912,362 | | Addition | | | 14,341,141 | | | | - | | Reversal | | | - | | | | (1,860,686 | ) | Translation adjustments | | | 224,743 | | | | (51,676 | ) | Balance as of end of period | | $ | 14,565,884 | | | | - | |
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