Logistics Services - For the logistics services segment, the company provides services to over 86 cities across approximately 11 provinces and 3 municipalities in China, with plans to develop an additional 20 logistics points in existing cities in 2024[107]. - The logistics services revenue is expected to increase during the third and fourth quarters due to seasonal trends[109]. - Revenue from logistics services contributed approximately 1,189,004,or81.01,213,530, or 57.2% in the same period of 2022[126]. - Gross profit margin for logistics services decreased to 11.2% in the three months ended December 31, 2023, down from 25.6% in the same period of 2022[134]. - Subcontracting fees for logistics services increased by approximately 121.3% to 560,735inthethreemonthsendedDecember31,2023,comparedto253,359 in 2022[131]. - Revenue from logistics services contributed approximately 3.4millionor87.5695,940 for the nine months ended December 31, 2023, with a gross margin of 20.6%, down from 26.6% in 2022[158]. Property Management - The company aims to increase the occupancy rate of stores in its property management segment to over 70%[108]. - The company disposed of its property management subsidiary, DY, at fair value in February 2023 and completed the acquisition of HX in September 2023[108]. - Revenue from property management and subleasing was 252,477,adecreaseof543,866, or 68.3%, compared to 796,343in2022[127].GarmentManufacturing−Thegarmentmanufacturingbusinessfocusesonexpandingthecustomerbaseandimprovingprofitmargins,emphasizingexceptionalqualityandtimelydelivery[107].−Thegarmentmanufacturingsegmentissupportedbysufficientproductioncapacityandskilledworkerstomeetqualitycontrolstandards[104].−Thegarmentmanufacturingbusinessreportedagrossprofitofapproximately17,112, or 63.3% of its revenue, down from 33,083,or32.840,433 for the nine months ended December 31, 2023, representing a gross margin of 23.5%, down from 25.3% in 2022[158]. - Raw material costs for garment manufacturing accounted for approximately 15.7% of total revenue in the three months ended December 31, 2023, compared to 0.8% in 2022[128]. - Overhead and other expenses for the garment manufacturing business decreased to approximately 0.8% of total garment business revenue for the nine months ended December 31, 2023, down from 3.1% in the same period of 2022[153]. Financial Performance - Total revenue for the three months ended December 31, 2023 decreased by approximately 653,746,or30.8162,327, a decrease of 445,135,or73.3607,462 in 2022[136]. - Operating expenses for the three months ended December 31, 2023 were 611,919,adecreaseof88,510, or 12.6%, compared to 700,429in2022[136].−NetlossforthethreemonthsendedDecember31,2023was(2,607,662), a significant increase in loss of (2,525,444),or3071.6(82,218) in 2022[124]. - Total revenue for the nine months ended December 31, 2023, decreased by approximately 2.8million,or42.04.0 million for the nine months ended December 31, 2023, compared to a net income of approximately 0.1millionforthesameperiodin2022[168].−Totalgeneralandadministrativeexpensesincreasedbyapproximately9.01.7 million for the nine months ended December 31, 2023, from 1.5millionin2022[164].−Netcashusedinoperatingactivitieswas1.5 million for the nine months ended December 31, 2023, nearly the same as the $1.5 million used in the same period of 2022[170]. Regulatory and Structural Risks - The company operates through a holding structure that presents unique risks to investors, particularly regarding regulatory changes in China[100]. - The company has no off-balance sheet arrangements that could materially affect its financial condition as of December 31, 2023[175]. Management and Compliance - The report was signed on February 14, 2024, by Hong Zhida, the President and CEO, and Huang Chao, the CFO and Treasurer[185]. - The certifications required under Section 302 and Section 906 were completed by the Principal Executive Officer and Principal Financial Officer[184].
