Document And Entity Information
Document And Entity Information | 12 Months Ended |
Sep. 30, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Huadi International Group Co., Ltd. |
Trading Symbol | HUDI |
Document Type | 20-F |
Current Fiscal Year End Date | --09-30 |
Entity Common Stock, Shares Outstanding | 14,259,182 |
Amendment Flag | false |
Entity Central Index Key | 0001791725 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39904 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 1688 Tianzhong Street |
Entity Address, Address Line Two | Longwan District |
Entity Address, City or Town | Wenzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 325025 |
Title of 12(b) Security | Ordinary shares, par value 0.0002 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Document Financial Statement Error Correction [Flag] | false |
Auditor Firm ID | 6706 |
Auditor Name | TPS Thayer, LLC |
Auditor Location | Sugar Land, TX |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | No. 1688 Tianzhong Street |
Entity Address, Address Line Two | Longwan District |
Entity Address, City or Town | Wenzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 325025 |
Contact Personnel Name | Huisen Wang |
City Area Code | +86 |
Local Phone Number | 057786598888 |
Contact Personnel Email Address | Huadi@huadigroup.com |
Consolidated Balance Sheets
Consolidated Balance Sheets | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) |
Current assets: | ||
Cash and cash equivalents | $ 20,192,460 | $ 13,195,999 |
Restricted cash | 769,233 | 1,347,246 |
Accounts receivable, net of allowance for doubtful accounts of $2,391,641 and $2,197,396, respectively | 22,630,275 | 19,658,188 |
Notes receivable | 7,661,035 | 1,410,613 |
Inventories | 26,706,629 | 24,867,708 |
Advances to suppliers, net | 2,105,902 | 3,369,468 |
Other receivables | 171,182 | 552,633 |
Total current assets | 80,236,716 | 64,401,855 |
Property, plant and equipment, net | 5,354,997 | 5,989,136 |
Land use rights, net | 4,312,349 | 1,069,891 |
Long-term investments | 12,515,817 | 12,836,916 |
Deferred tax assets | 392,713 | 338,729 |
Other noncurrent assets | 198,194 | |
TOTAL ASSETS | 103,010,786 | 84,636,527 |
Current liabilities: | ||
Accounts payable | 3,434,031 | 919,492 |
Accrued expenses and other current liabilities | 1,946,325 | 1,771,245 |
Notes payable | 1,632,401 | 548,253 |
Advances from customers | 2,393,021 | 4,005,942 |
Short-term borrowings | 4,442,870 | 11,888,662 |
Long-term borrowings – current portion | 43,860 | |
Tax payable | 4,009,849 | 3,126,778 |
Total current liabilities | 22,610,447 | 25,701,961 |
Long-term borrowings | 5,398,849 | 9,300,625 |
TOTAL LIABILITIES | 28,326,976 | 35,002,586 |
COMMITMENTS AND CONTIGENCIES | ||
Shareholders’ equity: | ||
Common stock, $0.0002 par value, 250,000,000 shares authorized, 14,259,182 and 13,239,182 shares issued and outstanding, respectively | 2,852 | 2,648 |
Additional paid-in capital | 67,280,709 | 44,211,313 |
Statutory surplus reserves | 874,518 | 494,223 |
Retained earnings | 6,679,692 | 3,802,265 |
Accumulated other comprehensive (loss) income | (428,779) | 873,059 |
Total equity attributable to Huadi International Group Co., Ltd. | 74,408,992 | 49,383,508 |
Equity attributable to non-controlling interests | 274,818 | 250,433 |
Total shareholders’ equity | 74,683,810 | 49,633,941 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 103,010,786 | 84,636,527 |
Related Party | ||
Current liabilities: | ||
Accounts payable - related parties | 3,692,394 | 2,439,105 |
Advances from customers - related parties | 1,015,696 | 395,498 |
Due to related parties – current portion | 606,986 | |
Due to related parties - noncurrent portion | $ 317,680 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts, net (in Dollars) | $ 2,391,641 | $ 2,197,396 | $ 3,066,937 |
Common stock, par value (in Dollars per share) | $ 0.0002 | $ 0.0002 | |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 14,259,182 | 13,239,182 | |
Common stock, shares outstanding | 14,259,182 | 13,239,182 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 83,113,259 | $ 74,702,625 | $ 67,006,655 |
Production service revenue | 1,219,041 | 1,663,523 | 3,239,956 |
Cost of sales | (71,976,696) | (65,230,521) | (58,926,675) |
Gross profit | 12,355,604 | 11,135,627 | 11,319,936 |
Operating expenses: | |||
Selling, general and administrative | 7,338,320 | 6,452,173 | 6,684,410 |
Research and development | 2,550,777 | 2,330,913 | 2,057,547 |
Foreign currency transaction (gains) loss | (644,118) | ||
Total operating expenses | 9,244,979 | 8,783,086 | 8,741,957 |
Operating income | 3,110,625 | 2,352,541 | 2,577,979 |
Other income (expenses): | |||
Interest income (expenses), net | (296,265) | (1,629,642) | (2,058,461) |
Other income (expenses), net | 701,751 | 1,398,173 | 1,948,527 |
Total other income (expenses), net | 405,486 | (231,469) | (109,934) |
Income before income taxes | 3,516,111 | 2,121,071 | 2,468,045 |
Income tax (provision) benefit | (220,854) | (173,017) | 89,000 |
Net income | 3,295,257 | 1,948,054 | 2,557,045 |
Net income attributable to non-controlling interests | 37,535 | 23,852 | 25,570 |
Net income attributable to Huadi International Group Co., Ltd. | 3,257,722 | 1,924,202 | 2,531,475 |
Net income | 3,295,257 | 1,948,054 | 2,557,045 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (1,314,988) | (3,792,527) | 1,452,328 |
Total comprehensive income (loss) | 1,980,269 | (1,844,473) | 4,009,373 |
Comprehensive income attributable to non-controlling interests | 24,385 | (14,073) | 40,093 |
Comprehensive income attributable to Huadi International Group Co., Ltd. | $ 1,955,884 | $ (1,830,400) | $ 3,969,280 |
Basic and diluted earnings per share | |||
Basic (in Dollars per share) | $ 0.23 | $ 0.15 | $ 0.21 |
Diluted (in Dollars per share) | $ 0.23 | $ 0.15 | $ 0.21 |
Weighted average numbers of common shares outstanding | |||
Basic (in Shares) | 14,138,525 | 13,228,682 | 12,116,079 |
Diluted (in Shares) | 14,138,525 | 13,228,682 | 12,116,079 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Statutory Surplus Reserve | Shareholders’ equity to Huadi International Group Co., Ltd. | Non- controlling interests | Total |
Balance at Sep. 30, 2020 | $ 2,000 | $ 22,531,620 | $ (159,189) | $ 3,189,856 | $ 25,564,287 | $ 224,413 | $ 25,788,700 | |
Balance (in Shares) at Sep. 30, 2020 | 10,000,000 | |||||||
Stock offering, net of offering cost | $ 625 | 21,663,716 | 21,664,341 | 21,664,341 | ||||
Stock offering, net of offering cost (in Shares) | 3,125,000 | |||||||
Stock-based compensation | 16,000 | 16,000 | 16,000 | |||||
Stock-based compensation (in Shares) | 2,000 | |||||||
Foreign currency translation gain | 1,437,805 | 1,437,805 | 14,523 | 1,452,328 | ||||
Net income | 2,275,770 | 255,705 | 2,531,475 | 25,570 | 2,557,045 | |||
Balance at Sep. 30, 2021 | $ 2,625 | 44,211,336 | 2,116,581 | 4,627,661 | 255,705 | 51,213,908 | 264,506 | 51,478,414 |
Balance (in Shares) at Sep. 30, 2021 | 13,127,000 | |||||||
Warrant exercise | $ 23 | (23) | ||||||
Warrant exercise (in Shares) | 112,182 | |||||||
Foreign currency translation gain | (3,754,602) | (3,754,602) | (37,925) | (3,792,527) | ||||
Net income | 1,685,684 | 238,518 | 1,924,202 | 23,852 | 1,948,054 | |||
Balance at Sep. 30, 2022 | $ 2,648 | 44,211,313 | 3,802,265 | 873,059 | 494,223 | 49,383,508 | 250,433 | $ 49,633,941 |
Balance (in Shares) at Sep. 30, 2022 | 13,239,182 | 13,239,182 | ||||||
Share issuance | $ 200 | 23,009,800 | 23,010,000 | $ 23,010,000 | ||||
Share issuance (in Shares) | 1,000,000 | |||||||
Statutory reserves | (380,295) | 380,295 | ||||||
Stock-based compensation | $ 4 | 59,596 | 59,600 | 59,600 | ||||
Stock-based compensation (in Shares) | 20,000 | |||||||
Foreign currency translation gain | (1,301,838) | (1,301,838) | (13,510) | (1,314,988) | ||||
Net income | 3,257,722 | 3,257,722 | 37,535 | 3,295,257 | ||||
Balance at Sep. 30, 2023 | $ 2,852 | $ 67,280,709 | $ 6,679,692 | $ (428,779) | $ 874,518 | $ 74,408,992 | $ 274,818 | $ 74,683,810 |
Balance (in Shares) at Sep. 30, 2023 | 14,259,182 | 14,259,182 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | |||
Net income | $ 3,295,257 | $ 1,948,054 | $ 2,557,045 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 657,107 | 792,888 | 735,333 |
Amortization | 58,778 | 32,087 | 32,349 |
Stock-based compensation | 59,600 | ||
Bad debt expense (recovery) | 430,708 | (564,283) | (153,676) |
Deferred tax benefits (expenses) | (64,606) | 173,017 | (89,000) |
Loss (gain) on disposal of fixed assets | (2,557) | 1,767 | |
Foreign currency transaction (gain) loss | (644,118) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,840,784) | 4,080,722 | (8,823,928) |
Notes receivable | (6,501,994) | 1,018,351 | (1,987,871) |
Inventories | (2,545,634) | (4,653,336) | (756,588) |
Advances to suppliers | 1,103,735 | 85,084 | (2,727,661) |
Advances to suppliers – related party | 5,457,504 | 78,283 | |
Other receivables | 380,277 | (132,062) | 2,006,975 |
Other noncurrent assets | (261,810) | ||
Accounts payable | 3,984,378 | 1,960,756 | (238,638) |
Accrued expenses and other current liabilities | 226,934 | 91,961 | 372,155 |
Notes payable | 1,135,639 | (1,678,680) | 707,021 |
Advances from customers | (912,997) | 188,878 | 3,040,106 |
Tax payable | 836,701 | (589,163) | (402,478) |
Net cash (used in) provided by operating activities | (2,447,726) | 8,027,856 | (5,648,806) |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (157,571) | (206,175) | (917,539) |
Purchases of land-use-right | (3,440,489) | ||
Proceeds from disposition of property, plant and equipment | 4,015 | 20,285 | |
Net cash (used in) provided by investing activities | (3,594,045) | (206,175) | (897,254) |
Cash Flows from Financing Activities: | |||
Proceeds from short-term borrowings | 5,588,190 | 21,719,160 | 35,820,322 |
Repayments on short-term borrowings | (12,982,576) | (41,712,446) | (35,265,552) |
Proceeds from long-term borrowings | 5,639,913 | 10,095,831 | |
Repayments on long-term borrowings | (9,389,931) | ||
Proceeds from stock offering, net of offering costs | 23,010,000 | 21,680,341 | |
Advances from related parties | 6,858,500 | 305,226 | 6,223,875 |
Repayments to related parties | (7,142,055) | (152,628) | (7,182,813) |
Net cash provided by (used in) financing activities | 11,582,041 | (9,744,857) | 21,276,173 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 878,178 | (188,294) | 219,398 |
Net (decrease) increase in cash and cash equivalents and restricted cash | 6,418,448 | (2,111,470) | 14,949,511 |
Cash and cash equivalents and restricted cash at the beginning of year | 14,543,245 | 16,654,715 | 1,705,204 |
Cash and cash equivalents and restricted cash at the end of year | 20,961,693 | 14,543,245 | 16,654,715 |
Supplemental disclosures of cash flows information: | |||
Cash paid for income taxes | 25,773 | 64,016 | 480,495 |
Cash paid for interest | $ 442,748 | $ 1,151,567 | $ 1,550,082 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Nature of Operations [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Entity Name Registered Date of Incorporation Ownership as of the Huadi International Group Co., Ltd. Cayman Island September 27, 2018 Parent Yongqiang Tuoxing Limited. British Virgin Island October 2, 2018 100% by the Parent Hong Kong Beach Limited. (“HK Beach”) Hong Kong November 7, 2018 100% by Yongqiang Tuoxing Wenzhou Hongshun Stainless Steel Limited. (“Hongshun”) Wenzhou, June 3, 2019 100% by HK Beach Huadi Steel Group Limited. Wenzhou, November 12, 1998 99% by Hongshun Huadi (Songyang) Co., Ltd. (“Huadi Songyang”) Songyang, China June 15, 2023 100% by HK Beach Huadi International Group Co., Ltd. (“Huadi International”) Huadi International was incorporated on September 27, 2018 under the laws of Cayman Islands. Under its memorandum of association, Huadi International is authorized to issue 250,000,000 ordinary shares of a single class, par value $0.0002 per ordinary share. There are currently 14,259,182 issued and outstanding ordinary shares. Huadi International is a holding company and is currently not actively engaged in any business. Huadi International’s registered agent is Harneys Fiduciary (Cayman) Limited and its registered office is at 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands. Yongqiang Tuoxing Limited (“Yongqiang Tuoxing”) Yongqiang Tuoxing was incorporated on October 2, 2018 under the laws of British Virgin Islands. Under its memorandum of association, Yongqiang Tuoxing is authorized to issue 50,000 ordinary shares of a single class, par value $1.00 per ordinary share. Yongqiang Tuoxing is a wholly owned subsidiary of Huadi International and is currently not actively engaged in any business. Yongqiang Tuoxing’s registered agent is Harneys Corporate Services Limited and its registered office is at Craigmuir Chambers, Road Town, Tortola, VG1110, British Virgin Islands. Hong Kong Beach Limited (“HK Beach”) HK Beach was incorporated on November 7, 2018 under the laws of Hong Kong and is a wholly owned subsidiary of Yongqiang Tuoxing. HK Beach did not have any operations as of September 30, 2023. Wenzhou Hongshun Stainless Steel Ltd. (“Wenzhou Hongshun”) Wenzhou Hongshun was incorporated on June 3, 2019 in China and is a wholly owned subsidiary of HK Beach. Wenzhou Hongshun is a wholly-foreign owned enterprise organized under the laws of the People’s Republic of China. The registered principal activities of Wenzhou Hongshun are sales of stainless steel pipes, stainless steel bars, stainless steel elbows, stainless steel products, auto parts and components; import and export of goods, technology import and export. Wenzhou Hongshun did not have any operations as of September 30, 2023. Huadi Steel Group Limited. (“Huadi Steel”) Huadi Steel was incorporated on November 12, 1998 under the laws of the People’s Republic of China. Since August 18, 2015, Huadi Steel was owned by nine shareholders in People’s Republic of China (“PRC Shareholders”). Huadi Steel focuses on manufacturing of industrial stainless steel seamless pipes and tubes products with extensive distribution facilities and network in China. Huadi (Songyang) Co., Ltd. (“Huadi Songyang”) Huadi Songyang was incorporated on June 15, 2023 in China and is a wholly owned subsidiary of HK Beach. Huadi Songyang is a wholly-foreign owned enterprise organized under the laws of the People’s Republic of China. Huadi Songyang is established for the purpose of expanding product line of industrial steel pipe and tube products manufacture and distribution. Except where the context otherwise requires and for purposes of this financial statement only, “the Company”, “we”, “us”, “our company”, “our” and “Huadi” refer to the above-mentioned entities. Reorganization In or about August 2019, the Company completed a corporate reorganization to roll several controlled entities (now referred to as the subsidiaries) into one legal corporation (the Company). Di Wang, one of the PRC Shareholders transferred 5% equity of Huadi Steel to a Hong Kong entity which was subsequently transferred to Wenzhou Hongshun on August 28, 2019. On August 22, 2019, Wenzhou Hongshun acquired 94% equity of Huadi Steel from the PRC Shareholders. As a result, Huadi Steel’s equity interest is 99% held by Wenzhou Hongshun and 1% held by Di Wang as of September 30, 2023. During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the control of the PRC Shareholders). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Impact of COVID-19 There has been a global pandemic of a novel strain of coronavirus (COVID-19) that first emerged in China in December 2019 and has spread globally. The COVID-19 pandemic has resulted in quarantines, travel restrictions, and the temporary closures of stores and business facilities in China for the first half year of 2020. In March 2020, the World Health Organization declared COVID-19 as a global pandemic. Given the rapidly expanding nature of COVID-19 pandemic, and substantially all of our business operations and our workforces are concentrated in China, we believe that it has impacted and will likely continue to impact our business, results of operations, and financial condition. Although we are currently fully functional, potential impact on our results of operations will also depend on future developments and information that may emerge regarding the duration and severity of COVID-19 and the actions taken by governmental authorities and other entities to contain COVID-19 or to mitigate its impacts, almost all of which are beyond our control. The impacts of COVID-19 on our business, financial condition, and results of operations include, but are not limited to, the following: ● We have experienced some disruption to our supply chain during the PRC government mandated lockdown, with suppliers delay in delivering materials and equipment, which caused a delay in progress of our projects. While all our major suppliers are currently fully operational, any future disruption in their operations would impact our ability to deliver our products and services to customers. In addition, reductions in commercial airline and cargo flights, disruptions to ports and other shipping infrastructure resulting from the COVID-19 pandemic resulted in increased transport times to deliver our products to customers. This limited our ability to fulfill orders and we were unable to satisfy all of the demand for our products or service in a timely manner, which adversely affected our revenue and relationships with our customers. ● In March 2022, a new COVID-19 subvariant (omicron) outbreak hit China and spread faster and more easily than variants of the previous virus. As a result, a new round of lockdown, quarantines or travel restrictions was imposed upon different provinces or cities in China by the relevant local government authorities. The Company’s product sales and production service revenue were adversely affected during the first half of the year ended September 30, 2023. After control measures were eased in December 2022 and daily life returned to normal for consumers, the sales in the PRC gradually recovered in the second half of the year ended September 30, 2023. The World Health Organization (WHO) announced on May 5, 2023 that COVID-19 is no longer a public health emergency of international concern. In the long term, the aftermath of the COVID-19 pandemic is likely to adversely affect the economies and financial markets of many countries and may result in a global economic downturn or a recession. This would likely adversely affect demand on some of our products or services, which may, in turn negatively impact our results of operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of the Company and its majority-owned and controlled subsidiaries. All significant inter-company transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property, plant and equipment, intangible assets, impairment in equity investment, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. Foreign Currency Transaction and Translation The Company’s reporting currency is United States Dollars (“US$”). The financial records of the Company’s subsidiaries in People’s Republic of China (“PRC”) are maintained in their local currencies which are Chinese Yuan (“CNY” or “RMB”). Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in operating expense in the Consolidated Statements of Income and Comprehensive Income (Loss). The financial statements of the Company’s subsidiaries in PRC are translated from RMB into US$. Assets and liabilities are translated into US$ using the applicable exchange rates at the balance sheet date. Equity accounts other than net income generated in the current period are translated into US$ using the appropriate historical rates. Revenues, expenses, gains and losses are translated into US$ using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive (loss) / income in the Consolidated Statements of Income and Comprehensive Income (Loss), and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive (loss) / income in the Consolidated Balance Sheets. The relevant exchange rates are listed below: For the Fiscal Years Ended 2023 2022 2021 Period Ended RMB: USD exchange rate 7.2960 7.1135 6.4434 Period Average RMB: USD exchange rate 7.0533 6.5532 6.5072 Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid investments that are readily convertible to cash generally with original maturities of three months or less when purchased. Restricted Cash The Company has bank acceptance notes outstanding with the bank and is required to keep certain amounts on deposit that are subject to withdrawal restrictions. Those notes are generally short term in nature due to their short maturity period of six to nine months; thus, restricted cash is classified as a current asset. Restricted cash is included in the beginning or ending balance of cash and cash equivalents and restricted cash in the consolidated statements of cash flows. As of September 30, 2023 and 2022, restricted cash was $769,233 and $1,347,246, respectively. No cash is restricted to assure future credit availability. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The allowance for doubtful accounts recognized as of September 30, 2023 and 2022 was $2,391,641 and $2,197,396, respectively. Notes Receivable Notes receivable represent bank acceptance notes and commercial acceptance notes the Company receives from its customers in exchange for goods or services that it has transferred to customers. The notes generally range from three to six months from the date of issuance. The carrying value of notes receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. As part of the regular business and in case of immediate cash needs, the Company sells its notes receivable at a discount with or without recourse. Notes receivables are considered sold and derecognized from balance sheet when they are transferred beyond the reach of the Company and its creditors, the purchaser has the right to pledge or exchange the note receivables, and the Company has surrendered control over the transferred note receivables. If the Company does not surrender control, typically for those arrangements with recourse, the cash received from the purchaser is accounted for as a secured borrowing. In the case of arrangements with recourse, notes receivables are not derecognized. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. There were no write-downs recognized of inventories for the years ended September 30, 2023, 2022 and 2021. Advances to Suppliers Advances to suppliers refer to advances for purchase of materials or other service agreements, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would write off such amount in the period when it is considered as impaired. The allowance for advance to suppliers recognized as of September 30, 2023 and 2022 was $171,538 and $60,794, respectively. Property and Equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets with 5% of residual value, as follows: Useful lives Buildings 10-50 years Machinery and equipment 5-20 years Transportation vehicles 3-10 years Office equipment 3-10 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Land Use Rights Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Land use rights are amortized using the straight-line method with the following estimated useful lives: Useful lives Land use rights 50 years Long-term Investments Effective October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-01 and related ASU 2018-03 concerning recognition and measurement of financial assets and financial liabilities. In adopting this new guidance, the Company has made an accounting policy election to adopt the cost-minus-impairment measurement alternative for investments in equity securities without readily determinable fair values. For equity investments that are accounted for using the cost-minus-impairment measurement alternative, the Company initially records equity investments at cost but is required to adjust the carrying value of such equity investments through earnings when there is an observable transaction involving the same or a similar investment with the same issuer or upon an impairment. Impairment of Long-lived Assets The Company’s management reviews the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets for the years ended September 30, 2023, 2022 and 2021. Fair Value Measurement Fair Value Measurements and Disclosures requires disclosure of the fair value of financial instruments held by the Company. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. For the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, other current liabilities, notes receivable, notes payable, bank loans, and other receivables, the carrying amounts approximate their fair values due to their short maturities as of September 30, 2023 and 2022. The Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring basis as of September 30, 2023 and 2022. Value-added Tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products are sold in the PRC and are subject to a VAT on the gross sales price. The Company is subject to a VAT rate of 17% before May 1, 2018, a VAT rate of 16% effective on May 1, 2018, and the most current VAT rate of 13% effective on April 1, 2019. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on October 1, 2018 using the modified retrospective approach. There is no adjustment to the opening balance of retained earnings at October 1, 2018, since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its revenues from two sources: (1) revenue from sales of steel piping products, (2) revenue from production service. (1) Revenue from sales of steel piping products The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In the principal versus agent consideration, since no another party is involved in transactions, the Company is a principal. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. The Company does not routinely permit customers to return products, while in certain conditions product changes are allowed. The customer does not have the option to purchase the warranty separately. Also, the warranty does not provide a service to the customer beyond fixing defects that existed at the time of sale. Thus, the warranty is assurance-type, and historically customer returns have been immaterial. Sales revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied at a point in time). The Company sells its products either under free onboard (“FOB”) shipping point term or under FOB destination term. For sales under FOB shipping point term, the Company recognize revenues when products are loaded on the ships. Product delivery is evidenced by warehouse shipping logs as well as assigned shipping bills from the shipping companies. For sales under FOB destination term, the Company recognize revenues when the products are delivered and accepted by customers. Product delivery is evidenced by signed receipt documents and title transfers upon delivery. Prices are determined based on negotiations with the Company’s customers and are not subject to adjustment. As a result, the Company expects returns to be minimal. (2) Revenue from production service The Company identifies the product processing agreement as contract. For each contract, the Company considers the promise to provide production service, each of which are distinct, to be the identified performance obligations. In the principal versus agent consideration, since no another party is involved in transactions, the Company is a principal. The transaction price is clearly stated on the contract and not subject to adjustment. The Company allocates the transaction price to each distinct service based on their relative standalone selling price. Production service revenue is recognized when production order is completed and transferred to customer, Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. There were no contract fulfillment cost and contract acquisition costs as of September 30, 2023 and 2022. Contract balance The Company does not have amounts of contract assets since revenue is recognized at a point in time. Contract liabilities are presented as advance from customers on the consolidated balance sheet. Contract liabilities are recognized when the Company receives prepayment from customers resulting from purchase order or product processing agreement. Contract liabilities will be recognized as revenue when the products are delivered. As of September 30, 2023 and 2022, the balance of advance from customers amounted to $3,408,717 and $4,401,440, respectively. For the years ended September 30, 2023 and 2022, the beginning balance of advance from customers of $3,733,552 and $4,240,827 were recognized as revenue when the products are delivered. Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. For the years ended September 30, 2023, 2022 and 2021, the Company received government grants of $373,032, $355,925 and $1,190,882, respectively. The grants were recorded as other income in the consolidated statements for income. Research and Development Costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are included in selling, general and administrative expense. Shipping and handling costs were $1,749,338, $1,232,430 and $1,341,712 for the years ended September 30, 2023, 2022 and 2021, respectively. Advertising Costs Advertising costs are expensed as incurred and are included in selling, general and administrative expense. Advertising costs were $157,293, $167,459 and $237,563 for years ended September 30, 2023, 2022 and 2021 respectively. Income Taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to the years in which those temporary differences are expected to be reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non-current amounts. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. To the extent applicable, the Company records interest and penalties as other expense. All of the tax returns of the Company’s PRC subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The fiscal years for tax purpose in PRC is December 31. The Company and its subsidiaries are not subject to U.S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by the Company, reducing the amount available to pay dividends to the holders of the Company’s ordinary shares. Earnings Per Share Earnings (loss) per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of ordinary shares and dilutive common share equivalents. Dilutive common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. There were no dilutive common share equivalents outstanding during the years ended September 30, 2023, 2022 and 2021. Certain Risks and Concentration Exchange Rate Risks The Company operates in PRC, which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates between the USD and the RMB. Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash, notes receivable. The Company places its cash and cash equivalents, restricted cash, and note receivable in good credit quality financial institutions in Hong Kong and PRC. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. The Company maintains most bank accounts in PRC. Cash balances in bank accounts in PRC are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection is up to RMB500,000 per depositor per Scheme member, including both principal and interest. Interest Rate Risks The Company is subject to interest rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. Liquidity Risks Our primary sources of liquidity consist of existing cash balances, cash flows from our operating activities and availability under our revolving credit facility. Our ability to generate sufficient cash flows from our operating activities is primarily dependent on our sales of steel pipe, tube and ancillary products to our customers at margins sufficient to cover fixed and variable expenses. As of September 30, 2023 and 2022, we had cash and cash equivalents of $20,192,460 and $13,195,999, respectively. We believe that our current cash, cash to be generated from our operations and access to loans from our related parties will be sufficient to meet our working capital needs for at least the next twelve months. However, we do not have any amounts committed to be provided by our related party. We plan to expand our business to implement our growth strategies in our existing market and strengthen our position in the marketplace. To do so, we will need more capital through equity financing to increase our production and meet market demands. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of accounting standards until they would apply to private companies. New Accounting Pronouncements Recently Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The adoption of this ASU on October 1, 2022 did not have a material effect on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. Early adoption is permitted. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning October 1, 2023. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Accounts receivable $ 25,021,916 $ 21,855,584 Less: allowance for doubtful accounts (2,391,641 ) (2,197,396 ) Accounts receivable, net $ 22,630,275 $ 19,658,188 The Company’s customers are for the most part, state-owned entities and construction companies. Due to the nature of the customers and the practice of the industry, the Company generally allows credit period of 180 days to its customers. The average accounts receivable turnover period was approximately 105 days, 108 days and 106 days for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. Changes of allowance for doubtful accounts for the years ended September 30, 2023 and 2022 are as follow: 2023 2022 Beginning balance $ 2,197,396 $ 3,066,937 Addition (reduction) of bad debt allowance 257,784 (580,631 ) Exchange difference (63,539 ) (288,910 ) Ending balance $ 2,391,641 $ 2,197,396 No bad debt write-off recorded by the Company during the years ended September 30, 2023 and 2022. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Sep. 30, 2023 | |
Notes Receivable [Abstract] | |
NOTES RECEIVABLE | NOTE 4 – NOTES RECEIVABLE Notes receivable consisted of bank acceptance notes and commercial acceptance notes of $7,661,035 and $1,410,613 received from the Company’s customers as of September 30, 2023 and 2022, respectively. These notes with 3-6 months maturity dates were issued by customers to pay their payable balances to the Company, and most notes were guaranteed by banks. Factored notes receivables with recourse amounted $4,442,870 and $ nil |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES Inventories as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Raw materials $ 13,243,104 $ 6,610,565 Work in process 247,113 5,421,908 Finished goods 13,216,411 12,835,235 Total $ 26,706,629 $ 24,867,708 There was no inventory write-downs recognized for the years ended September 30, 2023, 2022 and 2021. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Buildings $ 2,913,471 $ 2,988,217 Machinery and equipment 9,631,702 9,776,164 Transportation vehicles 1,013,593 1,014,921 Office equipment 611,129 626,808 Total property plant and equipment, at cost 14,169,895 14,406,110 Less: accumulated depreciation (8,814,898 ) (8,416,974 ) Property, plant and equipment, net $ 5,354,997 $ 5,989,136 Depreciation expense was $657,107, $792,888 and $735,333 for the years ended September 30, 2023, 2022 and 2021, respectively. During fiscal year ended September 30, 2023, the Company sold fixed assets with a net carrying value of $1,410, and recorded gain on sale of fixed assets of $2,557. During fiscal year ended September 30, 2022, no fixed asset was sold. As of September 30, 2023 and 2022, the Company pledged buildings to secure banking facilities granted to the Company. The carrying values of the pledged buildings to secure bank borrowings by the Company are shown in Note 11 |
Land Use Rights [Member] | |
Property, Plant and Equipment [Line Items] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 7 – LAND USE RIGHTS Land use rights as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Land use rights, cost $ 4,824,826 $ 1,537,236 Less: accumulated amortization (512,477 ) (467,345 ) Land use rights, net $ 4,312,349 $ 1,069,891 Amortization expense was $58,778, $32,087 and $32,349 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Investments [Abstract] | |
LONG-TERM INVESTMENTS | NOTE 8 – LONG-TERM INVESTMENTS Long-term investments consisted of the following as of September 30, 2023 and 2022: 2023 2022 Huashang Micro Finance Co. $ 5,208,333 $ 5,341,956 Longwan Rural Commercial Bank 6,165,296 6,323,469 Wenzhou Longlian Development Co., Ltd 1,142,188 1,171,491 Total long-term investments, at cost $ 12,515,817 $ 12,836,916 Add: upward adjustments - - Less: impairment and downward adjustments - - Long-term investments $ 12,515,817 $ 12,836,916 In 2009, the Company made an investment of RMB 90,000,000 ($13,203,257 in USD) to acquire 22.5% in Huashang Micro Finance Co. (“Huashang”), a finance company offers micro loans to its customers. In 2015, as the result of a capital reduction, the Company’s ownership was reduced by 3.5% to 19% for a cash consideration of RMB 52,000,000 ($8,535,827 in USD). The Company carries this investment at cost-minus-impairment measurement alternative on its consolidated balance sheets. The Company did not receive any dividend income from Huashang during the years ended September 30, 2023, 2022 and 2021. In 2011, the Company made an investment of RMB 8,333,400 ($1,307,982 in USD) to acquire 8.3334% in Wenzhou Longlian Development Co., Ltd. (“Longlian”), a property and infrastructure development company. The Company carries this investment at at cost-minus-impairment measurement alternative on its consolidated balance sheets. The Company did not receive any dividend income from Longlian during the years ended September 30, 2023, 2022 and 2021. In 2012, the Company made an investment of RMB 44,982,000 ($7,172,207 in USD) to acquire 2.1% in Longwan Rural Commercial Bank. (“LRCB”), a private bank accepting deposits and providing short-term or long-term lending to its customers. The Company carries this investment at at cost-minus-impairment measurement alternative on its consolidated balance sheets. During the year ended September 30, 2023, the Company received dividend income of RMB 1,764,000 ($250,096 in USD) from LRCB. During the year ended September 30, 2022, the Company received dividend income of RMB 2,756,250 ($420,596 in USD) from LRCB. During the year ended September 30, 2021, the Company received dividend income of RMB 2,822,400 ($433,735 in USD) from LRCB. The ownership percentage of the above long-term investments has not changed during the fiscal year ended September 30, 2023. During the years ended September 30, 2023 and 2022, no impairment of long-term investment was recognized, and no changes resulting from observable price changed. |
Notes Payable
Notes Payable | 12 Months Ended |
Sep. 30, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 9 – NOTES PAYABLE Notes payable consisted of bank notes payable of $1,632,401 and $548,253 provided by the Company to its suppliers as of September 30, 2023 and 2022, respectively. These short-term bank notes can be endorsed and assigned to suppliers as payments for purchases. The bank notes payables are generally payable within six months. These short-term notes payables are guaranteed by the bank for their full face value. In addition, the banks usually require the Company to deposit a certain amount of fund at the bank as a guarantee deposit, which is classified on the consolidated balance sheets as restricted cash. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 10 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following as of September 30, 2023 and 2022: 2023 2022 Accrued payroll and other welfare $ 1,591,880 $ 1,441,625 Other accrued expenses 354,445 329,620 Total $ 1,946,325 $ 1,771,245 |
Short-Term and Long-Term Borrow
Short-Term and Long-Term Borrowings | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term and Long-Term Borrowings [Abstract] | |
SHORT-TERM AND LONG-TERM BORROWINGS | NOTE 11 – SHORT-TERM AND LONG-TERM BORROWINGS Short-term and long-term borrowings consisted of the following as of September 30, 2023 and 2022: 2023 2022 Short-term borrowings $ 4,442,870 $ 11,888,662 Long-term borrowings Current portion $ 43,860 $ - Non-current portion 5,398,849 9,300,625 Total long-term borrowings $ 5,442,709 $ 9,300,625 Short-term borrowings Short-term borrowings outstanding at September 30, 2023 were undue factored notes receivable with recourse as shown in Note 4 Short-term borrowings consisted of the following at September 30, 2022: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 7,000,000 $ 984,044 11/12/2021 11/11/2022 4.35 % Agricultural Bank 9,990,000 1,404,372 11/23/2021 11/22/2022 4.35 % Agricultural Bank 9,500,000 1,335,489 12/1/2021 11/25/2022 4.35 % Agricultural Bank 5,700,000 801,293 12/23/2021 12/22/2022 4.30 % Agricultural Bank 9,990,000 1,404,372 12/29/2021 12/10/2022 4.35 % Agricultural Bank 5,000,000 702,889 1/6/2022 1/4/2023 4.35 % Agricultural Bank 8,400,000 1,180,853 3/7/2022 3/2/2023 4.35 % Agricultural Bank 9,990,000 1,404,372 8/5/2022 8/3/2023 4.30 % Hua Xia Bank 500,000 70,289 1/28/2022 1/15/2023 4.65 % Hua Xia Bank 9,000,000 1,265,200 4/26/2022 4/15/2023 4.65 % Hua Xia Bank 9,500,000 1,335,489 5/24/2022 5/11/2023 4.65 % Total RMB 84,570,000 11,888,662 Long-term borrowings Long-term borrowings consisted of the following at September 30, 2023: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,930,000 $ 1,361,020 4/28/2022 4/25/2025 3.95 % Agricultural Bank 9,940,000 1,362,390 12/9/2022 12/8/2025 3.95 % Agricultural Bank 9,940,000 1,362,390 12/15/2022 12/13/2025 3.95 % Agricultural Bank 9,900,000 1,356,909 9/26/2023 9/25/2026 3.45 % Total RMB 39,710,000 5,442,709 Long-term borrowings consisted of the following at September 30, 2022: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,900,000 $ 1,391,720 3/17/2022 3/16/2025 4.35 % Agricultural Bank 9,950,000 1,398,749 3/18/2022 3/5/2025 4.35 % Agricultural Bank 9,850,000 1,384,691 3/18/2022 2/25/2025 4.35 % Agricultural Bank 9,900,000 1,391,720 3/18/2022 2/15/2025 4.35 % Agricultural Bank 6,600,000 927,813 3/31/2022 3/25/2025 4.35 % Agricultural Bank 9,980,000 1,402,966 4/19/2022 4/17/2025 4.35 % Agricultural Bank 9,980,000 1,402,966 4/28/2022 4/25/2025 4.35 % Total RMB 66,160,000 $ 9,300,625 The following is a maturity analysis of long-term borrowings as of September 30, 2023: RMB USD Years ending September 30, 2024 320,000 $ 43,860 2025 10,050,000 1,377,467 2026 29,340,000 4,021,382 2027 - - 2028 and thereafter - - Total long-term borrowings 39,710,000 $ 5,442,709 Pledges and Guarantees The Company’s short-term and long-term bank borrowings are pledged by its assets as listed below: As of September 30, 2023 2022 Buildings, net $ 23,860 $ - Land use right, net 414,738 617,430 Total $ 438,598 $ 617,430 Interest expense For the years ended September 30, 2023, 2022 and 2021, interest expense on all short-term borrowings, long-term borrowings and notes payable amounted to $442,748, $1,151,567 and $1,550,082, respectively. |
Customer and Supplier Concentra
Customer and Supplier Concentrations | 12 Months Ended |
Sep. 30, 2023 | |
Customer and Supplier Concentrations [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATIONS | NOTE 12 – CUSTOMER AND SUPPLIER CONCENTRATIONS Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases. Customer concentration The Company had no significant customer during the year ended September 30, 2023. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2023, which combined accounted for 22.00% of the Company’s total accounts receivable. The Company had no significant customer during the year ended September 30, 2022. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2022, which combined accounted for 20.95% of the Company’s total accounts receivable. The Company sold a substantial portion of products to one customer (10.67% of total revenues) during the year ended September 30, 2021. As of September 30, 2021, amount due from this customer included in accounts receivable was $6,144,633, representing 24.31% of total accounts receivable. There was no other significant concentration (over 10%) of accounts receivable for the year ended September 30, 2021. The loss of our significant customer or the failure to attract new customers could have a material adverse effect on our business, consolidated results of operations and financial condition. Supplier concentration For the year ended September 30, 2023, two suppliers accounted for 25.98% and 12.39% of the Company’s total purchase. There were four suppliers that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2023, which accounted for 24.45%, 23.32%, 17.17% and 14.62% of the Company’s total accounts payable. For the year ended September 30, 2022, two suppliers accounted for 26.71% and 18.06% of the Company’s total purchase. There was one supplier that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2022, which accounted for 72.62% of the Company’s total accounts payable. For the year ended September 30, 2021, three suppliers accounted for 12.84%, 12.84% and 11.47% of the Company’s total raw material purchase. There was one supplier that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2021, which accounted for 51.33% of the Company’s total accounts payable. The Company believes there are numerous other suppliers that could be substituted should the supplier become unavailable or non-competitive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS 1) Nature of relationships with related parties: Name Relationship with the Company Taizhou Huadi Industrial Ltd. (“Taizhou Huadi”) An entity 30% owned by Jueqin Wang, principal shareholder of the Company Huashang Micro Finance Co. (“Huashang”) An entity 19% owned by the Company Taizhou Huadi Material Technology Co. (Huadi Material) An entity 100% owned by Jueguang Wang, Immediate family member of Jueqin Wang Wenzhou Maituo International Trade Ltd. (“Wenzhou Maituo”) An entity controlled by Meiling Wang, Immediate family member of Jueqin Wang Jueqin Wang Principal shareholder of the Company Di Wang Principal shareholder of the Company Jueguang Wang Immediate family member of Jueqin Wang Meiling Wang Immediate family member of Jueqin Wang Bing Zhang Principal shareholder of the Company 2) Related party transactions 2023 Fiscal year During the year ended September 30, 2023, the Company purchased a total of $679,210 raw materials from Taizhou Huadi, and sold a total of $239,640 piping products to Taizhou Huadi. These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2023, the Company had outstanding accounts payable of $3,692,394 to this entity. Besides, the Company borrowed $6,858,500 from Taizhou Huadi as working capitals to support the Company’s operations. The borrowing was unsecured, due on demand, and interest free. As of September 30, 2023, the borrowing has been fully repaid. During the year ended September 30, 2023, the Company sold a total of $520 steel materials to Huadi Material. As of September 30, 2023, the Company had advance balance of $385,605 from this entity. During the year ended September 30, 2023, the Company received $623,629 in advance from Wenzhou Maituo for piping products. During the year ended September 30, 2023, the Company leased an office to Huashang with annual rent amounted $26,235, and the Company recorded $19,550 rental income. As of September 30, 2023, the Company had advance balance of $6,462 from this entity. During the year ended September 30, 2023, the Company repaid RMB 2,000,000 ($274,123 in USD) to Di Wang. The borrowing was made in previous years to support the Company’s operations, which was unsecured, due on demand, and interest free. 2022 Fiscal year During the year ended September 30, 2022, the Company purchased a total of $4,649,636 raw materials from Taizhou Huadi, and sold a total of $1,990,329 piping products to Taizhou Huadi. These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2022, the Company had outstanding accounts payable of $2,439,105 to this entity. During the year ended September 30, 2022, the Company sold a total of $122,666 steel materials to Taizhou Huadi Material Technology Co. As of September 30, 2022, the Company had advance balance of $395,498 from this entity. During the year ended September 30, 2022, the Company net borrowed RMB 1,000,000 ($140,578 in USD), from Di Wang as working capitals to support the Company’s operations. The borrowing is unsecured, due on demand, and interest free. 2021 Fiscal Year During the year ended September 30, 2021, the Company purchased a total of $6,376,512 raw materials from Taizhou Huadi. These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2021, the Company had no outstanding balance of accounts payable to Taizhou Huadi. To lock down the prices for raw materials and hedge against price rise risk, the Company periodically pays Taizhou Huadi in advance. As of September 30, 2020, the Company had outstanding advance balance of USD $5,550,504 to Taizhou Huadi. During the year ended September 30, 2021, the Company borrowed RMB 12,000,000 ($1,844,111 in USD) with 8% annual interest rate from Huizhi Wang as working capitals to support the Company’s operations. During fiscal year 2020, the Company has fully repaid. During the year ended September 30, 2021, the Company borrowed RMB 6,500,000 ($998,894 in USD), from Juelin Wang as working capitals to support the Company’s operations. The borrowing is unsecured, due on demand, and was subject to 8% annual interest rate. During fiscal year 2021, the Company fully repaid the loan. During the year ended September 30, 2021, the Company borrowed RMB 12,000,000 ($1,844,111 in USD), from Bing Zhang as working capitals to support the Company’s operations. The borrowing is unsecured, due on demand, and was subject to 8% annual interest rate. The borrowing has been fully paid in fiscal year 2021. 3) Related party balances Net outstanding balances with related parties consisted of the following as of September 30, 2023 and 2022: Accounts Name of related parties 2023 2022 Accounts payable Taizhou Huadi Industrial Ltd. $ 3,692,394 $ 2,439,105 Advance from customer Taizhou Huadi Material Technology Co. 385,605 395,498 Advance from customer Wenzhou Maituo International Trade Ltd. 623,629 - Advance from customer Huashang Micro Finance Co. 6,462 - Due to related parties – current portion Di Wang - (281,156 ) Due to related parties – current portion Jueqin Wang - (325,830 ) Due to related parties – noncurrent portion Jueqin Wang (317,680 ) - |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Shareholders Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 14 – SHAREHOLDERS’ EQUITY Ordinary shares Reverse Stock Split On October 9, 2020, the Board of the Directors of Huadi International approved a 2 for 1 reverse stock split whereby every two authorized, issued and outstanding ordinary share was exchanged for one new ordinary shares (the “Reverse Stock Split”) and as a result of the Reverse Stock Split, the authorized ordinary shares decreased from 500,000,000 shares to 250,000,000 shares, par value of each ordinary share increased from $0.0001 to $0.0002, and the number of issued and outstanding ordinary shares decreased from 20,000,000 shares to 10,000,000 shares. All share information included in the consolidated financial statements and notes thereto have been retroactively adjusted as if such Reverse Stock Split occurred on the first day of the first period presented. Shares Issuances On January 22, 2021, the Company issued 2,000 shares to Henry He Huang, the Company’s Director, pursuant to the Director Offer Letter between the Company and Henry He Huang. The Company received no proceed from this issuance as it is a stock-based compensation, and the Company valued the shares based on the fair value at the date of issuance. The shares had fair value of $16,000. On January 26, 2021, the Company completed its initial public offering (“IPO”) of 3,125,000 shares of its common stock at a public offering price of $8.00 per share. The gross proceeds from the offering were approximately $25 million before deducting placement agents’ commissions and other offering expenses. The offering was conducted on a firm commitment basis. The Company issued warrants to the Underwriters equal to six percent (6%) of the shares issued in the IPO (the “Representative Warrants”). The Representative Warrants will be exercisable at any time, and from time to time, in whole or in part, during the period commencing 180 days from the effective date of the offering, which period shall not extend further than four and one-half years from the effective date of the registration statement in compliance with FINRA Rule 5110(f)(2)(G)(i). The Representative Warrants are exercisable at a per share price of $10.00, which is 125% of the Public Offering Price. The Representative Warrants are also exercisable on a cashless basis. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its own stock; and b) classified in stockholders’ equity. The warrants were recorded at their fair value on the date of grant as a component of stockholders’ equity. During the fiscal year ended September 30, 2022, all warrants were exercised on cashless basis and 112,182 shares of Company’s ordinary shares were issued. On February 19, 2021, the board of Wenzhou Hongshun approved the resolution to increase investment into Huadi Steel by RMB 99 million, of which RMB 32 million has been paid by Wenzhou Hongshun as of March 30, 2021, with Di Wang invested additional RMB 1 million. As a result, the shareholder structure remains the same with Wenzhou Huadi Steel’s equity interest 99% held by Wenzhou Hongshun and 1% held by Di Wang. On November 7, 2022, the Company entered into a securities purchase agreement with two institutional investors pursuant to which the Company agreed to sell up to 3,500,000 ordinary shares, par value $0.0002 per share, in a registered direct offering. On November 9, 2022, the Company closed the Offering for the sale of 1,000,000 ordinary shares. The Company received gross proceeds from the sale of the Shares of approximately $25,000,000, before deducting placement agent fees and other offering expenses. The Company has agreed to grant each purchaser, for a period of one ninety (90) days after the closing date, or for an additional thirty (30) days thereafter at the election of the Company, the right to purchase additional ordinary shares in an aggregate amount equal to up to 250% of the Shares issued or issuable to each purchaser pursuant to the Purchase Agreement, on the same terms, conditions and price at the purchase of the ordinary shares. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its own stock; and b) classified in stockholders’ equity. The warrants were recorded at their fair value on the date of grant as a component of stockholders’ equity. As of September 30, 2023, all warrants have been expired. Stock-based compensation On April 20, 2023, the Company granted an aggregate of 20,000 annual bonus share (the “Bonus Shares”) to its Chief Financial Officer Mr. Jianping Xiang. The stock-based compensation expense in relation to the Bonus Shares have been recognized based on the fair value on the share price of $2.98 on the grant date. As of September 30, 2023, the 20,000 shares have been issued to Mr. Jianping Xiang. For the year ended September 30, 2023, the Company recognized $59,600 for the compensation cost. Non-controlling interests Non-controlling interests represent the interest of non-controlling shareholder in Huadi Steel based on his proportionate interests in the equity of that company adjusted for its proportionate share of income or losses from operations. In August 2019, Wenzhou Hongshun acquired 99% equity percentage of Huadi Steel from the PRC Shareholders. As the result, Huadi Steel’s equity interest is 99% held by Wenzhou Hongshun and 1% held by Di Wang. The non-controlling interest in Huadi Steel was 1% as of September 30, 2023 and 2022. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by WFOEs and Huadi Steel (collectively, the “Huadi PRC Subsidiaries”) only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Huadi PRC Subsidiaries. Huadi PRC Subsidiaries are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their respective registered capital. In addition, Huadi PRC Subsidiaries may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at their discretion. Huadi PRC Subsidiaries may allocate a portion of their respective after-tax profits based on PRC accounting standards to a discretionary surplus fund at their discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. As a result of the foregoing restrictions, Huadi PRC Subsidiaries are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulations in the PRC may further restrict Huadi PRC Subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. As of September 30, 2023 and 2022, amounts restricted are the paid-in-capital and statutory reserve of Huadi PRC Subsidiaries as follows: As of September 30, 2023 2022 Statutory reserves $ 874,518 $ 494,223 Paid-in-capital 13,775,036 10,225,336 Total restricted net assets $ 14,649,554 $ 10,719,559 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 15 – INCOME TAXES Enterprise Income Taxes (“EIT”) Cayman Islands Huadi International is incorporated in Cayman Island as an offshore holding company. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Tuoxing is incorporated in British Virgin Islands as an offshore holding company. Under the current laws of the British Virgin Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong HK Beach is established in Hong Kong . PRC Hongshun is established in PRC and is subject to statutory income tax rate at 25%. Huadi Steel, the Company’s main operating subsidiary in PRC, was entitled High and New Technology Enterprise (“HNTE”) and enjoyed preferential tax rate of 15% for a three-year validity period from fiscal year 2019, and the HNTE certificate needs to be renewed every three years. Thus, Huadi Steel is eligible for a 15% preferential tax rate for fiscal years 2022, 2021 and 2020. As of September 30, 2022, the tax years ended December 31, 2016 through December 31, 2021 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. Huadi Songyang is established in PRC and is subject to statutory income tax rate at 25%. Income taxes for the years ended September 30, 2023, 2022 and 2021 are attributed to the Company’s continuing operations in China and consisted of: 2023 2022 2021 Current income tax $ 285,460 $ - $ - Deferred income tax (64,606 ) 173,017 (89,000 ) Total income tax expense (benefits) $ 220,854 $ 173,017 $ (89,000 ) Income tax expense reconciliation are as follows: 2023 2022 2021 Income before taxes $ 3,516,111 $ 2,121,071 $ 2,468,045 PRC EIT tax rates 15 % 15 % 15 % Tax at the PRC EIT tax rates $ 527,417 318,161 370,207 Rate differences in various jurisdictions 82,748 Tax effect of R&D expenses deduction (382,617 ) (281,013 ) (231,474 ) Tax effect of non-taxable investment income and government grant (37,514 ) (37,148 ) (227,733 ) Tax effect of non-deductible expenses 30,820 173,017 - Income tax expenses (benefits) $ 220,854 $ 173,017 $ (89,000 ) Deferred tax assets The tax effects of temporary differences that give rise to significant portions of the deferred tax asset at September 30, 2023 and 2022 are presented below: As of September 30, 2023 2022 Deferred tax assets: Bad debt allowance $ 392,713 $ 338,417 Loss carryforward 2,076 312 DTA allowance (2,076 ) - Total $ 392,713 $ 338,729 Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of September 30, 2023 and 2022 the Company did not have any significant unrecognized uncertain tax positions. Taxes payable consist of the following: As of September 30, 2023 2022 Income tax payable $ 3,507,752 $ 3,340,256 VAT and tax payable (receivable) 502,097 (213,478 ) Total tax payable $ 4,009,849 $ 3,126,778 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitment and Contingencies [Abstract] | |
COMMITMENT AND CONTINGENCIES | NOTE 16 – COMMITMENT AND CONTINGENCIES As of September 30, 2023 and 2022, the Company has no material purchase commitments or significant leases. From time to time, the Company is involved in various legal proceedings, claims and other disputes arising from commercial operations, employees, and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. As of September 30, 2023 and 2022, the Company determined no estimated loss from contingencies should be accrued. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 17 – SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has only one operating segment as defined by ASC 280. Revenue disaggregation The following table presents revenue by business lines: For the Years Ended September 30, 2023 2022 2021 Revenue Sales $ 83,113,259 $ 74,702,625 $ 67,006,655 Production service revenue 1,219,041 1,663,523 3,239,956 Total revenue $ 84,332,300 $ 76,366,148 $ 70,246,611 Geographical areas The following table presents revenues by geographic areas for the years ended September 30, 2023. September 30, 2023 Sales Amount As % of Top 5 Geographic Areas: China $ 73,744,662 87.45 % USA 7,146,478 8.47 % India 1,596,243 1.89 % Mexico 577,416 0.68 % Australia 385,111 0.46 % Other foreign countries 882,390 1.05 % The following table presents revenues by geographic areas for the years ended September 30, 2022. September 30, 2022 Sales Amount As % of Top 5 Geographic Areas: China $ 64,787,186 84.69 % USA 7,628,332 9.97 % Taiwan 1,296,863 1.70 % Australia 1,191,512 1.56 % Marshall Islands 730,039 0.95 % Other foreign countries 868,364 1.13 % The following table presents revenues by geographic areas for the years ended September 30, 2021. September 30, 2021 Sales Amount As % of Top 5 Geographic Areas: China $ 53,130,894 81.22 % USA 5,740,265 8.78 % India 4,191,611 6.41 % Australia 546,807 0.84 % Switzerland 514,951 0.79 % Other foreign countries 6,122,083 1.96 % Due to the nature of the Company’s products, it is impractical to disclose revenues generated from each product or each group of similar products. Also, as the Company’s long-lived assets are primarily located in the PRC, no geographical segments are presented. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Sep. 30, 2023 | |
Other Income (Expenses), Net [Abstract] | |
OTHER INCOME (EXPENSE), NET | NOTE 18 – OTHER INCOME (EXPENSE), NET Other income (expense), net for the year ended September 30, 2023, 2022 and 2021 consisted of the following: For the Years Ended September 30, 2023 2022 2021 Government grants $ 373,032 $ 355,925 $ 1,190,882 Dividend income 250,096 420,596 433,735 Rental income 85,437 - - Bad debt recovery - 564,283 153,676 Other net miscellaneous income (expenses) (6,814 ) 57,369 170,234 Total $ 701,751 $ 1,398,173 $ 1,948,527 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The Company has evaluated all events or transactions that occurred after September 30, 2023, up through February 5, 2024, the date the Company issued the consolidated financial statements and concluded that no other material subsequent events except for the disclosed below: Bank borrowings Borrowings repayment and renewal From September 30, 2023 to the date the audited consolidated financial statements were available to be issued, the Company fully repaid its long-term borrowings of $5,442,709 (RMB 39,710,000). New borrowings As the date the audited consolidated financial statements were available to be issued, the Company has new bank borrowings in the amount of $2,727,522 (RMB 19,900,000) with interest rates at 3.45% as following: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,950,000 $ 1,363,761 10/12/2023 10/11/2026 3.45 % Agricultural Bank 9,950,000 1,363,761 10/26/2023 10/25/2026 3.45 % Total RMB 19,900,000 $ 2,727,522 As the date the audited consolidated financial statements were available to be issued, the Company has repaid part of the new borrowings in the amount of $973,136 (RMB 7,100,000). |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of the Company and its majority-owned and controlled subsidiaries. All significant inter-company transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property, plant and equipment, intangible assets, impairment in equity investment, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. |
Foreign Currency Transaction and Translation | Foreign Currency Transaction and Translation The Company’s reporting currency is United States Dollars (“US$”). The financial records of the Company’s subsidiaries in People’s Republic of China (“PRC”) are maintained in their local currencies which are Chinese Yuan (“CNY” or “RMB”). Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in operating expense in the Consolidated Statements of Income and Comprehensive Income (Loss). The financial statements of the Company’s subsidiaries in PRC are translated from RMB into US$. Assets and liabilities are translated into US$ using the applicable exchange rates at the balance sheet date. Equity accounts other than net income generated in the current period are translated into US$ using the appropriate historical rates. Revenues, expenses, gains and losses are translated into US$ using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive (loss) / income in the Consolidated Statements of Income and Comprehensive Income (Loss), and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive (loss) / income in the Consolidated Balance Sheets. The relevant exchange rates are listed below: For the Fiscal Years Ended 2023 2022 2021 Period Ended RMB: USD exchange rate 7.2960 7.1135 6.4434 Period Average RMB: USD exchange rate 7.0533 6.5532 6.5072 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid investments that are readily convertible to cash generally with original maturities of three months or less when purchased. |
Restricted Cash | Restricted Cash The Company has bank acceptance notes outstanding with the bank and is required to keep certain amounts on deposit that are subject to withdrawal restrictions. Those notes are generally short term in nature due to their short maturity period of six to nine months; thus, restricted cash is classified as a current asset. Restricted cash is included in the beginning or ending balance of cash and cash equivalents and restricted cash in the consolidated statements of cash flows. As of September 30, 2023 and 2022, restricted cash was $769,233 and $1,347,246, respectively. No cash is restricted to assure future credit availability. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The allowance for doubtful accounts recognized as of September 30, 2023 and 2022 was $2,391,641 and $2,197,396, respectively. |
Notes Receivable | Notes Receivable Notes receivable represent bank acceptance notes and commercial acceptance notes the Company receives from its customers in exchange for goods or services that it has transferred to customers. The notes generally range from three to six months from the date of issuance. The carrying value of notes receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. As part of the regular business and in case of immediate cash needs, the Company sells its notes receivable at a discount with or without recourse. Notes receivables are considered sold and derecognized from balance sheet when they are transferred beyond the reach of the Company and its creditors, the purchaser has the right to pledge or exchange the note receivables, and the Company has surrendered control over the transferred note receivables. If the Company does not surrender control, typically for those arrangements with recourse, the cash received from the purchaser is accounted for as a secured borrowing. In the case of arrangements with recourse, notes receivables are not derecognized. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. There were no write-downs recognized of inventories for the years ended September 30, 2023, 2022 and 2021. |
Advances to Suppliers | Advances to Suppliers Advances to suppliers refer to advances for purchase of materials or other service agreements, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would write off such amount in the period when it is considered as impaired. The allowance for advance to suppliers recognized as of September 30, 2023 and 2022 was $171,538 and $60,794, respectively. |
Property and Equipment, net | Property and Equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets with 5% of residual value, as follows: Useful lives Buildings 10-50 years Machinery and equipment 5-20 years Transportation vehicles 3-10 years Office equipment 3-10 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Land Use Rights | Land Use Rights Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Land use rights are amortized using the straight-line method with the following estimated useful lives: Useful lives Land use rights 50 years |
Long-term Investments | Long-term Investments Effective October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-01 and related ASU 2018-03 concerning recognition and measurement of financial assets and financial liabilities. In adopting this new guidance, the Company has made an accounting policy election to adopt the cost-minus-impairment measurement alternative for investments in equity securities without readily determinable fair values. For equity investments that are accounted for using the cost-minus-impairment measurement alternative, the Company initially records equity investments at cost but is required to adjust the carrying value of such equity investments through earnings when there is an observable transaction involving the same or a similar investment with the same issuer or upon an impairment. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company’s management reviews the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets for the years ended September 30, 2023, 2022 and 2021. |
Fair Value Measurement | Fair Value Measurement Fair Value Measurements and Disclosures requires disclosure of the fair value of financial instruments held by the Company. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. For the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, other current liabilities, notes receivable, notes payable, bank loans, and other receivables, the carrying amounts approximate their fair values due to their short maturities as of September 30, 2023 and 2022. The Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring basis as of September 30, 2023 and 2022. |
Value-added Tax (“VAT”) | Value-added Tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products are sold in the PRC and are subject to a VAT on the gross sales price. The Company is subject to a VAT rate of 17% before May 1, 2018, a VAT rate of 16% effective on May 1, 2018, and the most current VAT rate of 13% effective on April 1, 2019. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on October 1, 2018 using the modified retrospective approach. There is no adjustment to the opening balance of retained earnings at October 1, 2018, since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its revenues from two sources: (1) revenue from sales of steel piping products, (2) revenue from production service. (1) Revenue from sales of steel piping products The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In the principal versus agent consideration, since no another party is involved in transactions, the Company is a principal. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. The Company does not routinely permit customers to return products, while in certain conditions product changes are allowed. The customer does not have the option to purchase the warranty separately. Also, the warranty does not provide a service to the customer beyond fixing defects that existed at the time of sale. Thus, the warranty is assurance-type, and historically customer returns have been immaterial. Sales revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied at a point in time). The Company sells its products either under free onboard (“FOB”) shipping point term or under FOB destination term. For sales under FOB shipping point term, the Company recognize revenues when products are loaded on the ships. Product delivery is evidenced by warehouse shipping logs as well as assigned shipping bills from the shipping companies. For sales under FOB destination term, the Company recognize revenues when the products are delivered and accepted by customers. Product delivery is evidenced by signed receipt documents and title transfers upon delivery. Prices are determined based on negotiations with the Company’s customers and are not subject to adjustment. As a result, the Company expects returns to be minimal. (2) Revenue from production service The Company identifies the product processing agreement as contract. For each contract, the Company considers the promise to provide production service, each of which are distinct, to be the identified performance obligations. In the principal versus agent consideration, since no another party is involved in transactions, the Company is a principal. The transaction price is clearly stated on the contract and not subject to adjustment. The Company allocates the transaction price to each distinct service based on their relative standalone selling price. Production service revenue is recognized when production order is completed and transferred to customer, Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. There were no contract fulfillment cost and contract acquisition costs as of September 30, 2023 and 2022. Contract balance The Company does not have amounts of contract assets since revenue is recognized at a point in time. Contract liabilities are presented as advance from customers on the consolidated balance sheet. Contract liabilities are recognized when the Company receives prepayment from customers resulting from purchase order or product processing agreement. Contract liabilities will be recognized as revenue when the products are delivered. As of September 30, 2023 and 2022, the balance of advance from customers amounted to $3,408,717 and $4,401,440, respectively. For the years ended September 30, 2023 and 2022, the beginning balance of advance from customers of $3,733,552 and $4,240,827 were recognized as revenue when the products are delivered. |
Government Grant | Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. For the years ended September 30, 2023, 2022 and 2021, the Company received government grants of $373,032, $355,925 and $1,190,882, respectively. The grants were recorded as other income in the consolidated statements for income. |
Research and Development Costs | Research and Development Costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are included in selling, general and administrative expense. Shipping and handling costs were $1,749,338, $1,232,430 and $1,341,712 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in selling, general and administrative expense. Advertising costs were $157,293, $167,459 and $237,563 for years ended September 30, 2023, 2022 and 2021 respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to the years in which those temporary differences are expected to be reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non-current amounts. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. To the extent applicable, the Company records interest and penalties as other expense. All of the tax returns of the Company’s PRC subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The fiscal years for tax purpose in PRC is December 31. The Company and its subsidiaries are not subject to U.S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by the Company, reducing the amount available to pay dividends to the holders of the Company’s ordinary shares. |
Earnings Per Share | Earnings Per Share Earnings (loss) per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of ordinary shares and dilutive common share equivalents. Dilutive common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. There were no dilutive common share equivalents outstanding during the years ended September 30, 2023, 2022 and 2021. |
Certain Risks and Concentration | Certain Risks and Concentration Exchange Rate Risks The Company operates in PRC, which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates between the USD and the RMB. Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash, notes receivable. The Company places its cash and cash equivalents, restricted cash, and note receivable in good credit quality financial institutions in Hong Kong and PRC. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. The Company maintains most bank accounts in PRC. Cash balances in bank accounts in PRC are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection is up to RMB500,000 per depositor per Scheme member, including both principal and interest. Interest Rate Risks The Company is subject to interest rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. Liquidity Risks Our primary sources of liquidity consist of existing cash balances, cash flows from our operating activities and availability under our revolving credit facility. Our ability to generate sufficient cash flows from our operating activities is primarily dependent on our sales of steel pipe, tube and ancillary products to our customers at margins sufficient to cover fixed and variable expenses. As of September 30, 2023 and 2022, we had cash and cash equivalents of $20,192,460 and $13,195,999, respectively. We believe that our current cash, cash to be generated from our operations and access to loans from our related parties will be sufficient to meet our working capital needs for at least the next twelve months. However, we do not have any amounts committed to be provided by our related party. We plan to expand our business to implement our growth strategies in our existing market and strengthen our position in the marketplace. To do so, we will need more capital through equity financing to increase our production and meet market demands. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of accounting standards until they would apply to private companies. New Accounting Pronouncements Recently Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The adoption of this ASU on October 1, 2022 did not have a material effect on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. Early adoption is permitted. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning October 1, 2023. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Nature of Operations [Abstract] | |
Schedule of Organization and Nature of Operations | Entity Name Registered Date of Incorporation Ownership as of the Huadi International Group Co., Ltd. Cayman Island September 27, 2018 Parent Yongqiang Tuoxing Limited. British Virgin Island October 2, 2018 100% by the Parent Hong Kong Beach Limited. (“HK Beach”) Hong Kong November 7, 2018 100% by Yongqiang Tuoxing Wenzhou Hongshun Stainless Steel Limited. (“Hongshun”) Wenzhou, June 3, 2019 100% by HK Beach Huadi Steel Group Limited. Wenzhou, November 12, 1998 99% by Hongshun Huadi (Songyang) Co., Ltd. (“Huadi Songyang”) Songyang, China June 15, 2023 100% by HK Beach |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Line Items] | |
Schedule of Relevant Exchange Rates | The relevant exchange rates are listed below: For the Fiscal Years Ended 2023 2022 2021 Period Ended RMB: USD exchange rate 7.2960 7.1135 6.4434 Period Average RMB: USD exchange rate 7.0533 6.5532 6.5072 |
Schedule of estimated useful lives of the assets | Property, plant and equipment as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Buildings $ 2,913,471 $ 2,988,217 Machinery and equipment 9,631,702 9,776,164 Transportation vehicles 1,013,593 1,014,921 Office equipment 611,129 626,808 Total property plant and equipment, at cost 14,169,895 14,406,110 Less: accumulated depreciation (8,814,898 ) (8,416,974 ) Property, plant and equipment, net $ 5,354,997 $ 5,989,136 |
Straight-Line Method [Member] | |
Significant Accounting Policies [Line Items] | |
Schedule of estimated useful lives of the assets | Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets with 5% of residual value, as follows: Useful lives Buildings 10-50 years Machinery and equipment 5-20 years Transportation vehicles 3-10 years Office equipment 3-10 years Useful lives Land use rights 50 years |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Accounts receivable $ 25,021,916 $ 21,855,584 Less: allowance for doubtful accounts (2,391,641 ) (2,197,396 ) Accounts receivable, net $ 22,630,275 $ 19,658,188 |
Schedule of Changes of Allowance for Doubtful Accounts | Changes of allowance for doubtful accounts for the years ended September 30, 2023 and 2022 are as follow: 2023 2022 Beginning balance $ 2,197,396 $ 3,066,937 Addition (reduction) of bad debt allowance 257,784 (580,631 ) Exchange difference (63,539 ) (288,910 ) Ending balance $ 2,391,641 $ 2,197,396 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Raw materials $ 13,243,104 $ 6,610,565 Work in process 247,113 5,421,908 Finished goods 13,216,411 12,835,235 Total $ 26,706,629 $ 24,867,708 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment (Tables) [Line Items] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Buildings $ 2,913,471 $ 2,988,217 Machinery and equipment 9,631,702 9,776,164 Transportation vehicles 1,013,593 1,014,921 Office equipment 611,129 626,808 Total property plant and equipment, at cost 14,169,895 14,406,110 Less: accumulated depreciation (8,814,898 ) (8,416,974 ) Property, plant and equipment, net $ 5,354,997 $ 5,989,136 |
Land Use Rights [Member] | |
Property, Plant and Equipment (Tables) [Line Items] | |
Schedule of Property, Plant and Equipment | Land use rights as of September 30, 2023 and 2022 consisted of the following: 2023 2022 Land use rights, cost $ 4,824,826 $ 1,537,236 Less: accumulated amortization (512,477 ) (467,345 ) Land use rights, net $ 4,312,349 $ 1,069,891 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Investments [Abstract] | |
Schedule of Long-Term Investments | Long-term investments consisted of the following as of September 30, 2023 and 2022: 2023 2022 Huashang Micro Finance Co. $ 5,208,333 $ 5,341,956 Longwan Rural Commercial Bank 6,165,296 6,323,469 Wenzhou Longlian Development Co., Ltd 1,142,188 1,171,491 Total long-term investments, at cost $ 12,515,817 $ 12,836,916 Add: upward adjustments - - Less: impairment and downward adjustments - - Long-term investments $ 12,515,817 $ 12,836,916 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | 2023 2022 Accrued payroll and other welfare $ 1,591,880 $ 1,441,625 Other accrued expenses 354,445 329,620 Total $ 1,946,325 $ 1,771,245 |
Short-Term and Long-Term Borr_2
Short-Term and Long-Term Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term and Long-Term Borrowings [Line Items] | |
Schedule of Long-term Borrowings | Short-term and long-term borrowings consisted of the following as of September 30, 2023 and 2022: 2023 2022 Short-term borrowings $ 4,442,870 $ 11,888,662 Long-term borrowings Current portion $ 43,860 $ - Non-current portion 5,398,849 9,300,625 Total long-term borrowings $ 5,442,709 $ 9,300,625 |
Schedule of Short-term Borrowings | Short-term borrowings consisted of the following at September 30, 2022: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 7,000,000 $ 984,044 11/12/2021 11/11/2022 4.35 % Agricultural Bank 9,990,000 1,404,372 11/23/2021 11/22/2022 4.35 % Agricultural Bank 9,500,000 1,335,489 12/1/2021 11/25/2022 4.35 % Agricultural Bank 5,700,000 801,293 12/23/2021 12/22/2022 4.30 % Agricultural Bank 9,990,000 1,404,372 12/29/2021 12/10/2022 4.35 % Agricultural Bank 5,000,000 702,889 1/6/2022 1/4/2023 4.35 % Agricultural Bank 8,400,000 1,180,853 3/7/2022 3/2/2023 4.35 % Agricultural Bank 9,990,000 1,404,372 8/5/2022 8/3/2023 4.30 % Hua Xia Bank 500,000 70,289 1/28/2022 1/15/2023 4.65 % Hua Xia Bank 9,000,000 1,265,200 4/26/2022 4/15/2023 4.65 % Hua Xia Bank 9,500,000 1,335,489 5/24/2022 5/11/2023 4.65 % Total RMB 84,570,000 11,888,662 |
Schedule of Long-term Borrowings | Long-term investments consisted of the following as of September 30, 2023 and 2022: 2023 2022 Huashang Micro Finance Co. $ 5,208,333 $ 5,341,956 Longwan Rural Commercial Bank 6,165,296 6,323,469 Wenzhou Longlian Development Co., Ltd 1,142,188 1,171,491 Total long-term investments, at cost $ 12,515,817 $ 12,836,916 Add: upward adjustments - - Less: impairment and downward adjustments - - Long-term investments $ 12,515,817 $ 12,836,916 |
Schedule of Maturity Analysis of Long-Term Borrowings | The following is a maturity analysis of long-term borrowings as of September 30, 2023: RMB USD Years ending September 30, 2024 320,000 $ 43,860 2025 10,050,000 1,377,467 2026 29,340,000 4,021,382 2027 - - 2028 and thereafter - - Total long-term borrowings 39,710,000 $ 5,442,709 |
Schedule of Short-Term and Long-Term Bank Borrowings are Pledged by its Assets | The Company’s short-term and long-term bank borrowings are pledged by its assets as listed below: As of September 30, 2023 2022 Buildings, net $ 23,860 $ - Land use right, net 414,738 617,430 Total $ 438,598 $ 617,430 |
Long Term Borrowings [Member] | |
Short-Term and Long-Term Borrowings [Line Items] | |
Schedule of Long-term Borrowings | Long-term borrowings consisted of the following at September 30, 2023: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,930,000 $ 1,361,020 4/28/2022 4/25/2025 3.95 % Agricultural Bank 9,940,000 1,362,390 12/9/2022 12/8/2025 3.95 % Agricultural Bank 9,940,000 1,362,390 12/15/2022 12/13/2025 3.95 % Agricultural Bank 9,900,000 1,356,909 9/26/2023 9/25/2026 3.45 % Total RMB 39,710,000 5,442,709 Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,900,000 $ 1,391,720 3/17/2022 3/16/2025 4.35 % Agricultural Bank 9,950,000 1,398,749 3/18/2022 3/5/2025 4.35 % Agricultural Bank 9,850,000 1,384,691 3/18/2022 2/25/2025 4.35 % Agricultural Bank 9,900,000 1,391,720 3/18/2022 2/15/2025 4.35 % Agricultural Bank 6,600,000 927,813 3/31/2022 3/25/2025 4.35 % Agricultural Bank 9,980,000 1,402,966 4/19/2022 4/17/2025 4.35 % Agricultural Bank 9,980,000 1,402,966 4/28/2022 4/25/2025 4.35 % Total RMB 66,160,000 $ 9,300,625 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Nature of Relationships With Related Parties | Nature of relationships with related parties: Name Relationship with the Company Taizhou Huadi Industrial Ltd. (“Taizhou Huadi”) An entity 30% owned by Jueqin Wang, principal shareholder of the Company Huashang Micro Finance Co. (“Huashang”) An entity 19% owned by the Company Taizhou Huadi Material Technology Co. (Huadi Material) An entity 100% owned by Jueguang Wang, Immediate family member of Jueqin Wang Wenzhou Maituo International Trade Ltd. (“Wenzhou Maituo”) An entity controlled by Meiling Wang, Immediate family member of Jueqin Wang Jueqin Wang Principal shareholder of the Company Di Wang Principal shareholder of the Company Jueguang Wang Immediate family member of Jueqin Wang Meiling Wang Immediate family member of Jueqin Wang Bing Zhang Principal shareholder of the Company |
Schedule of Net Outstanding Balances With Related Parties | Net outstanding balances with related parties consisted of the following as of September 30, 2023 and 2022: Accounts Name of related parties 2023 2022 Accounts payable Taizhou Huadi Industrial Ltd. $ 3,692,394 $ 2,439,105 Advance from customer Taizhou Huadi Material Technology Co. 385,605 395,498 Advance from customer Wenzhou Maituo International Trade Ltd. 623,629 - Advance from customer Huashang Micro Finance Co. 6,462 - Due to related parties – current portion Di Wang - (281,156 ) Due to related parties – current portion Jueqin Wang - (325,830 ) Due to related parties – noncurrent portion Jueqin Wang (317,680 ) - |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity [Abstract] | |
Schedule of Restricted Amounts are Paid-in-Capital and Statutory Reserves | As of September 30, 2023 and 2022, amounts restricted are the paid-in-capital and statutory reserve of Huadi PRC Subsidiaries as follows: As of September 30, 2023 2022 Statutory reserves $ 874,518 $ 494,223 Paid-in-capital 13,775,036 10,225,336 Total restricted net assets $ 14,649,554 $ 10,719,559 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Income Taxes of Company’s Continuing Operations | Income taxes for the years ended September 30, 2023, 2022 and 2021 are attributed to the Company’s continuing operations in China and consisted of: 2023 2022 2021 Current income tax $ 285,460 $ - $ - Deferred income tax (64,606 ) 173,017 (89,000 ) Total income tax expense (benefits) $ 220,854 $ 173,017 $ (89,000 ) |
Schedule of Income Tax Expense | Income tax expense reconciliation are as follows: 2023 2022 2021 Income before taxes $ 3,516,111 $ 2,121,071 $ 2,468,045 PRC EIT tax rates 15 % 15 % 15 % Tax at the PRC EIT tax rates $ 527,417 318,161 370,207 Rate differences in various jurisdictions 82,748 Tax effect of R&D expenses deduction (382,617 ) (281,013 ) (231,474 ) Tax effect of non-taxable investment income and government grant (37,514 ) (37,148 ) (227,733 ) Tax effect of non-deductible expenses 30,820 173,017 - Income tax expenses (benefits) $ 220,854 $ 173,017 $ (89,000 ) |
Schedule of Tax Effects of Significant Portions of the Deferred Tax Asset | The tax effects of temporary differences that give rise to significant portions of the deferred tax asset at September 30, 2023 and 2022 are presented below: As of September 30, 2023 2022 Deferred tax assets: Bad debt allowance $ 392,713 $ 338,417 Loss carryforward 2,076 312 DTA allowance (2,076 ) - Total $ 392,713 $ 338,729 |
Schedule of Taxes Payable | Taxes payable consist of the following: As of September 30, 2023 2022 Income tax payable $ 3,507,752 $ 3,340,256 VAT and tax payable (receivable) 502,097 (213,478 ) Total tax payable $ 4,009,849 $ 3,126,778 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Areas | The following table presents revenue by business lines: For the Years Ended September 30, 2023 2022 2021 Revenue Sales $ 83,113,259 $ 74,702,625 $ 67,006,655 Production service revenue 1,219,041 1,663,523 3,239,956 Total revenue $ 84,332,300 $ 76,366,148 $ 70,246,611 |
Schedule of Revenues by Geographic Areas | The following table presents revenues by geographic areas for the years ended September 30, 2023. September 30, 2023 Sales Amount As % of Top 5 Geographic Areas: China $ 73,744,662 87.45 % USA 7,146,478 8.47 % India 1,596,243 1.89 % Mexico 577,416 0.68 % Australia 385,111 0.46 % Other foreign countries 882,390 1.05 % September 30, 2022 Sales Amount As % of Top 5 Geographic Areas: China $ 64,787,186 84.69 % USA 7,628,332 9.97 % Taiwan 1,296,863 1.70 % Australia 1,191,512 1.56 % Marshall Islands 730,039 0.95 % Other foreign countries 868,364 1.13 % September 30, 2021 Sales Amount As % of Top 5 Geographic Areas: China $ 53,130,894 81.22 % USA 5,740,265 8.78 % India 4,191,611 6.41 % Australia 546,807 0.84 % Switzerland 514,951 0.79 % Other foreign countries 6,122,083 1.96 % |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Income (Expenses), Net [Abstract] | |
Schedule of Other Income (Expense), Net | Other income (expense), net for the year ended September 30, 2023, 2022 and 2021 consisted of the following: For the Years Ended September 30, 2023 2022 2021 Government grants $ 373,032 $ 355,925 $ 1,190,882 Dividend income 250,096 420,596 433,735 Rental income 85,437 - - Bad debt recovery - 564,283 153,676 Other net miscellaneous income (expenses) (6,814 ) 57,369 170,234 Total $ 701,751 $ 1,398,173 $ 1,948,527 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Schedule of Consolidated Financial Statements | Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank 9,950,000 $ 1,363,761 10/12/2023 10/11/2026 3.45 % Agricultural Bank 9,950,000 1,363,761 10/26/2023 10/25/2026 3.45 % Total RMB 19,900,000 $ 2,727,522 |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) - $ / shares | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Aug. 28, 2019 | Aug. 22, 2019 | |
Organization and Nature of Operations (Details) [Line Items] | ||||
Incorporated date | Sep. 27, 2018 | |||
Ordinary shares authorized | 250,000,000 | 250,000,000 | ||
Ordinary stock, par value | $ 0.0002 | $ 0.0002 | ||
Ordinary shares issued | 14,259,182 | 13,239,182 | ||
Ordinary shares outstanding | 14,259,182 | 13,239,182 | ||
Wenzhou Hongshun Stainless Steel Ltd [Member] | ||||
Organization and Nature of Operations (Details) [Line Items] | ||||
Interest rate | 99% | 5% | 94% | |
Di Wang [Member] | ||||
Organization and Nature of Operations (Details) [Line Items] | ||||
Interest rate | 1% | |||
Huadi International Group Co., Ltd [Member] | ||||
Organization and Nature of Operations (Details) [Line Items] | ||||
Incorporated date | Sep. 27, 2018 | |||
Ordinary shares authorized | 250,000,000 | |||
Ordinary stock, par value | $ 0.0002 | |||
Ordinary shares issued | 14,259,182 | |||
Ordinary shares outstanding | 14,259,182 | |||
Yongqiang Tuoxing Limited [Member] | ||||
Organization and Nature of Operations (Details) [Line Items] | ||||
Incorporated date | Oct. 02, 2018 | |||
Ordinary shares authorized | 50,000 | |||
Ordinary stock, par value | $ 1 |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of Organization and Nature of Operations | 12 Months Ended |
Sep. 30, 2023 | |
Huadi International Group Co., Ltd. (“Huadi International”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | Cayman Island |
Date of Incorporation | Sep. 27, 2018 |
Ownership as of the issuance date of the report | Parent |
Yongqiang Tuoxing Limited. (“Yongqiang Tuoxing”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | British Virgin Island |
Date of Incorporation | Oct. 02, 2018 |
Ownership as of the issuance date of the report | 100% by the Parent |
Hong Kong Beach Limited. (“HK Beach”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | Hong Kong |
Date of Incorporation | Nov. 07, 2018 |
Ownership as of the issuance date of the report | 100% by Yongqiang Tuoxing |
Wenzhou Hongshun Stainless Steel Limited. (“Hongshun”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | Wenzhou, China |
Date of Incorporation | Jun. 03, 2019 |
Ownership as of the issuance date of the report | 100% by HK Beach |
Huadi Steel Group Limited. (“Huadi Steel”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | Wenzhou, China |
Date of Incorporation | Nov. 12, 1998 |
Ownership as of the issuance date of the report | 99% by Hongshun |
Huadi (Songyang) Co., Ltd. (“Huadi Songyang”) [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Registered Location | Songyang, China |
Date of Incorporation | Jun. 15, 2023 |
Ownership as of the issuance date of the report | 100% by HK Beach |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Apr. 01, 2019 | May 01, 2018 | Apr. 30, 2018 | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 CNY (¥) | |
Significant Accounting Policies [Line Items] | |||||||
Restricted cash | $ 769,233 | $ 1,347,246 | |||||
Allowance for doubtful accounts | 2,391,641 | 2,197,396 | $ 3,066,937 | ||||
Advance to suppliers recognized | $ 171,538 | 60,794 | |||||
Residual value percentage | 5% | 5% | |||||
Impairment charges | $ 0 | 0 | 0 | ||||
VAT rate | 13% | 16% | 17% | ||||
Advance from customer | 3,408,717 | 4,401,440 | |||||
Recognized as revenue | 3,733,552 | 4,240,827 | |||||
Received government grants | 373,032 | 355,925 | 1,190,882 | ||||
Shipping and handling costs | 1,749,338 | 1,232,430 | 1,341,712 | ||||
Advertising costs | $ 157,293 | 167,459 | $ 237,563 | ||||
Amount of tax benefit | 50% | ||||||
Depositor amount (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||||
Cash and cash equivalents | $ 20,192,460 | $ 13,195,999 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of Relevant Exchange Rates - RMB [Member] | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of relevant exchange rates [Line Items] | |||
Period Average RMB: USD exchange rate | 7.296 | 7.1135 | 6.4434 |
Period Average RMB: USD exchange rate | 7.0533 | 6.5532 | 6.5072 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Assets | Sep. 30, 2023 |
Buildings [Member] | Minimum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 10 years |
Buildings [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 50 years |
Machinery and equipment [Member] | Minimum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 20 years |
Transportation vehicles [Member] | Minimum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 3 years |
Transportation vehicles [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 10 years |
Office equipment [Member] | Minimum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 10 years |
Land use rights [Member] | Maximum [Member] | |
Schedule of Estimated Useful Lives of the Assets [Line Items] | |
Estimated useful life | 50 years |
Accounts Receivable (Details)
Accounts Receivable (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable [Abstract] | |||
Credit period | 180 days | ||
Average accounts receivable turnover period | 105 days | 108 days | 106 days |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts Receivable - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Accounts Receivable [Abstract] | |||
Accounts receivable | $ 25,021,916 | $ 21,855,584 | |
Less: allowance for doubtful accounts | (2,391,641) | (2,197,396) | $ (3,066,937) |
Accounts receivable, net | $ 22,630,275 | $ 19,658,188 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of Changes of Allowance for Doubtful Accounts - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Changes of Allowance For Doubtful Accounts [Abstract] | ||
Beginning balance | $ 2,197,396 | $ 3,066,937 |
Addition (reduction) of bad debt allowance | 257,784 | (580,631) |
Exchange difference | (63,539) | (288,910) |
Ending balance | $ 2,391,641 | $ 2,197,396 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Notes Receivable [Abstract] | ||
Notes received | $ 7,661,035 | $ 1,410,613 |
Factored notes receivables | $ 4,442,870 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 13,243,104 | $ 6,610,565 |
Work in process | 247,113 | 5,421,908 |
Finished goods | 13,216,411 | 12,835,235 |
Total | $ 26,706,629 | $ 24,867,708 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 657,107 | $ 792,888 | $ 735,333 |
Net carrying value of sold on fixed assets | 1,410 | ||
Gain on sale of fixed assets | 2,557 | ||
Amortization expense | $ 58,778 | $ 32,087 | $ 32,349 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 14,169,895 | $ 14,406,110 |
Less: accumulated depreciation | (8,814,898) | (8,416,974) |
Property, plant and equipment, net | 5,354,997 | 5,989,136 |
Buildings [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,913,471 | 2,988,217 |
Machinery and equipment [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,631,702 | 9,776,164 |
Transportation vehicles [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,013,593 | 1,014,921 |
Office equipment [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 611,129 | $ 626,808 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of Land Use Rights - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Land Use Rights [Abstract] | ||
Land use rights, cost | $ 4,824,826 | $ 1,537,236 |
Less: accumulated amortization | (512,477) | (467,345) |
Land use rights, net | $ 4,312,349 | $ 1,069,891 |
Long-Term Investments (Details)
Long-Term Investments (Details) | 12 Months Ended | |||||||||||||
Sep. 30, 2015 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2015 CNY (¥) | Sep. 30, 2012 USD ($) | Sep. 30, 2012 CNY (¥) | Sep. 30, 2011 USD ($) | Sep. 30, 2011 CNY (¥) | Sep. 30, 2009 USD ($) | Sep. 30, 2009 CNY (¥) | |
Long-Term Investments [Line Items] | ||||||||||||||
Investment amount | $ 12,515,817 | $ 12,836,916 | ||||||||||||
Cash consideration | $ 8,535,827 | ¥ 52,000,000 | ||||||||||||
Dividend income received | 250,096 | $ 420,596 | ¥ 2,756,250 | $ 433,735 | ||||||||||
Huashang Micro Finance Co. (“Huashang”) [Member] | ||||||||||||||
Long-Term Investments [Line Items] | ||||||||||||||
Investment amount | $ 13,203,257 | ¥ 90,000,000 | ||||||||||||
Acquire percentage | 22.50% | 22.50% | ||||||||||||
Wenzhou Longlian Development Co., Ltd. (“Longlian”) [Member] | ||||||||||||||
Long-Term Investments [Line Items] | ||||||||||||||
Investment amount | $ 1,307,982 | ¥ 8,333,400 | ||||||||||||
Acquire percentage | 8.3334% | 8.3334% | ||||||||||||
Longwan Rural Commercial Bank [Member] | ||||||||||||||
Long-Term Investments [Line Items] | ||||||||||||||
Investment amount | $ 7,172,207 | ¥ 44,982,000 | ||||||||||||
Acquire percentage | 2.10% | 2.10% | ||||||||||||
Dividend income received | $ 250,096 | ¥ 1,764,000 | $ 433,735 | ¥ 2,822,400 | ||||||||||
Minimum [Member] | ||||||||||||||
Long-Term Investments [Line Items] | ||||||||||||||
Ownership percentage | 3.50% | |||||||||||||
Maximum [Member] | ||||||||||||||
Long-Term Investments [Line Items] | ||||||||||||||
Ownership percentage | 19% |
Long-Term Investments (Detail_2
Long-Term Investments (Details) - Schedule of Long-Term Investments | 12 Months Ended | |||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2012 USD ($) | Sep. 30, 2012 CNY (¥) | Sep. 30, 2011 USD ($) | Sep. 30, 2011 CNY (¥) | Sep. 30, 2009 USD ($) | Sep. 30, 2009 CNY (¥) | |
Debt Instrument [Line Items] | ||||||||
Total long-term investments, at cost | $ 12,515,817 | $ 12,836,916 | ||||||
Add: upward adjustments | ||||||||
Less: impairment and downward adjustments | ||||||||
Long-term investments | 12,515,817 | 12,836,916 | ||||||
Huashang Micro Finance Co. [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term investments, at cost | 5,208,333 | 5,341,956 | ||||||
Long-term investments | $ 13,203,257 | ¥ 90,000,000 | ||||||
Longwan Rural Commercial Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term investments, at cost | 6,165,296 | 6,323,469 | ||||||
Long-term investments | $ 7,172,207 | ¥ 44,982,000 | ||||||
Wenzhou Longlian Development Co., Ltd [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term investments, at cost | $ 1,142,188 | $ 1,171,491 | ||||||
Long-term investments | $ 1,307,982 | ¥ 8,333,400 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Notes Payable [Abstract] | ||
Note payable | $ 1,632,401 | $ 548,253 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued payroll and other welfare | $ 1,591,880 | $ 1,441,625 |
Other accrued expenses | 354,445 | 329,620 |
Total | $ 1,946,325 | $ 1,771,245 |
Short-Term and Long-Term Borr_3
Short-Term and Long-Term Borrowings (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Short-Term Debt [Member] | |||
Short-Term and Long-Term Borrowings [Member] | |||
Interest expense | $ 442,748 | ||
Long-Term Debt [Member] | |||
Short-Term and Long-Term Borrowings [Member] | |||
Interest expense | $ 1,151,567 | ||
Notes Payable [Member] | |||
Short-Term and Long-Term Borrowings [Member] | |||
Interest expense | $ 1,550,082 |
Short-Term and Long-Term Borr_4
Short-Term and Long-Term Borrowings (Details) - Schedule of Short-Term and Long-Term Borrowings | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) |
Schedule of Short-Term and Long-Term Borrowings [Abstract] | ||||
Short-term borrowings | $ 4,442,870 | $ 11,888,662 | ¥ 84,570,000 | |
Long-term borrowings | ||||
Current portion | 43,860 | |||
Non-current portion | 5,398,849 | 9,300,625 | ||
Total long-term borrowings | $ 5,442,709 | ¥ 39,710,000 | $ 9,300,625 | ¥ 66,160,000 |
Short-Term and Long-Term Borr_5
Short-Term and Long-Term Borrowings (Details) - Schedule of Short-term Borrowings | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | |
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 11,888,662 | $ 4,442,870 | ¥ 84,570,000 |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 984,044 | ¥ 7,000,000 | |
Short-term borrowings, Issuance Date | Nov. 12, 2021 | ||
Short-term borrowings, Expiration Date | Nov. 11, 2022 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,404,372 | ¥ 9,990,000 | |
Short-term borrowings, Issuance Date | Nov. 23, 2021 | ||
Short-term borrowings, Expiration Date | Nov. 22, 2022 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,335,489 | ¥ 9,500,000 | |
Short-term borrowings, Issuance Date | Dec. 01, 2021 | ||
Short-term borrowings, Expiration Date | Nov. 25, 2022 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 801,293 | ¥ 5,700,000 | |
Short-term borrowings, Issuance Date | Dec. 23, 2021 | ||
Short-term borrowings, Expiration Date | Dec. 22, 2022 | ||
Short-term borrowings, Interest | 4.30% | 4.30% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,404,372 | ¥ 9,990,000 | |
Short-term borrowings, Issuance Date | Dec. 29, 2021 | ||
Short-term borrowings, Expiration Date | Dec. 10, 2022 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 702,889 | ¥ 5,000,000 | |
Short-term borrowings, Issuance Date | Jan. 06, 2022 | ||
Short-term borrowings, Expiration Date | Jan. 04, 2023 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,180,853 | ¥ 8,400,000 | |
Short-term borrowings, Issuance Date | Mar. 07, 2022 | ||
Short-term borrowings, Expiration Date | Mar. 02, 2023 | ||
Short-term borrowings, Interest | 4.35% | 4.35% | |
Agricultural Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,404,372 | ¥ 9,990,000 | |
Short-term borrowings, Issuance Date | Aug. 05, 2022 | ||
Short-term borrowings, Expiration Date | Aug. 03, 2023 | ||
Short-term borrowings, Interest | 4.30% | 4.30% | |
Hua Xia Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 70,289 | ¥ 500,000 | |
Short-term borrowings, Issuance Date | Jan. 28, 2022 | ||
Short-term borrowings, Expiration Date | Jan. 15, 2023 | ||
Short-term borrowings, Interest | 4.65% | 4.65% | |
Hua Xia Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,265,200 | ¥ 9,000,000 | |
Short-term borrowings, Issuance Date | Apr. 26, 2022 | ||
Short-term borrowings, Expiration Date | Apr. 15, 2023 | ||
Short-term borrowings, Interest | 4.65% | 4.65% | |
Hua Xia Bank [Member] | |||
Schedule of Short-term Borrowings [Line Items] | |||
Short-term borrowings, Amount | $ 1,335,489 | ¥ 9,500,000 | |
Short-term borrowings, Issuance Date | May 24, 2022 | ||
Short-term borrowings, Expiration Date | May 11, 2023 | ||
Short-term borrowings, Interest | 4.65% | 4.65% |
Short-Term and Long-Term Borr_6
Short-Term and Long-Term Borrowings (Details) - Schedule of Long-term Borrowings | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) | |
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 5,442,709 | $ 9,300,625 | ¥ 39,710,000 | ¥ 66,160,000 |
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,361,020 | ¥ 9,930,000 | ||
Long-term borrowings, Issuance Date | Apr. 28, 2022 | |||
Long-term borrowings, Expiration Date | Apr. 25, 2025 | |||
Long-term borrowings, Interest | 3.95% | 3.95% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,362,390 | ¥ 9,940,000 | ||
Long-term borrowings, Issuance Date | Dec. 09, 2022 | |||
Long-term borrowings, Expiration Date | Dec. 08, 2025 | |||
Long-term borrowings, Interest | 3.95% | 3.95% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,362,390 | ¥ 9,940,000 | ||
Long-term borrowings, Issuance Date | Dec. 15, 2022 | |||
Long-term borrowings, Expiration Date | Dec. 13, 2025 | |||
Long-term borrowings, Interest | 3.95% | 3.95% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,356,909 | ¥ 9,900,000 | ||
Long-term borrowings, Issuance Date | Sep. 26, 2023 | |||
Long-term borrowings, Expiration Date | Sep. 25, 2026 | |||
Long-term borrowings, Interest | 3.45% | 3.45% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,391,720 | ¥ 9,900,000 | ||
Long-term borrowings, Issuance Date | Mar. 17, 2022 | |||
Long-term borrowings, Expiration Date | Mar. 16, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,398,749 | ¥ 9,950,000 | ||
Long-term borrowings, Issuance Date | Mar. 18, 2022 | |||
Long-term borrowings, Expiration Date | Mar. 05, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,384,691 | ¥ 9,850,000 | ||
Long-term borrowings, Issuance Date | Mar. 18, 2022 | |||
Long-term borrowings, Expiration Date | Feb. 25, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,391,720 | ¥ 9,900,000 | ||
Long-term borrowings, Issuance Date | Mar. 18, 2022 | |||
Long-term borrowings, Expiration Date | Feb. 15, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 927,813 | ¥ 6,600,000 | ||
Long-term borrowings, Issuance Date | Mar. 31, 2022 | |||
Long-term borrowings, Expiration Date | Mar. 25, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,402,966 | ¥ 9,980,000 | ||
Long-term borrowings, Issuance Date | Apr. 19, 2022 | |||
Long-term borrowings, Expiration Date | Apr. 17, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% | ||
Agricultural Bank [Member] | ||||
Schedule of Long-term Borrowings [Line Items] | ||||
Long-term borrowings, Amount | $ 1,402,966 | ¥ 9,980,000 | ||
Long-term borrowings, Issuance Date | Apr. 28, 2022 | |||
Long-term borrowings, Expiration Date | Apr. 25, 2025 | |||
Long-term borrowings, Interest | 4.35% | 4.35% |
Short-Term and Long-Term Borr_7
Short-Term and Long-Term Borrowings (Details) - Schedule of Maturity Analysis of Long-Term Borrowings | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) |
Schedule of Maturity Analysis of Long-Term Borrowings [Abstarct] | ||||
2024 | $ 43,860 | ¥ 320,000 | ||
2025 | 1,377,467 | 10,050,000 | ||
2026 | 4,021,382 | 29,340,000 | ||
2027 | ||||
2028 and thereafter | ||||
Total long-term borrowings | $ 5,442,709 | ¥ 39,710,000 | $ 9,300,625 | ¥ 66,160,000 |
Short-Term and Long-Term Borr_8
Short-Term and Long-Term Borrowings (Details) - Schedule of Short-Term and Long-Term Bank Borrowings are Pledged by its Assets - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Short-Term and Long-Term Bank Borrowings are Pledged by its Assets [Line Items] | ||
Short-term and long-term bank borrowings, Total | $ 438,598 | $ 617,430 |
Buildings, net [Member] | ||
Schedule of Short-Term and Long-Term Bank Borrowings are Pledged by its Assets [Line Items] | ||
Short-term and long-term bank borrowings, Total | 23,860 | |
Land use right, net [Member] | ||
Schedule of Short-Term and Long-Term Bank Borrowings are Pledged by its Assets [Line Items] | ||
Short-term and long-term bank borrowings, Total | $ 414,738 | $ 617,430 |
Customer and Supplier Concent_2
Customer and Supplier Concentrations (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Number of customers | one | ||
Revenue [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 10.67% | ||
Revenue [Member] | Customer Concentration Risk [Member] | Supplier Concentration Risk 1 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 26.71% | ||
Revenue [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 22% | 20.95% | |
Revenue [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 1 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 25.98% | 12.84% | |
Revenue [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 2 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 12.39% | 18.06% | 12.84% |
Revenue [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 3 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 11.47% | ||
Accounts Receivable [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Number of customers | one | ||
Accounts receivable (in Dollars) | $ 6,144,633 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 24.31% | ||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 1 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 24.45% | 72.62% | 51.33% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 2 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 23.32% | ||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 3 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 17.17% | ||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk 4 [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 14.62% | ||
Supplier [Member] | Revenue [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Customer and Supplier Concentrations Details [LineItems] | |||
Concentration risk percentage | 10% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 USD ($) | |
Related Party Transactions [Line Items] | ||||||
Sale of stock | $ 71,976,696 | $ 65,230,521 | $ 58,926,675 | |||
Accounts payable | 3,434,031 | 919,492 | ||||
Advance from customer | 3,408,717 | 4,401,440 | ||||
Annual rent amounted | 26,235 | |||||
Income from rent | 19,550 | |||||
Net borrowings | 140,578 | ¥ 1,000,000 | ||||
Taizhou Huadi Material Technology Co. [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Net borrowed | 6,858,500 | |||||
Sale of steel materials | 122,666 | |||||
Advance from customer | 385,605 | 395,498 | ||||
Taizhou Huadi Industrial Ltd. [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Accounts payable | 3,692,394 | 2,439,105 | ||||
Sale of steel materials | 520 | |||||
Outstanding advance balance | $ 5,550,504 | |||||
Jueqin Wang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Repaid the borrowed amount | 274,123 | |||||
Huizhi Wang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Net borrowings | $ 1,844,111 | ¥ 12,000,000 | ||||
Annual interest rate | 8% | 8% | ||||
Juelin Wang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Net borrowings | $ 998,894 | ¥ 6,500,000 | ||||
Annual interest rate | 8% | 8% | ||||
Bing Zhang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Net borrowings | $ 1,844,111 | ¥ 12,000,000 | ||||
Annual interest rate | 8% | 8% | ||||
Taizhou Huadi Industrial Ltd. [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Raw materials purchased from related party | 679,210 | 4,649,636 | $ 6,376,512 | |||
Sale of stock | 239,640 | 1,990,329 | ||||
Accounts payable | 3,692,394 | $ 2,439,105 | ||||
Huadi [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Advance from customer | 385,605 | |||||
Wenzhou Maituo International Trade Ltd. [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Advance from customer | 623,629 | |||||
Huashang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Advances | $ 6,462 | |||||
Di Wang [Member] | ||||||
Related Party Transactions [Line Items] | ||||||
Repaid the borrowed amount | ¥ | ¥ 2,000,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Nature of Relationships With Related Parties | 12 Months Ended |
Sep. 30, 2023 | |
Taizhou Huadi Industrial Ltd. (“Taizhou Huadi”) [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | An entity 30% owned by Jueqin Wang, principal shareholder of the Company |
Huashang Micro Finance Co. (“Huashang”) [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | An entity 19% owned by the Company |
Taizhou Huadi Material Technology Co. [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | An entity 100% owned by Jueguang Wang, Immediate family member of Jueqin Wang |
Wenzhou Maituo International Trade Ltd. (“Wenzhou Maituo”) [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | An entity controlled by Meiling Wang, Immediate family member of Jueqin Wang |
Jueqin Wang [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | Principal shareholder of the Company |
Di Wang [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | Principal shareholder of the Company |
Juelin Wang [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | Immediate family member of Jueqin Wang |
Yiyu Wang [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | Immediate family member of Jueqin Wang |
Bing Zhang [Member] | |
Schedule of Nature of Relationships With Related Parties [Line Items] | |
Relationship with the Company | Principal shareholder of the Company |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Net Outstanding Balances With Related Parties - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Taizhou Huadi Industrial Ltd. [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Accounts payable | $ 3,692,394 | $ 2,439,105 |
Taizhou Huadi Material Technology Co. [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Advance from customer | 385,605 | 395,498 |
Wenzhou Maituo International Trade Ltd. [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Advance from customer | 623,629 | |
Huashang Micro Finance Co. [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Advance from customer | 6,462 | |
Di Wang [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Due to related parties – current portion | (281,156) | |
Jueqin Wang [Member] | ||
Schedule of Net Outstanding Balances With Related Parties [Line Items] | ||
Due to related parties – current portion | (325,830) | |
Due to related parties – noncurrent portion | $ (317,680) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, ¥ in Millions | 12 Months Ended | ||||||||||
Apr. 20, 2023 $ / shares shares | Nov. 09, 2022 USD ($) shares | Nov. 07, 2022 $ / shares shares | Feb. 19, 2021 CNY (¥) | Jan. 26, 2021 USD ($) $ / shares shares | Jan. 22, 2021 USD ($) shares | Aug. 31, 2019 | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Oct. 09, 2020 $ / shares shares | |
Shareholders' Equity [Line Items] | |||||||||||
Ordinary shares authorized | 250,000,000 | 250,000,000 | |||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0002 | $ 0.0002 | |||||||||
Ordinary shares issued | 14,259,182 | 13,239,182 | |||||||||
Ordinary shares outstanding | 14,259,182 | 13,239,182 | |||||||||
Shares issued | 2,000 | ||||||||||
Share based fair value (in Dollars) | $ | $ 16,000 | $ 59,600 | $ 16,000 | ||||||||
Price per share (in Dollars per share) | $ / shares | $ 0.0002 | ||||||||||
Gross proceeds (in Dollars) | $ | 23,010,000 | $ 21,680,341 | |||||||||
Commencing effective days | 180 days | ||||||||||
Warrant exercisable per share (in Dollars per share) | $ / shares | $ 10 | ||||||||||
Public offering percentage | 125% | ||||||||||
Ordinary shares issued | 112,182 | ||||||||||
Closed the Offering for the sale of ordinary share | 1,000,000 | 3,500,000 | |||||||||
Gross proceeds (in Dollars) | $ | $ 25,000,000 | ||||||||||
Purchase additional ordinary shares | 250% | ||||||||||
Grant date fair value (in Dollars per share) | $ / shares | $ 2.98 | ||||||||||
Recognized compensation cost (in Dollars) | $ | $ 59,600 | ||||||||||
Equity non-controlling interest percentage | 1% | 1% | |||||||||
Subsidiaries are required to after-tax profits | 10% | ||||||||||
Percentage of reserve fund | 50% | ||||||||||
Initial Public Offering [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Share issued | 3,125,000 | ||||||||||
Price per share (in Dollars per share) | $ / shares | $ 8 | ||||||||||
Gross proceeds (in Dollars) | $ | $ 25,000,000 | ||||||||||
Issued warrants percentage | 6% | ||||||||||
Maximum [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Ordinary shares authorized | 500,000,000 | ||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0002 | ||||||||||
Ordinary shares issued | 20,000,000 | ||||||||||
Ordinary shares outstanding | 20,000,000 | ||||||||||
Minimum [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Ordinary shares authorized | 250,000,000 | ||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0001 | ||||||||||
Ordinary shares issued | 10,000,000 | ||||||||||
Ordinary shares outstanding | 10,000,000 | ||||||||||
Chief Financial Officer [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Granted annual bonus share | 20,000 | ||||||||||
Wenzhou Hongshun [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Increase investment (in Yuan Renminbi) | ¥ | ¥ 99 | ||||||||||
Equity percentage | 99% | ||||||||||
Wenzhou Hongshun [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Increase investment (in Yuan Renminbi) | ¥ | ¥ 32 | ||||||||||
Equity percentage | 99% | 99% | |||||||||
Di Wang [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Increase investment (in Yuan Renminbi) | ¥ | ¥ 1 | ||||||||||
Equity percentage | 1% | 1% | |||||||||
Mr. Jianping Xiang [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Share issued | 20,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of Restricted Amounts are Paid-in-Capital and Statutory Reserves - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Restricted Amounts are Paid-in-Capital and Statutory Reserves [Abstract] | ||
Statutory reserves | $ 874,518 | $ 494,223 |
Paid-in-capital | 13,775,036 | 10,225,336 |
Total restricted net assets | $ 14,649,554 | $ 10,719,559 |
Income Taxes (Details)
Income Taxes (Details) - HKD ($) | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes (Details) [Line Items] | |||||
Income tax rate | 16.50% | ||||
Amount of assessable profits (in Dollars) | $ 2 | ||||
Lower tax rate of assessable profits | 8.25% | ||||
Statutory income tax rate percentage | 25% | ||||
Tax benefit percentage | 50% | ||||
HONG KONG | |||||
Income Taxes (Details) [Line Items] | |||||
Income tax rate | 16.50% | ||||
PRC [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Statutory income tax rate percentage | 25% | ||||
High and New Technology Enterprise [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Preferential tax rate percentage | 15% | ||||
Huadi Steel Group Limited [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Preferential tax rate percentage | 15% | 15% | 15% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Taxes of Company’s Continuing Operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Income Taxes of Company’s Continuing Operations [Line Items] | |||
Current income tax | $ 285,460 | ||
Deferred income tax | (64,606) | 173,017 | (89,000) |
Total income tax expense (benefits) | $ 220,854 | $ 173,017 | $ (89,000) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Income Tax Expense - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Income Tax Expense [Abstract] | |||
Income before taxes | $ 3,516,111 | $ 2,121,071 | $ 2,468,045 |
PRC EIT tax rates | 15% | 15% | 15% |
Tax at the PRC EIT tax rates | $ 527,417 | $ 318,161 | $ 370,207 |
Rate differences in various jurisdictions | 82,748 | ||
Tax effect of R&D expenses deduction | (382,617) | (281,013) | (231,474) |
Tax effect of non-taxable investment income and government grant | (37,514) | (37,148) | (227,733) |
Tax effect of non-deductible expenses | 30,820 | 173,017 | |
Income tax expenses (benefits) | $ 220,854 | $ 173,017 | $ (89,000) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Tax Effects of Significant Portions of the Deferred Tax Asset - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets: | ||
Bad debt allowance | $ 392,713 | $ 338,417 |
Loss carryforward | 2,076 | 312 |
DTA allowance | (2,076) | |
Total | $ 392,713 | $ 338,729 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Taxes Payable - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Taxes Payable [Abstract] | ||
Income tax payable | $ 3,507,752 | $ 3,340,256 |
VAT and tax payable (receivable) | 502,097 | (213,478) |
Total tax payable | $ 4,009,849 | $ 3,126,778 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Revenues - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | |||
Sales | $ 83,113,259 | $ 74,702,625 | $ 67,006,655 |
Production service revenue | 1,219,041 | 1,663,523 | 3,239,956 |
Total revenue | 84,332,300 | 76,366,148 | 70,246,611 |
Sales [Member] | |||
Revenue | |||
Sales | $ 83,113,259 | $ 74,702,625 | $ 67,006,655 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of Revenues by Geographic Areas - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
China [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 73,744,662 | $ 64,787,186 | $ 53,130,894 |
% of Sales | 87.45% | 84.69% | 81.22% |
USA [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 7,146,478 | $ 7,628,332 | $ 5,740,265 |
% of Sales | 8.47% | 9.97% | 8.78% |
India [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 1,596,243 | $ 4,191,611 | |
% of Sales | 1.89% | 6.41% | |
Mexico [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 577,416 | ||
% of Sales | 0.68% | ||
Australia [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 385,111 | $ 1,191,512 | $ 546,807 |
% of Sales | 0.46% | 1.56% | 0.84% |
Other foreign countries [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 882,390 | $ 868,364 | $ 6,122,083 |
% of Sales | 1.05% | 1.13% | 1.96% |
TAIWAN | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 1,296,863 | ||
% of Sales | 1.70% | ||
Marshall Islands [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 730,039 | ||
% of Sales | 0.95% | ||
Switzerland [Member] | |||
Top 5 Geographic Areas: | |||
Sales Amount | $ 514,951 | ||
% of Sales | 0.79% |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - Schedule of Other Income (Expense), Net | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | |
Schedule of Other Income (Expense), Net [Abstract] | ||||
Government grants | $ 373,032 | $ 355,925 | $ 1,190,882 | |
Dividend income | 250,096 | 420,596 | ¥ 2,756,250 | 433,735 |
Rental income | 85,437 | |||
Bad debt recovery | (430,708) | 564,283 | 153,676 | |
Other net miscellaneous income (expenses) | (6,814) | 57,369 | 170,234 | |
Total | $ 701,751 | $ 1,398,173 | $ 1,948,527 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | |
Subsequent Events (Details) [Line Items] | ||
Repayment of long-term borrowings | $ 5,442,709 | ¥ 39,710,000 |
Bank borrowings | $ 973,136 | ¥ 7,100,000 |
Interest rates | 3.45% | 3.45% |
Borrowings [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Bank borrowings | $ 2,727,522 | ¥ 19,900,000 |
Subsequent Events (Details) - S
Subsequent Events (Details) - Schedule of Consolidated Financial Statements - 12 months ended Sep. 30, 2023 | USD ($) | CNY (¥) |
Condensed Financial Statements, Captions [Line Items] | ||
Amount - RMB | ¥ | ¥ 19,900,000 | |
Amount - USD | $ | $ 2,727,522 | |
Agricultural Bank [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Amount - RMB | ¥ | 9,950,000 | |
Amount - USD | $ | $ 1,363,761 | |
Issuance Date | Oct. 26, 2023 | |
Expiration Date | Oct. 25, 2026 | |
Interest | 3.45% | |
Agricultural Bank [Member] | Borrowings [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Amount - RMB | ¥ | ¥ 9,950,000 | |
Amount - USD | $ | $ 1,363,761 | |
Issuance Date | Oct. 12, 2023 | |
Expiration Date | Oct. 11, 2026 | |
Interest | 3.45% |