XML 39 R26.htm IDEA: XBRL DOCUMENT
v3.22.2.2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Schedule of carrying amounts of the assets, liabilities, the results of operations and cash flows of the VIE and its subsidiaries | The carrying amounts of the assets, liabilities, the results of operations and cash flows of the VIE and VIE’s subsidiaries included in the Company, its subsidiaries, the VIE and VIE subsidiaries’ consolidated financial statements after the elimination of intercompany balances and transactions among the VIE and VIE’s subsidiaries, and the Company and its subsidiaries are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2021 | ​ | 2020
ASSETS | ​ |  | ​ | ​ |  | ​
Current assets: |  | ​ |  |  | ​ |
Cash and cash equivalents | ​ | $ | 4,161,582 | ​ | $ | 5,493,215
Restricted cash | ​ | ​ | 2,140,016 | ​ | ​ | —
Accounts receivable, net | ​ |  | 1,733,306 | ​ |  | 660,398
Bank acceptance receivable | ​ |  | 11,722,096 | ​ |  | 11,460,512
Inventories, net | ​ |  | 12,495,831 | ​ |  | 11,994,471
Advances to suppliers, net | ​ |  | 1,380,757 | ​ |  | 465,755
Other current assets | ​ |  | 423,331 | ​ |  | 535,981
Total current assets | ​ |  | 34,056,919 | ​ |  | 30,610,332
Property and equipment, net | ​ |  | 9,041,995 | ​ |  | 7,395,965
Intangible assets, net | ​ |  | 1,927,933 | ​ |  | 1,881,722
Long-term investment | ​ |  | 639,466 | ​ |  | 540,517
Long term security deposits | ​ |  | 188,913 | ​ |  | 179,325
Right of use assets-lease | ​ |  | 118,154 | ​ |  | 134,511
Deferred tax assets | ​ |  | 427,172 | ​ |  | 361,250
Total assets | ​ | $ | 46,400,552 | ​ | $ | 41,103,622
LIABILITIES | ​ |  |  | ​ |  |
Current liabilities: | ​ |  |  | ​ |  |
Bank loans | ​ | $ | — | ​ | $ | 7,349,375
Accounts payable | ​ |  | 6,642,625 | ​ |  | 3,958,804
Advance from customers | ​ |  | 2,467,296 | ​ |  | 3,511,198
Advance from customers - related parties | ​ |  | 17,318 | ​ |  | 33,152
Bank notes payable | ​ | ​ | 7,867,018 | ​ | ​ | —
Deferred government grants - current | ​ |  | 351,567 | ​ |  | 384,802
Taxes payable | ​ |  | 371,325 | ​ |  | 1,322,354
Operating lease liabilities, current | ​ |  | 55,847 | ​ |  | 22,354
Accrued expenses and other payables | ​ |  | 466,188 | ​ |  | 1,301,881
Total current liabilities | ​ |  | 18,239,184 | ​ |  | 17,883,920
Operating lease liabilities, long term | ​ |  | 106,180 | ​ |  | 124,406
Deferred government grants - noncurrent | ​ |  | 403,745 | ​ |  | 722,137
Total liabilities | ​ |  | 18,749,109 | ​ |  | 18,730,463
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the year ended
​ | ​ | September 30,
​ | ​ | 2021 | ​ | 2020 | ​ | 2019
Net revenue |  | $ | 57,049,381 |  | $ | 46,731,913 |  | $ | 46,096,684
Income from operations | ​ | $ | 2,370,647 | ​ | $ | 4,840,614 | ​ | $ | 6,178,538
Net income | ​ | $ | 2,857,492 | ​ | $ | 4,936,357 | ​ | $ | 5,908,479
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Year Ended
​ | ​ | September 30,
​ | ​ | 2021 | ​ | 2020 | ​ | 2019
Net cash provided by (used in) operating activities |  | $ | 2,122,539 |  | $ | 4,131,468 |  | $ | (580,193)
Net cash used in investing activities |  | ​ | (1,781,618) |  | ​ | (5,648,762) |  | ​ | (800,254)
Net cash provided by (used in) financing activities |  | ​ | 123,697 |  | ​ | 2,140,503 |  | ​ | 507,202
Effect of exchange rate on cash |  | ​ | 343,759 |  | ​ | 275,566 |  | ​ | (157,094)
Net increase (decrease) in cash and cash equivalents | ​ | $ | 808,377 | ​ | $ | 898,775 | ​ | $ | (1,030,339)
Schedule of estimated useful lives of the assets | ​
​ | ​ | ​
Items |  | Useful life
Property and buildings |  | 20–25 years
Leasehold improvement |  | Lesser of useful life and lease term
Machinery and equipment |  | 5–10 years
Automobiles |  | 3–5 years
Office and electric equipment |  | 3–5 years
Schedule of estimated useful lives of intangible assets | ​
​ | ​ | ​
Items |  | Useful life
Land use rights |  | 50 years
Software |  | 10 years
License for drug manufacturing |  | 10 years
Schedule of shareholders' equity for the non-controlling interest from each subsidiary that is not 100% owned | The following table summarizes the shareholders’ equity for the non-controlling interest from each subsidiary that is not 100% owned by the Company: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2021 | ​ | 2020
Gansu QLS |  | $ | 240,683 |  | $ | 387,420
Chengdu QLS and subsidiaries |  | ​ | 1,569,169 |  | ​ | 2,355,853
Total | ​ | $ | 1,809,852 | ​ | $ | 2,743,273
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2021, 2020 and 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Years ended September 30,
​ |  | 2021 |  | 2020 |  | 2019
Numerator: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income attributable to ordinary shareholders | ​ | $ | 3,152,868 | ​ | $ | 5,063,710 | ​ | $ | 5,332,318
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Denominator: | ​ |  |  | ​ |  |  | ​ |  |
Weighted-average number of ordinary shares outstanding – basic | ​ |  | 34,089,286 | ​ |  | 30,000,000 | ​ |  | 30,000,000
Outstanding warrants | ​ | ​ | — | ​ |  | — | ​ |  | —
Potentially dilutive shares from outstanding options and warrants | ​ |  | — | ​ |  | — | ​ |  | —
Weighted-average number of ordinary shares outstanding – diluted | ​ |  | 34,089,286 | ​ |  | 30,000,000 | ​ |  | 30,000,000
Earnings per share – basic | ​ | $ | 0.09 | ​ | $ | 0.17 | ​ | $ | 0.18
Earnings per share – diluted | ​ | $ | 0.09 | ​ | $ | 0.17 | ​ | $ | 0.18
Schedule of currency exchange rates | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2021 |  | September 30, 2020 |  | September 30, 2019
Year-end spot rate |  | US$1=RMB 6.4580 |  | US$1=RMB 6.8033 |  | US$1=RMB 7.1383
​ | ​ | ​ | ​ | ​ | ​ | ​
Average rate |  | US$1=RMB 6.5095 |  | US$1=RMB 7.0077 |  | US$1=RMB 6.8767
Schedule of reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on recurring basis | The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the year ended September 30, 2021 and 2020: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | As of |  | As of
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2021 | ​ | 2020
Beginning balance | ​ | $ | — | ​ | $ | —
Fair value of investment in available-for-sale securities at inception | ​ |  | 20,000,000 | ​ |  | —
Change in fair value | ​ |  | 323,400 | ​ |  | —
Ending balance | ​ | $ | 20,323,400 | ​ | $ | —

X
- Definition Tabular disclosure of foreign exchange rates. + References No definition available. + Details
Name: | qli_ScheduleOfForeignCurrencyExchangeRatesTableTextBlock
Namespace Prefix: | qli_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the useful life of intangible assets. + References No definition available. + Details
Name: | qli_ScheduleOfIntangibleAssetsUsefulLifeTableTextBlock
Namespace Prefix: | qli_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the useful life of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. + References No definition available. + Details
Name: | qli_ScheduleOfPropertyPlantAndEquipmentUsefulLifeTableTextBlock
Namespace Prefix: | qli_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of redeemable noncontrolling interest (as defined) included in the statement of financial position as either a liability or temporary equity. As of the date of the statement of financial position, such redeemable noncontrolling interest is currently redeemable, as defined, for cash or other assets of the entity at (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder of the noncontrolling interest, or (3) upon occurrence of an event that is not solely within the control of the entity. + References No definition available. + Details
Name: | us-gaap_RedeemableNoncontrollingInterestTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -URI https://asc.fasb.org/extlink&oid=123419778&loc=SL6759159-111685 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5747-111685 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=123419778&loc=SL6228884-111685 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5710-111685 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5728-111685 + Details
Name: | us-gaap_ScheduleOfVariableInterestEntitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration