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SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2022
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 15 – 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 three operating segments as defined by ASC 280.

The Company, its subsidiaries, the VIE and VIE’s subsidiaries mainly manufactures and distributes active pharmaceutical ingredients and TCMD products as well as other by-products in China. Currently no revenue is derived from international markets. The following table presents segment information for years ended September 30, 2022, 2021 and 2020, respectively:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended September 30, 2022

​

​

Oxytetracycline 

​

​

​

​

​

​

​

​

​

​

​

& Licorice 

​

​

​

​

Heparin 

​

​

​

​

​

products and 

​

​

​

​

products and

​

​

​

​

​

TCMD

​

Fertilizer

​

Sausage casing

​

Total

Revenue

    

$

40,305,988

    

$

1,088,570

    

$

23,460,467

    

$

64,855,025

Cost of revenue

​

 

36,210,950

​

 

760,030

​

 

21,656,748

​

 

58,627,728

Gross profit

​

$

4,095,038

​

$

328,540

​

$

1,803,719

​

$

6,227,297

Depreciation and amortization

​

$

963,457

​

$

48,804

​

$

212,412

​

$

1,224,673

Capital expenditures

​

$

1,882,198

​

$

91,029

​

$

1,259,042

​

$

3,232,269

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended September 30, 2021

​

​

Oxytetracycline 

​

​

​

​

​

​

​

​

​

​

& Licorice 

​

​

​

​

Heparin 

​

​

​

​

​

products and 

​

​

​

​

products and 

​

​

​

​

​

TCMD

​

Fertilizer

​

Sausage casing

​

Total

Revenue

    

$

33,451,159

    

$

486,171

    

$

23,162,554

    

$

57,099,884

Cost of revenue

​

 

28,362,016

​

 

463,738

​

 

22,635,600

​

 

51,461,354

Gross profit

​

$

5,089,143

​

$

22,433

​

$

526,954

​

$

5,638,530

Depreciation and amortization

​

$

951,015

​

$

47,194

​

$

203,020

​

$

1,201,229

Capital expenditures

​

$

3,321,629

​

$

46,169

​

$

125,576

​

$

3,493,374

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended September 30, 2020

​

​

Oxytetracycline 

​

​

​

​

​

​

​

​

​

​

​

& Licorice 

​

​

​

​

Heparin 

​

​

​

​

​

products and 

​

​

​

​

products and 

​

​

​

​

​

TCMD

​

Fertilizer

​

Sausage casing

​

Total

Revenue

    

$

32,602,384

    

$

701,701

    

$

16,729,115

    

$

50,033,200

Cost of revenue

​

 

25,004,712

​

 

304,670

​

 

17,184,665

​

 

42,494,047

Gross profit

​

$

7,597,672

​

$

397,031

​

$

(455,550)

​

$

7,539,153

Depreciation and amortization

​

$

886,323

​

$

38,792

​

$

180,473

​

$

1,105,588

Capital expenditures

​

$

377,953

​

$

33,914

​

$

37,898

​

$

449,765

​

​

​

​

​

​

​

​

​

    

September 30, 

    

September 30, 

​

​

2022

​

2021

Total Assets

 

​

  

 

​

  

Oxytetracycline & Licorice products and TCMD

​

$

50,690,503

​

$

60,786,870

Fertilizer

​

$

2,613,859

​

$

2,540,189

Heparin products and Sausage casing

​

$

11,222,255

​

$

12,026,204

Total

​

$

64,526,617

​

$

75,353,263

​