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Assets Acquisition
 6 Months Ended
Dec. 31, 2025
Assets Acquisition [Abstract]  
ASSETS ACQUISITION

NOTE 21 — ASSETS ACQUISITION

 

Hupan Pharmaceutical (Hubei) Co., Ltd acquisition

 

On November 5, 2024, the Company entered into an equity transfer agreement (the “Equity Transfer Agreement”) with Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd and Hubei Huayao Pharmaceutical Co., Ltd to acquire 100% of the equity interests in Hupan Pharmaceutical (Hubei) Co., Ltd (“Hupan Pharmaceutical”), a pharmaceutical distribution and supply chain service provider headquartered in Wuhan, China.

 

Pursuant to the Equity Transfer Agreement, Sichuan Hupan will acquire the entirety of the equity interests that Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd and Hubei Huayao Pharmaceutical Co., Ltd. hold in Hupan Pharmaceutical, for a total consideration of RMB4.0 million (US$552,730).

 

The acquisition was accounted for as an asset acquisition because the acquisition was related to the pharmaceutical distribution license, a single asset. The acquisition was closed on November 21, 2024. The following table summarizes the fair value of the identifiable assets:

 

   Amount 
     
Total consideration in cash  $552,730 
      
Assets acquired and liabilities assumed:     
Cash acquired   9 
Original paid in capital paid to Hupan Pharmaceutical   276,365 
Intangible assets – license of pharmaceutical distribution   418,867 
Other payables   (37,794)
Deferred tax liabilities   (104,717)
Total assets acquired  $552,730 

 

The Company recorded impairment of intangible assets of nil for the three and six months ended December 31, 2025 and 2024.