Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Ordinary shares, par value (in Dollars per share) | $ 0.002 | $ 0.002 |
| Ordinary shares, authorized | 125,000,000 | 125,000,000 |
| Ordinary shares, issued | 11,250,000 | 10,000,000 |
| Ordinary shares, outstanding | 11,250,000 | 10,000,000 |
Consolidated Statements of Operations and Comprehensive Loss - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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| Income Statement [Abstract] | |||
| Revenues | $ 45,598,620 | $ 66,232,757 | $ 64,565,269 |
| Cost of revenues | (36,534,358) | (49,961,793) | (47,211,911) |
| Gross Profit | 9,064,262 | 16,270,964 | 17,353,358 |
| Operating expenses: | |||
| Selling and marketing expenses | (4,875,650) | (5,813,307) | (6,270,237) |
| General and administrative expenses | (5,270,966) | (4,922,075) | (5,982,887) |
| Total operating expenses | (10,146,616) | (10,735,382) | (12,253,124) |
| (Loss) income from operations | (1,082,354) | 5,535,582 | 5,100,234 |
| Other income (loss): | |||
| Other income | 1,366,394 | 99,006 | 471,899 |
| Other expenses | (31,095) | (234,269) | (661,492) |
| Interest expense | (684,358) | (425,791) | (444,747) |
| Total other income (loss), net | 650,941 | (561,054) | (634,340) |
| (Loss) income before income tax expenses | (431,413) | 4,974,528 | 4,465,894 |
| Income tax credit (expenses) | 77,302 | (897,157) | (800,084) |
| Net (loss) income | (354,111) | 4,077,371 | 3,665,810 |
| Other Comprehensive Loss | |||
| Foreign currency translation adjustment | (3,076,878) | (1,108,733) | 2,215,358 |
| Total Comprehensive (Loss) Income | $ (3,430,989) | $ 2,968,638 | $ 5,881,168 |
| Net (loss) income per share attributable to ordinary shareholders - basic (in Dollars per share) | $ (0.03) | $ 0.41 | $ 0.37 |
| Weighted average number of ordinary shares used in computing net (loss) income per share - basic (in Shares) | 10,301,370 | 10,000,000 | 10,000,000 |
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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| Income Statement [Abstract] | |||
| Net (loss) income per share attributable to ordinary shareholders - diluted | $ (0.03) | $ 0.41 | $ 0.37 |
| Weighted average number of ordinary shares used in computing net (loss) income per share - diluted | 10,301,370 | 10,000,000 | 10,000,000 |
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) |
Ordinary Shares |
Additional paid-in capital |
Statutory reserves |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
|---|---|---|---|---|---|---|
| Balance at Jun. 30, 2020 | $ 20,000 | $ 198,895 | $ 472,223 | $ (1,815,302) | $ 25,762,931 | $ 24,638,747 |
| Balance (in Shares) at Jun. 30, 2020 | 10,000,000 | |||||
| Appropriations to statutory reserves | 276,039 | (276,039) | ||||
| Waiver of amounts due to shareholders | 8,452,119 | 8,452,119 | ||||
| Deemed Distribution | (8,452,119) | (8,452,119) | ||||
| Recapitalization | 8,863,135 | (8,863,135) | ||||
| Release of reserves upon disposal of subsidiaries | (15,080) | (15,080) | ||||
| Foreign currency translation adjustment | 2,215,358 | 2,215,358 | ||||
| Receipt of share capital | 3 | 3 | ||||
| Net income (loss) | 3,665,810 | 3,665,810 | ||||
| Balance at Jun. 30, 2021 | $ 20,000 | 17,514,152 | 733,182 | 400,056 | 11,837,448 | 30,504,838 |
| Balance (in Shares) at Jun. 30, 2021 | 10,000,000 | |||||
| Appropriations to statutory reserves | 295,962 | (295,962) | ||||
| Waiver of amounts due to shareholders | 6,614,563 | 6,614,563 | ||||
| Recapitalization | 6,973,182 | (6,973,182) | ||||
| Foreign currency translation adjustment | (1,108,733) | (1,108,733) | ||||
| Net income (loss) | 4,077,371 | 4,077,371 | ||||
| Balance at Jun. 30, 2022 | $ 20,000 | 31,101,897 | 1,029,144 | (708,677) | 8,645,675 | $ 40,088,039 |
| Balance (in Shares) at Jun. 30, 2022 | 10,000,000 | 10,000,000 | ||||
| Appropriations to statutory reserves | 19,975 | (19,975) | ||||
| Issuance of shares | $ 2,500 | 3,259,252 | 3,261,752 | |||
| Issuance of shares (in Shares) | 1,250,000 | |||||
| Foreign currency translation adjustment | (3,076,878) | (3,076,878) | ||||
| Net income (loss) | (354,111) | (354,111) | ||||
| Balance at Jun. 30, 2023 | $ 22,500 | $ 34,361,149 | $ 1,049,119 | $ (3,785,555) | $ 8,271,589 | $ 39,918,802 |
| Balance (in Shares) at Jun. 30, 2023 | 11,250,000 | 11,250,000 |
Organization and Business Background |
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| Organization and Business Background [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization and Business Background | (1) Organization and Business Background
On May 21, 2021, Millennium Group International Holdings Limited (the “Company” or the “Group”) was incorporated in the Cayman Islands, as an investment holding company. The Company is primarily engaged in providing paper-based packaging solution. The Company is headquartered in Hong Kong with significant operations in the People’s Republic of China (“PRC” or China) and Vietnam. The Company operates two production facilities in the Guangdong Province of the PRC. The Company also operates a supply chain management business in Vietnam to provide premium packaging solutions to meet the demand of the Company’s top-tier clients whose products are sold globally.
A group reorganization of the legal structure was completed in on January 19, 2022. As the Group were under same control of the shareholders and their entire equity interests were also ultimately held by the shareholders immediately prior to the group reorganization, the consolidated statements of operations and comprehensive loss, consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows are prepared as if the current group structure had been in existence throughout the years ended June 30, 2022 and 2021.
Initial Public Offering
On April 4, 2023, the Company announced the closing of its initial public offering (“IPO”) of 1,250,000 ordinary shares, US$0.002 par value per share (“Ordinary Shares”) at an offering price of US$4.00 per share for a total of US$5,000,000 in gross proceeds. The Company raised total net proceeds of $4.2 million after deducting underwriting discounts and commissions and offering expenses. In addition, the Company granted to its underwriters, Revere Securities, LLC, as the Underwriter Representative, an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s ordinary shares to be offered by the Company pursuant to the IPO (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. The ordinary shares of the Company began trading on the Nasdaq Capital Market on April 6, 2023 under the ticker symbol “MGIH”.
As of June 30, 2023, the Company’s subsidiaries are detailed in the table as follows:
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Significant Accounting Policies |
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| Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies | (2) Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. All significant inter-company balances and transactions are eliminated on consolidation.
Use of estimates and assumptions
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, significant accounting estimates reflected in the Company’s consolidated financial statements include useful lives of property, plant and equipment, impairment of long-lived assets, allowance for doubtful accounts, provision for contingent liabilities, deferred taxes and uncertain tax position. Actual results could differ from these estimates.
Foreign Currency Translation
The Company’s reporting currency is the United States dollar (“US$” or “$”). The functional currency of its Hong Kong subsidiaries is the Hong Kong dollar (the “HK$”), its Vietnam subsidiaries is the Vietnamese dong (the “VND”), and its PRC subsidiaries is the Renminbi (the “RMB”). Results of operations and cash flows are translated at the average exchange rates during the year, and assets and liabilities are translated at the exchange rate at the end of the year. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.
Translation of amounts from HK$ into US$ has been made at the following exchange rates:
Translation of amounts from RMB into US$ has been made at the following exchange rates:
Translation of amounts from VND into US$ has been made at the following exchange rates:
Cash and cash equivalents
Cash and cash equivalents represent cash on hand and time deposits, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less from the date of purchase to be cash equivalents.
Restricted cash
Time deposits that are restricted as to withdrawal for use or pledged as security is reported separately as restricted cash. The Group’s restricted cash primarily represents deposits pledged to banks to secure banking facilities granted to the Company. The restricted deposits for the banking facilities have been fully released by respective bank in September 2022 with the revised bank facilities.
Accounts receivable, net
Accounts receivable represents trade receivables from customers. Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The trade receivables are all without customer collateral and interest is not accrued on past due accounts. Periodically, management reviews the adequacy of its provision for doubtful accounts based on historical bad debt expense results and current economic conditions using factors based on the aging of its accounts receivable. Additionally, the Company may identify additional allowance requirements based on indications that a specific customer may be experiencing financial difficulties. Actual bad debt results could differ materially from these estimates. As of June 30, 2023, and 2022, the balance of allowance for doubtful accounts was $70,345 and $186,909, respectively. While management uses the best information available upon which to best estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. When collection of the original invoice amounts is no longer probable, we will either partially or fully write-off the balance against the allowance for doubtful accounts.
Prepayments, other receivables and other current assets
Prepayments are cash deposited or advanced to suppliers for future inventory purchases. This amount is refundable and bears no interest.
Other receivables and other current assets primarily include deposits for rental, VAT input and others. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Receivables considered uncollectable are written off against allowances after exhaustive efforts at collection are made.
Inventories, net
Inventories consist principally of raw materials, work-in-progress and finished goods, and are stated at the lower of cost (average cost method) or net realizable value. Cost of inventories includes labor, raw materials, and allocated overhead.
Intangible asset, net
Intangible asset is computer software acquired by the Company, it is stated at cost less accumulated amortization and any impairment losses. The intangible assets will be amortized on a straight-line basis over the estimated useful life of 5 years.
Property, Plant and Equipment, net
Property, plant, and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property, plant, and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation or amortization accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to operations.
The Company depreciates property, plant, and equipment using the straight-line method as follows:
Impairment of long-lived asset
Long-lived assets, representing property, plant and equipment and intangible asset with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, we would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2023, and 2022, no impairment of long-lived assets was recognized.
Leases
ASC 842 supersedes the lease requirements in ASC 840 “Leases”, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. All leases in the Group are accounted for as operating leases.
We determine if an arrangement is a lease at inception. On our balance sheet, our lease is included in operating lease right-of-use (ROU) asset, Current portion of operating lease liability and operating lease liability, net of current portion.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Significant judgment may be required when determining whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and non-lease components, and the determination of the discount rate included in our office lease. We review the underlying objective of each contract, the terms of the contract, and consider our current and future business conditions when making these judgments.
For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term.
Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU asset and lease liabilities on the consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis over the lease term.
All land in mainland China is owned by the Chinese government. The Chinese government may sell land use rights for a specified period of time. The purchase price of land use rights represents the operating lease prepayments for the rights to use the land in mainland China under ASC 842 and is recorded as right-of-use assets on the consolidated balance sheets, which is amortized over the remaining lease term.
In July 2000, the Company acquired land use rights from the local Bureau of Land and Resources in Shenzhen for the purpose of building factory. The land use rights are being amortized over the respective lease terms, which are 50 years. In the inception date of lease term, the Company has fully paid the lease payment to the PRC government.
Other non-current assets
Other non-current assets mainly include prepayment for land cost in Vietnam of approximately USD 1,798,927 and USD 1,592,962, and capitalized listing fees of approximately and USD 515,953 as of June 30, 2023 and 2022, respectively. The prepayment for land cost in Vietnam is related to a contract for the right to use of a land in Vietnam for a consideration of VND 102,476,000,000 (approximately USD 4,455,000). The details of capital commitment are set out in the Note 19.
Bank borrowings
Bank borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method.
Accounts payable
Accounts payable represents trade payables to vendors.
Other payables and accrued liabilities
Other payables and accrued liabilities primarily include contract liabilities, salaries payable as well as others accrual and payable.
A contract liability is recognized when a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).
Statutory Reserves
According to the laws and regulations in the PRC, the Company is required to provide for certain statutory funds, namely, a reserve fund by an appropriation from net profit after taxation but before dividend distribution based on the local statutory financial statements of the PRC subsidiary prepared in accordance with the PRC accounting principles and relevant financial regulations.
Each of the Company’s wholly owned subsidiary in the PRC are required to allocate at least 10% of its net profit to the reserve fund until the balance of such fund has reached 50% of its registered capital. Appropriations of additional reserve fund are determined at the discretion of its directors. The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital.
Employee Benefit Plan
Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance and other welfare benefits are provided to employees.
Qualified employees of the Hong Kong entities participate in Mandatory Provident Fund and company’s medical insurance plan. Contributions are made by both the employer and the employee at the rate of 5% on the employee’s relevant salary income, subject to a cap of monthly relevant income of approximately US$27,796.
During the years ended June 30, 2023, 2022 and 2021, the total amount charged to the consolidated statements of operations in respect of the Company’s costs incurred on both government mandated multi-employer defined contribution plan in the PRC and Mandatory Provident Fund Scheme in Hong Kong were US$1,205,697, US$1,090,943 and US$1,056,894, respectively.
Related parties
We adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
The details of related party transaction during the years ended June 30, 2023, 2022 and 2021 and balances as of June 30, 2023 and 2022 are set out in the note 11.
Revenue Recognition
The Company adopted ASC Topic 606, Revenue from Contracts with Customers, and all subsequent ASUs that modified ASC 606 on April 1, 2017 using the full retrospective method which requires the Company to present the financial statements for all periods as if Topic 606 had been applied to all prior periods. The company derives revenue principally from producing and sales of paper products. Revenue from contracts with customers is recognized using the following five steps:
A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services.
The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations.
The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, or has a highly variable selling price, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price. A discount or variable consideration is allocated to one or more, but not all, of the performance obligations if it relates specifically to those performance obligations.
Transaction price is the amount of consideration in the contract to which the Company expects to be entitled in exchange for transferring the promised goods or services. The transaction price may be fixed or variable and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if the Company does not receive a separate identifiable benefit from the customer. When consideration is variable, if applicable, the estimated amount is included in the transaction price to the extent that it is highly probable that a significant reversal of the cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved.
Revenue may be recognized at a point in time or over time following the timing of satisfaction of the performance obligation. If a performance obligation is satisfied over time, revenue is recognized based on the percentage of completion reflecting the progress towards complete satisfaction of that performance obligation. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time.
The Company currently generates its revenue mainly from the following sources:
For the sales of paper products, the Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The key performance obligation is the delivery of the finished product to the customer at customer’s truck at the Company’s inventory warehouse or their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration related to returns or refunds as our contracts do not include provisions that allow for sales refunds or returns of products. The Company provides no warranties for the products transferred. The amount of revenue recognized from contract liabilities to the Company’s result of operations can be found in Note 12 below.
The Company provides supply chain management solutions to its customers by designing packaging products, designating approved raw materials for manufacturing of those packaging products, contracting viable manufacturers, and arranging delivery of those packaging products to end customers. The Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The key performance obligation is identified as a single performance obligation where delivery of the finished product to the customer at the location specified by the customer indicates that the Company has completed all steps set forth above such as design, manufacture and delivery in order to substantially complete all the services agreed upon in the purchase order. Delivery of the product to the customer is also the point at which title to that asset passes to the customer. The completion of this earning process is typically evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration related to returns or refunds as our contracts do not include provisions that allow for sales refunds or returns of products. The Company provides no warranties for the products transferred. The amount of revenue recognized from contract liabilities to the Company’s result of operations can be found in Note 12 below.
Following the adoption of ASC 606, we considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria:
The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less.
The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
The Company elected a practical expedient that it does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects that, upon the inception of revenue contracts, the period between when the Company transfers its promised services or deliverables to its clients and when the clients pay for those services or deliverables will be one year or less.
Costs that relate directly to a contract include direct material, labor cost, subcontracting fee and allocated overhead including utilities, depreciation, and other overhead costs.
We elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfilment activity and has been presented as transportation costs which is include in selling and marketing expenses.
Cost of revenues
Cost of sales of paper products, which are directly related to revenue generating transactions, primarily consists of raw paper cost, labour cost and allocated overhead.
Cost of provision of supply chain management solution, which are directly related to revenue generating transactions, primarily consists of cost of purchase of finished goods and shipping costs.
Other income
Interest income is mainly generated from savings and time deposits and is recognized on an accrual basis using the effective interest method.
Selling and marketing expenses
Selling and marketing expenses consist primarily of staff costs and employee benefits of sales team, consultancy fee for market research and product development, advertising expenses and transportation and handling expenses.
General and administrative expenses
General and administrative expenses consist primarily of personnel-related compensation expenses, including salaries and related social insurance costs for our operations and support personnel, office rental and property management fees, professional services fees, depreciation, travelling expenses, office supplies, utilities, research and development costs, communication and expenses related to general operations.
Income Taxes
The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain.
The Company adopted ASC Topic 740-10-05, Income Tax, which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.
The Company’s policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense.
Value Added Tax
Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in tax payable. All of the VAT returns filed by our subsidiaries in the PRC have been and remain subject to examination by the tax authorities for five years from the date of filing.
Comprehensive Income (Loss)
The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. The components of comprehensive income (loss) were the net income (loss) for the years and the foreign currency translation adjustments.
Segment reporting
The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and has determined that the Company has only one reportable segment. The Company operates and manages its business as a single segment. Please refer to Note 17 to the consolidated financial statement for the Company’s revenue from customers by geographical areas based on the location of the customers.
Earnings Per Share
The Group computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. During the years ended June 30, 2023, 2022 and 2021, there were no dilution impact.
Commitments and contingencies
In the normal course of business, we are subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. We recognize a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. We may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter.
Recent accounting pronouncements
In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments — Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments — Credit Losses — Available-for-Sale Debt Securities.
The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. The Company has not early adopted this update and it will become effective on January 1, 2023. The Company is still evaluating the impact of accounting standard of credit losses on the consolidated financial statements and related disclosures.
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for the Group for the annual reporting periods beginning July 1, 2022 and interim periods beginning July 1, 2023. Early adoption is permitted. The Company does not expect any material impact on the Company’s consolidated financial statements and related disclosures.
In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). ASU No. 2021-01 is an update of ASU No. 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR. Regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU No. 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU No. 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU No. 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective immediately through December 31, 2022, for all entities. On December 21, 2022, the FASB issued a new Accounting Standards Update ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extends the sunset (or expiration) date of ASC Topic 848 to December 31, 2024. This gives reporting entities two additional years to apply the accounting relief provided under ASC Topic 848 for matters related to reference rate reform. The Company does not expect the cessation of LIBOR to have a material impact on the Company’s consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-10, “Codification Improvements to Subtopic 205-10, presentation of financial statements”. The amendments in this Update improve the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of the codification. That reduce the likelihood that the disclosure requirement would be missed. The amendments also clarify guidance so that an entity can apply the guidance more consistently. ASU 2021-10 is effective for the Company for annual and interim reporting periods beginning January 1, 2022. Early application of the amendments is permitted for any annual or interim period for which financial statements are available to be issued. The amendments in this Update should be applied retrospectively. An entity should apply the amendments at the beginning of the period that includes the adoption date. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures.
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 operations and comprehensive loss and statements of cash flows. |
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Cash and Cash Equivalents |
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| Cash and cash equivalents | (3) Cash and cash equivalents
Cash and cash equivalents on its original currencies were shown below:
The PRC government impose controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. |
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Restricted Cash |
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Jun. 30, 2023 | |
| Restricted Cash [Abstract] | |
| Restricted cash | (4) Restricted cash
Restricted cash were and US$598,402 as of June 30, 2023, and 2022, respectively. The restricted cash represented deposits pledged to Hang Sang Bank Limited to secure banking facilities granted to the Company. The restricted deposits for the banking facilities have been fully released by respective bank in September 2022 with the revised bank facilities |
Accounts Receivable, Net |
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| Schedule of Accounts Receivable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable, net | (5) Accounts receivable, net
Accounts receivable, net comprised the following:
Allowance for doubtful accounts, net consists of the following:
As of the end of each of the financial year, the ageing analysis of accounts receivable, net of allowance for doubtful accounts, based on the invoice date is as follows:
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Prepayments, Other Receivables and Other Current Assets |
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| Prepayments, Other Receivables and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepayments, other receivables and other current assets | (6) Prepayments, other receivables and other current assets
Prepayments, other receivables and other current assets consisted of the following as of June 30, 2023, and 2022:
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Inventories, Net |
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| Inventories, net | (7) Inventories, net
Inventories are stated at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis and, in the case of work in progress and finished goods, comprises direct materials, direct labour and an appropriate proportion of overheads. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and disposal.
The components of inventories were as follows:
Inventories impairment consists of the following:
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Property, Plant and Equipment, Net |
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| Property, plant and equipment, net | (8) Property, plant and equipment, net
As of June 30, 2023, and 2022, property, plant and equipment, net consisted of the following:
Depreciation expense was US$1,556,069, US$1,792,022 and US$1,901,586 for the years ended June 30, 2023, 2022 and 2021, respectively. No impairment loss was recorded for the years ended June 30, 2023, 2022 and 2021. |
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Leases |
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| Leases | (9) Leases
Our operating leases primarily consist of leases of office, factories buildings and factory equipment. The recognition of whether a contract arrangement contains a lease is made by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all the economic benefits from and has the ability to direct the use of the asset.
Operating lease assets and liabilities are included in the items of operating lease right-of-use assets, net, operating lease liabilities, current portion, and operating lease liabilities, non-current portion on the consolidated balance sheets.
We adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on July 1, 2019 using the modified retrospective method of adoption. We elected the transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. We used the incremental borrowing rate of 4.25% as the discount rate, based on the information available at commencement date in determining the present value of lease payments. In addition, adoption of the new standard resulted in the recording of right of use assets and associated lease liabilities of approximately US$3,733,913 and US$31,890, respectively, as of July 1, 2019.
Supplemental balance sheet information related to leases was as follows:
Operating lease expenses for the years ended June 30, 2023, 2022 and 2021 were US$790,417, US$814,377 and US$487,298, respectively.
The following table shows the remaining contractual maturities of the Group’s operating lease liabilities as of June 30, 2023:
The lease obligations will end between 31 August 2023 and 25 April 2054. The weighted-average discount rate used to determine the operating lease liabilities as of June 30, 2023 was 4.75%. |
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Bank Borrowings |
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| Bank borrowings | (10) Bank borrowings
Outstanding balances of banks borrowings as of June 30, 2023 and 2022 consisted of the following:
The details of bank borrowings as at June 30, 2023 and 2022 are as follows:
The average bank borrowings rates for the years ended June 30, 2023, and 2022 were approximately 5.69% and 2.73%, respectively.
As of June 30, 2023, and 2022, the Company had bank borrowings amounted to US$13,405,816 and US$15,813,022, respectively, which contained repayment on demand clauses as of June 30, 2023 and 2022, respectively. Accordingly, portions of the bank borrowings with Bank of China (Hong Kong) Limited contractually due for repayment after one year as of June 30, 2023 and 2022 with carrying amounts of US$4,004,549 and US$3,081,883, respectively, have been classified as current liabilities. For the purpose of the illustration, such bank borrowing is included within short-term bank borrowings and represented as bank borrowings repayable within one year or on demand.
Total interest expenses for the bank borrowings for the years ended June 30, 2023, 2022 and 2021 were US$684,358, US$403,862 and US$444,747, respectively.
Saved to the above disclosure, the following table represent other major loan covenants of aforementioned bank loans:
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Related Party Balance and Transactions |
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| Related Party Balance and Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Balance and Transactions | (11) Related Party Balance and Transactions
There are no outstanding balances as of June 30, 2023 and 2022.
The following represents the significant related party transactions for the years ended June 30, 2023, 2022 and 2021.
Note 1
All these companies were controlled by the shareholders of Millennium Group International Holdings Ltd (hereafter “MGIH”) and funds were used between these companies for efficient fund utilization purposes.
Note 2#
Before December 31, 2020, while YWPPC was still in the group, YWPPC has an amount due from WTPPF (Note 1 (f)). In other words, the group has an amount due from WTPPF. The separation of YWPPC from the group after December 31, 2020, resulted in decrease in amount due from WTPPF.
Note 3#
Before December 31, 2020, while YWPPC was still in the group, YWPPC has an amount due from Sing Wise (Note 1 (g)). In other words, the group has an amount due from Sing Wise. The separation of YWPPC from the group after December 31, 2020, resulted in a net decrease in amount due from Sing Wise.
Note 4#
Before December 31, 2020, YWPPC was under our groups of companies commonly held by the shareholders of MGIH and all amounts due to this company by group companies were consolidated in the financial statements and intercompany balances were eliminated within the group. The group companies had a net amount due to YWPPC at that time (Note 1 (h)). The separation of YWPPC from the group after December 31, 2020, resulted in a net increase in amount due to YWPPC and the outstanding amounts were no longer eliminated in the consolidated financial statements of MGIH for the year ended June 30, 2021. The outstanding amounts were then fully settled during the year ended June 30, 2022.
Note 5#
Kilomate is commonly held by the shareholders of MGIH Group. Kilomate had rental income from third parties before June 30, 2021 and transferred the right to receive rental income to companies in MGIH Group on its behalf and thus resulted in an amount due to Kilomate by MGIH Group. As a result of the MGIH shareholders’ undertaking to assume the liabilities due to Kilomate by the MGIH Group, the amount originally due to Kilomate by MGIH Group became amount due to the shareholders of MGIH and thus resulted in a decrease in amount due to Kilomate on June 30, 2021. The shareholders waived such amount due to them which was then recognized as additional paid-in capital in the year ended June 30, 2022. Please also see note 10 for details.
Note 6#
MII is commonly held by the shareholders of MGIH Group which had an amount due to MII (Note 1 (i)). On June 30, 2021, MII assigned the amount due to MII by MGIH to the shareholders of MII. As a result, the amount originally due to MII became amount due to the shareholders of MII who are the same shareholders of MGIH and thus resulted in a decrease in amount due to MII on June 30, 2021. The shareholders of MGIH waived such amount due to them which was then recognized as additional paid-in capital in the year ended June 30, 2022. Please also see note 10 for details.
Note 7#
The amount represented the aggregate increase in amount due to shareholders approximately $1.7 million for the year ended June 30, 2021, which was due to the following two transactions.
Before December 31, 2020, while YWPPC was still in the group, YWPISZ was the subsidiary of YWPPC. MGIH Group then acquired YWPISZ from YWPPC. YWPPC transferred the right to receive the proceeds from sales of YWPISZ to the shareholders of MGIH Group on October 19, 2020. As a result, there was an increase in amount due to shareholders as of June 30, 2021. In the year ended June 30, 2022, the shareholders waived the proceeds which were to be capitalized under the Controlling Shareholder’s waiver of amount due to the Controlling Shareholders by the Group that will be recognized as additional paid-in capital and resulted in a decrease in amount due to shareholders, please also see note 10 for details.
Before December 21, 2020, MGIH Group acquired MPI from MII and Gramade Investments Limited (hereafter “Gramade”). MII and Gramade transferred the right to receive the proceeds from sales of MPI to the shareholders of MGIH Group on December 21, 2020. As a result, there was an increase in amount due to shareholders as of June 30, 2021. In the year ended June 30, 2022, the shareholders waived the proceeds which were being capitalized under the Controlling Shareholder’s waiver of amount due to the Controlling Shareholders by the Group that will be recognized as additional paid-in capital and resulted in a decrease in amount due to shareholders, please also see note 10 for details.
Note 8#
The decrease in amount due to individual Controlling Shareholders for the year ended June 30, 2021 consists of net effect of the following:
Note 9
On February 28, 2022, Millennium Printing, a Hong Kong subsidiary, declared dividend in the amount of US$7 million to its immediate holding company and thereafter the same amount of dividend was declared to those intermediate holding companies up the chain and then finally to the Controlling Shareholders. The dividend payable to the Controlling Shareholders was waived by the Controlling Shareholders during the year ended June 30, 2022 and such amount payable to shareholders was then capitalized as additional paid-in capital in the financial statements for the year ended June 30, 2022.
Note 10
The amounts outstanding to Controlling Shareholders was waived by the Controlling Shareholders and such amount payable to shareholders was capitalized as additional paid-in capital in the financial statements for the year ended June 30, 2022. |
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Other Payables and Accrued Liabilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Payables and Accrued Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other payables and accrued liabilities | (12) Other payables and accrued liabilities
Other payables and accrued liabilities consist of the following:
The amount of revenue recognized from contract liabilities to the Company’s result of operations was $71,103 and $33,259 during the years ended June 30, 2023 and 2022, respectively. |
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Shareholders' Equity |
12 Months Ended |
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Jun. 30, 2023 | |
| Stockholders' Equity [Abstract] | |
| Shareholders' Equity | (13) Shareholders’ equity
Ordinary shares
The Company performed as series of group re-organizing activities and which was completed on January 19, 2022, resulting in 10,000,000 ordinary shares issued and outstanding as of June 30, 2022. As the Group were under same control of the shareholders and their entire equity interests were also ultimately held by the shareholders immediately prior to the group reorganization, the consolidated statements of operations and comprehensive loss, consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows are prepared as if the current group structure had been in existence throughout the year ended June 30, 2022.
On April 4, 2023, the Company announced the closing of its initial public offering (“IPO”) of 1,250,000 ordinary shares, US$0.002 par value per share (“Ordinary Shares”) at an offering price of US$4.00 per share for a total of US$5,000,000 in gross proceeds. The Company raised total net proceeds of US$4.2 million, which was reflected in the statement of cash flows, after deducting underwriting discounts and commissions and outstanding offering expenses as at April 3, 2023. During the process of IPO, the Company incurred an aggregate of approximately US$1.7 million for underwriting discounts and commissions and total offering expenses, among which approximately US$0.9 million offering expenses were paid just before successful listing and recognized as deferred offering costs. At the date of closing of IPO (i.e. April 4, 2023), the underwriting discounts and commissions and total offering expenses of approximately US$1.7 million were offset against the gross offering proceeds of US$5 million resulted in net amount of approximately US$3.3 million which was recognized in additional paid-in capital.
Restricted net assets
Our ability to pay dividends is primarily dependent on us receiving distributions of funds from Millennium Printing (Shenzhen) Co., Ltd, Yee Woo Paper Industry (Shenzhen) Co., Ltd., Putian Xiqi Branding Strategy Co., Ltd, Millennium Packaging Technology (Huizhou) Co., Ltd., Millennium (Huizhou) Technology Co., Ltd. and Huizhou Yimeinuo Industry Co., Ltd. (collectively as the “PRC subsidiaries”). Relevant PRC statutory laws and regulations permit payments of dividends by the PRC subsidiaries only out of its 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 these subsidiaries.
These 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 its registered capital. In addition, the 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 its discretion. The PRC subsidiaries may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its 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, the PRC subsidiaries are restricted in their ability to transfer their assets to us. Foreign exchange and other regulation in the PRC may further restrict the PRC subsidiaries from transferring funds to us in the form of dividends, loans and advances. As of June 30, 2023, and 2022, amounts restricted are the statutory reserve of the PRC subsidiaries, which amounted to US$1,049,119 and US$1,029,144, respectively.
During the years ended June 30, 2023, 2022 and 2021, the PRC subsidiaries attributed US$19,975, US$295,962 and US$276,039 of retained earnings for their statutory reserves, respectively. |
Selling and Marketing Expenses |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling And Marketing Expenses Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling and marketing expenses | (14) Selling and marketing expenses
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General and Administrative Expenses |
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| General and Administrative Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | (15) General and administrative expenses
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Income Taxes |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | (16) Income Taxes
Cayman Islands
The Company was incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of the Cayman Islands. The Company mainly conducts its operating business through its subsidiaries in the PRC and Hong Kong. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.
British Virgin Islands
The Company’s subsidiaries incorporated in the British Virgin Islands is not subject to taxation.
Vietnam
The Company’s Vietnam subsidiaries, MPG Global Company Limited and Yee Woo Vietnam Paper Products Company Limited are subject to Vietnam corporate income tax on its taxable income as reported in their statutory financial statements adjusted in accordance with relevant Vietnam tax laws. The corporate tax rate under the Vietnam tax laws is 20%. Tax losses can be carried forward for a maximum of five years, through 2028, but cannot be carried back. There is no assessable profits from the Vietnam subsidiaries during the years ended June 30, 2023, 2022 and 2021.
Hong Kong
The Company’s Hong Kong subsidiaries, including Millennium Investment International Limited, Millennium Strategic International Limited, Wah Tong Investment International Limited, Yee Woo Paper Investment International Limited, Millennium Printing International Limited, Millennium Packaging Group International Limited, Yee Woo Paper Packaging (HK) Company Limited and Millennium Holdings International Limited are subject to Hong Kong Profits Tax on their taxable income as reported in their statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended June 30, 2023, 2022 and 2021. Tax losses can be carried forward to offset profits in future years until fully absorbed but cannot be carried back.
PRC
The Company’s PRC operating subsidiaries, Millennium Printing (Shenzhen) Co., Ltd, Yee Woo Paper Industry (Shenzhen) Co., Ltd., Putian Xiqi Branding Strategy Co., Ltd., Millennium Packaging Technology (Huizhou) Co., Ltd., Millennium (Huizhou) Technology Co., Ltd. and Huizhou Yimeinuo Industry Co., Ltd are governed by the income tax laws of the PRC and the income tax provisions in respect to operations in the PRC is calculated at the applicable tax rate on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), Chinese enterprises are subject to an income tax rate of 25% after appropriate tax adjustments. The net tax loss attributable to those PRC entities can only be carried forward for a maximum period of five years, through 2028.
Significant components of the provisions for income taxes for the years ended June, 2023, 2022 and 2021 were as follows:
The following table reconciles PRC statutory rates to our effective tax rate:
During the years ended June 30, 2023, 2022 and 2021, the effective income tax rate was estimated by the Company to be (18%), 18% and 18%, respectively.
Management reviews this valuation allowance periodically and will make adjustments as warranted. A summary of the otherwise deductible (or taxable) deferred tax items is as follows:
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Segment Reporting |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting | (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 or services. Based on management’s assessment, the Company has determined that it has only one operating segment.
The following table presents revenue by major merchandise or services categories for the years ended June 30, 2023, 2022 and 2021, respectively:
In the following table, the Company additionally provided the revenue in term of geographical locations of customers.
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Risks and Uncertainties |
12 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Risks and Uncertainties [Abstract] | |
| Risks and Uncertainties | (18) Risks and Uncertainties
Credit risk
Our assets that potentially subject to a significant concentration of credit risk primarily consist of cash and accounts receivable.
We believe that there is no significant credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where subsidiaries in Hong Kong are located. The Hong Kong Deposit Protection Board pays compensation up to a limit of US$63,807 (equivalents to HK$500,000) if the bank with which an individual/a company hold its eligible deposit fails. As of June 30, 2023, cash balance of US$11,301,641 (equivalents to HK$88,561,243) was maintained at financial institutions in Hong Kong and approximately US$191,421 (equivalents to HK$1,500,000) was insured by the Hong Kong Deposit Protection Board.
We believe that there is no significant credit risk associated with cash in the PRC, which were held by reputable financial institutions in the jurisdiction where subsidiaries in PRC are located. The People’s Bank of China pays compensation up to a limit of US$68,913 (equivalents to RMB500,000) if the bank with which an individual/a company hold its eligible deposit fails. As of June 30, 2023, cash balance of US$16,120,422 (equivalents to RMB$116,962,530) was maintained at financial institutions in PRC and approximately US$76,598 (equivalents to RMB555,761) was insured by The People’s Bank of China.
We believe that there is no significant credit risk associated with cash in Vietnam, which were held by reputable financial institutions in the jurisdiction where subsidiaries in Vietnam are located. The Deposit insurance of Vietnam pays compensation up to a limit of US$5,300 (equivalents to VND125,000,000) if the bank with which an individual/a company hold its eligible deposit fails. As of June 30, 2023, cash balance of US$98,069 (equivalents to VND2,312,787,951) was maintained at financial institutions in Vietnam and approximately US$11,070 (equivalents to VND261,070,196) was insured by The Deposit Insurance of Vietnam.
We have designed credit policies with an objective to minimize their exposure to credit risk. Our accounts receivable is short term in nature and the associated risk is minimal. We conduct credit evaluations on our clients and generally do not require collateral or other security from such clients. We periodically evaluate the creditworthiness of the existing clients in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific clients.
We are also exposed to risk from other receivables. These assets are subjected to credit evaluations. An allowance, where applicable, would make for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.
Customer concentration risk
For the year ended June 30, 2023, one customer accounted for 13.9% of our total revenues for the year ended June 30, 2023. For the year ended June 30, 2022, one customer accounted for 12.5% of our total revenues. No customer accounted for more than 10% of our revenue for the year ended June 30, 2021.
As of June 30, 2023, two customers accounted for 12.5% and 11.4% of the total balance of accounts receivable. As of June 30, 2022, two customers accounted for 19.7% and 14.4% of the total balance of accounts receivable.
Vendor concentration risk
For the year ended June 30, 2023, three vendors accounted for 21.5%, 10.1% and 9.0% of our total purchases. For the year ended June 30, 2022, three vendors accounted for 18.3%, 14.9% and 10.8% of our total purchases. For the year ended June 30, 2021, three vendors accounted for 18.9%, 14.9% and 12.6% of our total purchases.
As of June 30, 2023, one vendor accounted for 12.9% of the total balance of accounts payable. As of June 30, 2022, one vendor accounted for 14.3% of the total balance of accounts payable. |
Capital Commitment |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||
| Capital Commitment [Abstract] | |||||||
| Capital Commitment | (19) Capital Commitment
The Company had outstanding commitment on non-cancelable operating lease arrangements. The details of operating lease commitment contracted as of June 30, 2023 are set out in Note 9.
At March 14, 2020, the Company has entered into a contract for the right to use of a land in Vietnam for a consideration of VND 102,476,000,000 (approximately US$4,455,000). The amount to be paid amounting VND 60,554,000,000 (approximately US$2,546,370) as of June 30, 2023. |
Subsequent Events |
12 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | (20) Subsequent Events
The Company has assessed all events from June 30, 2023, up through October 30, 2023, which is the date that these consolidated financial statements are available to be issued, unless as disclosed else where in the consolidated financial statements, there are not any material subsequent events that require disclosure in these consolidated financial statements. |
Accounting Policies, by Policy (Policies) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. All significant inter-company balances and transactions are eliminated on consolidation. |
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| Use of estimates and assumptions | Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, significant accounting estimates reflected in the Company’s consolidated financial statements include useful lives of property, plant and equipment, impairment of long-lived assets, allowance for doubtful accounts, provision for contingent liabilities, deferred taxes and uncertain tax position. Actual results could differ from these estimates. |
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| Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is the United States dollar (“US$” or “$”). The functional currency of its Hong Kong subsidiaries is the Hong Kong dollar (the “HK$”), its Vietnam subsidiaries is the Vietnamese dong (the “VND”), and its PRC subsidiaries is the Renminbi (the “RMB”). Results of operations and cash flows are translated at the average exchange rates during the year, and assets and liabilities are translated at the exchange rate at the end of the year. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation of amounts from HK$ into US$ has been made at the following exchange rates:
Translation of amounts from RMB into US$ has been made at the following exchange rates:
Translation of amounts from VND into US$ has been made at the following exchange rates:
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| Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less from the date of purchase to be cash equivalents. |
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| Restricted cash | Restricted cash Time deposits that are restricted as to withdrawal for use or pledged as security is reported separately as restricted cash. The Group’s restricted cash primarily represents deposits pledged to banks to secure banking facilities granted to the Company. The restricted deposits for the banking facilities have been fully released by respective bank in September 2022 with the revised bank facilities. |
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| Accounts receivable, net | Accounts receivable, net Accounts receivable represents trade receivables from customers. Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The trade receivables are all without customer collateral and interest is not accrued on past due accounts. Periodically, management reviews the adequacy of its provision for doubtful accounts based on historical bad debt expense results and current economic conditions using factors based on the aging of its accounts receivable. Additionally, the Company may identify additional allowance requirements based on indications that a specific customer may be experiencing financial difficulties. Actual bad debt results could differ materially from these estimates. As of June 30, 2023, and 2022, the balance of allowance for doubtful accounts was $70,345 and $186,909, respectively. While management uses the best information available upon which to best estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. When collection of the original invoice amounts is no longer probable, we will either partially or fully write-off the balance against the allowance for doubtful accounts. |
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| Prepayments, other receivables and other current assets | Prepayments, other receivables and other current assets Prepayments are cash deposited or advanced to suppliers for future inventory purchases. This amount is refundable and bears no interest. Other receivables and other current assets primarily include deposits for rental, VAT input and others. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Receivables considered uncollectable are written off against allowances after exhaustive efforts at collection are made. |
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| Inventories, net | Inventories, net Inventories consist principally of raw materials, work-in-progress and finished goods, and are stated at the lower of cost (average cost method) or net realizable value. Cost of inventories includes labor, raw materials, and allocated overhead. |
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| Intangible asset, net | Intangible asset, net Intangible asset is computer software acquired by the Company, it is stated at cost less accumulated amortization and any impairment losses. The intangible assets will be amortized on a straight-line basis over the estimated useful life of 5 years. |
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| Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant, and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property, plant, and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation or amortization accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to operations. The Company depreciates property, plant, and equipment using the straight-line method as follows:
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| Impairment of long-lived asset | Impairment of long-lived asset Long-lived assets, representing property, plant and equipment and intangible asset with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, we would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30, 2023, and 2022, no impairment of long-lived assets was recognized. |
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| Leases | Leases ASC 842 supersedes the lease requirements in ASC 840 “Leases”, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. All leases in the Group are accounted for as operating leases. We determine if an arrangement is a lease at inception. On our balance sheet, our lease is included in operating lease right-of-use (ROU) asset, Current portion of operating lease liability and operating lease liability, net of current portion. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Significant judgment may be required when determining whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and non-lease components, and the determination of the discount rate included in our office lease. We review the underlying objective of each contract, the terms of the contract, and consider our current and future business conditions when making these judgments. For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term. Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU asset and lease liabilities on the consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis over the lease term. All land in mainland China is owned by the Chinese government. The Chinese government may sell land use rights for a specified period of time. The purchase price of land use rights represents the operating lease prepayments for the rights to use the land in mainland China under ASC 842 and is recorded as right-of-use assets on the consolidated balance sheets, which is amortized over the remaining lease term. In July 2000, the Company acquired land use rights from the local Bureau of Land and Resources in Shenzhen for the purpose of building factory. The land use rights are being amortized over the respective lease terms, which are 50 years. In the inception date of lease term, the Company has fully paid the lease payment to the PRC government.
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| Other non-current assets | Other non-current assets Other non-current assets mainly include prepayment for land cost in Vietnam of approximately USD 1,798,927 and USD 1,592,962, and capitalized listing fees of approximately and USD 515,953 as of June 30, 2023 and 2022, respectively. The prepayment for land cost in Vietnam is related to a contract for the right to use of a land in Vietnam for a consideration of VND 102,476,000,000 (approximately USD 4,455,000). The details of capital commitment are set out in the Note 19. |
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| Bank borrowings | Bank borrowings Bank borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. |
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| Accounts payable | Accounts payable Accounts payable represents trade payables to vendors. |
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| Other payables and accrued liabilities | Other payables and accrued liabilities Other payables and accrued liabilities primarily include contract liabilities, salaries payable as well as others accrual and payable. A contract liability is recognized when a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer). |
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| Statutory Reserves | Statutory Reserves According to the laws and regulations in the PRC, the Company is required to provide for certain statutory funds, namely, a reserve fund by an appropriation from net profit after taxation but before dividend distribution based on the local statutory financial statements of the PRC subsidiary prepared in accordance with the PRC accounting principles and relevant financial regulations. Each of the Company’s wholly owned subsidiary in the PRC are required to allocate at least 10% of its net profit to the reserve fund until the balance of such fund has reached 50% of its registered capital. Appropriations of additional reserve fund are determined at the discretion of its directors. The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital. |
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| Employee Benefit Plan | Employee Benefit Plan Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance and other welfare benefits are provided to employees. Qualified employees of the Hong Kong entities participate in Mandatory Provident Fund and company’s medical insurance plan. Contributions are made by both the employer and the employee at the rate of 5% on the employee’s relevant salary income, subject to a cap of monthly relevant income of approximately US$27,796. During the years ended June 30, 2023, 2022 and 2021, the total amount charged to the consolidated statements of operations in respect of the Company’s costs incurred on both government mandated multi-employer defined contribution plan in the PRC and Mandatory Provident Fund Scheme in Hong Kong were US$1,205,697, US$1,090,943 and US$1,056,894, respectively.
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| Related parties | Related parties We adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. The details of related party transaction during the years ended June 30, 2023, 2022 and 2021 and balances as of June 30, 2023 and 2022 are set out in the note 11. |
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| Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers, and all subsequent ASUs that modified ASC 606 on April 1, 2017 using the full retrospective method which requires the Company to present the financial statements for all periods as if Topic 606 had been applied to all prior periods. The company derives revenue principally from producing and sales of paper products. Revenue from contracts with customers is recognized using the following five steps:
A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, or has a highly variable selling price, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price. A discount or variable consideration is allocated to one or more, but not all, of the performance obligations if it relates specifically to those performance obligations. Transaction price is the amount of consideration in the contract to which the Company expects to be entitled in exchange for transferring the promised goods or services. The transaction price may be fixed or variable and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if the Company does not receive a separate identifiable benefit from the customer. When consideration is variable, if applicable, the estimated amount is included in the transaction price to the extent that it is highly probable that a significant reversal of the cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved.
Revenue may be recognized at a point in time or over time following the timing of satisfaction of the performance obligation. If a performance obligation is satisfied over time, revenue is recognized based on the percentage of completion reflecting the progress towards complete satisfaction of that performance obligation. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time. The Company currently generates its revenue mainly from the following sources:
For the sales of paper products, the Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The key performance obligation is the delivery of the finished product to the customer at customer’s truck at the Company’s inventory warehouse or their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration related to returns or refunds as our contracts do not include provisions that allow for sales refunds or returns of products. The Company provides no warranties for the products transferred. The amount of revenue recognized from contract liabilities to the Company’s result of operations can be found in Note 12 below.
The Company provides supply chain management solutions to its customers by designing packaging products, designating approved raw materials for manufacturing of those packaging products, contracting viable manufacturers, and arranging delivery of those packaging products to end customers. The Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The key performance obligation is identified as a single performance obligation where delivery of the finished product to the customer at the location specified by the customer indicates that the Company has completed all steps set forth above such as design, manufacture and delivery in order to substantially complete all the services agreed upon in the purchase order. Delivery of the product to the customer is also the point at which title to that asset passes to the customer. The completion of this earning process is typically evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration related to returns or refunds as our contracts do not include provisions that allow for sales refunds or returns of products. The Company provides no warranties for the products transferred. The amount of revenue recognized from contract liabilities to the Company’s result of operations can be found in Note 12 below. Following the adoption of ASC 606, we considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria:
The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less. The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. The Company elected a practical expedient that it does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects that, upon the inception of revenue contracts, the period between when the Company transfers its promised services or deliverables to its clients and when the clients pay for those services or deliverables will be one year or less. Costs that relate directly to a contract include direct material, labor cost, subcontracting fee and allocated overhead including utilities, depreciation, and other overhead costs. We elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfilment activity and has been presented as transportation costs which is include in selling and marketing expenses. |
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| Cost of revenues | Cost of revenues
Cost of sales of paper products, which are directly related to revenue generating transactions, primarily consists of raw paper cost, labour cost and allocated overhead.
Cost of provision of supply chain management solution, which are directly related to revenue generating transactions, primarily consists of cost of purchase of finished goods and shipping costs. |
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| Other income | Other income Interest income is mainly generated from savings and time deposits and is recognized on an accrual basis using the effective interest method. |
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| Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses consist primarily of staff costs and employee benefits of sales team, consultancy fee for market research and product development, advertising expenses and transportation and handling expenses. |
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| General and administrative expenses | General and administrative expenses General and administrative expenses consist primarily of personnel-related compensation expenses, including salaries and related social insurance costs for our operations and support personnel, office rental and property management fees, professional services fees, depreciation, travelling expenses, office supplies, utilities, research and development costs, communication and expenses related to general operations. |
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| Income Taxes | Income Taxes The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. The Company adopted ASC Topic 740-10-05, Income Tax, which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.
The Company’s policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense. |
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| Value Added Tax | Value Added Tax Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in tax payable. All of the VAT returns filed by our subsidiaries in the PRC have been and remain subject to examination by the tax authorities for five years from the date of filing. |
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| Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. The components of comprehensive income (loss) were the net income (loss) for the years and the foreign currency translation adjustments. |
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| Segment reporting | Segment reporting The Company follows ASC 280, Segment Reporting. The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and has determined that the Company has only one reportable segment. The Company operates and manages its business as a single segment. Please refer to Note 17 to the consolidated financial statement for the Company’s revenue from customers by geographical areas based on the location of the customers. |
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| Earnings Per Share | Earnings Per Share The Group computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. During the years ended June 30, 2023, 2022 and 2021, there were no dilution impact. |
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| Commitments and contingencies | Commitments and contingencies In the normal course of business, we are subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. We recognize a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. We may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
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| Recent accounting pronouncements | Recent accounting pronouncements In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments — Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments — Credit Losses — Available-for-Sale Debt Securities.
The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-02 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. The Company has not early adopted this update and it will become effective on January 1, 2023. The Company is still evaluating the impact of accounting standard of credit losses on the consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. This standard is effective for the Group for the annual reporting periods beginning July 1, 2022 and interim periods beginning July 1, 2023. Early adoption is permitted. The Company does not expect any material impact on the Company’s consolidated financial statements and related disclosures. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). ASU No. 2021-01 is an update of ASU No. 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR. Regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU No. 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU No. 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU No. 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective immediately through December 31, 2022, for all entities. On December 21, 2022, the FASB issued a new Accounting Standards Update ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extends the sunset (or expiration) date of ASC Topic 848 to December 31, 2024. This gives reporting entities two additional years to apply the accounting relief provided under ASC Topic 848 for matters related to reference rate reform. The Company does not expect the cessation of LIBOR to have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-10, “Codification Improvements to Subtopic 205-10, presentation of financial statements”. The amendments in this Update improve the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of the codification. That reduce the likelihood that the disclosure requirement would be missed. The amendments also clarify guidance so that an entity can apply the guidance more consistently. ASU 2021-10 is effective for the Company for annual and interim reporting periods beginning January 1, 2022. Early application of the amendments is permitted for any annual or interim period for which financial statements are available to be issued. The amendments in this Update should be applied retrospectively. An entity should apply the amendments at the beginning of the period that includes the adoption date. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. 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 operations and comprehensive loss and statements of cash flows. |
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Organization and Business Background (Tables) |
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| Organization and Business Background [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Subsidiaries | As of June 30, 2023, the Company’s subsidiaries
are detailed in the table as follows:
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Significant Accounting Policies (Tables) |
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| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Translation of Amounts | Translation of amounts from HK$ into US$ has been
made at the following exchange rates:
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| Schedule of Depreciates Property, Plant, and Equipment Using The Straight-Line Method | The Company depreciates property, plant, and equipment using the straight-line
method as follows:
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Cash and Cash Equivalents (Tables) |
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| Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cash and Cash Equivalents on its Original currencies | Cash and cash equivalents on its original currencies
were shown below:
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Accounts Receivable, Net (Tables) |
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| Schedule of Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable | Accounts receivable, net comprised the following:
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| Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts, net consists
of the following:
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| Schedule of Ageing Analysis | As of the end of each of the financial year, the
ageing analysis of accounts receivable, net of allowance for doubtful accounts, based on the invoice date is as follows:
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Prepayments, Other Receivables and Other Current Assets (Tables) |
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| Prepayments, Other Receivables and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepayments, Other Receivables and Other Current Assets | Prepayments, other receivables and other
current assets consisted of the following as of June 30, 2023, and 2022:
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Inventories, Net (Tables) |
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| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Inventories | The components of inventories were as follows:
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| Schedule of Inventories Impairment Consists | Inventories impairment consists of the following:
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Property, Plant and Equipment, Net (Tables) |
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| Schedule of Property, Plant and Equipment, Net | As of June 30, 2023, and 2022, property, plant and equipment, net consisted
of the following:
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Leases (Tables) |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows:
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| Schedule of Contractual Maturities of the Group’s Operating Lease Liabilities | The following table shows the remaining contractual
maturities of the Group’s operating lease liabilities as of June 30, 2023:
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Bank Borrowings (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Outstanding Balances of Banks Borrowings | Outstanding balances of banks borrowings as of June 30, 2023 and 2022
consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Bank Borrowings | The details of bank borrowings as at June 30, 2023 and 2022 are as
follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loan type in Terms of Currency |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Balance and Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Balance and Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Significant Related Party Transactions | The following represents the significant related party transactions
for the years ended June 30, 2023, 2022 and 2021.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Payables and Accrued Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Payables and Accrued Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Other Payables and Accrued Liabilities | Other payables and accrued liabilities consist of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling and Marketing Expenses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling And Marketing Expenses Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Selling and Marketing Expenses |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and Administrative Expenses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and Administrative Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of General and Administrative Expenses |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Provisions for Income Taxes | Significant components of the provisions for income taxes for the years
ended June, 2023, 2022 and 2021 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Effective Tax Rate | The following table reconciles PRC statutory rates to our effective
tax rate:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Deferred Tax | Management reviews this valuation allowance periodically
and will make adjustments as warranted. A summary of the otherwise deductible (or taxable) deferred tax items is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenue by Major Merchandise or Services Categories | The following table presents revenue by major merchandise or services
categories for the years ended June 30, 2023, 2022 and 2021, respectively:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of the Revenue in Term of Geographical Locations of Customers | In the following table, the Company additionally
provided the revenue in term of geographical locations of customers.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Business Background (Details) - IPO [Member] - USD ($) |
12 Months Ended | |
|---|---|---|
Apr. 04, 2023 |
Jun. 30, 2023 |
|
| Organization and Business Background (Details) [Line Items] | ||
| Offering price per share | $ 4 | |
| Gross proceeds | $ 5,000,000 | |
| Net proceeds | $ 4,200,000 | |
| Percentage of ordinary share | 15.00% | |
| Common Stock [Member] | ||
| Organization and Business Background (Details) [Line Items] | ||
| Number of ordinary shares | 1,250,000 | |
| Offering price per share | $ 0.002 |
Significant Accounting Policies (Details) |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
USD ($)
|
Mar. 14, 2020
USD ($)
|
Mar. 14, 2020
VUV (VT)
|
Jul. 01, 2019
USD ($)
|
|
| Significant Accounting Policies [Abstract] | ||||||
| Allowance for doubtful accounts | $ 70,345 | $ 186,909 | $ 228,413 | |||
| Estimated useful life | 5 years | |||||
| Term lease | 50 years | |||||
| Land cost in Vietnam | $ 1,798,927 | 1,592,962 | ||||
| Capitalized listing fees | ||||||
| Right to use of a land | $ 3,076,855 | 4,076,816 | $ 4,455,000 | VT 102,476,000,000 | $ 3,733,913 | |
| Net profit reserve fund percentage | 10.00% | |||||
| Registered capital percentage | 50.00% | |||||
| Contributions percentage | 5.00% | |||||
| Relevant income | $ 27,796 | |||||
| Mandatory provident fund | $ 1,205,697 | $ 1,090,943 | $ 1,056,894 | |||
| Value added tax rate | 13.00% | |||||
| Reportable segment | 1 | |||||
Restricted Cash (Details) - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Restricted Cash [Abstract] | ||
| Restricted cash | $ 598,402 |
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Schedule Of Accounts Receivable Abstract | ||
| Accounts receivable | $ 10,383,716 | $ 18,256,420 |
| Allowance for doubtful accounts | (70,345) | (186,909) |
| Total | $ 10,313,371 | $ 18,069,511 |
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) |
12 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Schedule of Allowance For Doubtful Accounts [Abstract] | ||
| Beginning balance | $ 186,909 | $ 228,413 |
| Reversals | (116,846) | (509) |
| Write-offs | (3,653) | (36,333) |
| Foreign currency exchange effect | 3,935 | (4,662) |
| Ending balance | $ 70,345 | $ 186,909 |
Accounts Receivable, Net (Details) - Schedule of Ageing Analysis of Accounts Receivable - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Financing Receivable, Past Due [Line Items] | ||
| Net of allowance for doubtful accounts | $ 10,313,371 | $ 18,069,511 |
| Within 90 days [Member] | ||
| Financing Receivable, Past Due [Line Items] | ||
| Net of allowance for doubtful accounts | 9,821,889 | 16,375,095 |
| Between 91 and 180 days [Member] | ||
| Financing Receivable, Past Due [Line Items] | ||
| Net of allowance for doubtful accounts | 491,063 | 1,631,296 |
| Between 181 and 365 days [Member] | ||
| Financing Receivable, Past Due [Line Items] | ||
| Net of allowance for doubtful accounts | $ 419 | $ 63,120 |
Prepayments, Other Receivables and Other Current Assets (Details) - Schedule of Prepayments, Other Receivables and Other Current Assets - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Prepayments, Other Receivables and Other Current Assets [Abstract] | ||
| Prepayments | $ 552,458 | $ 843,249 |
| Deposits | 238,481 | 47,057 |
| Other receivables | 48,615 | 37,681 |
| VAT receivables | 162,140 | |
| Prepayments, other receivables and other current assets | $ 1,001,694 | $ 927,987 |
Inventories, Net (Details) - Schedule of Components of Inventories - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|---|---|---|---|
| Schedule of Components of Inventories [Abstract] | |||
| Raw materials | $ 4,167,531 | $ 7,447,022 | |
| Work in progress | 518,352 | 976,246 | |
| Finished goods | 1,606,296 | 2,052,148 | |
| Total inventories, gross | 6,292,179 | 10,475,416 | |
| Inventories impairment | (732,897) | (655,783) | $ (613,831) |
| Total inventories, net | $ 5,559,282 | $ 9,819,633 |
Inventories, Net (Details) - Schedule of Inventories Impairment Consists - USD ($) |
12 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Schedule of Inventories Impairment Consists [Abstract] | ||
| Beginning balance | $ (655,783) | $ (613,831) |
| Addition | (133,218) | (71,143) |
| Write-offs | (4,470) | |
| Foreign currency exchange effect | 56,104 | 33,661 |
| Ending balance | $ (732,897) | $ (655,783) |
Property, Plant and Equipment, Net (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Property, Plant and Equipment, Net [Abstract] | |||
| Depreciation expense | $ 1,556,069 | $ 1,792,022 | $ 1,901,586 |
Property, Plant and Equipment, Net (Details) - Schedule of Property, Plant and Equipment, Net - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 28,546,090 | $ 30,086,952 |
| Less: accumulated depreciation | (19,518,475) | (19,273,752) |
| Property, plant and equipment, net | 9,027,615 | 10,813,200 |
| Buildings [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 7,159,632 | 7,150,233 |
| Leasehold improvements [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 3,277,579 | 3,322,323 |
| Plant and machinery [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 15,780,713 | 17,165,746 |
| Motor vehicles [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 528,093 | 579,016 |
| Office equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 1,800,073 | $ 1,869,634 |
Leases (Details) |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
USD ($)
|
Mar. 14, 2020
USD ($)
|
Mar. 14, 2020
VUV (VT)
|
Jul. 01, 2019
USD ($)
|
|
| Operating Lease [Abstract] | ||||||
| Discount rate | 4.25% | |||||
| Right of use assets | $ 3,076,855 | $ 4,076,816 | $ 4,455,000 | VT 102,476,000,000 | $ 3,733,913 | |
| Lease liabilities | 195,481 | 919,461 | $ 31,890 | |||
| Operating lease expenses | $ 790,417 | $ 814,377 | $ 487,298 | |||
| Weighted-average discount rate percentage | 4.75% | |||||
Leases (Details) - Schedule of Supplemental Balance Sheet Information |
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 14, 2020
USD ($)
|
Mar. 14, 2020
VUV (VT)
|
Jul. 01, 2019
USD ($)
|
|---|---|---|---|---|---|
| Operating lease: | |||||
| Operating lease right-of-use assets | $ 3,076,855 | $ 4,076,816 | $ 4,455,000 | VT 102,476,000,000 | $ 3,733,913 |
| Current operating lease obligation | 157,489 | 772,534 | |||
| Non-current operating lease obligation | 37,992 | 146,927 | |||
| Total operating lease obligation | $ 195,481 | $ 919,461 | $ 31,890 |
Leases (Details) - Schedule of Contractual Maturities of the Group’s Operating Lease Liabilities - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jul. 01, 2019 |
|---|---|---|---|
| Schedule of Contractual Maturities of The Group Operating Lease Liabilities [Abstract] | |||
| Year ending June 30, 2024 | $ 160,979 | ||
| Year ending June 30, 2025 | 26,038 | ||
| Year ending June 30, 2026 | 13,397 | ||
| Total undiscounted lease obligations | 200,414 | ||
| Less: imputed interest | (4,933) | ||
| Lease liabilities recognized in the consolidated balance sheet | $ 195,481 | $ 919,461 | $ 31,890 |
Bank Borrowings (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Bank Borrowings (Details) [Line Items] | ||
| Bank borrowings | $ 13,405,816 | $ 15,813,022 |
| Carrying amount | 4,004,549 | 3,081,883 |
| Interest expenses | 684,358 | 403,862 |
| Restricted cash | $ 598,402 | |
| Borrowings rates [Member] | ||
| Bank Borrowings (Details) [Line Items] | ||
| Average bank borrowings rates | 5.69% | 2.73% |
Bank Borrowings (Details) - Schedule of Outstanding Balances of Banks Borrowings - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Short-Term Debt [Line Items] | ||
| Bank borrowings | $ 13,405,816 | $ 15,813,022 |
| Guaranteed [Member] | ||
| Short-Term Debt [Line Items] | ||
| Bank borrowings | 10,300,386 | 7,899,914 |
| Collateralized and Guaranteed [Member] | ||
| Short-Term Debt [Line Items] | ||
| Bank borrowings | $ 3,105,430 | $ 7,913,108 |
Bank Borrowings (Details) - Schedule of Loan Type in Terms of Currency - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Loan type in Terms of Currency [Abstract] | ||
| Carrying value | $ 13,405,816 | $ 15,813,022 |
| Within 1 year or on demand | 13,405,816 | 15,813,022 |
| 2025 | ||
| 2026 | ||
| 2027 | ||
| Thereafter |
Related Party Balance and Transactions (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
Feb. 28, 2022 |
Dec. 31, 2020 |
Jun. 30, 2021 |
|
| Related Party Balance and Transactions (Details) [Line Items] | |||
| Increase in due to shareholders amount | $ 1,700 | ||
| Decrease in due to shareholders amount | 2,450 | ||
| Carried amount due from shareholders | $ 260 | ||
| Dividend amount | $ 7,000 | ||
| Kilomate [Member] | |||
| Related Party Balance and Transactions (Details) [Line Items] | |||
| Amount transferred to shareholders | 40 | ||
| MII [Member] | |||
| Related Party Balance and Transactions (Details) [Line Items] | |||
| Amount transferred to shareholders | $ 260 | ||
Other Payables and Accrued Liabilities (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Other Payables and Accrued Liabilities [Abstract] | ||
| Revenue recognized from contract liabilities | $ 71,103 | $ 33,259 |
Other Payables and Accrued Liabilities (Details) - Schedule of Other Payables and Accrued Liabilities - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Other Payables and Accrued Liabilities [Abstract] | ||
| Contract liabilities | $ 117,128 | $ 74,233 |
| Salaries payables | 849,386 | 923,461 |
| Other payables | 434,017 | 541,635 |
| Other accruals | 704,497 | 1,629,960 |
| Totals | $ 2,105,028 | $ 3,169,289 |
Shareholders' Equity (Details) - USD ($) |
12 Months Ended | |||
|---|---|---|---|---|
Apr. 04, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Class of Stock [Line Items] | ||||
| Shares issued (in Shares) | 11,250,000 | 10,000,000 | ||
| Shares outstanding (in Shares) | 11,250,000 | 10,000,000 | ||
| Shares par value per share (in Dollars per share) | $ 0.002 | $ 0.002 | ||
| Gross proceeds | $ 1,700,000 | |||
| Net proceeds | 5,000,000 | |||
| Payment of underwriting expenses | 900,000 | |||
| Additional paid-in capital | $ 3,300,000 | |||
| Profits after-tax percentage | 10.00% | |||
| Registered capital percentage | 50.00% | |||
| Statutory reserve | $ 1,049,119 | $ 1,029,144 | ||
| Appropriations to statutory reserves | ||||
| IPO [Member] | ||||
| Class of Stock [Line Items] | ||||
| Shares issued (in Shares) | 1,250,000 | |||
| Shares par value per share (in Dollars per share) | $ 0.002 | |||
| Offering price per share (in Dollars per share) | $ 4 | |||
| Gross proceeds | $ 5,000,000 | |||
| Net proceeds | 4,200,000 | |||
| Underwriting discounts | $ 1,700,000 | |||
| Statutory Reserves [Member] | ||||
| Class of Stock [Line Items] | ||||
| Appropriations to statutory reserves | $ 19,975 | $ 295,962 | $ 276,039 | |
Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | $ 4,875,650 | $ 5,813,307 | $ 6,270,237 |
| Staff costs and employee benefits [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | 964,698 | 938,048 | 928,737 |
| Consultancy fee [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | 1,888,128 | 2,424,088 | 2,590,069 |
| Transportation and handling [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | 1,468,035 | 2,074,255 | 2,085,652 |
| Advertisement expenses [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | 18,361 | 3,154 | |
| Depreciation and amortization [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | 3,227 | 3,530 | 4,275 |
| Others [Member] | |||
| Selling and Marketing Expenses (Details) - Schedule of Selling and Marketing Expenses [Line Items] | |||
| Total | $ 533,201 | $ 370,232 | $ 661,504 |
General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | $ 5,270,966 | $ 4,922,075 | $ 5,982,887 |
| Staff costs and employee benefits [Member] | |||
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | 3,356,644 | 3,333,846 | 3,579,013 |
| Depreciation and amortization [Member] | |||
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | 263,576 | 344,251 | 379,152 |
| Research and development [Member] | |||
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | 241,241 | 305,003 | 390,428 |
| Office and utilities [Member] | |||
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | 198,135 | 234,800 | 222,117 |
| Others [Member] | |||
| General and Administrative Expenses (Details) - Schedule of General and Administrative Expenses [Line Items] | |||
| Total | $ 1,211,370 | $ 704,175 | $ 1,412,177 |
Income Taxes (Details) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Income Taxes (Details) [Line Items] | |||
| Effective income tax rate | (18.00%) | 18.00% | 18.00% |
| Vietnam Tax Laws [Member] | |||
| Income Taxes (Details) [Line Items] | |||
| Corporate tax rate | 20.00% | ||
| Hong Kong Tax Laws [Member] | |||
| Income Taxes (Details) [Line Items] | |||
| Foreign income tax rate | 16.50% | 16.50% | 16.50% |
| PRC [Member] | |||
| Income Taxes (Details) [Line Items] | |||
| Foreign income tax rate | 25.00% | ||
Income Taxes (Details) - Schedule of Provisions for Income Taxes - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Provision for Income Taxes | |||
| Current Tax Provision Hong Kong | $ 125,802 | $ 226,148 | $ 209,826 |
| Current Tax Provision PRC | 694,661 | 598,127 | |
| Over Provision of PRC Income Tax in prior year | (217,999) | ||
| Deferred Tax Provision PRC | 14,895 | (23,652) | (7,869) |
| Total Provision for Income Taxes | $ (77,302) | $ 897,157 | $ 800,084 |
Income Taxes (Details) - Schedule of Effective Tax Rate |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Schedule Of Effective Tax Rate [Abstract] | |||
| PRC Statutory rate | 25.00% | 25.00% | 25.00% |
| Effect of different tax jurisdiction | (7.00%) | (7.00%) | (7.00%) |
| Overprovision of PRC income tax in prior year | (50.00%) | ||
| Tax losses not recognized | 14.00% | ||
| Effective income tax rate | (18.00%) | 18.00% | 18.00% |
Income Taxes (Details) - Schedule of Deferred Tax - USD ($) |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Deferred tax assets | ||
| Depreciation expense of property, plant and equipment | $ 120,437 | |
| Miscellaneous | 29,899 | 54,323 |
| Allowance for doubtful accounts | 20,145 | 27,931 |
| Allowance for inventory | 119,038 | 110,624 |
| Tax loss | 228,130 | |
| Total | 397,212 | 313,315 |
| Less: valuation allowance | ||
| Total deferred tax assets | $ 397,212 | $ 313,315 |
Segment Reporting (Details) - Schedule of Revenue by Major Merchandise or Services Categories - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Segment Reporting Information [Line Items] | |||
| Total revenue | $ 45,598,620 | $ 66,232,757 | $ 64,565,269 |
| Packaging products [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total revenue | 23,065,859 | 36,256,189 | 35,970,085 |
| Corrugated products [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total revenue | 16,977,098 | 23,986,957 | 23,694,875 |
| Packaging products supply chain management solutions [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Total revenue | $ 5,555,663 | $ 5,989,611 | $ 4,900,309 |
Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers - USD ($) |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | $ 45,598,620 | $ 66,232,757 | $ 64,565,269 | ||||
| Mainland China [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 33,266,314 | 52,664,829 | 51,134,287 | ||||
| Hong Kong SAR [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 3,285,506 | 3,969,151 | 4,230,166 | ||||
| Vietnam [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 3,130,339 | 2,689,693 | 2,897,469 | ||||
| Other Southeast Asian countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 3,364,678 | [1] | 2,980,421 | [1] | 3,193,218 | ||
| Australia [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,168,191 | 1,343,353 | 1,172,537 | ||||
| United States of America [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 848,789 | 1,232,689 | 841,222 | ||||
| Other countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 534,803 | 1,352,621 | 1,096,370 | ||||
| Packaging products [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 23,065,859 | 36,256,189 | 35,970,085 | ||||
| Packaging products [Member] | Mainland China [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 19,677,726 | 31,459,882 | 31,775,461 | ||||
| Packaging products [Member] | Hong Kong SAR [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 797,390 | 1,374,684 | 1,429,535 | ||||
| Packaging products [Member] | Vietnam [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,802,700 | 1,129,772 | 1,283,778 | ||||
| Packaging products [Member] | Other Southeast Asian countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 516,753 | [1] | 699,621 | [1] | 412,523 | ||
| Packaging products [Member] | Australia [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 812 | 1,123 | 13,476 | ||||
| Packaging products [Member] | United States of America [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 12,214 | 437,395 | 282,869 | ||||
| Packaging products [Member] | Other countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 258,264 | 1,153,712 | 772,443 | ||||
| Corrugated products [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 16,977,098 | 23,986,957 | 23,694,875 | ||||
| Corrugated products [Member] | Mainland China [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 13,481,344 | 20,947,090 | 19,132,295 | ||||
| Corrugated products [Member] | Hong Kong SAR [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,327,396 | 1,696,811 | 2,083,941 | ||||
| Corrugated products [Member] | Vietnam [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 5,322 | 194,046 | |||||
| Corrugated products [Member] | Other Southeast Asian countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 861,594 | [1] | [1] | 1,008,547 | |||
| Corrugated products [Member] | Australia [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,167,379 | 1,342,230 | 1,159,061 | ||||
| Corrugated products [Member] | United States of America [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 47,688 | 37,911 | |||||
| Corrugated products [Member] | Other countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 86,375 | 826 | 79,074 | ||||
| Packaging products supply chain management solutions [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 5,555,663 | 5,989,611 | 4,900,309 | ||||
| Packaging products supply chain management solutions [Member] | Mainland China [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 107,244 | 257,857 | 226,531 | ||||
| Packaging products supply chain management solutions [Member] | Hong Kong SAR [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,160,720 | 897,656 | 716,690 | ||||
| Packaging products supply chain management solutions [Member] | Vietnam [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,322,317 | 1,559,921 | 1,419,645 | ||||
| Packaging products supply chain management solutions [Member] | Other Southeast Asian countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 1,986,331 | [1] | 2,280,800 | [1] | 1,772,148 | ||
| Packaging products supply chain management solutions [Member] | Australia [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | |||||||
| Packaging products supply chain management solutions [Member] | United States of America [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | 788,887 | 795,294 | 520,442 | ||||
| Packaging products supply chain management solutions [Member] | Other countries [Member] | |||||||
| Segment Reporting (Details) - Schedule of the Revenue in Term of Geographical Locations of Customers [Line Items] | |||||||
| Geographical total revenue | $ 190,164 | $ 198,083 | $ 244,853 | ||||
| |||||||
Risks and Uncertainties (Details) |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2023
HKD ($)
|
Jun. 30, 2023
CNY (¥)
|
Jun. 30, 2023
VND (₫)
|
|
| Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 13.90% | 12.50% | ||||
| Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 10.00% | |||||
| Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 12.50% | 19.70% | ||||
| Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 11.40% | 14.40% | ||||
| Vendor One [Member] | Total Purchases [Member] | Vendor concentration risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 21.50% | 18.30% | 18.90% | |||
| Vendor One [Member] | Accounts Payable [Member] | Vendor concentration risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 12.90% | 14.30% | ||||
| Vendor Two [Member] | Total Purchases [Member] | Vendor concentration risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 10.10% | 14.90% | 14.90% | |||
| Vendor Three [Member] | Total Purchases [Member] | Vendor concentration risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Concentration Risk, Percentage | 9.00% | 10.80% | 12.60% | |||
| Hong Kong Deposit Protection Board [Member] | Credit Risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Compensation limit | $ 63,807 | $ 500,000 | ||||
| Cash balance | 11,301,641 | 88,561,243 | ||||
| Insured | 191,421 | $ 1,500,000 | ||||
| People’s Bank of China [Member] | Credit Risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Compensation limit | 68,913 | ¥ 500,000 | ||||
| Cash balance | 16,120,422 | 116,962,530 | ||||
| Insured | 76,598 | ¥ 555,761 | ||||
| Deposit insurance of Vietnam [Member] | Credit Risk [Member] | ||||||
| Risks and Uncertainties (Details) [Line Items] | ||||||
| Compensation limit | 5,300 | ₫ 0 | ||||
| Cash balance | 98,069 | 312,787,951 | ||||
| Insured | $ 11,070 | ₫ 70,196 | ||||
Capital Commitment (Details) |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2023
VND (₫)
|
Jun. 30, 2022
USD ($)
|
Mar. 14, 2020
USD ($)
|
Mar. 14, 2020
VUV (VT)
|
Mar. 14, 2020
VND (₫)
|
Jul. 01, 2019
USD ($)
|
|
| Capital Commitment (Details) [Line Items] | |||||||
| Right to use of a land | $ 3,076,855 | $ 4,076,816 | $ 4,455,000 | VT 102,476,000,000 | $ 3,733,913 | ||
| Paid amounting | $ 2,546,370 | ₫ 60,554,000,000 | |||||
| Capital commitment [Member] | |||||||
| Capital Commitment (Details) [Line Items] | |||||||
| Right to use of a land | $ 4,455,000 | ₫ 102,476,000,000 | |||||