Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

Share Name	Share Symbol	Market	Type
Universe Pharmaceuticals Inc	NASDAQ:UPC	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.0036	0.57%	0.6338	0.623	0.64	0.64	0.6105	0.6202	151,410	22:00:00

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2024

Commission file number: 001-40231

Universe Pharmaceuticals INC

265 Jingjiu Avenue
Jinggangshan Economic and Technological Development Zone
Ji’an, Jiangxi, China 343100
+86-0796-8403309
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Explanatory Note

Universe Pharmaceuticals INC (the “Company”) is filing this current report on Form 6-K to report its financial results for the six months ended March 31, 2024 and to discuss its recent corporate developments.

Attached as exhibits to this current report on Form 6-K are:

	(1)	the unaudited condensed interim consolidated financial statements and related notes as Exhibit 99.1;

	(2)	Management’s Discussion and Analysis of Financial Condition and Results of Operations as Exhibit 99.2;

	(3)	Interactive Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T.

This current report on Form 6-K is being incorporated by reference into the Form F-3 of the Company (File No. 333-268028), declared effective by the U.S. Securities and Exchange Commission on November 15, 2022.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements in this current report with respect to the Company’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of the Company. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. The Company cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, including but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the U.S. Securities and Exchange Commission. Therefore, investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

EXHIBIT INDEX

Exhibit No.		Description

99.1		Unaudited Consolidated Financial Statements and Related Notes As of March 31, 2024 and for the Six Months Ended March 31, 2024 and 2023
99.2		Management’s Discussion and Analysis of Financial Condition and Results of Operations
99.3		Press Release -- Universe Pharmaceuticals INC Reports Financial Results for The First Six Months of Fiscal Year 2024
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Universe Pharmaceuticals INC.

Date: September 20, 2024	By:	/s/ Gang Lai
		Gang Lai
		Chief Executive Officer

Exhibit 99.1

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	8,861,590		$	5,285,247
Short-term investments		2,527,603			13,219,005
Accounts receivable, net		14,384,228			10,667,603
Due from related parties		-			61,678
Inventories, net		3,386,052			3,343,266
Advance to suppliers		368,960			180,643
Prepayment for acquisition		3,462,460			3,426,535
Prepaid expenses and other current assets		539,240			590,377
TOTAL CURRENT ASSETS		33,530,133			36,774,354

Property, plant and equipment, net		3,522,997			3,699,965
Prepayments made to a related party for purchase of property		2,215,974			2,192,982
Prepayments for construction in progress		9,225,725			9,092,996
Intangible assets, net		147,652			148,584
Investment in equity securities		692,492			685,307
Deferred tax assets		-			656,980
Prepaid expenses-related party, non-current		96,141			35,864
TOTAL NONCURRENT ASSETS		15,900,981			16,512,678

TOTAL ASSETS	$	49,431,114		$	53,287,032

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Short-term bank loans	$	4,431,949		$	5,482,456
Accounts payable		7,763,981			4,585,285
Taxes payable		172,374			434,758
Due to related parties		5,515,160			540,096
Accrued expenses and other current liabilities		2,726,078			2,711,736
TOTAL CURRENT LIABILITIES		20,609,542			13,754,331

Long-term bank loans		2,077,476			-
TOTAL LIABILITIES		22,687,018			13,754,331

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively		68,362			67,969
Additional paid in capital		29,278,766			29,279,159
Statutory reserve		2,439,535			2,439,535
Retained earnings		(2,942,153	)		10,159,304
Accumulated other comprehensive loss		(2,100,414	)		(2,413,266	)
TOTAL SHAREHOLDERS’ EQUITY		26,744,096			39,532,701

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	49,431,114		$	53,287,032

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-1

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	For the Six Months Ended March 31,
	2024			2023

REVENUE	$	12,884,370		$	18,467,186
COST OF REVENUE AND RELATED TAX		9,515,039			12,339,044
GROSS PROFIT		3,369,331			6,128,142

OPERATING EXPENSES
Selling expenses		4,054,357			2,330,508
General and administrative expenses		968,608			1,380,053
Research and development expenses		86,503			2,268,335
Total operating expenses		5,109,468			5,978,896

INCOME (LOSS) FROM OPERATIONS		(1,740,137	)		149,246

OTHER INCOME (EXPENSES)
Interest expense, net		(136,613	)		(74,569	)
Other income, net		152,027			17,323
Realized (loss) gain on short-term investments		(3,094,084	)		166,931
Change in fair value of short-term investments		(7,617,502	)		-
Total other (loss) income, net		(10,696,172	)		109,685

(LOSS) INCOME BEFORE INCOME TAX PROVISION		(12,436,309	)		258,931

PROVISION FOR INCOME TAXES		665,148			974,358

NET LOSS		(13,101,457	)		(715,427	)

OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment		312,852			1,399,775
COMPREHENSIVE (LOSS) INCOME	$	(12,788,605	)	$	684,348

Earnings per ordinary share - basic and diluted	$	(3.59	)	$	(0.20	)
Weighted average shares - basic and diluted	$	3,645,974		$	3,625,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

													Accumulated
					Additional								Other
	Ordinary Share				Paid in			Statutory		Retained			Comprehensive
	Shares		Amount		Capital			Reserve		Earnings			Income			Total
Balance at September 30, 2022		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	16,322,365		$	(1,666,705	)	$	46,442,323
Net loss		-		-		-			-		(715,427	)		-			(715,427	)
Foreign currency translation adjustment		-		-		-			-		-			1,399,775			1,399,775
Balance at March 31, 2023		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	15,606,938		$	(266,930	)	$	47,126,671

													Accumulated
					Additional								Other
	Ordinary Share				Paid in			Statutory		Retained			Comprehensive
	Shares		Amount		Capital			Reserve		Earnings			Income			Total
Balance at September 30, 2023		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	10,159,304		$	(2,413,266	)	$	39,532,701
Reverse share-split adjustment		20,974		393		(393	)		-		-			-			-
Net loss		-		-		-			-		(13,101,457	)		-			(13,101,457	)
Foreign currency translation adjustment		-		-		-			-		-			312,852			312,852
Balance at March 31, 2024		3,645,974	$	68,362	$	29,278,766		$	2,439,535	$	(2,942,153	)	$	(2,100,414	)	$	26,744,096

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(13,101,457	)	$	(715,427	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		248,860			257,781
Gain from disposal of fixed assets		-			(115	)
Changes in allowance for doubtful accounts		(265,530	)		-
Changes in inventory reserve		(34,303	)		(84,956	)
Deferred income tax provision		665,148			556,867
Realized loss (gain) on short-term investments		3,094,084			(166,931	)
Change in fair value of short-term investments		7,617,502			-
Changes in operating assets and liabilities:
Accounts receivable		(3,346,205	)		(1,763,903	)
Inventories		26,553			(488,746	)
Advance to suppliers, net		(186,782	)		(187,460	)
Prepaid expenses and other current assets		57,436			(220,969	)
Prepaid expenses-related party, non-current		(60,016	)		-
Accounts payable		3,136,661			7,928,308
Taxes payable		(267,456	)		149,684
Accrued expenses and other current liabilities		(14,116	)		(465,431	)
Net cash (used in) provided by operating activities		(2,429,621	)		4,798,702

Cash flows from investing activities:
Purchases of property and equipment		(30,189	)		(646	)
Prepayments for construction in progress		(37,467	)		-
Purchase of short-term investments		(313,541	)		-
Sale of short-term investments		313,541			-
Net cash used in investing activities		(67,656	)		(646	)

Cash flows from financing activities:
Proceeds from bank loans		2,081,483			1,146,776
Repayment of bank loans		(1,110,124	)		(1,146,776	)
Proceeds from related party borrowings		5,096,373			2,080,918
Net cash provided by financing activities		6,067,732			2,080,918

Effect of changes of foreign exchange rates on cash		5,888			364,084
Net increase in cash		3,576,343			7,243,058
Cash, beginning of period		5,285,247			5,711,458
Cash, end of period	$	8,861,590		$	12,954,516

Supplemental disclosure of cash flow information
Cash paid for interest	$	148,860		$	90,044
Cash paid for income tax	$	969,914		$	575,132

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION

Universe Pharmaceuticals INC (“Universe INC” or the “Company”) was incorporated under the laws of the Cayman Islands on December 11, 2019 as an exempted company with limited liability.

Universe INC owns 100% equity interest of Universe Pharmaceuticals (International) Group (“Universe HK”), an entity incorporated on May 21, 2014 in accordance with the laws and regulations in Hong Kong.

Jiangxi Universe Pharmaceuticals Technology Co., Ltd. (“Universe Technology”) was formed on April 8, 2019, as a wholly foreign-owned enterprise (“WFOE”) in the People’s Republic of China (the “PRC” or “China”).

Universe INC, Universe HK and Universe Technology are currently not engaging in any active business operations and are merely acting as holding companies.

Jiangxi Universe Pharmaceuticals Co., Ltd. (“Jiangxi Universe”) was incorporated on March 2, 1998 in accordance with PRC laws and is engaged in the research and development and manufacturing of modernized traditional Chinese medicines. Jiangxi Universe owns 100% of the equity interests of Jiangxi Universe Pharmaceuticals Commercial Trade Co., Ltd. (“Universe Trade”), which was incorporated on March 10, 2010 for the purposes of handling the sales and distribution of the pharmaceutical products manufactured by Jiangxi Universe.

Reorganization

A reorganization of the Company’s legal structure (the “Reorganization”) was completed on December 11, 2019. The Reorganization involved the incorporation of Universe INC and Universe Technology, and the transfer of 100% of the equity interests of Jiangxi Universe to Universe Technology. Consequently, Universe INC, through its subsidiary Universe HK, directly controls Universe Technology and Jiangxi Universe, and became the ultimate holding company of all other entities mentioned above.

The Reorganization has been accounted for as a recapitalization among entities under common control, since the same controlling shareholders controlled all these entities before and after the Reorganization. Results of operations for the periods presented eliminate the effects of intra-entity transactions.

On March 25, 2021, the Company closed its initial public offering (the “IPO”) of 5,000,000 ordinary shares, par value $0.003125 per share (the “ordinary shares”) at a public offering price of $5.00 per share. On March 29, 2021, the underwriter exercised in full its over-allotment option to purchase an additional 750,000 ordinary shares. The closing for the sale of the over-allotment shares took place on March 31, 2021. Gross proceeds from the IPO totaled $28.75 million. Net proceeds of the IPO, including over-allotment shares, were approximately $25.6 million. In connection with the IPO, the Company’s ordinary shares began trading on the Nasdaq Global Market under the symbol “UPC” on March 23, 2021.

On May 12, 2021, through the Company’s PRC subsidiary, Jiangxi Universe, the Company established an indirect wholly controlled subsidiary, Guangzhou Universe Hanhe Medical Research Co., Ltd. (“Universe Hanhe”) in Guangzhou City, China, for the business purpose of conducting research and development of new pharmaceutical products in order to diversify the Company’s product offerings. As of March 31, 2024 and as of the date of this report, Universe Hanhe has no active business operations.

F-5

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

(a)

with immediate effect, to increase the Company’s authorized share capital from US$312,500 divided into 90,000,000 ordinary shares of par value US$0.003125 each and 10,000,000 preferred shares of par value US$0.003125 each, to US$3,125,000 divided into 900,000,000 ordinary shares of par value US$0.003125 each and 100,000,000 preferred shares of par value US$0.003125 each;

(b)

that, conditional upon the approval of the board of directors of the Company in its sole discretion, with effect as of the date the board of directors of the Company may determine, the authorized, issued and outstanding shares of the Company be consolidated by consolidating each 10 shares of the Company, or such lesser whole share amount as the board of directors may determine in its sole discretion, such amount not to be less than 2, into 1 share of the Company, with such consolidated shares having the same rights and being subject to the same restrictions (save as to nominal value) as the then existing shares of par value US$0.003125 each in the capital of the Company (the “Share Consolidation”); and

(c)

that, upon the effectiveness of the Share Consolidation, the Company adopt amended and restated articles of association, in substantially the form set out in Annex B in the proxy statement dated 24 May 2023, in substitution for and to the exclusion of, the memorandum of association of the Company in effect immediately prior to effectiveness of the Share Consolidation.

The board of directors of the Company resolved to effect the Share Consolidation on July 27, 2023 with the authorized, issued and outstanding shares to be consolidated on a six (6) for one (1) ratio, which had the effect of reducing the number of: (a) authorized ordinary shares from 900,000,000 ordinary shares with a par value of US$0.003125 per share to 150,000,000 ordinary shares with a par value of US$0.01875 per share; (b) issued and outstanding ordinary shares from 21,750,000 ordinary shares with a par value of US$0.003125 per share to 3,625,000 ordinary shares with a par value of US$0.01875 per share; and (c) authorized preferred shares from 100,000,000 preferred shares with a par value of US$0.003125 per share to 16,666,666.6666 preferred shares with a par value of US$0.01875 per share. The Company’s unaudited condensed consolidated financial statements were retrospectively restated for effect of the 6-for-1 share consolidation. Giving the effects of the share consolidation, there were 3,645,974 ordinary shares issued and outstanding as of March 31, 2024.

Details of the subsidiaries of the Company as of March 31, 2024 are set out below:

	Date of	Place of	% of
Name of Entity	Incorporation	Incorporation	Ownership	Principal Activities
Universe INC	December 11, 2019	Cayman Islands	Parent, 100%	Investment holding

Universe HK	May 21, 2014	Hong Kong	100%	Investment holding

Universe Technology	April 18, 2019	PRC	100%	WFOE, Investment holding

Jiangxi Universe	March 2, 1998	PRC	100%	Research and development and manufacturing of modernized traditional Chinese medicines

Universe Trade	March 10, 2010	PRC	100%	Sales of modernized traditional Chinese medicines

Universe Hanhe	May 12, 2021	PRC	100%	Research and development of new pharmaceutical products

The Company, through its wholly-owned subsidiaries, is primarily engaged in the development, manufacturing and sale of traditional Chinese medicines derivatives (“TCMD”) products targeted to the elderly to address their physical conditions in the aging process and to promote their general well-being. In addition, the Company also sells biochemical drugs, medical instruments, traditional Chinese medicine pieces products and dietary supplements (collectively, “third-party products”). All of these TCMD and third-party products are currently sold to customers including pharmaceutical companies, hospitals, clinics and drugstore chains throughout China.

F-6

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the year ended September 30, 2023 included in the Form 20-F filed on January 30, 2024. Operating results for the six months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2024. All inter-company balances and transactions are eliminated upon consolidation.

Reclassifications

Certain amounts on the prior-years’ consolidated balance sheets and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity.

Uses of estimates

In preparing the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed 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 unaudited condensed consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for estimated uncollectible receivables, the realizability of advance to suppliers, inventory valuations, useful lives of property and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, revenue recognition and realization of deferred tax assets. Actual results could differ from those estimates.

Risks and Uncertainties

The business operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results.

The development and commercialization of new pharmaceutical products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. The Company may face competition with respect to its current and future pharmaceutical product candidates from major pharmaceutical companies in China.

The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations.

Cash

Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains most of its bank accounts in the PRC. Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $69,249) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China.

F-7

Accounts receivable, net

Accounts receivables are presented net of allowance for doubtful accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that collection is not probable. The Company recovered allowance for uncollectable balances of $265,530 and nil for the six months ended March 31, 2024 and 2023, respectively.

Inventories, net

Inventories are stated at net realizable value using weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging, expiration dates, as applicable, taking into consideration historical and expected future product sales. The Company recovered inventory reserve of $34,303 and $84,956 for the six months ended March 31, 2024 and 2023, respectively.

Advances to suppliers, net

Advances to suppliers represent prepayments made to ensure continuous high-quality supplies and favorable purchase prices of raw materials. These advances are directly related to the purchases of raw materials used to fulfill sales orders. The Company is required from time to time to make cash advances when placing its purchase orders. These advances are settled upon suppliers delivering raw materials to the Company when the transfer of ownership occurs. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company or refund an advance. As of March 31, 2024 and September 30, 2023, the Company recorded no allowance for doubtful accounts, as the Company believed that all advances to suppliers were fully realizable.

Short-term investments

The Company’s short-term investments consist of wealth management financial products purchased from a financial institution, which can be redeemed anytime. The financial institution invests the Company’s fund in certain financial instruments including debt and money market securities to generate investment income. The short-term investments are deemed to be trading securities and are measured subsequently at fair value in the statement of financial position. Realized gain and change in fair value of short-term investments are included in the unaudited condensed consolidated statements of operations and comprehensive income over the investment period. Realized (loss) gain generated from such short-term investments amounted to $(3,094,084) and $166,931 for the six months ended March 31, 2024 and 2023, respectively. The Company recorded $7,617,502 and nil change in fair value of short-term investments for the six months ended March 31, 2024 and 2023, respectively (see Note 7).

F-8

Fair value of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

●

Level 1 —

inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 —

inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

●

Level 3 —

inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts receivable, inventories, short-term investments, advances to suppliers, prepaid expenses and other current assets, accounts payable, short-term bank loans, accrued expenses and other current liabilities, taxes payable and due to related parties, approximate the fair value of the respective assets and liabilities as of March 31, 2024 and September 30, 2023 based upon the short-term nature of the assets and liabilities. The Company’s investment in equity securities is accounted for using the measurement alternative in accordance with Accounting Standards Codification (“ASC”) 321, “Investments—Equity Securities” (“ASC 321”), which also approximates its recorded value.

The following table presents information about the Company’s assets measured at fair value on a recurring basis as of March 31, 2024 and September 30, 2023, and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.

	Fair Value Measured as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	2,527,603	$	2,527,603

	Fair Value Measured as of September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	13,219,005	$	13,219,005

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over their expected useful lives, as follows:

		Useful life
Buildings		20 years
Machinery and equipment		5–10 years
Automobiles		3–5 years
Office and electric equipment		3–5 years

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited condensed consolidated statements of income and other comprehensive income in other income or expenses.

F-9

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property and equipment were recorded in operating expenses for the six months ended March 31, 2024 and 2023.

Intangible Assets

Intangible assets consist primarily of land use rights and software. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives:

		Useful life
Land use rights		50 years
Software		3 years

The Company reviews the carrying value of land use rights for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment of land use rights was deemed necessary for the six months ended March 31, 2024 and 2023.

Construction-in-Progress (“CIP”)

CIP represents property and buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to the construction. CIP is not depreciated. Upon completion and ready for intended use, CIP is reclassified to the appropriate category within property and equipment.

Impairment of long-lived Assets

Long-lived assets with finite lives, primarily property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted cash flows from the use of the asset and its eventual disposition below are the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. The Company recorded no impairments of these assets for the six months ended March 31, 2024 and 2023.

Investments in Equity Securities

The Company accounts for its equity investments in accordance with ASC 321. In accordance with ASC 321, equity investment which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices with the changes in fair value recognized as unrealized gains or losses in earnings. Equity investments without readily determinable fair values are accounted for either at fair value or using the measurement alternative. Under the measurement alternative, the equity investments are measured at cost, less any impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

From March 2009 to September 2017, the Company invested approximately $0.7 million (RMB5 million) in Jiangxi Jian Rural Commercial Bank (“JX RCB Bank”) in exchange for 5% ownership interest in the bank. The purpose of entering into these equity investment agreements with JX RCB Bank was to earn investment income as the bank continues to grow. The Company determined that this investment in equity securities does not have a readily determinable fair value and, accordingly, elected the measurement alternative noted above.

F-10

The Company initially recorded the investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. As of March 31, 2024 and September 30, 2023, the Company’s investment in JX RBC Bank amounted to $692,492 (RMB5 million) and $685,307 (RMB5 million), respectively, and was reported as long-term investment in equity investee on the unaudited condensed consolidated balance sheets. Investment income was nil for the six months ended March 31, 2024 and 2023.

The investments in equity securities are evaluated for impairment when facts or circumstances indicate that the fair value of the investments is less than their carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investments; and (v) ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. There was no impairment for the Company’s investments in equity securities as of March 31, 2024 and September 30, 2023.

Revenue recognition

To determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company accounts for the revenue generated from sales of its TCMD and third-party products on a gross basis, as the Company is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods, which the Company has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. All of the Company’s contracts have one single performance obligation, namely, the promise is to transfer the individual goods to customers, and there is no separately identifiable other promise in the contracts. The Company’s revenue streams are recognized at a point in time when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. The Company’s products are sold with no right of return and the Company does not provide other credits or sales incentive to customers. Revenue is reported net of all value added taxes (“VAT”).

Disaggregation of Revenues

The Company disaggregates its revenue from contracts by product types, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.

Cost of Revenue

Cost of revenue consists primarily of the costs of raw materials, freight charges, direct labor, depreciation of buildings and machinery, warehousing and overhead associated with the manufacturing process.

Research and Development Expenses

The Company expenses all internal research and development costs as incurred, which primarily comprise of employee costs, internal and external costs related to execution of studies, manufacturing costs, facility costs of the research center, and amortization and depreciation to intangible assets and property and equipment used in the research and development activities. For the six months ended March 31, 2024 and 2023, total research and development expenses were approximately $86,503 and $2,268,335, respectively.

F-11

Shipping and handling costs

Shipping and handling costs are expensed as incurred. Inbound shipping and handling cost associated with bringing the purchased raw materials and third-party products from suppliers to the Company’s warehouse are included in cost of revenue. Outbound shipping and handling costs associated with shipping and delivery the products to customers are included in selling expenses.

Advertising expense

Advertising expenses primarily relate to promotion of the Company’s brand name and products through outdoor billboards, social media such as Weibo and WeChat, and TV advertisement. Advertising costs is expensed as incurred or deferred and then expensed the first time the advertising takes place. Advertising expenses are included in selling expenses in the unaudited condensed consolidated statements of income and comprehensive income. Advertising expenses amounted to $2,773,300 and $1,340,368 for the six months ended March 31, 2024 and 2023, respectively.

Segment Reporting

The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. Management has determined that the Company has one operating segment.

Income taxes

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the six months ended March 31, 2024 and 2023. The Company does not believe there was any uncertain tax provision as of March 31, 2024 and September 30, 2023.

The Company’s operating subsidiaries in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the six months ended March 31, 2024 and 2023. As of March 31, 2024 and September 30, 2023, all of the tax returns of the Company’s PRC subsidiaries remained open for statutory examination by PRC tax authorities.

Value added tax (“VAT”)

Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable or receivable net of payments in the accompanying unaudited condensed consolidated financial statements.

F-12

Earnings per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of 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. For the six months ended March 31, 2024 and 2023, there were no dilutive shares.

Foreign currency translation

The functional currency for Universe INC is the U.S. Dollar (“US$”). Universe HK uses Hong Kong dollar as its functional currency. However, Universe INC and Universe HK currently only serve as holding companies and did not have active operations as of the date of this report. The Company operates only in the PRC and the Company’s functional currency is the Chinese Yuan (“RMB”). The Company’s unaudited condensed consolidated financial statements have been translated into the reporting currency US$.

Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

The following table outlines the currency exchange rates that were used in creating the unaudited condensed consolidated financial statements in this report:

	March 31, 2024		March 31, 2023		September 30, 2023
Period-end US$: RMB exchange rate		7.2203		6.8676		7.2960
Period-end US$: HK exchange rate		7.8259		7.8499		7.8308
Period average US$: RMB exchange rate		7.2064		6.9761		7.0533
Period average US$: HK exchange rate		7.8172		7.8303		7.8310

Comprehensive Income

Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income in the unaudited condensed consolidated statements of income and comprehensive income.

Statement of Cash Flows

In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

F-13

Employee Defined Contribution Plan

The Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund are provided to eligible full-time employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as expenses in the accompanying statements of income and comprehensive income amounted to $111,459 and $173,740 for the six months ended March 31, 2024 and 2023, respectively.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning March 31, 2024. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s unaudited condensed consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 will have a material effect on the Company’s unaudited condensed consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently in the process of evaluating the impact this amended guidance may have on the footnotes to its unaudited condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amended guidance enhances income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid information. This guidance requires disclosure of specific categories in the effective tax rate reconciliation and further information on reconciling items meeting a quantitative threshold. In addition, the amended guidance requires disaggregating income taxes paid (net of refunds received) by federal, state, and foreign taxes. It also requires disaggregating individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amended guidance is effective for fiscal years beginning after December 15, 2024. The guidance can be applied either prospectively or retrospectively. The Company is currently in the process of evaluating the impact this amended guidance may have on the footnotes to its unaudited condensed consolidated financial statements.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the unaudited condensed consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its unaudited condensed consolidated financial condition, results of operations, cash flows or disclosures.

F-14

NOTE 3 — ACCOUNTS RECEIVABLE, NET

Accounts receivable consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Accounts receivable	$	14,470,157		$	11,014,909
Less: allowance for doubtful accounts		(85,929	)		(347,306	)
Accounts receivable, net	$	14,384,228		$	10,667,603

The Company’s accounts receivable primarily includes the balance due from customers when the Company’s pharmaceutical products are sold and delivered to customers. As of date of this report, approximately 81.0%, or $11.7 million, of the Company’s net account receivable balance as of March 31, 2024 has been subsequently collected, and the remaining balance is expected to be substantially collected before September 30, 2024.

Allowance for doubtful accounts movement is as follows:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	347,306		$	791,827
Additions		-			-
Bad debt recovery		(265,530	)		(439,327	)
Foreign currency translation adjustments		4,153			(5,194	)
Ending balance	$	85,929		$	347,306

NOTE 4 — INVENTORIES, NET

Inventory consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Raw materials	$	551,993		$	635,395
Finished goods		2,870,300			2,777,617
Inventory valuation allowance		(36,241	)		(69,746	)
Total inventory, net	$	3,386,052		$	3,343,266

NOTE 5 — ADVANCE TO SUPPLIERS

Advances to suppliers consist of the following:

	As of
	March 31, 2024		September 30, 2023
	(Unaudited)
Advances to suppliers for inventory raw material purchase	$	368,960	$	180,643
Less: allowance for doubtful accounts		-		-
Advances to suppliers	$	368,960	$	180,643

Advances to suppliers represent prepayments made to suppliers to ensure continuous high-quality supplies and favorable purchase prices of raw materials.

F-15

NOTE 6 — PREPAYMENT FOR ACQUISITION

On September 26, 2022, the Company entered into a letter of intent for an equity transfer with an individual, Mr. Xibo Liu, pursuant to which, Mr. Xibo Liu transfers his 51% ownership in Yunnan Faxi Pharmaceuticals Co., Ltd. (“Yunnan Faxi”) to the Company at the price of RMB72 million (approximately $10.0 million). Based on contract terms, the Company prepaid RMB25 million (approximately $3.5 million) within three (3) business days upon signing the letter of intent. As of March 31, 2024, the prepayment was recorded as prepayment for acquisition on the balance sheets. The acquisition is expected to be completed and the remaining balance is expected to be paid by January 2025.

NOTE 7 — SHORT-TERM INVESTMENTS

The Company’s short-term investments consist of wealth management financial products purchased from financial institution, which can be redeemed anytime at the Company’s discretion. The financial institution invests the Company’s fund in certain financial instruments including debt and money market securities to generate investment income. Short-term investments consisted of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	13,219,005		$	13,148,594
Purchase of short-term investments		313,541			-
Sale of short-term investments		(313,541	)		-
Realized (loss) gain on short-term investments		(3,094,084	)		38,530
Change in fair value of short-term investments		(7,617,502	)		-
Foreign currency translation adjustments		20,184			31,881
Ending balance of short-term investments	$	2,527,603		$	13,219,005

Realized (loss) gain generated from such short-term investments amounted to $(3,094,084) and $166,931 for the six months ended March 31, 2024 and 2023, respectively. The Company recorded $7,617,502 and nil change in fair value of short-term investments for the six months ended March 31, 2024 and 2023, respectively.

NOTE 8 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consists of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Buildings	20 years	$	7,381,524		$	7,304,936
Machinery and equipment	5-10 years		1,946,788			1,896,976
Automobiles	3-5 years		74,476			73,703
Office and electric equipment	3-5 years		480,015			474,830
Subtotal			9,882,803			9,750,445
Less: accumulated depreciation			(6,359,806	)		(6,050,480	)
Property and equipment, net		$	3,522,997		$	3,699,965

Depreciation expense was $246,365 and $255,203 for the six months ended March 31, 2024 and 2023, respectively. Income from disposal of fixed assets amounted to nil and $115 for the six months ended March 31, 2024 and 2023, respectively.

F-16

NOTE 9 — INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Land use rights	50 years	$	249,018		$	246,434
Software	3 years		20,904			20,687
Total			269,922			267,121
Less: accumulated amortization			(122,270	)		(118,537	)
Intangible assets, net		$	147,652		$	148,584

Amortization expense was $2,495 and $2,577 for the six months ended March 31, 2024 and 2023, respectively.

Estimated future amortization expense for intangible assets is as follows:

Twelve months ending March 31,	Amortization expense

2025	$	4,980
2026		4,980
2027		4,980
2028		4,980
2029		4,980
Thereafter		122,752
	$	147,652

NOTE 10 — PREPAYMENT FOR CIP PROJECT

Construction in process (“CIP”) represents direct costs of construction incurred for the Company’s manufacturing facilities. On June 25, 2021, the Company signed a construction sub-contract with sub-contractor Jiangxi Chenyuan Construction Project Co., Ltd. (“Chenyuan”), pursuant to which, Chenyuan agreed to help the Company construct four manufacturing factory buildings and an office building with a total estimated budget of RMB165 million (approximately $22.9 million). The construction work started on August 8, 2021, with an originally estimated completion date on August 7, 2023. However, due to resurgence of the COVID-19 pandemic, which resulted in lingering logistic disruption, material and labor shortage, and domestic travel restriction, at the beginning of 2024, the Company estimated the construction work to be completed in December 2024. During 2024, new information was discovered about the topographical and surface structures of the land, which required Chenyuan to redo the geological survey. As a result, the construction work is further delayed, and the construction of the four manufacturing factory buildings and the office building is expected to be fully completed and put into use by December 2025 and December 2026, respectively. As of March 31, 2024, the Company had made a prepayment of approximately RMB69.2 million (approximately $9.6 million) to Chenyuan for land improvement, building foundation and the construction of the manufacturing factories.

As of March 31, 2024, $395,759 (approximately RMB2.9 million) of the prepayment for the CIP project had been used for construction work, and the amount was recorded as property and equipment in the unaudited condensed consolidated balance sheets. As of March 31, 2024, the remaining $9.2 million prepayment to Chenyuan was recorded as a prepayment for CIP project on the balance sheets.

As of March 31, 2024, future additional capital expenditure on this CIP project is estimated to be approximately RMB95.8 million (equivalent to $13.3 million), among which approximately $3.5 million is required for the next 12 months. The Company currently plans to support its ongoing CIP project construction through cash collected from accounts receivable, and if necessary, borrowings from PRC banks in the future.

F-17

As of March 31, 2024, future minimum capital expenditures on the Company’s CIP project are estimated as follows:

Twelve months ending March 31,	Capital Expenditure on CIP

2025	$	3,427,835
2026		8,697,700
2027		1,142,612
Total	$	13,268,147

NOTE 11 — PREPAYMENT FOR PURCHASE OF A PROPERTY

On May 6, 2021, the Company entered into a real estate property purchase agreement with related party Jiangxi Yueshang Investment Co., Ltd. (“Jiangxi Yueshang”), an entity in which the Company’s chief executive officer, Mr. Gang Lai, owned 5% equity interest as of the date of that agreement. Pursuant to the property purchase agreement, Jiangxi Yueshang will sell and the Company will purchase a certain residential apartment and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.4 million). Pursuant to this agreement, the Company was required to make a prepayment in the amount of 50% of the total purchase price, with 20% of the total purchase price payable upon the availability of a certificate of occupancy, and 30% of the total purchase price payable upon delivery of the property.

As of March 31, 2024, the Company had made a prepayment of RMB16 million (approximately $2.2 million) to Jiangxi Yueshang. The remaining balance is expected to be paid by April 2025. Since the property is located in the urban downtown area of Ji’an City, the Company plans to use the property for offices in June 2025.

NOTE 12 — SHORT-TERM BANK LOANS

Short-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Short-term bank loans:
Jiangxi Luling Rural Commercial Bank (“LRC Bank”)	(1)	$	1,384,984	$	2,467,105
Bank of Communications Co., Ltd	(2)		1,246,486		1,233,553
Zhujiang Rural Bank	(3)		415,495		411,184
Beijing Bank	(4)		1,384,984		1,370,614
Total short-term loans		$	4,431,949	$	5,482,456

(1)

On March 13, 2023, a subsidiary of the Company, Universe Trade, signed a loan agreement with LRC Bank to borrow RMB8 million (equivalent to $1,096,491) as working capital for one year, with the maturity date on March 12, 2024. The fixed interest rate of the loan was 4.56% per annum. Mr. Gang Lai signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was fully repaid upon maturity.

On June 15, 2023, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB10 million (equivalent to $1,384,984) as working capital for eleven months, with the maturity date on May 14, 2024. The fixed interest rate of the loan was 4.56% per annum. Mr. Gang Lai signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was subsequently fully repaid upon maturity.

F-18

(2)

On June 15, 2023, the Company’s subsidiary, Jiangxi Universe, signed a loan agreement with Bank of Communications to borrow RMB9 million (equivalent to $1,246,486) as working capital for eleven months, with the maturity date on May 18, 2024. The fixed interest rate of the loan was 4.0% per annum. Mr. Gang Lai, Universe Trade, and an unrelated third party, Jiangxi Province Financing Guarantee Group Co., Ltd., jointly signed guarantee agreements with Bank of Communications to provide credit guarantee for this loan. The loan was subsequently fully repaid upon maturity.

(3)

On May 5, 2023, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Zhujiang Rural Bank to borrow RMB 3 million (equivalent to $415,495) as working capital for one year, with the maturity date on May 4, 2024. The fixed interest rate of the loan was 3.65% per annum. The Company pledged certain patents owned by the Company as collateral to guarantee this loan. The loan was subsequently fully repaid upon maturity.

(4)

On July 24, 2023, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Beijing Bank to borrow RMB 10 million (equivalent to $1,384,984) as working capital for one year, with the maturity date on July 18, 2024. The fixed interest rate of the loan was 4.25% per annum. There was no guarantee requirement for this loan. The loan was subsequently fully repaid upon maturity.

NOTE 13 — LONG-TERM BANK LOANS

Long-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Long-term bank loans:
LRC Bank	(1)	$	2,077,476	$	-

(1)

On November 23, 2023, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB15 million (equivalent to $2,077,476) as working capital for two years, with the maturity date on November 14, 2025. The fixed interest rate of the loan was 3.95% per annum. The Company pledged buildings of Jiangxi Universe as collateral to guarantee this loan.

For the above-mentioned loans, the Company recorded a total interest expense of $148,860 and $90,044 for the six months ended March 31, 2024 and 2023, respectively.

NOTE 14 — RELATED PARTY TRANSACTIONS

(a) Nature of relationships with related parties

Name		Relationship with the Company
Mr. Gang Lai		Chief Executive Officer and chairman of the Company’s Board of Directors
Mr. Yajun Hu		General Manager of Jiangxi Universe
Guangzhou Ningjing Investment Co., Ltd (Guangzhou Ningjing)		Under common control of Mr. Gang Lai

F-19

(b) Due from related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Yajun Hu	$	-	$	61,678
Total due from related parties	$	-	$	61,678

As of September 30, 2023, the balance due from related parties consisted of advanced funds to the Company’s director and general manager, Mr. Yajun Hu. These advances are non-interest bearing and fully repaid on October 12, 2023.

(c) Due to related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Gang Lai	$	5,515,160	$	540,096
Total due to related parties	$	5,515,160	$	540,096

As of March 31, 2024, the balance due to related parties mainly consisted of advances from Mr. Gang Lai, the Company’s chief executive officer and the chairman of the board of directors for working capital purposes during the Company’s normal course of business. These advances are non-interest bearing and due on demand.

(d) Loan guarantee provided by related parties

In connection with the Company’s bank borrowings from PRC Banks, certain related parties of the Company, including Mr. Gang Lai, the Company’s chairman of the board of directors and chief executive officer, signed guarantee agreements with these banks to provide credit guarantee for the Company’s certain loans (see Note 12 and 13).

(e) Prepayment to related party for property purchase

As disclosed in Note 11, on May 6, 2021, the Company entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang, to purchase certain residential apartment and commercial office space totaling 2,749.30 square meters with total purchase price of RMB32 million (approximately $4.4 million). As of March 31, 2024, the Company had made a prepayment of RMB16 million ($2.2 million) to Jiangxi Yueshang. The remaining balance is expected to be paid by April 2025.

On January 13, 2022, Mr. Gang Lai transferred the 5% equity interest he owned in Jiangxi Yueshang to a third party. As such, after this date, Jiangxi Yueshang is no longer the Company’s related party.

(f) Prepaid expenses-related party, non-current

As of March 31, 2024 and September 30, 2023, the Company prepaid Guangzhou Ningjing $96,141 and $35,864 for right to use trademarks, respectively.

NOTE 15 — CONCENTRATIONS

A majority of the Company’s revenue and expense transactions are denominated in RMB and a significant portion of the Company’s and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

F-20

As of March 31, 2024 and September 30, 2023, $8,771,774 and $5,223,573 of the Company’s cash, respectively, was on deposit at financial institutions in the PRC. For the six months ended March 31, 2024 and 2023, the Company’s substantial assets were located in the PRC and the Company’s substantial revenues were derived from its subsidiaries located in the PRC.

For the six months ended March 31, 2024, no single customer accounted for more than 10% of the Company’s total revenue. For the six months ended March 31, 2023, one customer accounted for 14.1% of the Company’s total revenue. The Company’s top 10 customers aggregately accounted for 23.0% and 32.9% of the total revenue for the six months ended March 31, 2024 and 2023, respectively.

Sales of one of the Company’s major products, Guben Yanling Pill, accounted for 33.5% and 30.4% of the Company’s total revenue for the six months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024 and September 30, 2023, no customer accounted for more than 10% of the total accounts receivable balance.

For the six months ended March 31, 2024, two suppliers accounted for 29.9% and 10.0% of the total purchases, respectively. For the six months ended March 31, 2023, one supplier accounted for 16.2% of the total purchases.

NOTE 16 — SHAREHOLDERS’ EQUITY

Ordinary Shares

Universe INC was incorporated under the laws of the Cayman Islands on December 11, 2019. The original authorized number of ordinary shares upon incorporation was 50,000 shares with par value of US$1.00 per share and 50,000 shares were issued. On August 7, 2020, the Company amended its Memorandum of Association to increase the authorized number of shares to 100,000,000 shares with par value of $0.003125 per share, and subdivide the original issued shares from 50,000 shares at par value of $1.00 per share to 16,000,000 ordinary shares with par value of $0.003125 per share. As a result of this forward split of the outstanding ordinary shares at a ratio of 320-for-1 share, a total of 16,000,000 shares were issued and outstanding after the split. The issuance of these 16,000,000 shares is considered as a part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented.

Increased authorized share capital and share consolidation

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

(a)

(b)

(c)

F-21

The board of directors of the Company resolved to effect the Share Consolidation at 5:00 p.m. (Cayman Islands time) on July 27, 2023 with the authorized, issued and outstanding shares to be consolidated on a six (6) for one (1) ratio, which had the effect of reducing the number of: (a) authorized ordinary shares from 900,000,000 ordinary shares with a par value of US$0.003125 per share to 150,000,000 ordinary shares with a par value of US$0.01875 per share; (b) issued and outstanding ordinary shares from 21,750,000 ordinary shares with a par value of US$0.003125 per share to 3,625,000 ordinary shares with a par value of US$0.01875 per share; and (c) authorized preferred shares from 100,000,000 preferred shares with a par value of US$0.003125 per share to 16,666,666.6666 preferred shares with a par value of US$0.01875 per share. The Company’s unaudited condensed consolidated financial statements were retrospectively restated for effect of the 6-for-1 Shares Consolidation (see Note 1). Giving the effects of the Share Consolidation, there were 3,645,974 ordinary shares issued and outstanding as of March 31, 2024.

As of March 31, 2024 and September 30, 2023, the Company had a total of 3,645,974 and 3,625,000 ordinary shares issued and outstanding, respectively.

Underwriter warrants

In connection with the Company’s IPO, the Company also agreed to issue warrants to the underwriter, for a nominal consideration of $0.001 per warrant, to purchase 300,000 ordinary shares of the Company (equal to 6% of the total number of ordinary shares sold in the IPO, not including any ordinary shares sold in the over-allotment option) (the “Underwriter Warrants”). The Underwriter Warrants have a term of five years, with an exercise price of $5.50 per share (equal to 110% of the Company’s IPO offering price of $5.00 per share). The Underwriter Warrants may be purchased in cash or via cashless exercise, are exercisable for five (5) years, and will terminate on the fifth anniversary of the closing of the IPO. Management determined that the Underwriter Warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. As of March 31, 2024, the Underwriter Warrants were issued and outstanding, but none of them had been exercised. For the six months ended March 31, 2024 and 2023, the Underwriter Warrants were antidilutive and accordingly were not included in the diluted EPS calculation based on treasury stock method.

Statutory reserve and restricted net assets

The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China.

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital, but are not distributable as cash dividends.

Relevant PRC laws and regulations restrict the Company’s PRC subsidiaries from transferring a portion of their net assets, equivalent to their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. As of March 31, 2024 and September 30, 2023, the restricted amounts as determined pursuant to PRC statutory laws totaled $2,439,535, and total restricted net assets amounted to $31,786,663.

F-22

NOTE 17 — COMMITMENTS AND CONTINGENCIES

From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the six months ended March 31, 2024 and 2023, the Company did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows.

The Company has an ongoing CIP project associated with the construction of a new manufacturing facility. As of March 31, 2024, future minimum capital expenditures on the Company’s CIP project amounted to approximately $13.3 million, among which, approximately $3.4 million is required for the next 12 months from the date of this report (see Note 10).

On May 6, 2021, the Company entered into a real estate property purchase agreement with Jiangxi Yueshang, an entity in which the Company’s chief executive officer, Mr. Gang Lai, owned 5% of its equity interests as of the date of that agreement. Pursuant to this purchase agreement, Jiangxi Yueshang will sell and the Company will purchase certain residential apartments and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.4 million). As of March 31, 2024, the Company had made a prepayment of RMB16 million (approximately $2.2 million) to Jiangxi Yueshang. The remaining balance is expected to be paid by April 2025 (see Note 11).

NOTE 18 — SUBSEQUENT EVENTS

On April 23, 2024, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Zhujiang Rural Bank to borrow RMB3 million (equivalent to $415,495) as working capital for two years, with the maturity date on April 20, 2026. The fixed interest rate of the loan was 3.65% per annum. The Company pledged certain trademarks owned by the Company as collateral to guarantee this loan.

On April 26, 2024, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB10 million (equivalent to $1,384,984) as working capital for one year, with the maturity date on April 25, 2025. The fixed interest rate of the loan was 4.31% per annum. Mr. Gang Lai and Universe Trade jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan.

On June 16, 2024, the Company’s subsidiary, Jiangxi Universe, signed a loan agreement with Bank of Communications to borrow RMB8.1 million (equivalent to $1,121,837) as working capital for eleven months, with the maturity date on May 13, 2025. The fixed interest rate of the loan was 3.9% per annum. Mr. Gang Lai, Universe Trade, and an unrelated third party, Jiangxi Province Financing Guarantee Group Co., Ltd., jointly signed guarantee agreements with Bank of Communications to provide credit guarantee for this loan.

On July 3, 2024, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Beijing Bank to borrow RMB 10 million (equivalent to $1,384,984) as working capital for one year, with the maturity date on July 3, 2025. The fixed interest rate of the loan was 4.15% per annum. Mr. Gang Lai provided credit guarantee for this loan.

F-23

On July 15, 2024, the Company closed its self-underwritten public offering (“Offering”) of 20,000,000 ordinary shares, par value $0.01875 per share (the “Ordinary Shares”). The Ordinary Shares were priced at $1.25 per share. The Company raised a total of $25 million through that Offering, before deducting Offering-related expenses of $199,830.

The Company has assessed all subsequent events through the date that these unaudited condensed consolidated financial statements are issued and there are no further material subsequent events that require disclosure in these unaudited condensed consolidated financial statements.

NOTE 19 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s subsidiaries exceeded 25% of the consolidated net assets of the Company. Therefore, the condensed financial statements for the parent company are included herein.

For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.

The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s unaudited condensed consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and the respective profit or loss as “Equity in earnings of subsidiaries” on the condensed statements of income.

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the unaudited condensed consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted.

As of March 31, 2024 and September 30, 2023, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the unaudited condensed consolidated financial statements, if any.

F-24

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

PARENT COMPANY BALANCE SHEETS

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
ASSETS
Cash	$	69,114		$	9,248
Short-term investments		2,527,603			13,219,005
Due from subsidiaries		10,785,261			10,878,344
Total current assets		13,381,978			24,106,597

Non-current assets
Investment in subsidiaries	$	13,554,925		$	15,426,104

Total assets	$	26,936,903		$	39,532,701

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Due to related parties		192,807			-
TOTAL CURRENT LIABILITIES	$	192,807		$	-

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively		68,362			67,969
Additional paid-in capital		29,278,766			29,279,159
Retained earnings		(502,618	)		12,598,839
Accumulated other comprehensive loss		(2,100,414	)		(2,413,266	)
Total shareholders’ equity		26,744,096			39,532,701

Total liabilities and shareholders’ equity	$	26,936,903		$	39,532,701

F-25

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	For the six months ended March 31,
	2024			2023
Operating costs and expenses:
General and administrative expenses	$	(232,809	)	$	(116,431	)

Other income (expenses):
Realized (loss) gain on short-term investments		(3,094,084	)		166,931
Change in fair value of short-term investments		(7,617,502	)
Other expenses		(291	)		(507	)

Equity in loss of subsidiaries		(2,156,771	)		(765,420	)

Net loss		(13,101,457	)		(715,427	)
Foreign currency translation adjustments		312,852			1,399,775
Comprehensive (loss) income attributable to the Company	$	(12,788,605	)	$	684,348

F-26

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the six months ended March 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	(13,101,457	)	$	(715,427	)
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary		2,156,771			765,420
Realized (loss) gain on short-term investments		3,094,084			(166,931	)
Change in fair value of short-term investments		7,617,502			-
Changes in operating assets and liabilities:
Due from subsidiaries		93,083			105,058
Due to related parties		192,807			-
Net cash provided by (used in) operating activities		52,790			(11,880	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments		(313,541	)		-
Sale of short-term investments		313,541			-
Net cash provided by investing activities		-			-

EFFECT OF CHANGES OF FOREIGN EXCHANGE RATES ON CASH		7,076			120

CHANGES IN CASH		59,866			(11,760	)

CASH, beginning of period		9,248			28,917

CASH, end of period	$	69,114		$	17,157

F-27

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Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes that appear elsewhere in the report on Form 6-K of which this document is a part. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in our annual report on Form 20-F for the fiscal year ended September 30, 2023, particularly under the caption “Item 3. Key Information—D. Risk Factors.”

Overview

Through its subsidiaries (the “PRC operating entities”) in the People’s Republic of China (“China” or the “PRC”), Universe Pharmaceuticals INC (the “Company,” “we,” “our” and “us”) is a pharmaceutical company specializing in the development, manufacturing, marketing and sale of traditional Chinese medicine derivatives (“TCMD”) products targeted to the elderly to address their physical conditions in the aging process and to promote their general well-being. We have registered and obtained approval for 26 varieties of TCMD products from the National Medical Products Administration (the “NMPA”), and we currently produce 13 varieties of TCMD products and sell them in 261 cities in 30 provinces in China as of the date of this report. In addition, we also sell biomedical drugs, medical instruments, traditional Chinese medicine pieces (“TCMPs”) and dietary supplements manufactured by third-party pharmaceutical companies (collectively referred to as “third-party products”).

Our major customers are pharmaceutical companies, hospitals, clinics and drugstore chains, primarily located in Jiangxi Province, Jiangsu Province, Guangdong Province, Hubei Province, Fujian Province, Guangxi Province and Shandong Province, and 23 other provinces in China.

Key Financial Performance Indicators

In assessing our financial performance, we consider a variety of financial performance measures, including principal growth in net revenue and gross profit, our ability to control costs and operating expenses to improve our operating efficiency and net income. Our review of these indicators facilitates timely evaluation of the performance of our business and effective communication of results and key decisions, allowing our business to respond promptly to competitive market conditions and different demands and preferences from our customers. The key measures that we use to evaluate the performance of our business are set forth below.

Net Revenue

Our revenue is reported net of all value added taxes (“VAT”). Our products are sold with no right of return and we do not provide other credits or sales incentive to customers. Our revenue is driven by sales volume, selling price, and mix of products sold.

	For the six Months Ended March 31,						Variance
	2024			2023			%
Revenue from sales of self-manufactured TCMD products		53.3	%		50.8	%		(6.5	)%
Revenue from sales of third-party products		46.7	%		49.2	%		6.5	%
Total revenue		100.0	%		100.0	%

Sales volume by unit- TCMD products		6,097,325			7,961,244			(23.4	)%
Sales volume by unit- third party products		4,014,841			5,727,501			(29.9	)%
Total sales volume		10,112,166			13,688,745			(26.1	)%

Average selling price per unit- TCMD products	$	1.13		$	1.18			(4.2	)%
Average selling price per unit- Third-party products	$	1.50		$	1.59			(5.7	)%

Revenues from sales of TCMD products manufactured by us accounted for 53.3% and 50.8% of our total revenues for the six months ended March 31, 2024 and 2023, respectively. The 13 TCMD products manufactured by us fall into two categories: (i) treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity (the “Chronic Condition Treatments”) and (ii) cold and flu medications. Our Chronic Condition Treatments primarily include Guben Yanling Pill, Shenrong Weisheng Pill, Quanlu Pill, Yangxue Danggui Syrup, Wuzi Yanzong Oral Liquid, Fengtong Medicinal Liquor, Shenrong Medicinal Liquor, Qishe Medicinal Liquor, Fengshitong Medicinal Liquor, and Shiquan Dabu Medicinal Liquor, and our cold and flu medications primarily include Paracetamol Granule for Children, Isatis Root Granule and Qiangli Pipa Syrup.

In order to diversify our product offerings and product mix, in addition to selling our self-manufactured TCMD products, we also sell products manufactured by third-party pharmaceutical companies, including (i) biomedical drugs, such as liquid glucose, prednisolone, and citicoline, (ii) medical instruments, such as drug-eluting stents, surgical tubes and syringes, (iii) TCMPs, such as red sage tables, Longdan Xiegan pills, and Chinese skullcap capsules, and (iv) dietary supplements, such as vitamins, probiotic powder, and calcium tablets. Revenues from sales of third-party products accounted for 46.7% and 49.2% of our total revenues for the six months ended March 31, 2024 and 2023, respectively.

Gross Profit

Gross profit is equal to net revenue minus cost of goods sold. Cost of goods sold primarily includes inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead). Cost of goods sold generally changes as our production costs change, as these are affected by factors including the market price of raw materials, labor productivity, or the purchase price of third-party products, and as the customer and product mix changes. Our cost of revenues accounted for 73.8% and 66.8% of our total revenue for the six months ended March 31, 2024 and 2023, respectively. We expect our cost of revenues to increase as we further expand our operations in the foreseeable future.

Our gross margin was 26.2% for the six months ended March 31, 2024, a decrease of 7.0% from the gross margin of 33.2% in the six months ended March 31, 2023, due to a decrease in the average selling price of our TCMD products and third-party products by 4.2% and 5.7%, respectively, as well as an increase in the average per unit cost of our TCMD products by 10.5%.

Operating Expenses

Our operating expenses consist of selling expenses, general and administrative expenses and research and development expenses.

Our selling expenses primarily include salary and welfare benefit expenses paid to our sales personnel, advertising expenses to increase the awareness of our brand, shipping and delivery expenses, expenses incurred for our business travel, meals and other sales promotion and marketing activities related expenses. Our selling expenses accounted for 31.5% and 12.6% of our total revenue for the six months ended March 31, 2024 and 2023, respectively. We expect our overall selling expenses, including but not limited to, advertising expenses and brand promotion expenses and salaries, to increase in the foreseeable future and facilitate the growth of our business, especially when we continue to expand our business and promote our products to customers located at extended geographic areas.

Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses, land and property taxes and professional service expenses. General and administrative expenses accounted for 7.5% of our revenue for the six months ended March 31, 2024 and 2023. We expect our general and administrative expenses, including, but not limited to, salaries and business consulting expenses, to increase in the foreseeable future, as we plan to hire additional personnel and incur additional expenses in connection with the expansion of our business operations.

The Chinese patent medicine industry is characterized by rapid and frequent changes in customer demand and launches of new products. If we do not launch new products or improve our existing products to meet the changing demands of our customers in a timely manner, some of our products could become uncompetitive in the market, thereby adversely affecting on our revenues and operating results. Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing of new TCMD products, depreciation, and other miscellaneous expenses. Research and development expenses accounted for 0.7% and 12.3% of our revenue for the six months ended March 31, 2024 and 2023, respectively. As we continue to develop new products and diversify our product offerings to satisfy customer demand, we expect our research and development expenses to increase in the foreseeable future.

Financial Results for the Six Months Ended March 31, 2024 Compared to the Six Months Ended March 31, 2023

The following table summarizes the results of our operations during the six months ended March 31, 2024 and 2023, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

	For the six Months Ended March 31,
	2024						2023						Variance
	Amount			% of revenue			Amount			% of revenue			Amount			%

REVENUE	$	12,884,370			100.0	%	$	18,467,186			100.0	%	$	(5,582,816	)		(30.2	)%
COST OF REVENUE		9,515,039			73.8	%		12,339,044			66.8	%		(2,824,005	)		(22.9	)%
GROSS PROFIT		3,369,331			26.2	%		6,128,142			33.2	%		(2,758,811	)		(45.0	)%

OPERATING EXPENSES
Selling expenses		4,054,357			31.5	%		2,330,508			12.6	%		1,723,849	)		74.0	%
General and administrative expenses		968,608			7.5	%		1,380,053			7.5	%		(411,445	)		(29.8	)%
Research and development expenses		86,503			0.7	%		2,268,335			12.3	%		(2,181,832	)		(96.2	)%
Total operating expenses		5,109,468			39.7	%		5,978,896			32.4	%		(869,428	)		(14.5	)%

INCOME FROM OPERATIONS		(1,740,137	)		(13.5	)%		149,246			0.8	%		(1,889,383	)		(1,266.0	)%

OTHER INCOME (EXPENSE)
Interest expense, net		(136,613	)		(1.1	)%		(74,569	)		(0.4	)%		(62,044	)		83.2	%
Other income, net		152,027			1.2	%		17,323			0.1	%		134,704			777.6	%
Realized (loss) gain on short-term investments		(3,094,084	)		(24.0	)%		166,931			0.9	%		(3,261,015	)		(1,953.5	)%
Change in fair value of short-term investments		(7,617,502	)		(59.1	)%		-			-	%		(7,617,502	)		-	%
Total other (loss) income, net		(10,696,172	)		(83.0	)%		109,685			0.6	%		(10,805,857	)		(9,851.7	)%

(LOSS) INCOME BEFORE INCOME TAX PROVISION		(12,436,309	)		(96.5	)%		258,931			1.4	%		(12,695,240	)		(4,902.9	)%

PROVISION FOR INCOME TAXES		665,148			5.2	%		974,358			5.3	%		(309,210	)		(31.7	)%

NET LOSS	$	(13,101,457	)		(101.7	)%	$	(715,427	)		(3.9	)%	$	(12,386,030	)		1,731.3	%

Revenues. We currently produce and sell 13 varieties of TCMD products and also sell products manufactured by third-party pharmaceutical companies, to our customers.

	For the six months ended March 31,
	2024		2023		Change
	Amount		Amount		Amount			%

Revenue - TCMD products sales	$	6,870,591	$	9,374,312	$	(2,503,721	)		(26.7	)%
Revenue – third-party products sales		6,013,779		9,092,874		(3,079,095	)		(33.9	)%
Total revenue	$	12,884,370	$	18,467,186	$	(5,582,816	)		(30.2	)%

Our revenues decreased by $5,582,816, or 30.2%, to $12,884,370 for the six months ended March 31, 2024, from $18,467,186 for the six months ended March 31, 2023.

Revenue from sales of our TCMD products

Global economic slowdown has led to a decline in customers’ spending power, and sales volume of our TCMD products decreased by 23.4%, to 6,097,325 units sold in the six months ended March 31, 2024, from 7,961,244 units sold in the six months ended March 31, 2023.

The average selling price of our TCMD products decreased by $0.05 per unit, or 4.2%, to $1.13 per unit in the six months ended March 31, 2024, from $1.18 per unit in the six months ended March 31, 2023, due to a change in product mix.

The exchange rate between RMB and US$ was US$1.00 to RMB6.9761 in the six months ended March 31, 2023 as compared to US$1.00 to RMB7.2064 in the six months ended March 31, 2024. The depreciation of RMB against US$ had a 3.3% negative impact on our reported revenues.

Revenue from sales of third-party products

Sales of third-party products decreased by $3,079,095, or 33.9%, to $6,013,779 for the six months ended March 31, 2024, from $9,092,874 for the six months ended March 31, 2023. Sales volume of third-party products decreased by 29.9%, to 4,014,841 units sold in the six months ended March 31, 2024, from 5,727,501 units sold in the six months ended March 31, 2023. The average selling price of third-party products decreased by $0.09 per unit, or 5.7%, to $1.50 per unit in the six months ended March 31, 2024, from $1.59 per unit in the six months ended March 31, 2023, due to a change in product mix and the 3.3% negative impact from foreign currency fluctuation as discussed above.

Cost of Revenues. Our cost of revenues primarily consists of inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead) and business tax. Cost of revenues generally changes as our production costs change, which are affected by factors including the market price of raw materials, labor productivity, and the purchase price of third-party products, and as the customer and product mix changes.

	For the six months ended March 31,
	2024		2023		Change
	Amount		Amount		Amount			%

Cost of revenue- TCMD products	$	5,602,807	$	6,617,444	$	(1,014,637	)		(15.3	)%
Cost of revenue- third-party products		3,912,232		5,721,600		(1,809,368	)		(31.6	)%
Total cost of revenue	$	9,515,039	$	12,339,044	$	(2,824,005	)		(22.9	)%

Cost of revenues decreased by $2,824,005, or 22.9%, to $9,515,039 for the six months ended March 31, 2024, from $12,339,044 for the six months ended March 31, 2023, due to a decrease in sales volume.

Cost of revenues of TCMD products

Cost of revenues of TCMD products accounted for 58.9% and 53.6% of our total costs of revenues for the six months ended March 31, 2024 and 2023, respectively. Cost of revenues of TCMD products decreased by $1,014,637, or 15.3%, from $6,617,444 in the six months ended March 31, 2023 to $5,602,807 in the six months ended March 31, 2024. The decrease in cost of revenues of our TCMD products was due to the following reasons:

(1)

Sales volume of our TCMD products decreased by 23.4%, to 6,097,325 units sold in the six months ended March 31, 2024, from 7,961,244 units sold in the six months ended March 31, 2023.

(2)

In the summer of 2023, a severe flood in Anhui Province and Hubei Province of China, which are two main producing areas of traditional Chinese medicinal materials, led to a decrease in the supply of such materials, and the prices of the traditional Chinese medicine raw materials increased during the six months ended March 31, 2024. The average per unit cost of our TCMD products increased by $0.09, or 10.5%, from $0.83 per unit in the six months ended March 31, 2023 to $0.92 per unit in the six months ended March 31, 2024.

(3)

The 3.3% negative impact from foreign currency fluctuation as discussed above.

Cost of revenues of third-party products

Cost of revenues of third-party products accounted for 41.1% and 46.4% of our total costs of revenues for the six months ended March 31, 2024 and 2023, respectively. Cost of revenues of third-party products decreased by $1,809,368, or 31.6%, from $5,721,600 in the six months ended March 31, 2023 to $3,912,232 in the six months ended March 31, 2024, because of decrease in sales volume of third-party products by 29.9% from 5,727,501 units sold in the six months ended March 31, 2023 to 4,014,841 units sold in the six months ended March 31, 2024. The average per unit cost of third-party products decreased slightly by $0.03 per unit, or 2.5%, from $1.00 per unit in the six months ended March 31, 2023 to $0.97 per unit in the six months ended March 31, 2024, due to change in product mix and the 3.3% negative impact from foreign currency fluctuation as discussed above.

Gross profit

Our gross profit decreased by $2,758,811 to $3,369,331 for the six months ended March 31, 2024, from $6,128,142 for the six months ended March 31, 2023. Our margin decreased by 7.0% to 26.2% for the six months ended March 31, 2024, from 33.2% for the six months ended March 31, 2023.

	For the six months ended March 31,
	2024			2023			Change
	Amount			Amount			Amount			%

Gross profit- TCMD products	$	1,267,784		$	2,756,868		$	(1,489,084	)		(54.0	)%
Gross profit- third-party products		2,101,547			3,371,274			(1,269,727	)		(37.7	)%
Total gross profit	$	3,369,331		$	6,128,142		$	(2,758,811	)		(45.0	)%

Gross margin- TCMD products		18.5	%		29.4	%					(11.0	)%
Gross margin- third party products		34.9	%		37.1	%					(2.2	)%
Total gross margin		26.2	%		33.2	%					(7.0	)%

Average selling price per unit- TCMD products	$	1.13		$	1.18		$	(0.05	)		(4.2	)%
Average cost per unit- TCMD products	$	0.92		$	0.83		$	0.09			10.5	%

Average selling price per unit- third party products	$	1.50		$	1.59		$	(0.09	)		(5.7	)%
Average cost per unit - third party products	$	0.97		$	1.00		$	(0.02	)		(2.5	)%

Gross profit from the sales of our TCMD products decreased by $1,489,084, or 54.0%, from $2,756,868 in the six months ended March 31, 2023 to $1,267,784 in the six months ended March 31, 2024, and the gross margin of our TCMD products decreased by 11.0 percentage point, from 29.4% in the six months ended March 31, 2023 to 18.5% in the six months ended March 31, 2024. The decrease in our gross profit from the sales of TCMD products was affected by the decrease in sales volume, decrease in average unit selling price, and increase in the average per unit cost.

Gross profit from third-party product sales decreased by $1,269,727, or 37.7%, from $3,371,274 in the six months ended March 31, 2023 to $2,101,547 in the six months ended March 31, 2024, while the gross margin of third-party product sales slightly decreased by 2.2%, from 37.1% in the six months ended March 31, 2023 to 34.9% in the six months ended March 31, 2024. The decrease in our gross profit from third-party products was affected by the decrease in sales volume and the average unit selling price, and partially offset by the decrease in the average per unit cost.

Operating expenses

The following table sets forth the breakdown of our operating expenses for the six months ended March 31, 2024 and 2023:

	For the six months ended March 31,
	2024					2023					Variance
	Amount		% of revenue			Amount		% of revenue			Amount			%
Total revenue	$	12,884,370		100.0	%	$	18,467,186		100.0	%	$	(5,582,816	)		(30.2	)%
Operating expenses:
Selling expenses		4,054,357		31.5	%		2,330,508		12.6	%		1,723,849			74.0	%
General and administrative expenses		968,608		7.5	%		1,380,053		7.5	%		(411,445	)		(29.8	)%
Research and development expenses		86,503		0.7	%		2,268,335		12.3	%		(2,181,832	)		(96.2	)%
Total operating expenses	$	5,109,468		39.7	%	$	5,978,896		32.4	%	$	(869,428	)		(14.5	)%

Selling expenses

Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for our business travel, meals and other sales promotion and marketing activities related expenses.

	For the six months ended March 31,
	2024					2023					Variance
	Amount		%			Amount		%			Amount		%

Salary and employee benefit expenses	$	461,859		11.4	%	$	349,755		15.0	%	$	112,104		32.1	%
Advertising expenses		2,773,300		68.4	%		1,340,368		57.5	%		1,432,932		106.9	%
Shipping and delivery expenses		612,373		15.1	%		559,882		24.0	%		52,491		9.4	%
Business travel and meals expenses		106,512		2.6	%		71,535		3.1	%		34,977		48.9	%
Other sales promotion related expenses		100,313		2.5	%		8,968		0.4	%		91,345		1018.6	%
Total selling expenses	$	4,054,357		100.0	%	$	2,330,508		100.0	%	$	1,723,849		74.0	%

Selling expenses increased by $1,723,849, or 74.0%, to $4,054,357 for the six months ended March 31, 2024, from $2,330,508 for the six months ended March 31, 2023, primarily attributable to (i) an increase in advertising expenses by $1,432,932, from $1,340,368 in the six months ended March 31, 2023, to $2,773,300 in the six months ended March 31, 2024. The Company entered into advertising service agreement with Health Headline to promote its brand on the Health Headline’s website and mobile app, increased publicity efforts for its products and brand, and the advertising expenses increased significantly during the six months ended March 31, 2024; and (ii) an increase in salary and employee benefit expenses by $112,104, or 32.1%, as the Company recruited 10 new employees in the marketing department to promote sales of its products.

General and Administrative Expenses

	For the six months ended March 31,
	2024						2023					Variance
	Amount			%			Amount		%			Amount			%

Salary and employee benefit expense	$	372,820			38.5	%	$	305,163		22.1	%	$	67,657			22.2	%
Depreciation and amortization		112,905			11.7	%		91,279		6.6	%		21,626			23.7	%
Bad debt reserve expenses (recovery)		(265,530	)		(27.4	)%		0		0.0	)%		(265,530	)		-	%
Land and property tax		(11,317	)		(1.2	)%		48,739		3.5	%		(60,056	)		(123.2	)%
Office supply and utility expense		121,054			12.5	%		338,735		24.5	%		(217,681	)		(64.3	)%
Transportation, business travel and meals expense		72,084			7.4	%		51,530		3.7	%		20,554			39.9	%
Consulting fee		489,769			50.6	%		503,046		36.5	%		(13,277	)		(2.6	)%
Inspection and maintenance fee		7,908			0.8	%		21,701		1.6	%		(13,793	)		(63.6	)%
Stamp tax and other expenses		68,915			7.1	%		19,860		1.5	%		49,055			247.0	%
Total general and administrative expenses	$	968,608			100.0	%	$	1,380,053		100.0	%	$	(411,445	)		(29.8	)%

General and administrative expenses decreased by $411,445, or 29.8%, to $968,608 for the six months ended March 31, 2024 from $1,380,053 for the six months ended March 31, 2023, primarily attributable to (i) bad debt reserve recovery of $265,530 for the six months ended March 31, 2024, because the Company accrued less bad debt expenses based on its assessment of the collectability of the accounts receivable and advance to suppliers; and (ii) a decrease in office supply and utility expense by $217,681 due to cost savings.

Research and development expenses

Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing new TCMD products, depreciation and other miscellaneous expenses.

	For the six months ended March 31,
	2024					2023					Variance
	Amount		%			Amount		%			Amount			%
Salary and employee benefit expenses to research and development staff	$	74,703		86.4	%	$	74,073		3.3	%	$	630			0.9	%
Materials used in research and development activities		-		0.0	%		666,765		29.4	%		(666,765	)		(100.0	)%
Expenditure on new product development		-		0.0	%		1,505,144		66.4	%		(1,505,144	)		(100.0	)%
Depreciation and others		11,800		13.6	%		22,353		0.9	%		(10,553	)		(47.2	)%
Total research and development expenses	$	86,503		100.0	%	$	2,268,335		100.0	%	$	(2,181,832	)		(96.2	)%

Research and development expenses decreased by $2,181,832, or 96.2%, to $86,503 for the six months ended March 31, 2024, from $2,268,335 for the six months ended March 31, 2023, primarily attributable to (i) a decrease in development expenditure on improving production process of the Company’s Chinese medicine products in the amount of $1,505,144. The Company entered into several cooperative agreements with external academic and research institutions to jointly conduct development of eight production process to improve production efficiency and product quality, with activities beginning in August 2022, and incurred significant amount of research and development expense in connection with such efforts during the six months ended March 31, 2023. These development activities were completed and results were integrated in production in September 2023, and no such expenses incurred during the six months ended March 31, 2024; and (ii) a decrease in the materials used in the research and development activities by $666,765 in connection with development activities on improving production process.

Other income (expenses), net

Total other expenses, net was $10,696,172 for the six months ended March 31, 2024, compared to total other income of $109,685 for the six months ended March 31, 2023. Realized loss on short-term investment from wealth management financial products was $3,094,084 for the six months ended March 31, 2024, compared to realized income on short-term investment of $166,931 for the six months ended March 31, 2023. The Company’s short-term investment consists of non-rated company bonds and shares of public companies, which represented 93.1% and 6.9% of the total investment as of March 31, 2024, respectively. The number of global corporate defaults nearly doubled in 2023 as inflation and higher interest rates squeezed some issuers’ cash flows. Furthermore, financing conditions were challenging for the lowest-rated borrowers and funding liquidity was tight. The Company incurred approximately 90% loss for two disposed bonds, and recorded change in fair value of short-term investment of $7,617,502 for its bond holdings during the six months ended March 31, 2024. No change in fair value of short-term investment was recognized for the six months ended March 31, 2023.

Provision for Income Taxes

Provision for income taxes was $665,148 for the six months ended March 31, 2024, representing a decrease of $309,210, or 31.7%, from $974,358 for the six months ended March 31, 2023, due to decreased taxable income. As the Company’s PRC principal subsidiaries, Jiangxi Universe Pharmaceuticals Co., Ltd. and Jiangxi Universe Pharmaceuticals Trade Co., Ltd., incurred net loss during the six months ended March 31, 2024, the Company evaluated the likelihood of the realization of deferred tax assets, determined that deferred tax assets arising from net operating loss carry-forwards in previous years might not be fully realized, and recognized $665,148 in valuation allowance for deferred tax assets during the six months ended March 31, 2024.

Net Loss

Net loss was $13,101,457 for the six months ended March 31, 2024, representing a $12,386,030 decrease from a net loss of $715,427 for the six months ended March 31, 2023.

Basic and diluted loss per share were $3.59 for the six months ended March 31, 2024, compared with basic and diluted loss per share of $0.20 for the six months ended March 31, 2023.

Liquidity and Capital Resources

As of March 31, 2024, we had $8.9 million in cash on hand. We also had short-term investments of $2.5 million in wealth management financial products from financial institutions to generate investment income, which we purchased with our IPO proceeds. Such short-term investment can be redeemed anytime at our discretion and is highly liquid. As of March 31, 2024, we also had $14.4 million in accounts receivable. Our accounts receivable primarily include balance due from customers for our pharmaceutical products sold and delivered to customers. Approximately 81.0%, or $11.7 million, of our net accounts receivable balance as of March 31, 2024 has been subsequently collected. Collected accounts receivable will be used as working capital in our operations, if necessary.

As of March 31, 2024, our inventory balance amounted to $3.4 million, primarily consisting of raw materials, work-in-progress and finished TCMD products, which we believe are able to be sold quickly based on the analysis of the current trends in demand for our products.

On June 25, 2021, we signed a construction sub-contract with sub-contractor Jiangxi Chenyuan Construction Project Co., Ltd. (“Chenyuan”), pursuant to which, Chenyuan will help us construct four manufacturing plant buildings and an office building with a total estimated budget of RMB165 million (approximately $22.9 million). As of March 31, 2024, we had made a prepayment of approximately RMB69.2 million (approximately $9.6 million) to Chenyuan and future additional capital expenditure on this constriction-in-process (“CIP”) project was estimated to be approximately RMB95.8 million (equivalent to $13.3 million), among which approximately $3.4 million is required for the next 12 months. We currently plan to support our ongoing CIP project through cash collected from accounts receivable, and if necessary, borrowings from banks.

On May 6, 2021, we entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang Investment Co., Ltd. (“Jiangxi Yueshang”), an entity in which our chief executive officer, Mr. Gang Lai, owned 5% of its equity interests as of the date of that agreement. Pursuant to this purchase agreement, Jiangxi Yueshang will sell and we will purchase certain residential apartments and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.4 million). As of March 31, 2024, we had made a prepayment of RMB16 million (approximately $2.2 million) to Jiangxi Yueshang. The remaining balance is expected to be paid by April 2025.

As of March 31, 2024, we also had short-term bank loans of $4.4 million and long-term bank loans of $2.1 million that we obtained from several PRC banks for working capital purposes. We expect that we will be able to renew all of the existing bank loans upon their maturity based on our past experiences and our outstanding credit history.

As of March 31, 2024, our working capital balance was $13.0 million. In assessing our liquidity, management monitors and analyzes our cash on-hand, our ability to generate sufficient revenue in the future, and our operating and capital expenditure commitments. We believe that our current cash and cash flows provided by operating activities, borrowings from banks and from our principal shareholders will be sufficient to meet our working capital needs in the next 12 months from the date our unaudited condensed consolidated financial statements for the six months ended March 31, 2024 are released.

The following table sets forth summary of our cash flows for the periods indicated:

	For the six Months Ended March 31,
	2024			2023
Net cash (used in) provided by operating activities	$	(2,429,621	)	$	4,798,702
Net cash used in investing activities		(67,656	)		(646	)
Net cash provided by financing activities		6,067,732			2,080,918
Effect of exchange rate change on cash and restricted cash		5,888			364,084
Net increase in cash		3,576,343			7,243,058
Cash, beginning of period		5,285,247			5,711,458
Cash, end of period	$	8,861,590		$	12,954,516

Operating Activities

Net cash used in operating activities was $2,429,621 for the six months ended March 31, 2024, primarily consisted of the following:

●

Net loss of $13,101,457 for the period.

●

Short-term investment impairment loss of $7,617,502 and short-term investment (loss) income of $3,094,084 due to deterioration of global corporate defaults.

●

An increase in accounts receivable of $3,346,205. We provided longer credit terms for our regular customers to maintain customer relationship and promote sales. As of date of this report, approximately 81.0%, or $11.7 million of our net accounts receivable balance as of March 31, 2024 has been subsequently collected.

●

An increase in accounts payable of $3,136,661 due to pending invoices from suppliers for raw materials purchased in the first quarter of 2024.

●

A decrease in deferred income tax benefit of $665,148 as we recognized valuation allowance for deferred tax assets during the six months ended March 31, 2024.

Net cash provided by operating activities was $4,798,702 for the six months ended March 31, 2023, primarily consisted of the following:

●

Net loss of $715,427 for the period.

●

An increase in accounts payable of $7,928,308 due to pending invoices from suppliers for raw materials purchased in the first quarter of 2023.

●

An increase in accounts receivable of $1,763,903. Our accounts receivable primarily includes balance due from customers for our pharmaceutical products sold and delivered to customers.

●

A decrease in deferred income tax benefit of $556,867 as we utilized deferred tax asset in the six months ended March 31, 2024.

●

An increase in inventory balance of $488,746 because we increased inventory stockpiles to reduce the negative impact from increased market price of Chinese traditional medicine raw materials.

●

A decrease in accrued expenses and other current liabilities of $465,431 due to payments made to our advertising service provider in the six months ended March 31, 2023.

Investing Activities

Net cash used in investing activities amounted to $67,656 for the six months ended March 31, 2024, due to purchase of fixed assets of $30,189, prepayments for construction in progress of $37,467, as well as purchase and sale of short-term investments of $313,541.

Net cash used in investing activities amounted to $646 for the six months ended March 31, 2023, due to purchase of fixed assets.

Financing Activities

Net cash provided by financing activities amounted to $6,067,732 for the six months ended March 31, 2024, primarily include the following:

●

Proceeds from long-term bank loans of $2,081,483 and repayment of short-term bank loans of $1,110,124.

●

Proceeds from related party borrowings of $5,096,373. The balance due to related party mainly consisted of advances from Mr. Gang Lai for working capital purposes during our normal course of business. These advances were non-interest bearing and due on demand.

Net cash provided by financing activities amounted to $2,080,918 for the six months ended March 31, 2024, primarily include the following:

●

Proceeds from short-term bank loans of $1,146,776 and repayment of bank loans of $1,146,776.

●

Proceeds from related party borrowings of $2,080,918. The balance due to related party mainly consisted of advances from Mr. Gang Lai for working capital purposes during our normal course of business. These advances were non-interest bearing and due on demand.

Commitments and contingencies

From time to time, we are a party to various legal actions arising in the ordinary course of business. We accrue costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the six months ended March 31, 2024 and 2023, we did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on our consolidated financial position, results of operations and cash flows.

As of March 31, 2024, we had the following contractual obligations:

	Payments Due by Period
Contractual Obligations	Total		Less than 1 year		1-2 years		2-3 years
(1) Debt Obligations	$	6,509,425	$	4,431,949	$	2,077,476	$	-
(2) Capital expenditure commitment on CIP project		13,268,147		3,427,835		8,697,700		1,142,612
(3) Capital expenditure commitment for purchase of property		2,215,974		2,215,974		-		-
Total	$	21,993,546	$	10,075,759	$	10,775,176	$	1,142,612

(1)	As of March 31, 2024, we had total of $4,431,949 in short-term borrowings and $2,077,476 in long-term borrowings from several PRC banks (see Footnotes 12 and 13 of our unaudited consolidated financial statements and footnotes, for details).

(2)

On June 25, 2021, we signed a construction sub-contract with Chenyuan, pursuant to which, Chenyuan will help us construct four manufacturing plant buildings and an office building with a total estimated budget of RMB165 million (approximately $22.9 million). As of March 31, 2024, we had made a prepayment of approximately RMB69.2 million (approximately $9.6 million) to Chenyuan and future additional capital expenditure on this CIP project was estimated to be approximately RMB95.8 million (approximately $13.3 million) (see Footnote 10 of our unaudited consolidated financial statements and footnotes, Prepayment for CIP project, for details).

(3)

On May 6, 2021, we entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang, an entity in which our chief executive officer, Mr. Gang Lai, owned 5% of its equity interests as of the date of that agreement. Pursuant to this purchase agreement, Jiangxi Yueshang will sell and we will purchase certain residential apartments and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.4 million). As of March 31, 2024, we had made a prepayment of RMB16 million (approximately $2.2 million) to Jiangxi Yueshang. The remaining balance is expected to be paid by April 2025 (see Footnote 11 of our unaudited consolidated financial statements and footnotes, Prepayment for purchase of a property, for details).

Trend Information

Other than as disclosed elsewhere in this report, we are not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements as of March 31, 2024 and September 30, 2023.

Inflation

Inflation does not materially affect our business or the results of our operations.

Seasonality

Seasonality does not materially affect our business or the results of our operations.

Exhibit 99.3

Universe Pharmaceuticals INC Reports Financial Results for The First Six Months of Fiscal Year 2024

JI’AN, Jiangxi, China, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company,” “we,” “our” and “us”) (Nasdaq: UPC), a pharmaceutical producer and distributor in China, today announced its unaudited financial results for the first six months of fiscal year 2024 ended March 31, 2024.

Mr. Gang Lai, Chairman of the Board of Directors and CEO of Universe Pharmaceuticals INC, commented, “During the first six months of fiscal year 2024, we navigated business uncertainties and adjusted our business strategy to offset the impact of the global economic slowdown. As a result, we generated $12.9 million in revenue for the six months ended March 31, 2024, lower than the $18.5 million revenue generated in the same period of last year. We made considerable efforts to implement our growth strategies during this challenging period. To complement our offline sales channels, we started developing online sales channels, which helped us seize more opportunities and we expect online sales to drive our business growth in the fast-evolving market. Through executing our growth strategy of emphasizing digital marketing and expanding our sales on e-commerce platforms, our goal is to improve our brand recognition, deliver products to more customers, and expand our business scale. Looking forward, we intend to continue implementing our expansion strategy, through which we hope to achieve greater market penetration and customer base expansion, with the goal of creating long-term value for our shareholders.”

Financial Highlights for the Six Months Ended March 31, 2024

	For the Six Months Ended March 31,
($ millions, except per share data)	2024			2023			% Change
Revenues		12.9			18.5			-30.2	%
(Loss) income from operations		(1.7	)		0.1			-1,266.0	%
Net loss		(13.1	)		(0.7	)		1,731.3	%
Loss per share		(3.59	)		(0.20	)		1,720.7	%

●

Revenues decreased by 30.2% to $12.9 million for the six months ended March 31, 2024 from $18.5 million for the six months ended March 31, 2023, primarily attributable to decreased sales volume of the Company’s traditional Chinese medicine derivatives (“TCMD”) products and third-party products by 1,863,919 and 1,712,660 units, or 23.4% and 29.9%, respectively, due to decrease in customer demand resulted from economic slowdown, as well as a 3.3% negative impact from fluctuations in foreign currency exchange rate.

●

Loss from operations was $1.7 million for the six months ended March 31, 2024, compared to an income from operations of $0.1 million for the six months ended March 31, 2023, due to the decrease in revenue as discussed above.

●

Net loss was $13.1 million for the six months ended March 31, 2024, compared to a net loss of $0.7 million for the six months ended March 31, 2023. Realized loss on short-term investments from wealth management financial products was $3,094,084 for the six months ended March 31, 2024, compared to short-term investment income of $166,931 for the six months ended March 31, 2023. The Company also recorded change in fair value of short-term investment of $7,617,502 for its investment holdings during the six months ended March 31, 2024. No change in fair value of short-term investment was recognized for the six months ended March 31, 2023.

●

Loss per share was $3.59 for the six months ended March 31, 2024, compared to loss per share of $0.20 for the six months ended March 31, 2023.

Financial Results for the Six Months Ended March 31, 2024 Compared to the Six Months Ended March 31, 2023

Revenues

Total revenues decreased by $5,582,816, or 30.2%, to $12,884,370 for the six months ended March 31, 2024, from $18,467,186 for the six months ended March 31, 2023.

	For the Six Months Ended March 31,
	2024							2023
	Revenue		Cost of revenue		Gross margin			Revenue		Cost of revenue		Gross margin
TCMD products sales	$	6,870,591	$	5,602,807		18.5	%	$	9,374,312	$	6,617,444		29.4	%
Third-party products sales		6,013,779		3,912,232		34.9	%		9,092,874		5,721,600		37.1	%
Total	$	12,884,370	$	9,515,039		26.2	%	$	18,467,186	$	12,339,044		33.2	%

Sales of TCMD products decreased by $2,503,721, or 26.7%, to $6,870,591 for the six months ended March 31, 2024, from $9,374,312 for the six months ended March 31, 2023. The decrease in the sales of TCMD products was mainly attributable to the following: (i) a 23.4% decrease in sales volume of TCMD products by 1,863,919 units, to 6,097,325 units sold in the six months ended March 31, 2024, from 7,961,244 units sold in the six months ended March 31, 2023. Global economic slowdown has led to a decline in customers’ spending power, and customer demand decreased during the six months ended March 31, 2024; and (ii) a 3.3% negative impact from fluctuations in foreign currency exchange rate, as the average exchange rate used in converting Renminbi (“RMB”) into U.S. dollars (“USD”) changed from US$1 to RMB6.9761 in for the six months ended March 31, 2023 to US$1 to RMB7.2064 in the six months ended March 31, 2024.

Sales of third-party products decreased by $3,079,095, or 33.9%, to $6,013,779 for the six months ended March 31, 2024, from $9,092,874 for the six months ended March 31, 2023. The decrease in the sales of third-party products was mainly attributable to the following: (i) a 29.9% decrease in sales volume of third-party products by 1,712,660 units, to 4,014,841 units sold in the six months ended March 31, 2024, from 5,727,501 units sold in the six months ended March 31, 2023 due to a decline in customer demand; and (ii) a 3.3% negative impact from fluctuations in foreign currency exchange rate.

Cost of revenues and Gross profit

Cost of revenues decreased by $2,824,005, or 22.9%, to $9,515,039 for the six months ended March 31, 2024, from $12,339,044 for the six months ended March 31, 2023, due to a decrease in sales volume of the Company’s TCMD products and third-party products, partially offset by an increase in the average cost of TCMD products by $0.09, or 10.8%, from $0.83 for the six months ended March 31, 2023 to $0.92 for the six months ended March 31, 2024. In the summer of 2023, a severe flood in Anhui Province and Hubei Province of China, which are two main producing areas of traditional Chinese medicinal materials, led to a decrease in the supply of such materials and an increase in the prices of the traditional Chinese medicine raw materials during the six months ended March 31, 2024.

Gross profit decreased by $2,758,811 to $3,369,331 for the six months ended March 31, 2024, from $6,128,142 for the six months ended March 31, 2023. Gross margin decreased by 7.0% to 26.2% for the six months ended March 31, 2024, from 33.2% for the six months ended March 31, 2023.

Operating expenses

Selling expenses increased by $1,723,849, or 74.0%, to $4,054,357 for the six months ended March 31, 2024, from $2,330,508 for the six months ended March 31, 2023, primarily attributable to (i) an increase in advertising expenses by $1,432,932, from $1,340,368 in the six months ended March 31, 2023, to $2,773,300 in the six months ended March 31, 2024. The Company entered into advertising service agreement with Health Headline to promote its brand on the Health Headline’s website and mobile app. The Company increased publicity efforts for its products and brand, and the advertising expenses increased significantly during the six months ended March 31, 2024; and (ii) an increase in salary and employee benefit expenses by $112,104, or 32.1%, as the Company recruited 10 new employees in the marketing department to promote sales of its products.

General and administrative expenses decreased by $411,445, or 29.8%, to $968,608 for the six months ended March 31, 2024 from $1,380,053 for the six months ended March 31, 2023, primarily attributable to (i) a decrease in bad debt expense by $265,530, because the Company accrued less bad debt expenses based on its assessment of the collectability of the accounts receivable and advance to suppliers; and (ii) a decrease in office supply and utility expense by $217,681 due to cost savings.

Other income (expenses), net

Provision for income taxes

Net loss

Net loss was $13,101,457 for the six months ended March 31, 2024, representing a $12,386,030 decrease from a net loss of $715,427 for the six months ended March 31, 2023.

Basic and diluted loss per share were $3.59 for the six months ended March 31, 2024, compared with basic and diluted loss per share of $0.20 for the six months ended March 31, 2023.

Balance Sheet

As of March 31, 2024, the Company had cash of $8,861,590, as compared to $5,285,247 as of September 30, 2023.

Cash Flow

Net cash used in operating activities was $2,429,621 for the six months ended March 31, 2024, compared with cash provided by operating activities of $4,798,702 for the six months ended March 31, 2023.

Net cash used in investing activities was $67,656 for the six months ended March 31, 2024, compared with $646 for the six months ended March 31, 2023.

Net cash provided by financing activities was $6,067,732 for the six months ended March 31, 2024, compared with $2,080,918 for the six months ended March 31, 2023.

Subsequent Event

About Universe Pharmaceuticals INC

Universe Pharmaceuticals INC, headquartered in Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor in China. The Company specializes in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The Company also distributes and sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Currently, the Company’s products are sold in 30 provinces of China. For more information, visit the company’s website at http://www.universe-pharmacy.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s most recent annual report on Form 20-F and in its other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Email:IR@universe-pharmacy.com

Phone:+86-0796-8403687

UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	8,861,590		$	5,285,247
Short-term investments		2,527,603			13,219,005
Accounts receivable, net		14,384,228			10,667,603
Due from related parties		-			61,678
Inventories, net		3,386,052			3,343,266
Advance to suppliers		368,960			180,643
Prepayment for acquisition		3,462,460			3,426,535
Prepaid expenses and other current assets		539,240			590,377
TOTAL CURRENT ASSETS		33,530,133			36,774,354

Property, plant and equipment, net		3,522,997			3,699,965
Prepayments made to a related party for purchase of property		2,215,974			2,192,982
Prepayments for construction in progress		9,225,725			9,092,996
Intangible assets, net		147,652			148,584
Investment in equity securities		692,492			685,307
Deferred tax assets		-			656,980
Prepaid expenses-related party, non-current		96,141			35,864
TOTAL NONCURRENT ASSETS		15,900,981			16,512,678

TOTAL ASSETS	$	49,431,114		$	53,287,032

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Short-term bank loans	$	4,431,949		$	5,482,456
Accounts payable		7,763,981			4,585,285
Taxes payable		172,374			434,758
Due to related parties		5,515,160			540,096
Accrued expenses and other current liabilities		2,726,078			2,711,736
TOTAL CURRENT LIABILITIES		20,609,542			13,754,331

Long-term bank loans		2,077,476			-
TOTAL LIABILITIES		22,687,018			13,754,331

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively		68,362			67,969
Additional paid in capital		29,278,766			29,279,159
Statutory reserve		2,439,535			2,439,535
Retained earnings		(2,942,153	)		10,159,304
Accumulated other comprehensive loss		(2,100,414	)		(2,413,266	)
TOTAL SHAREHOLDERS’ EQUITY		26,744,096			39,532,701

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	49,431,114		$	53,287,032

UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	For the Six Months Ended March 31,
	2024			2023

REVENUE	$	12,884,370		$	18,467,186
COST OF REVENUE AND RELATED TAX		9,515,039			12,339,044
GROSS PROFIT		3,369,331			6,128,142

OPERATING EXPENSES
Selling expenses		4,054,357			2,330,508
General and administrative expenses		968,608			1,380,053
Research and development expenses		86,503			2,268,335
Total operating expenses		5,109,468			5,978,896

INCOME (LOSS) FROM OPERATIONS		(1,740,137	)		149,246

OTHER INCOME (EXPENSES)
Interest expense, net		(136,613	)		(74,569	)
Other income, net		152,027			17,323
Realized (loss) gain on short-term investments		(3,094,084	)		166,931
Change in fair value of short-term investments		(7,617,502	)		-
Total other (loss) income, net		(10,696,172	)		109,685

(LOSS) INCOME BEFORE INCOME TAX PROVISION		(12,436,309	)		258,931

PROVISION FOR INCOME TAXES		665,148			974,358

NET LOSS		(13,101,457	)		(715,427	)

OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment		312,852			1,399,775
COMPREHENSIVE (LOSS) INCOME	$	(12,788,605	)	$	684,348

Earnings per ordinary share - basic and diluted	$	(3.59	)	$	(0.20	)
Weighted average shares - basic and diluted	$	3,645,974		$	3,625,000

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

													Accumulated
					Additional								Other
	Ordinary Share				Paid in			Statutory		Retained			Comprehensive
	Shares		Amount		Capital			Reserve		Earnings			Income			Total
Balance at September 30, 2022		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	16,322,365		$	(1,666,705	)	$	46,442,323
Net loss		-		-		-			-		(715,427	)		-			(715,427	)
Foreign currency translation adjustment		-		-		-			-		-			1,399,775			1,399,775
Balance at March 31, 2023		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	15,606,938		$	(266,930	)	$	47,126,671

													Accumulated
					Additional								Other
	Ordinary Share				Paid in			Statutory		Retained			Comprehensive
	Shares		Amount		Capital			Reserve		Earnings			Income			Total
Balance at September 30, 2023		3,625,000	$	67,969	$	29,279,159		$	2,439,535	$	10,159,304		$	(2,413,266	)	$	39,532,701
Reverse share-split adjustment		20,974		393		(393	)		-		-			-			-
Net loss		-		-		-			-		(13,101,457	)		-			(13,101,457	)
Foreign currency translation adjustment		-		-		-			-		-			312,852			312,852
Balance at March 31, 2024		3,645,974	$	68,362	$	29,278,766		$	2,439,535	$	(2,942,153	)	$	(2,100,414	)	$	26,744,096

UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(13,101,457	)	$	(715,427	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		248,860			257,781
Gain from disposal of fixed assets		-			(115	)
Changes in allowance for doubtful accounts		(265,530	)		-
Changes in inventory reserve		(34,303	)		(84,956	)
Deferred income tax provision		665,148			556,867
Realized loss (gain) on short-term investments		3,094,084			(166,931	)
Change in fair value of short-term investments		7,617,502			-
Changes in operating assets and liabilities:
Accounts receivable		(3,346,205	)		(1,763,903	)
Inventories		26,553			(488,746	)
Advance to suppliers, net		(186,782	)		(187,460	)
Prepaid expenses and other current assets		57,436			(220,969	)
Prepaid expenses-related party, non-current		(60,016	)		-
Accounts payable		3,136,661			7,928,308
Taxes payable		(267,456	)		149,684
Accrued expenses and other current liabilities		(14,116	)		(465,431	)
Net cash (used in) provided by operating activities		(2,429,621	)		4,798,702

Cash flows from investing activities:
Purchases of property and equipment		(30,189	)		(646	)
Prepayments for construction in progress		(37,467	)		-
Purchase of short-term investments		(313,541	)		-
Sale of short-term investments		313,541			-
Net cash used in investing activities		(67,656	)		(646	)

Cash flows from financing activities:
Proceeds from bank loans		2,081,483			1,146,776
Repayment of bank loans		(1,110,124	)		(1,146,776	)
Proceeds from related party borrowings		5,096,373			2,080,918
Net cash provided by financing activities		6,067,732			2,080,918

Effect of changes of foreign exchange rates on cash		5,888			364,084
Net increase in cash		3,576,343			7,243,058
Cash, beginning of period		5,285,247			5,711,458
Cash, end of period	$	8,861,590		$	12,954,516

Supplemental disclosure of cash flow information
Cash paid for interest	$	148,860		$	90,044
Cash paid for income tax	$	969,914		$	575,132

Document And Entity Information	6 Months Ended
Document And Entity Information	Mar. 31, 2024
Document Information Line Items
Entity Registrant Name	Universe Pharmaceuticals INC
Document Type	6-K
Current Fiscal Year End Date	--09-30
Amendment Flag	false
Entity Central Index Key	0001809616
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity File Number	001-40231

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
CURRENT ASSETS
Cash	$ 8,861,590	$ 5,285,247
Short-term investments	2,527,603	13,219,005
Accounts receivable, net	14,384,228	10,667,603
Inventories, net	3,386,052	3,343,266
Advance to suppliers	368,960	180,643
Prepayment for acquisition	3,462,460	3,426,535
Prepaid expenses and other current assets	539,240	590,377
TOTAL CURRENT ASSETS	33,530,133	36,774,354
Property, plant and equipment, net	3,522,997	3,699,965
Prepayments for construction in progress	9,225,725	9,092,996
Intangible assets, net	147,652	148,584
Investment in equity securities	692,492	685,307
Deferred tax assets		656,980
Prepaid expenses-related party, non-current	96,141	35,864
TOTAL NONCURRENT ASSETS	15,900,981	16,512,678
TOTAL ASSETS	49,431,114	53,287,032
CURRENT LIABILITIES
Short-term bank loans	4,431,949	5,482,456
Accounts payable	7,763,981	4,585,285
Taxes payable	172,374	434,758
Accrued expenses and other current liabilities	2,726,078	2,711,736
TOTAL CURRENT LIABILITIES	20,609,542	13,754,331
Long-term bank loans	2,077,476
TOTAL LIABILITIES	22,687,018	13,754,331
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively	68,362	67,969
Additional paid in capital	29,278,766	29,279,159
Statutory reserve	2,439,535	2,439,535
Retained earnings	(2,942,153)	10,159,304
Accumulated other comprehensive loss	(2,100,414)	(2,413,266)
TOTAL SHAREHOLDERS’ EQUITY	26,744,096	39,532,701
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	49,431,114	53,287,032
Related Party
CURRENT ASSETS
Due from related parties		61,678
Prepayments made to a related party for purchase of property	2,215,974	2,192,982
CURRENT LIABILITIES
Due to related parties	$ 5,515,160	$ 540,096

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Ordinary shares, par value (in Dollars per share)	$ 0.01875	$ 0.01875
Ordinary shares, shares authorized	166,666,666	166,666,666
Ordinary shares, shares issued	3,645,974	3,625,000
Ordinary shares, shares outstanding	3,645,974	3,625,000

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
REVENUE	$ 12,884,370	$ 18,467,186
COST OF REVENUE AND RELATED TAX	9,515,039	12,339,044
GROSS PROFIT	3,369,331	6,128,142
OPERATING EXPENSES
Selling expenses	4,054,357	2,330,508
General and administrative expenses	968,608	1,380,053
Research and development expenses	86,503	2,268,335
Total operating expenses	5,109,468	5,978,896
INCOME (LOSS) FROM OPERATIONS	(1,740,137)	149,246
OTHER INCOME (EXPENSES)
Interest expense, net	(136,613)	(74,569)
Other income, net	152,027	17,323
Realized (loss) gain on short-term investments	(3,094,084)	166,931
Change in fair value of short-term investments	(7,617,502)
Total other (loss) income, net	(10,696,172)	109,685
(LOSS) INCOME BEFORE INCOME TAX PROVISION	(12,436,309)	258,931
PROVISION FOR INCOME TAXES	665,148	974,358
NET LOSS	(13,101,457)	(715,427)
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	312,852	1,399,775
COMPREHENSIVE (LOSS) INCOME	$ (12,788,605)	$ 684,348
Earnings per ordinary share - basic (in Dollars per share)	$ (3.59)	$ (0.2)
Weighted average shares - basic (in Shares)	3,645,974	3,625,000

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - $ / shares	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Earnings per ordinary share - diluted	$ (3.59)	$ (0.20)
Weighted average shares - diluted	3,645,974	3,625,000

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($)	Ordinary Share	Additional Paid in Capital	Statutory Reserve	Retained Earnings	Accumulated Other Comprehensive Income	Total
Balance at Sep. 30, 2022	$ 67,969	$ 29,279,159	$ 2,439,535	$ 16,322,365	$ (1,666,705)	$ 46,442,323
Balance (in Shares) at Sep. 30, 2022	3,625,000
Net loss				(715,427)		(715,427)
Foreign currency translation adjustment					1,399,775	1,399,775
Balance at Mar. 31, 2023	$ 67,969	29,279,159	2,439,535	15,606,938	(266,930)	47,126,671
Balance (in Shares) at Mar. 31, 2023	3,625,000
Balance at Sep. 30, 2023	$ 67,969	29,279,159	2,439,535	10,159,304	(2,413,266)	$ 39,532,701
Balance (in Shares) at Sep. 30, 2023	3,625,000					3,625,000
Reverse share-split adjustment	$ 393	(393)
Reverse share-split adjustment (in Shares)	20,974
Net loss				(13,101,457)		(13,101,457)
Foreign currency translation adjustment					312,852	312,852
Balance at Mar. 31, 2024	$ 68,362	$ 29,278,766	$ 2,439,535	$ (2,942,153)	$ (2,100,414)	$ 26,744,096
Balance (in Shares) at Mar. 31, 2024	3,645,974					3,645,974

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (13,101,457)	$ (715,427)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	248,860	257,781
Gain from disposal of fixed assets		(115)
Changes in allowance for doubtful accounts	(265,530)
Changes in inventory reserve	(34,303)	(84,956)
Deferred income tax provision	665,148	556,867
Realized loss (gain) on short-term investments	3,094,084	(166,931)
Change in fair value of short-term investments	7,617,502
Changes in operating assets and liabilities:
Accounts receivable	(3,346,205)	(1,763,903)
Inventories	26,553	(488,746)
Advance to suppliers, net	(186,782)	(187,460)
Prepaid expenses and other current assets	57,436	(220,969)
Prepaid expenses-related party, non-current	(60,016)
Accounts payable	3,136,661	7,928,308
Taxes payable	(267,456)	149,684
Accrued expenses and other current liabilities	(14,116)	(465,431)
Net cash (used in) provided by operating activities	(2,429,621)	4,798,702
Cash flows from investing activities:
Purchases of property and equipment	(30,189)	(646)
Prepayments for construction in progress	(37,467)
Purchase of short-term investments	(313,541)
Sale of short-term investments	313,541
Net cash used in investing activities	(67,656)	(646)
Cash flows from financing activities:
Proceeds from bank loans	2,081,483	1,146,776
Repayment of bank loans	(1,110,124)	(1,146,776)
Proceeds from related party borrowings	5,096,373	2,080,918
Net cash provided by financing activities	6,067,732	2,080,918
Effect of changes of foreign exchange rates on cash	5,888	364,084
Net increase in cash	3,576,343	7,243,058
Cash, beginning of period	5,285,247	5,711,458
Cash, end of period	8,861,590	12,954,516
Supplemental disclosure of cash flow information
Cash paid for interest	148,860	90,044
Cash paid for income tax	$ 969,914	$ 575,132

Organization and Business Description

6 Months Ended

Mar. 31, 2024

Organization and Business Description [Abstract]

ORGANIZATION AND BUSINESS DESCRIPTION

NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION

Universe Pharmaceuticals INC (“Universe INC” or the “Company”) was incorporated under the laws of the Cayman Islands on December 11, 2019 as an exempted company with limited liability.

Universe INC, Universe HK and Universe Technology are currently not engaging in any active business operations and are merely acting as holding companies.

Reorganization

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

(a)

(b)

(c)

Details of the subsidiaries of the Company as of March 31, 2024 are set out below:

	Date of	Place of	% of
Name of Entity	Incorporation	Incorporation	Ownership	Principal Activities
Universe INC	December 11, 2019	Cayman Islands	Parent, 100%	Investment holding

Universe HK	May 21, 2014	Hong Kong	100%	Investment holding

Universe Technology	April 18, 2019	PRC	100%	WFOE, Investment holding

Jiangxi Universe	March 2, 1998	PRC	100%	Research and development and manufacturing of modernized traditional Chinese medicines

Universe Trade	March 10, 2010	PRC	100%	Sales of modernized traditional Chinese medicines

Universe Hanhe	May 12, 2021	PRC	100%	Research and development of new pharmaceutical products

Summary of Significant Accounting Policies

6 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

Reclassifications

Certain amounts on the prior-years’ consolidated balance sheets and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity.

Uses of estimates

Risks and Uncertainties

Cash

Accounts receivable, net

Inventories, net

Advances to suppliers, net

Short-term investments

Fair value of financial instruments

●

Level 1 —

inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 —

●

Level 3 —

inputs to the valuation methodology are unobservable.

	Fair Value Measured as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	2,527,603	$	2,527,603

	Fair Value Measured as of September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	13,219,005	$	13,219,005

Property and equipment

		Useful life
Buildings		20 years
Machinery and equipment		5–10 years
Automobiles		3–5 years
Office and electric equipment		3–5 years

Intangible Assets

		Useful life
Land use rights		50 years
Software		3 years

Construction-in-Progress (“CIP”)

Impairment of long-lived Assets

Investments in Equity Securities

Revenue recognition

Disaggregation of Revenues

Cost of Revenue

Research and Development Expenses

Shipping and handling costs

Advertising expense

Segment Reporting

Income taxes

Value added tax (“VAT”)

Earnings per Share

Foreign currency translation

The following table outlines the currency exchange rates that were used in creating the unaudited condensed consolidated financial statements in this report:

	March 31, 2024		March 31, 2023		September 30, 2023
Period-end US$: RMB exchange rate		7.2203		6.8676		7.2960
Period-end US$: HK exchange rate		7.8259		7.8499		7.8308
Period average US$: RMB exchange rate		7.2064		6.9761		7.0533
Period average US$: HK exchange rate		7.8172		7.8303		7.8310

Comprehensive Income

Statement of Cash Flows

Employee Defined Contribution Plan

Recent Accounting Pronouncements

Accounts Receivable, Net

6 Months Ended

Mar. 31, 2024

Accounts Receivable, Net [Abstract]

ACCOUNTS RECEIVABLE, NET

NOTE 3 — ACCOUNTS RECEIVABLE, NET

Accounts receivable consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Accounts receivable	$	14,470,157		$	11,014,909
Less: allowance for doubtful accounts		(85,929	)		(347,306	)
Accounts receivable, net	$	14,384,228		$	10,667,603

Allowance for doubtful accounts movement is as follows:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	347,306		$	791,827
Additions		-			-
Bad debt recovery		(265,530	)		(439,327	)
Foreign currency translation adjustments		4,153			(5,194	)
Ending balance	$	85,929		$	347,306

Inventory, Net

6 Months Ended

Mar. 31, 2024

Inventory, Net [Abstract]

INVENTORY, NET

NOTE 4 — INVENTORIES, NET

Inventory consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Raw materials	$	551,993		$	635,395
Finished goods		2,870,300			2,777,617
Inventory valuation allowance		(36,241	)		(69,746	)
Total inventory, net	$	3,386,052		$	3,343,266

Advance to Suppliers

6 Months Ended

Mar. 31, 2024

Advance to Suppliers [Abstract]

ADVANCE TO SUPPLIERS

NOTE 5 — ADVANCE TO SUPPLIERS

Advances to suppliers consist of the following:

	As of
	March 31, 2024		September 30, 2023
	(Unaudited)
Advances to suppliers for inventory raw material purchase	$	368,960	$	180,643
Less: allowance for doubtful accounts		-		-
Advances to suppliers	$	368,960	$	180,643

Advances to suppliers represent prepayments made to suppliers to ensure continuous high-quality supplies and favorable purchase prices of raw materials.

Prepayment for Acquisition

6 Months Ended

Mar. 31, 2024

Prepayment for Acquisition [Abstract]

PREPAYMENT FOR ACQUISITION

NOTE 6 — PREPAYMENT FOR ACQUISITION

Short-Term Investments

6 Months Ended

Mar. 31, 2024

Short-Term Investments [Abstract]

SHORT-TERM INVESTMENTS

NOTE 7 — SHORT-TERM INVESTMENTS

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	13,219,005		$	13,148,594
Purchase of short-term investments		313,541			-
Sale of short-term investments		(313,541	)		-
Realized (loss) gain on short-term investments		(3,094,084	)		38,530
Change in fair value of short-term investments		(7,617,502	)		-
Foreign currency translation adjustments		20,184			31,881
Ending balance of short-term investments	$	2,527,603		$	13,219,005

Property and Equipment, Net

6 Months Ended

Mar. 31, 2024

Property And Equipment, Net [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 8 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consists of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Buildings	20 years	$	7,381,524		$	7,304,936
Machinery and equipment	5-10 years		1,946,788			1,896,976
Automobiles	3-5 years		74,476			73,703
Office and electric equipment	3-5 years		480,015			474,830
Subtotal			9,882,803			9,750,445
Less: accumulated depreciation			(6,359,806	)		(6,050,480	)
Property and equipment, net		$	3,522,997		$	3,699,965

Intangible Assets, Net

6 Months Ended

Mar. 31, 2024

Intangible Assets Net [Abstract]

INTANGIBLE ASSETS, NET

NOTE 9 — INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Land use rights	50 years	$	249,018		$	246,434
Software	3 years		20,904			20,687
Total			269,922			267,121
Less: accumulated amortization			(122,270	)		(118,537	)
Intangible assets, net		$	147,652		$	148,584

Amortization expense was $2,495 and $2,577 for the six months ended March 31, 2024 and 2023, respectively.

Estimated future amortization expense for intangible assets is as follows:

Twelve months ending March 31,	Amortization expense

2025	$	4,980
2026		4,980
2027		4,980
2028		4,980
2029		4,980
Thereafter		122,752
	$	147,652

Prepayment for CIP Project

6 Months Ended

Mar. 31, 2024

Prepayment for CIP Project [Abstract]

PREPAYMENT FOR CIP PROJECT

NOTE 10 — PREPAYMENT FOR CIP PROJECT

As of March 31, 2024, future minimum capital expenditures on the Company’s CIP project are estimated as follows:

Twelve months ending March 31,	Capital Expenditure on CIP

2025	$	3,427,835
2026		8,697,700
2027		1,142,612
Total	$	13,268,147

Prepayment for Purchase of a Property

6 Months Ended

Mar. 31, 2024

Prepayment for Purchase of a Property [Abstract]

PREPAYMENT FOR PURCHASE OF A PROPERTY

NOTE 11 — PREPAYMENT FOR PURCHASE OF A PROPERTY

Short-Term Bank Loans

6 Months Ended

Mar. 31, 2024

Short-Term Bank Loans [Abstract]

SHORT-TERM BANK LOANS

NOTE 12 — SHORT-TERM BANK LOANS

Short-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Short-term bank loans:
Jiangxi Luling Rural Commercial Bank (“LRC Bank”)	(1)	$	1,384,984	$	2,467,105
Bank of Communications Co., Ltd	(2)		1,246,486		1,233,553
Zhujiang Rural Bank	(3)		415,495		411,184
Beijing Bank	(4)		1,384,984		1,370,614
Total short-term loans		$	4,431,949	$	5,482,456

(1)

(2)

(3)

(4)

Long-Term Bank Loans

6 Months Ended

Mar. 31, 2024

Long-Term Bank Loans [Abstract]

LONG-TERM BANK LOANS

NOTE 13 — LONG-TERM BANK LOANS

Long-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Long-term bank loans:
LRC Bank	(1)	$	2,077,476	$	-

(1)

For the above-mentioned loans, the Company recorded a total interest expense of $148,860 and $90,044 for the six months ended March 31, 2024 and 2023, respectively.

Related Party Transactions

6 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

NOTE 14 — RELATED PARTY TRANSACTIONS

(a) Nature of relationships with related parties

Name		Relationship with the Company
Mr. Gang Lai		Chief Executive Officer and chairman of the Company’s Board of Directors
Mr. Yajun Hu		General Manager of Jiangxi Universe
Guangzhou Ningjing Investment Co., Ltd (Guangzhou Ningjing)		Under common control of Mr. Gang Lai

(b) Due from related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Yajun Hu	$	-	$	61,678
Total due from related parties	$	-	$	61,678

(c) Due to related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Gang Lai	$	5,515,160	$	540,096
Total due to related parties	$	5,515,160	$	540,096

(d) Loan guarantee provided by related parties

(e) Prepayment to related party for property purchase

(f) Prepaid expenses-related party, non-current

As of March 31, 2024 and September 30, 2023, the Company prepaid Guangzhou Ningjing $96,141 and $35,864 for right to use trademarks, respectively.

Concentrations

6 Months Ended

Mar. 31, 2024

Concentrations [Abstract]

CONCENTRATIONS

NOTE 15 — CONCENTRATIONS

Sales of one of the Company’s major products, Guben Yanling Pill, accounted for 33.5% and 30.4% of the Company’s total revenue for the six months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024 and September 30, 2023, no customer accounted for more than 10% of the total accounts receivable balance.

Shareholders' Equity

6 Months Ended

Mar. 31, 2024

Shareholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 16 — SHAREHOLDERS’ EQUITY

Ordinary Shares

Increased authorized share capital and share consolidation

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

(a)

(b)

(c)

As of March 31, 2024 and September 30, 2023, the Company had a total of 3,645,974 and 3,625,000 ordinary shares issued and outstanding, respectively.

Underwriter warrants

Statutory reserve and restricted net assets

Commitments and Contingencies

6 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 17 — COMMITMENTS AND CONTINGENCIES

Subsequent Events

6 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18 — SUBSEQUENT EVENTS

Condensed Financial Information of the Parent Company

6 Months Ended

Mar. 31, 2024

Condensed Financial Information of the Parent Company [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 19 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
ASSETS
Cash	$	69,114		$	9,248
Short-term investments		2,527,603			13,219,005
Due from subsidiaries		10,785,261			10,878,344
Total current assets		13,381,978			24,106,597

Non-current assets
Investment in subsidiaries	$	13,554,925		$	15,426,104

Total assets	$	26,936,903		$	39,532,701

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Due to related parties		192,807			-
TOTAL CURRENT LIABILITIES	$	192,807		$	-

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively		68,362			67,969
Additional paid-in capital		29,278,766			29,279,159
Retained earnings		(502,618	)		12,598,839
Accumulated other comprehensive loss		(2,100,414	)		(2,413,266	)
Total shareholders’ equity		26,744,096			39,532,701

Total liabilities and shareholders’ equity	$	26,936,903		$	39,532,701

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	For the six months ended March 31,
	2024			2023
Operating costs and expenses:
General and administrative expenses	$	(232,809	)	$	(116,431	)

Other income (expenses):
Realized (loss) gain on short-term investments		(3,094,084	)		166,931
Change in fair value of short-term investments		(7,617,502	)
Other expenses		(291	)		(507	)

Equity in loss of subsidiaries		(2,156,771	)		(765,420	)

Net loss		(13,101,457	)		(715,427	)
Foreign currency translation adjustments		312,852			1,399,775
Comprehensive (loss) income attributable to the Company	$	(12,788,605	)	$	684,348

UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the six months ended March 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	(13,101,457	)	$	(715,427	)
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary		2,156,771			765,420
Realized (loss) gain on short-term investments		3,094,084			(166,931	)
Change in fair value of short-term investments		7,617,502			-
Changes in operating assets and liabilities:
Due from subsidiaries		93,083			105,058
Due to related parties		192,807			-
Net cash provided by (used in) operating activities		52,790			(11,880	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments		(313,541	)		-
Sale of short-term investments		313,541			-
Net cash provided by investing activities		-			-

EFFECT OF CHANGES OF FOREIGN EXCHANGE RATES ON CASH		7,076			120

CHANGES IN CASH		59,866			(11,760	)

CASH, beginning of period		9,248			28,917

CASH, end of period	$	69,114		$	17,157

Accounting Policies, by Policy (Policies)

6 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

Reclassifications

Reclassifications

Certain amounts on the prior-years’ consolidated balance sheets and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity.

Uses of estimates

Uses of estimates

Risks and Uncertainties

Risks and Uncertainties

Cash

Cash

Accounts receivable, net

Accounts receivable, net

Inventories, net

Inventories, net

Advances to suppliers, net

Advances to suppliers, net

Short-term investments

Short-term investments

Fair value of financial instruments

Fair value of financial instruments

●

Level 1 —

inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 —

●

Level 3 —

inputs to the valuation methodology are unobservable.

	Fair Value Measured as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	2,527,603	$	2,527,603

	Fair Value Measured as of September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	13,219,005	$	13,219,005

Property, plant and equipment

Property and equipment

		Useful life
Buildings		20 years
Machinery and equipment		5–10 years
Automobiles		3–5 years
Office and electric equipment		3–5 years

Intangible Assets

Intangible Assets

		Useful life
Land use rights		50 years
Software		3 years

Construction-in-Progress (“CIP”)

Construction-in-Progress (“CIP”)

Impairment of long-lived Assets

Impairment of long-lived Assets

Investments in Equity Securities

Investments in Equity Securities

Revenue recognition

Revenue recognition

Disaggregation of Revenues

Disaggregation of Revenues

Cost of revenue

Cost of Revenue

Research and development expenses

Research and Development Expenses

Shipping and handling costs

Shipping and handling costs

Advertising expense

Advertising expense

Segment Reporting

Segment Reporting

Income taxes

Income taxes

Value added tax (“VAT”)

Value added tax (“VAT”)

Earnings per Share

Earnings per Share

Foreign currency translation

Foreign currency translation

The following table outlines the currency exchange rates that were used in creating the unaudited condensed consolidated financial statements in this report:

	March 31, 2024		March 31, 2023		September 30, 2023
Period-end US$: RMB exchange rate		7.2203		6.8676		7.2960
Period-end US$: HK exchange rate		7.8259		7.8499		7.8308
Period average US$: RMB exchange rate		7.2064		6.9761		7.0533
Period average US$: HK exchange rate		7.8172		7.8303		7.8310

Comprehensive income

Comprehensive Income

Statement of Cash Flows

Statement of Cash Flows

Employee Defined Contribution Plan

Employee Defined Contribution Plan

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Organization and Business Description (Tables)

6 Months Ended

Mar. 31, 2024

Organization and Business Description [Abstract]

Schedule of Subsidiaries of the Company

Details of the subsidiaries of the Company as of March 31, 2024 are set out below:

	Date of	Place of	% of
Name of Entity	Incorporation	Incorporation	Ownership	Principal Activities
Universe INC	December 11, 2019	Cayman Islands	Parent, 100%	Investment holding

Universe HK	May 21, 2014	Hong Kong	100%	Investment holding

Universe Technology	April 18, 2019	PRC	100%	WFOE, Investment holding

Jiangxi Universe	March 2, 1998	PRC	100%	Research and development and manufacturing of modernized traditional Chinese medicines

Universe Trade	March 10, 2010	PRC	100%	Sales of modernized traditional Chinese medicines

Universe Hanhe	May 12, 2021	PRC	100%	Research and development of new pharmaceutical products

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Schedule of the Company’s Assets Measured at Fair Value

	Fair Value Measured as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	2,527,603	$	2,527,603

	Fair Value Measured as of September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Short-term investments	$	-	$	-	$	13,219,005	$	13,219,005

Schedule of Property and Equipment Estimated Useful Lives

		Useful life
Buildings		20 years
Machinery and equipment		5–10 years
Automobiles		3–5 years
Office and electric equipment		3–5 years

Schedule of Intangible Assets Estimated Useful Lives

Intangible assets are amortized using the straight-line method with the following estimated useful lives:

		Useful life
Land use rights		50 years
Software		3 years

Schedule of Currency Exchange Rate

The following table outlines the currency exchange rates that were used in creating the unaudited condensed consolidated financial statements in this report:

	March 31, 2024		March 31, 2023		September 30, 2023
Period-end US$: RMB exchange rate		7.2203		6.8676		7.2960
Period-end US$: HK exchange rate		7.8259		7.8499		7.8308
Period average US$: RMB exchange rate		7.2064		6.9761		7.0533
Period average US$: HK exchange rate		7.8172		7.8303		7.8310

Accounts Receivable, Net (Tables)

6 Months Ended

Mar. 31, 2024

Accounts Receivable, Net [Abstract]

Schedule of Accounts Receivable Consists

Accounts receivable consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Accounts receivable	$	14,470,157		$	11,014,909
Less: allowance for doubtful accounts		(85,929	)		(347,306	)
Accounts receivable, net	$	14,384,228		$	10,667,603

Schedule of Allowance for Doubtful Accounts

Allowance for doubtful accounts movement is as follows:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	347,306		$	791,827
Additions		-			-
Bad debt recovery		(265,530	)		(439,327	)
Foreign currency translation adjustments		4,153			(5,194	)
Ending balance	$	85,929		$	347,306

Inventory, Net (Tables)

6 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consists of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Raw materials	$	551,993		$	635,395
Finished goods		2,870,300			2,777,617
Inventory valuation allowance		(36,241	)		(69,746	)
Total inventory, net	$	3,386,052		$	3,343,266

Advance to Suppliers (Tables)

6 Months Ended

Mar. 31, 2024

Advance to Suppliers [Abstract]

Schedule of Advances to Suppliers Consist

Advances to suppliers consist of the following:

	As of
	March 31, 2024		September 30, 2023
	(Unaudited)
Advances to suppliers for inventory raw material purchase	$	368,960	$	180,643
Less: allowance for doubtful accounts		-		-
Advances to suppliers	$	368,960	$	180,643

Short-Term Investments (Tables)

6 Months Ended

Mar. 31, 2024

Short-Term Investments [Abstract]

Schedule of Short-Term Investments

The financial institution invests the Company’s fund in certain financial instruments including debt and money market securities to generate investment income. Short-term investments consisted of the following:

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
Beginning balance	$	13,219,005		$	13,148,594
Purchase of short-term investments		313,541			-
Sale of short-term investments		(313,541	)		-
Realized (loss) gain on short-term investments		(3,094,084	)		38,530
Change in fair value of short-term investments		(7,617,502	)		-
Foreign currency translation adjustments		20,184			31,881
Ending balance of short-term investments	$	2,527,603		$	13,219,005

Property and Equipment, Net (Tables)

6 Months Ended

Mar. 31, 2024

Property And Equipment, Net [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net, consists of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Buildings	20 years	$	7,381,524		$	7,304,936
Machinery and equipment	5-10 years		1,946,788			1,896,976
Automobiles	3-5 years		74,476			73,703
Office and electric equipment	3-5 years		480,015			474,830
Subtotal			9,882,803			9,750,445
Less: accumulated depreciation			(6,359,806	)		(6,050,480	)
Property and equipment, net		$	3,522,997		$	3,699,965

Intangible Assets, Net (Tables)

6 Months Ended

Mar. 31, 2024

Intangible Assets, Net [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consist of the following:

		As of
	Useful life	March 31, 2024			September 30, 2023
		(Unaudited)
Land use rights	50 years	$	249,018		$	246,434
Software	3 years		20,904			20,687
Total			269,922			267,121
Less: accumulated amortization			(122,270	)		(118,537	)
Intangible assets, net		$	147,652		$	148,584

Schedule of Estimated Future Amortization Expense for Intangible Assets

Estimated future amortization expense for intangible assets is as follows:

Twelve months ending March 31,	Amortization expense

2025	$	4,980
2026		4,980
2027		4,980
2028		4,980
2029		4,980
Thereafter		122,752
	$	147,652

Prepayment for CIP Project (Tables)

6 Months Ended

Mar. 31, 2024

Prepayment for CIP Project [Abstract]

Schedule of Future Minimum Capital Expenditures

As of March 31, 2024, future minimum capital expenditures on the Company’s CIP project are estimated as follows:

Twelve months ending March 31,	Capital Expenditure on CIP

2025	$	3,427,835
2026		8,697,700
2027		1,142,612
Total	$	13,268,147

Short-Term Bank Loans (Tables)

6 Months Ended

Mar. 31, 2024

Short-Term Bank Loans [Abstract]

Schedule of Short-Term Bank Loans

Short-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Short-term bank loans:
Jiangxi Luling Rural Commercial Bank (“LRC Bank”)	(1)	$	1,384,984	$	2,467,105
Bank of Communications Co., Ltd	(2)		1,246,486		1,233,553
Zhujiang Rural Bank	(3)		415,495		411,184
Beijing Bank	(4)		1,384,984		1,370,614
Total short-term loans		$	4,431,949	$	5,482,456

(1)

(2)

(3)

(4)

Long-Term Bank Loans (Tables)

6 Months Ended

Mar. 31, 2024

Long-Term Bank Loans [Abstract]

Schedule of Long-Term Bank Loans

Long-term bank loans consist of the following:

		As of
	Note	March 31, 2024		September 30, 2023
		(Unaudited)
Long-term bank loans:
LRC Bank	(1)	$	2,077,476	$	-

(1)

Related Party Transactions (Tables)

6 Months Ended

Mar. 31, 2024

Schedule of Nature of Relationships With Related Parties

(a) Nature of relationships with related parties

Name		Relationship with the Company
Mr. Gang Lai		Chief Executive Officer and chairman of the Company’s Board of Directors
Mr. Yajun Hu		General Manager of Jiangxi Universe
Guangzhou Ningjing Investment Co., Ltd (Guangzhou Ningjing)		Under common control of Mr. Gang Lai

Schedule of due from related parties

(b) Due from related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Yajun Hu	$	-	$	61,678
Total due from related parties	$	-	$	61,678

Schedule of due to related parties

(c) Due to related parties

	As of
Name	March 31, 2024		September 30, 2023
	(Unaudited)
Mr. Gang Lai	$	5,515,160	$	540,096
Total due to related parties	$	5,515,160	$	540,096

Condensed Financial Information of the Parent Company (Tables)

6 Months Ended

Mar. 31, 2024

Condensed Financial Information of the Parent Company [Abstract]

Schedule of Parent Company Balance Sheets

	As of
	March 31, 2024			September 30, 2023
	(Unaudited)
ASSETS
Cash	$	69,114		$	9,248
Short-term investments		2,527,603			13,219,005
Due from subsidiaries		10,785,261			10,878,344
Total current assets		13,381,978			24,106,597

Non-current assets
Investment in subsidiaries	$	13,554,925		$	15,426,104

Total assets	$	26,936,903		$	39,532,701

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Due to related parties		192,807			-
TOTAL CURRENT LIABILITIES	$	192,807		$	-

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively		68,362			67,969
Additional paid-in capital		29,278,766			29,279,159
Retained earnings		(502,618	)		12,598,839
Accumulated other comprehensive loss		(2,100,414	)		(2,413,266	)
Total shareholders’ equity		26,744,096			39,532,701

Total liabilities and shareholders’ equity	$	26,936,903		$	39,532,701

Schedule of Parent Company Statements of Income and Comprehensive Income (Unaudited)

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	For the six months ended March 31,
	2024			2023
Operating costs and expenses:
General and administrative expenses	$	(232,809	)	$	(116,431	)

Other income (expenses):
Realized (loss) gain on short-term investments		(3,094,084	)		166,931
Change in fair value of short-term investments		(7,617,502	)
Other expenses		(291	)		(507	)

Equity in loss of subsidiaries		(2,156,771	)		(765,420	)

Net loss		(13,101,457	)		(715,427	)
Foreign currency translation adjustments		312,852			1,399,775
Comprehensive (loss) income attributable to the Company	$	(12,788,605	)	$	684,348

Schedule of Parent Company Statements of Cash Flows (Unaudited)

PARENT COMPANY STATEMENTS OF CASH FLOWS

	For the six months ended March 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	(13,101,457	)	$	(715,427	)
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary		2,156,771			765,420
Realized (loss) gain on short-term investments		3,094,084			(166,931	)
Change in fair value of short-term investments		7,617,502			-
Changes in operating assets and liabilities:
Due from subsidiaries		93,083			105,058
Due to related parties		192,807			-
Net cash provided by (used in) operating activities		52,790			(11,880	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments		(313,541	)		-
Sale of short-term investments		313,541			-
Net cash provided by investing activities		-			-

EFFECT OF CHANGES OF FOREIGN EXCHANGE RATES ON CASH		7,076			120

CHANGES IN CASH		59,866			(11,760	)

CASH, beginning of period		9,248			28,917

CASH, end of period	$	69,114		$	17,157

Organization and Business Description (Details) - USD ($)			6 Months Ended
	Mar. 29, 2021	Mar. 25, 2021	Mar. 31, 2024	Sep. 30, 2023	Jul. 27, 2023	Jul. 03, 2023
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)			$ 0.01875	$ 0.01875
Share capital (in Dollars)						$ 3,125,000
Ordinary shares			166,666,666	166,666,666
Preferred shares					16,666,666.6666	100,000,000
Preferred shares par value (in Dollars per share)					$ 0.01875	$ 0.003125
Ordinary shares issued			3,645,974	3,625,000
Ordinary shares issued			3,645,974
Universe Inc [Member]
Organization and Business Description [Line Items]
Incorporation date			Dec. 11, 2019
Ownership interest percentage			100.00%
Universe HK [Member]
Organization and Business Description [Line Items]
Incorporation date			May 21, 2014
Ownership interest percentage			100.00%
Jiangxi Universe [Member]
Organization and Business Description [Line Items]
Incorporation date			Mar. 02, 1998
Ownership interest percentage			100.00%
Entity incorporation date description			March 2, 1998
Universe Trade [Member]
Organization and Business Description [Line Items]
Incorporation date			Mar. 10, 2010
Ownership interest percentage			100.00%
Jiangxi [Member]
Organization and Business Description [Line Items]
Ownership interest percentage			100.00%
Minimum [Member]
Organization and Business Description [Line Items]
Share capital (in Dollars)						$ 312,500
Maximum [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					$ 0.01875	$ 0.003125
Share capital (in Dollars)						$ 3,125,000
Ordinary shares [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)						$ 0.003125
Ordinary shares					900,000,000	90,000,000
Ordinary shares issued					3,625,000
Ordinary shares [Member] \| Minimum [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					$ 0.003125	$ 0.003125
Share capital (in Dollars)						$ 312,500
Ordinary shares					150,000,000	90,000,000
Ordinary shares issued					21,750,000
Ordinary shares [Member] \| Maximum [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					$ 0.003125	$ 0.003125
Ordinary shares					150,000,000	900,000,000
Ordinary shares issued					21,750,000
Ordinary shares issued					3,625,000
Ordinary shares [Member] \| Board of Directors Chairman [Member]
Organization and Business Description [Line Items]
Ordinary shares						900,000,000
Preferred Stock [Member]
Organization and Business Description [Line Items]
Preferred shares					100,000,000	10,000,000
Preferred shares par value (in Dollars per share)					$ 0.003125	$ 0.003125
Preferred Stock [Member] \| Minimum [Member]
Organization and Business Description [Line Items]
Preferred shares					100,000,000	10,000,000
Preferred shares par value (in Dollars per share)					$ 0.003125	$ 0.003125
Preferred Stock [Member] \| Maximum [Member]
Organization and Business Description [Line Items]
Preferred shares					16,666,666.6666	100,000,000
Preferred shares par value (in Dollars per share)					$ 0.01875	$ 0.003125
Common Stock One [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					0.01875
Common Stock One [Member] \| Minimum [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					0.003125
Common Stock One [Member] \| Maximum [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					0.01875
Common stock two [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)					$ 0.003125
Ordinary Shares [Member]
Organization and Business Description [Line Items]
Ordinary shares outstanding			3,645,974
IPO [Member]
Organization and Business Description [Line Items]
Ordinary shares par value (in Dollars per share)		$ 0.003125
Public offering price (in Dollars per share)		$ 5
Fross proceeds (in Dollars)	$ 28,750,000
IPO [Member] \| Ordinary shares [Member]
Organization and Business Description [Line Items]
Ordinary shares issued		5,000,000
Over-Allotment Option [Member]
Organization and Business Description [Line Items]
Additional shares	750,000
Net proceeds (in Dollars)	$ 25,600,000

Organization and Business Description (Details) - Schedule of Subsidiaries of the Company	6 Months Ended
	Mar. 31, 2024
Universe INC [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	Dec. 11, 2019
Place of Incorporation	Cayman Islands
% of Ownership	100.00%
Principal Activities	Investment holding
Universe HK [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	May 21, 2014
Place of Incorporation	Hong Kong
% of Ownership	100.00%
Principal Activities	Investment holding
Universe Technology [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	Apr. 18, 2019
Place of Incorporation	PRC
% of Ownership	100.00%
Principal Activities	WFOE, Investment holding
Jiangxi Universe [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	Mar. 02, 1998
Place of Incorporation	PRC
% of Ownership	100.00%
Principal Activities	Research and development and manufacturing of modernized traditional Chinese medicines
Universe Trade [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	Mar. 10, 2010
Place of Incorporation	PRC
% of Ownership	100.00%
Principal Activities	Sales of modernized traditional Chinese medicines
Universe Hanhe [Member]
Schedule of Subsidiaries [Line Items]
Date of Incorporation	May 12, 2021
Place of Incorporation	PRC
% of Ownership	100.00%
Principal Activities	Research and development of new pharmaceutical products

Summary of Significant Accounting Policies (Details) ¥ in Millions		6 Months Ended			12 Months Ended	103 Months Ended
	Sep. 30, 2023 CNY (¥)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CNY (¥)	Sep. 30, 2023 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 CNY (¥)	Mar. 31, 2024 CNY (¥)
Summary of Significant Accounting Policies [Line Items]
Cash equivalent		$ 69,249						¥ 0.5
Allowance for uncollectable balance amount		265,530
Inventory reserve		34,303	84,956
Realized (loss) gain on short-term investments		(3,094,084)	166,931
Change in fair value of short-term investments		(7,617,502)
Investment amount		685,307		¥ 5.0
Investment income
Research and development expenses		86,503	2,268,335
Advertising expenses		$ 2,773,300	1,340,368
Tax benefit percentage		50.00%
Percentage of vat rate		13.00%
Comprehensive income amount		$ 111,459	$ 173,740
Total income taxes paid percent		5.00%
Jx Rcb Bank [Member]
Summary of Significant Accounting Policies [Line Items]
Investment amount	¥ 5.0	$ 692,492
Universe Pharmaceuticals Inc [Member]
Summary of Significant Accounting Policies [Line Items]
Ownership interest		20.00%						20.00%
Jx Rcb Bank [Member]
Summary of Significant Accounting Policies [Line Items]
Ownership interest						5.00%	5.00%
Investment amount						$ 700,000	¥ 5.0

Summary of Significant Accounting Policies (Details) - Schedule of the Company’s Assets Measured at Fair Value - USD ($)	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2022
Assets:
Short-term investments	$ 2,527,603	$ 13,219,005	$ 13,148,594
Level 1 [Member]
Assets:
Short-term investments
Level 2 [Member]
Assets:
Short-term investments
Level 3 [Member]
Assets:
Short-term investments	$ 2,527,603	$ 13,219,005

Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment Estimated Useful Lives	Mar. 31, 2024
Buildings [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	20 years
Minimum [Member] \| Machinery and equipment [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	5 years
Minimum [Member] \| Automobiles [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	3 years
Minimum [Member] \| Office and electric equipment [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	3 years
Maximum [Member] \| Machinery and equipment [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	10 years
Maximum [Member] \| Automobiles [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	5 years
Maximum [Member] \| Office and electric equipment [Member]
Schedule Depreciation and Amortization of Property and Equipment [Line Items]
Expected useful lives	5 years

Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Estimated Useful Lives	Mar. 31, 2024
Land use rights [Member]
Schedule of Intangible Assets Estimated Useful Lives [Line Items]
Useful life	50 years
Software [Member]
Schedule of Intangible Assets Estimated Useful Lives [Line Items]
Useful life	3 years

Summary of Significant Accounting Policies (Details) - Schedule of Currency Exchange Rate	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023
RMB exchange rate [Member]
Schedule of Currency Exchange Rate [Line Items]
Period-end US$	7.2203	7.296	6.8676
Period average US$	7.2064	7.0533	6.9761
HK exchange rate [Member]
Schedule of Currency Exchange Rate [Line Items]
Period-end US$	7.8259	7.8308	7.8499
Period average US$	7.8172	7.831	7.8303

Accounts Receivable, Net (Details)	Mar. 31, 2024 USD ($)
Accounts Receivable, Net [Abstract]
Net account receivable percentage	81.00%
Net account receivable	$ 11.7

Accounts Receivable, Net (Details) - Schedule of Accounts Receivable Consists - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of Accounts Receivable [Abstract]
Accounts receivable	$ 14,470,157	$ 11,014,909
Less: allowance for doubtful accounts	(85,929)	(347,306)
Accounts receivable, net	$ 14,384,228	$ 10,667,603

Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
Schedule of Allowance for Doubtful Accounts [Abstract]
Beginning balance	$ 347,306	$ 791,827
Additions
Bad debt recovery	(265,530)	(439,327)
Foreign currency translation adjustments	4,153	(5,194)
Ending balance	$ 85,929	$ 347,306

Inventory, Net (Details) - Schedule of Inventory - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of inventory [Abstract]
Raw materials	$ 551,993	$ 635,395
Finished goods	2,870,300	2,777,617
Inventory valuation allowance	(36,241)	(69,746)
Total inventory, net	$ 3,386,052	$ 3,343,266

Advance to Suppliers (Details) - Schedule of Advances to Suppliers Consist - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of Advances to Supplier [Abstract]
Advances to suppliers for inventory raw material purchase	$ 368,960	$ 180,643
Less: allowance for doubtful accounts
Advances to suppliers	$ 368,960	$ 180,643

Prepayment for Acquisition (Details) - Sep. 26, 2022 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)	CNY (¥)
Prepayment for Acquisition [Line Items]
Equity transfer amount	$ 10.0	¥ 72
Prepaid amount	$ 3.5		¥ 25
Mr. Xibo Liu [Member] \| Yunnan Faxi Pharmaceuticals Co., Ltd [Member]
Prepayment for Acquisition [Line Items]
Ownership percentage	51.00%		51.00%

Short-Term Investments (Details) - USD ($)	6 Months Ended
Short-Term Investments (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Short-Term Investments [Line Items]
Short-term investments amount	$ (3,094,084)	$ 166,931
Change in fair value of short-term investment	$ (7,617,502)

Short-Term Investments (Details) - Schedule of Short-Term Investments - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Schedule of Short-Term Investments [Abstract]
Beginning balance	$ 13,219,005	$ 13,148,594	$ 13,148,594
Purchase of short-term investments	313,541
Sale of short-term investments	(313,541)
Realized (loss) gain on short-term investments	(3,094,084)		38,530
Change in fair value of short-term investments	(7,617,502)
Foreign currency translation adjustments	20,184		31,881
Ending balance of short-term investments	$ 2,527,603		$ 13,219,005

Property and Equipment, Net (Details) - USD ($)	6 Months Ended
Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Property And Equipment, Net [Abstract]
Depreciation expense	$ 246,365	$ 255,203
Income from disposal of fixed assets		$ 115

Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of Property and Equipment, Net [Line Items]
Subtotal	$ 9,882,803	$ 9,750,445
Less: accumulated depreciation	(6,359,806)	(6,050,480)
Property and equipment, net	$ 3,522,997	3,699,965
Buildings [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	20 years
Subtotal	$ 7,381,524	7,304,936
Machinery and equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Subtotal	1,946,788	1,896,976
Automobiles [Member]
Schedule of Property and Equipment, Net [Line Items]
Subtotal	74,476	73,703
Office and electric equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Subtotal	$ 480,015	$ 474,830
Minimum [Member] \| Machinery and equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	5 years
Minimum [Member] \| Automobiles [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	3 years
Minimum [Member] \| Office and electric equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	3 years
Maximum [Member] \| Machinery and equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	10 years
Maximum [Member] \| Automobiles [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	5 years
Maximum [Member] \| Office and electric equipment [Member]
Schedule of Property and Equipment, Net [Line Items]
Useful life	5 years

Intangible Assets, Net (Details) - USD ($)	6 Months Ended
Intangible Assets, Net (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets Net [Abstract]
Amortization expense	$ 2,495	$ 2,577

Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of Intangible Assets, Net [Line Items]
Total	$ 269,922	$ 267,121
Less: accumulated amortization	(122,270)	(118,537)
Intangible assets, net	$ 147,652	148,584
Land use rights [Member]
Schedule of Intangible Assets, Net [Line Items]
Useful life	50 years
Total	$ 249,018	246,434
Software [Member]
Schedule of Intangible Assets, Net [Line Items]
Useful life	3 years
Total	$ 20,904	$ 20,687

Intangible Assets, Net (Details) - Schedule of Estimated Future Amortization Expense for Intangible Assets - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Schedule of Estimated Future Amortization Expense for Intangible Assets [Abstract]
2025	$ 4,980
2026	4,980
2027	4,980
2028	4,980
2029	4,980
Thereafter	122,752
Intangible assets, net	$ 147,652	$ 148,584

Prepayment for CIP Project (Details) ¥ in Millions	6 Months Ended
Prepayment for CIP Project (Details) ¥ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	Mar. 31, 2024 CNY (¥)	Jun. 25, 2021 USD ($)	Jun. 25, 2021 CNY (¥)
Prepayment for CIP Project [Line Items]
Additional capital expenditure	$ 3,500,000
Chenyuan [Member]
Prepayment for CIP Project [Line Items]
Total estimated budget	9,600,000		¥ 69.2
Construction in Progress [Member]
Prepayment for CIP Project [Line Items]
Total estimated budget				$ 22,900,000	¥ 165.0
Construction amount	395,759		¥ 2.9
Additional capital expenditure	13,300,000	¥ 95.8
Construction in Progress [Member] \| Chenyuan [Member]
Prepayment for CIP Project [Line Items]
Prepayment	$ 9,200,000

Prepayment for CIP Project (Details) - Schedule of Future Minimum Capital Expenditures - Capital Expenditure on CIP [Member]	Mar. 31, 2024 USD ($)
Schedule of Future Minimum Capital Expenditures [Line Items]
2025	$ 3,427,835
2026	8,697,700
2027	1,142,612
Total	$ 13,268,147

Prepayment for Purchase of a Property (Details) ¥ in Millions, $ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	May 06, 2021 m²	May 06, 2021 USD ($) m²	May 06, 2021 CNY (¥) m²
Prepayment for Purchase of a Property [Line Items]
Office space totaling (in Square Meters)			2,749.3	2,749.3	2,749.3
Purchase price				$ 4.4	¥ 32
Total purchase price payable percentage			20.00%	20.00%	20.00%
Payable delivery property percentage			30.00%
Jiangxi Yueshang [Member]
Prepayment for Purchase of a Property [Line Items]
Prepayment amount	$ 2.2	¥ 16
Jiangxi Yueshang [Member] \| Mr. Gang Lai [Member]
Prepayment for Purchase of a Property [Line Items]
Percentage of equity interest			5.00%	5.00%	5.00%
Mr. Gang Lai [Member]
Prepayment for Purchase of a Property [Line Items]
Percentage of equity interest			5.00%	5.00%	5.00%
Percentage of prepayment				50.00%	50.00%

Short-Term Bank Loans (Details) ¥ in Millions	Jul. 24, 2023 USD ($)	Jun. 15, 2023 USD ($)	May 05, 2023 USD ($)	Mar. 13, 2023 USD ($)	Jul. 24, 2023 CNY (¥)	Jun. 15, 2023 CNY (¥)	May 05, 2023 CNY (¥)	Mar. 13, 2023 CNY (¥)
Short-Term Bank Loans [Line Items]
Borrowing amount	$ 1,384,984		$ 415,495	$ 1,096,491	¥ 10		¥ 3	¥ 8
Fixed interest rate	4.25%			4.56%	4.25%			4.56%
LRC Bank [Member]
Short-Term Bank Loans [Line Items]
Borrowing amount		$ 1,384,984				¥ 10
Jiangxi Luling Rural Commercial Bank [Member]
Short-Term Bank Loans [Line Items]
Fixed interest rate		4.56%	3.65%			4.56%	3.65%
Jiangxi Universe [Member]
Short-Term Bank Loans [Line Items]
Borrowing amount		$ 1,246,486				¥ 9
Working capital term		11 months
Mr. Gang Lai [Member]
Short-Term Bank Loans [Line Items]
Fixed interest rate		4.00%				4.00%
Working Capital Loan [Member]
Short-Term Bank Loans [Line Items]
Maturity date	Jul. 18, 2024		May 04, 2024	Mar. 12, 2024
Working Capital Loan [Member] \| LRC Bank [Member]
Short-Term Bank Loans [Line Items]
Maturity date		May 14, 2024
Working capital term		11 months
Working Capital Loan [Member] \| Jiangxi Universe [Member]
Short-Term Bank Loans [Line Items]
Maturity date		May 18, 2024

Short-Term Bank Loans (Details) - Schedule of Short-Term Bank Loans - USD ($)

Mar. 31, 2024

Sep. 30, 2023

Short-term bank loans:

Total short-term loans

$ 4,431,949

$ 5,482,456

Jiangxi Luling Rural Commercial Bank (“LRC Bank”) [Member]

Short-term bank loans:

Total short-term loans

^[1]

1,384,984

2,467,105

Bank of Communications Co., Ltd [Member]

Short-term bank loans:

Total short-term loans

^[2]

1,246,486

1,233,553

Zhujiang Rural Bank [Member]

Short-term bank loans:

Total short-term loans

^[3]

415,495

411,184

Beijing Bank [Member]

Short-term bank loans:

Total short-term loans

^[4]

$ 1,384,984

$ 1,370,614

[1]	On March 13, 2023, a subsidiary of the Company, Universe Trade, signed a loan agreement with LRC Bank to borrow RMB8 million (equivalent to $1,096,491) as working capital for one year, with the maturity date on March 12, 2024. The fixed interest rate of the loan was 4.56% per annum. Mr. Gang Lai signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was fully repaid upon maturity. On June 15, 2023, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB10 million (equivalent to $1,384,984) as working capital for eleven months, with the maturity date on May 14, 2024. The fixed interest rate of the loan was 4.56% per annum. Mr. Gang Lai signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was subsequently fully repaid upon maturity.
[2]	On June 15, 2023, the Company’s subsidiary, Jiangxi Universe, signed a loan agreement with Bank of Communications to borrow RMB9 million (equivalent to $1,246,486) as working capital for eleven months, with the maturity date on May 18, 2024. The fixed interest rate of the loan was 4.0% per annum. Mr. Gang Lai, Universe Trade, and an unrelated third party, Jiangxi Province Financing Guarantee Group Co., Ltd., jointly signed guarantee agreements with Bank of Communications to provide credit guarantee for this loan. The loan was subsequently fully repaid upon maturity.
[3]	On May 5, 2023, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Zhujiang Rural Bank to borrow RMB 3 million (equivalent to $415,495) as working capital for one year, with the maturity date on May 4, 2024. The fixed interest rate of the loan was 3.65% per annum. The Company pledged certain patents owned by the Company as collateral to guarantee this loan. The loan was subsequently fully repaid upon maturity.
[4]	On July 24, 2023, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Beijing Bank to borrow RMB 10 million (equivalent to $1,384,984) as working capital for one year, with the maturity date on July 18, 2024. The fixed interest rate of the loan was 4.25% per annum. There was no guarantee requirement for this loan. The loan was subsequently fully repaid upon maturity.

Long-Term Bank Loans (Details) ¥ in Millions	6 Months Ended
Long-Term Bank Loans (Details) ¥ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Nov. 23, 2023 USD ($)	Nov. 23, 2023 CNY (¥)
Long-Term Bank Loans [Line Items]
Interest expense	$ 148,860	$ 90,044
LRC Bank [Member]
Long-Term Bank Loans [Line Items]
Borrowing amount			$ 2,077,476	¥ 15
Working capital term			2 years	2 years
Maturity date			Nov. 14, 2025	Nov. 14, 2025
Fixed interest rate			3.95%	3.95%

Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans - USD ($)

Mar. 31, 2024

Sep. 30, 2023

LRC Bank [Member]

Long-term bank loans:

LRC Bank

^[1]

$ 2,077,476

[1]

Related Party Transactions (Details) ¥ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	May 06, 2021 USD ($) m²	May 06, 2021 CNY (¥) m²	Sep. 30, 2023 USD ($)	Jan. 13, 2022
Related Party Transactions [Line Items]
Office space totaling (in Square Meters) \| m²			2,749.3	2,749.3
Purchase price			$ 4,400,000	¥ 32
Jiangxi Yueshang [Member]
Related Party Transactions [Line Items]
Prepayment amount	$ 2,200,000	¥ 16
Mr. Gang Lai [Member]
Related Party Transactions [Line Items]
Equity interest ownership percentage						5.00%
Guangzhou Ningjing [Member]
Related Party Transactions [Line Items]
Right to use trademarks \| $	$ 96,141				$ 35,864

Related Party Transactions (Details) - Schedule of Nature of Relationships With Related Parties	6 Months Ended
	Mar. 31, 2024
Mr. Gang Lai [Member]
Schedule of Nature of Relationships With Related Parties [Line Items]
Nature of relationships with related parties	Chief Executive Officer and chairman of the Company’s Board of Directors
Mr. Yajun Hu [Member]
Schedule of Nature of Relationships With Related Parties [Line Items]
Nature of relationships with related parties	General Manager of Jiangxi Universe
Guangzhou Ningjing Investment Co., Ltd (Guangzhou Ningjing) [Member]
Schedule of Nature of Relationships With Related Parties [Line Items]
Nature of relationships with related parties	Under common control of Mr. Gang Lai

Related Party Transactions (Details) - Schedule of Due From Related Parties - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Mr. Yajun Hu [Member]
Schedule of Due From Related Parties [Line Items]
Total due from related parties		$ 61,678
Related Party [Member]
Schedule of Due From Related Parties [Line Items]
Total due from related parties		$ 61,678

Related Party Transactions (Details) - Schedule of Due to Related Parties - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Mr. Gang Lai [Member]
Schedule of Due to Related Parties [Line Items]
Total due to related parties	$ 5,515,160	$ 540,096
Related Party [Member]
Schedule of Due to Related Parties [Line Items]
Total due to related parties	$ 5,515,160	$ 540,096

Concentrations (Details) - USD ($)	6 Months Ended		12 Months Ended
Concentrations (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023	Sep. 30, 2022
Concentrations [Line Items]
Deposit at financial institutions (in Dollars)	$ 8,771,774		$ 5,223,573
Supplier [Member] \| Customer Concentration Risk [Member] \| Purchase [Member]
Concentrations [Line Items]
Revenue percentage	29.90%	16.20%
] \| Customer Concentration Risk [Member] \| Purchase [Member]
Concentrations [Line Items]
Revenue percentage	10.00%
No Single Customer [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Concentrations [Line Items]
Revenue percentage	10.00%
Customer One [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Concentrations [Line Items]
Revenue percentage		14.10%
Top 10 customers [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Minimum [Member]
Concentrations [Line Items]
Revenue percentage	23.00%
Top 10 customers [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member] \| Maximum [Member]
Concentrations [Line Items]
Revenue percentage		32.90%
Customer [Member] \| Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Concentrations [Line Items]
Revenue percentage			10.00%	10.00%
Customer [Member] \| Guben Yanling Pill [Member] \| Customer Concentration Risk [Member] \| Revenue Benchmark [Member]
Concentrations [Line Items]
Revenue percentage	33.50%	30.40%

Shareholders' Equity (Details) - USD ($)				6 Months Ended
Shareholders' Equity (Details) - USD ($)	Sep. 30, 2023	Jul. 03, 2023	Aug. 07, 2020	Mar. 31, 2024	Jul. 27, 2023	Mar. 31, 2023	Sep. 30, 2022	Dec. 11, 2019
Shareholders’ Equity [Line Items]
Ordinary shares	166,666,666			166,666,666
Ordinary shares par value (in Dollars per share)	$ 0.01875			$ 0.01875
Ordinary shares issued	3,625,000			3,645,974
Ordinary issued shares				3,645,974
Share capital (in Dollars)		$ 3,125,000
Preferred shares		100,000,000			16,666,666.6666
Preferred shares par value (in Dollars per share)		$ 0.003125			$ 0.01875
Issued shares		10
Outstanding shares		10
Ordinary shares outstanding	3,625,000			3,645,974
Offering price percentage				110.00%
Reserve is equal percentage				50.00%
Minimum [Member]
Shareholders’ Equity [Line Items]
Share capital (in Dollars)		$ 312,500
Maximum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares par value (in Dollars per share)		$ 0.003125			$ 0.01875
Share capital (in Dollars)		$ 3,125,000
Ordinary Shares [Member]
Shareholders’ Equity [Line Items]
Ordinary shares issued				3,645,974
Ordinary shares outstanding	3,625,000			3,645,974		3,625,000	3,625,000
Universe INC [Member]
Shareholders’ Equity [Line Items]
Ordinary shares par value (in Dollars per share)			$ 0.003125
Ordinary issued shares				16,000,000
Ordinary Shares [Member]
Shareholders’ Equity [Line Items]
Ordinary shares		90,000,000			900,000,000
Ordinary shares par value (in Dollars per share)		$ 0.003125
Ordinary shares issued					3,625,000
Price per share (in Dollars per share)		$ 0.003125
Ordinary Shares [Member] \| Minimum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares		90,000,000			150,000,000
Ordinary shares par value (in Dollars per share)		$ 0.003125			$ 0.003125
Ordinary shares issued					21,750,000
Share capital (in Dollars)		$ 312,500
Ordinary Shares [Member] \| Maximum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares		900,000,000			150,000,000
Ordinary shares par value (in Dollars per share)		$ 0.003125			$ 0.003125
Ordinary shares issued					21,750,000
Ordinary issued shares					3,625,000
Ordinary Shares [Member] \| Universe INC [Member]
Shareholders’ Equity [Line Items]
Ordinary shares			100,000,000					50,000
Ordinary shares par value (in Dollars per share)			$ 0.003125					$ 1
Ordinary shares issued			16,000,000					50,000
Ordinary issued shares			50,000
Original shares par value (in Dollars per share)			$ 1
Ordinary shares outstanding description				As a result of this forward split of the outstanding ordinary shares at a ratio of 320-for-1 share, a total of 16,000,000 shares were issued and outstanding after the split.
Ordinary Shares [Member] \| Resolve Ratio (3) [Member] \| Minimum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares					900,000,000
Preferred Stock [Member]
Shareholders’ Equity [Line Items]
Preferred shares		10,000,000			100,000,000
Preferred shares par value (in Dollars per share)		$ 0.003125			$ 0.003125
Preferred Stock [Member] \| Minimum [Member]
Shareholders’ Equity [Line Items]
Preferred shares		10,000,000			100,000,000
Preferred shares par value (in Dollars per share)		$ 0.003125			$ 0.003125
Preferred Stock [Member] \| Maximum [Member]
Shareholders’ Equity [Line Items]
Preferred shares		100,000,000			16,666,666.6666
Preferred shares par value (in Dollars per share)		$ 0.003125			$ 0.01875
Common Stock One [Member]
Shareholders’ Equity [Line Items]
Ordinary shares par value (in Dollars per share)					0.01875
Common Stock One [Member] \| Minimum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares par value (in Dollars per share)					0.003125
Common Stock One [Member] \| Maximum [Member]
Shareholders’ Equity [Line Items]
Ordinary shares par value (in Dollars per share)					$ 0.01875
Underwriter warrants [Member]
Shareholders’ Equity [Line Items]
Price per warrant (in Dollars per share)				$ 0.001
Ordinary shares percentage				6.00%
Exercise price amount (in Dollars per share)				$ 5.5
Offering price per share (in Dollars per share)				$ 5
Underwriter warrants [Member] \| Ordinary Shares [Member]
Shareholders’ Equity [Line Items]
Ordinary issued shares				300,000
Statutory Reserve and Restricted Net Assets [Member]
Shareholders’ Equity [Line Items]
Statutory surplus percentage				10.00%
Restricted amounts (in Dollars)				$ 2,439,535
Restricted net assets (in Dollars)	$ 31,786,663

Commitments and Contingencies (Details) ¥ in Millions, $ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	May 06, 2021 USD ($) m²	May 06, 2021 CNY (¥) m²
Commitments and Contingencies [Line Items]
Future minimum capital expenditure	$ 13.3
Future minimum capital expenditure for next year	3.4
Office space totaling (in Square Meters) \| m²			2,749.3	2,749.3
Purchase price			$ 4.4	¥ 32
Jiangxi Yueshang [Member]
Commitments and Contingencies [Line Items]
Prepayment Amount	$ 2.2	¥ 16
Mr. Gang Lai [Member]
Commitments and Contingencies [Line Items]
Equity interests			5.00%	5.00%

Subsequent Events (Details) $ / shares in Units, ¥ in Millions	Jul. 15, 2024 USD ($) $ / shares shares	Jul. 03, 2024 USD ($)	Jun. 16, 2024 USD ($)	Apr. 26, 2024 USD ($)	Apr. 23, 2024 USD ($)	Jul. 03, 2024 CNY (¥)	Jun. 16, 2024 CNY (¥)	Apr. 26, 2024 CNY (¥)	Apr. 23, 2024 CNY (¥)	Mar. 31, 2024 $ / shares	Nov. 23, 2023 USD ($)	Nov. 23, 2023 CNY (¥)	Sep. 30, 2023 $ / shares	Jul. 24, 2023 USD ($)	Jul. 24, 2023 CNY (¥)	Jun. 15, 2023 USD ($)	Jun. 15, 2023 CNY (¥)	May 05, 2023 USD ($)	May 05, 2023 CNY (¥)	Mar. 13, 2023 USD ($)	Mar. 13, 2023 CNY (¥)
Subsequent Events [Line Items]
Borrowing amount														$ 1,384,984	¥ 10.0			$ 415,495	¥ 3.0	$ 1,096,491	¥ 8.0
Fixed interest rate														4.25%	4.25%					4.56%	4.56%
Ordinary shares, par value (in Dollars per share)										$ 0.01875			$ 0.01875
LRC Bank [Member]
Subsequent Events [Line Items]
Borrowing amount											$ 2,077,476	¥ 15.0
Maturity date											Nov. 14, 2025	Nov. 14, 2025
Fixed interest rate											3.95%	3.95%
Borrowing amount																$ 1,384,984	¥ 10.0
Mr. Gang Lai [Member]
Subsequent Events [Line Items]
Fixed interest rate																4.00%	4.00%
Subsequent Event [Member] \| Zhujiang Rural Bank [Member]
Subsequent Events [Line Items]
Borrowing amount					$ 415,495				¥ 3.0
Working capital, terms					2 years
Maturity date					Apr. 20, 2026				Apr. 20, 2026
Fixed interest rate					3.65%				3.65%
Subsequent Event [Member] \| LRC Bank [Member]
Subsequent Events [Line Items]
Working capital, terms				1 year
Borrowing amount				$ 1,384,984				¥ 10.0
Fixed interest rate				4.31%				4.31%
Subsequent Event [Member] \| Working Capital [Member] \| LRC Bank [Member]
Subsequent Events [Line Items]
Maturity date				Apr. 25, 2025
Forecast [Member]
Subsequent Events [Line Items]
Public offering shares (in Shares) \| shares	20,000,000
Total amount \| $	$ 25
Offering-related expenses \| $	$ 199,830
Forecast [Member] \| Mr. Gang Lai [Member]
Subsequent Events [Line Items]
Working capital, terms			11 months
Borrowing amount			$ 1,121,837				¥ 8.1
Fixed interest rate			3.90%				3.90%
Forecast [Member] \| Working Capital [Member] \| Mr. Gang Lai [Member]
Subsequent Events [Line Items]
Maturity date			May 13, 2025
Forecast [Member] \| Beijing Bank [Member]
Subsequent Events [Line Items]
Working capital, terms		1 year
Borrowing amount		$ 1,384,984				¥ 10.0
Maturity date		Jul. 03, 2025
Fixed interest rate		4.15%				4.15%
Forecast [Member] \| Common Stock [Member]
Subsequent Events [Line Items]
Ordinary shares, par value (in Dollars per share)	$ 0.01875
Price per share (in Dollars per share)	$ 1.25

Condensed Financial Information of the Parent Company (Details)	Sep. 30, 2023
Condensed Financial Information of the Parent Company [Abstract]
Subsidiaries exceeded percentage	25.00%

Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets - Parent [Member] - USD ($)	Mar. 31, 2024	Sep. 30, 2023
ASSETS
Cash	$ 69,114	$ 9,248
Short-term investments	2,527,603	13,219,005
Due from subsidiaries	10,785,261	10,878,344
TOTAL CURRENT ASSETS	13,381,978	24,106,597
Non-current assets
Investment in subsidiaries	13,554,925	15,426,104
TOTAL ASSETS	26,936,903	39,532,701
CURRENT LIABILITIES
Due to related parties	192,807
TOTAL CURRENT LIABILITIES	192,807
COMMITMENTS AND CONTINGENCIES
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized, 3,645,974 and 3,625,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively	68,362	67,969
Additional paid-in capital	29,278,766	29,279,159
Retained earnings	(502,618)	12,598,839
Accumulated other comprehensive loss	(2,100,414)	(2,413,266)
TOTAL SHAREHOLDERS’ EQUITY	26,744,096	39,532,701
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 26,936,903	$ 39,532,701

Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets (Parentheticals) - Parent [Member] - $ / shares	Mar. 31, 2024	Sep. 30, 2023
Condensed Balance Sheet Statements, Captions [Line Items]
Ordinary shares, par value (in Dollars per share)	$ 0.01875	$ 0.01875
Ordinary shares, shares authorized	166,666,666	166,666,666
Ordinary shares, shares issued	3,645,974	3,625,000
Ordinary shares, shares outstanding	3,645,974	3,625,000

Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Income and Comprehensive Income (Unaudited) - Parent [Member] - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating costs and expenses:
General and administrative expenses	$ (232,809)	$ (116,431)
Other income (expenses):
Realized (loss) gain on short-term investments	(3,094,084)	166,931
Change in fair value of short-term investments	(7,617,502)
Other expenses	(291)	(507)
Equity in loss of subsidiaries	(2,156,771)	(765,420)
Net loss	(13,101,457)	(715,427)
Foreign currency translation adjustments	312,852	1,399,775
Comprehensive (loss) income attributable to the Company	$ (12,788,605)	$ 684,348

Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Cash Flows (Unaudited) - Parent [Member] - USD ($)	6 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ (13,101,457)	$ (715,427)
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiary	2,156,771	765,420
Realized (loss) gain on short-term investments	3,094,084	(166,931)
Change in fair value of short-term investments	7,617,502
Changes in operating assets and liabilities:
Due from subsidiaries	93,083	105,058
Due to related parties	192,807
Net cash (used in) provided by operating activities	52,790	(11,880)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments	(313,541)
Sale of short-term investments	313,541
Net cash used in investing activities
EFFECT OF CHANGES OF FOREIGN EXCHANGE RATES ON CASH	7,076	120
Net increase in cash	59,866	(11,760)
Cash, beginning of period	9,248	28,917	$ 28,917
Cash, end of period	$ 69,114	$ 17,157	$ 9,248

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UPC Universe Pharmaceuticals Inc