Company: JSKJ
Filing Date: 2025-11-17
Form Type: F-1
Source: 0001477932-25-008401
Chunk: 122

Company: Jiansu (Shanghai) Information Technology Co., Ltd
Filing Date: 2025-11-17
Form: F-1
Chunk 122
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     | $ | 31,610,806 |   |

| 84 |

Operating Activities

Net cash flows used in operating activities for the fiscal year ended June 30, 2024 increased by approximately $62.4 million when compared with the fiscal year ended June 30, 2023.

Net cash used in operating activities for the fiscal year ended June 30, 2024 was approximately $14.2 million, which was primarily attributable to net income of approximately $2.1 million and adjusted for changes in working capital of approximately negative $15.8 million. The adjustments for changes in working capital mainly included (i) a decrease in note payable of approximately $24.7 million, (ii) an increase in advance to suppliers of approximately $1.4 million, and against (iii) an increase in accounts payable of approximately $4.5 million, (iv) a decrease in accounts receivable of approximately $3.7 million, (v) an increase in accrued expenses and other current liabilities of approximately $1.4 million and (vi) an increase in contract liabilities of approximately $1.0 million. The decrease in notes payable was primarily resulted from repaying approximately $39.1 million in notes payable upon maturity and issuing approximately $14.4 notes payable during the fiscal year ended June 30, 2024.

Net cash provided by operating activities for the fiscal year ended June 30, 2023 was approximately $48.2 million, which was primarily attributable to net loss of approximately $0.6 million and adjusted for changes in working capital of approximately $49.1 million. The adjustments for changes in working capital mainly included (i) an increase in notes payable of approximately $37.0 million, (ii) a decrease in inventories of approximately $8.9 million, (iii) an increase in account payable of approximately $5.1 million, (iv) a decrease in advance to suppliers of approximately $3.4 million, and against (v) a decrease in contract liabilities of approximately $5.7 million. The decrease of approximately $3.4 million in advance payments to suppliers, coupled with the approximately $37.0 million increase in notes payable, were primarily attributed to strategic changes in our procurement practices, which changes are intended to optimize cash flow by reducing in prepayments in cash and increasing use of negotiable instruments, thereby improving liquidity. The approximately $8.9 million decrease in inventories primarily stem from the Company’s strategic move to reduce inventory levels