Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 88

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 88
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 lives of the equipment. As of September 30, 2023 and 2022, the balance of unrecognized government grants was $0.2 million and $0.3 million, respectively, which was recorded in deferred revenue. During the fiscal years ended September 30, 2023 and 2022, $0.1 million and $0.1 million was recorded in government subsidy income, respectively.

Interest income

Interest income decreased by $0.7 million, or 99.9%, to $489 in fiscal 2023 from $0.7 million for the same period of last year. Interest income in fiscal 2022 related to the Company provided RMB80 million (approximately $12.4 million) working capital support to two major suppliers for their supply chain projects in June 2021 and August 2021. The working capital support is for one year and guaranteed by two third parties and collateralized by their property and buildings. In return, the Company earned interest at a fixed annual rate of 7%. Interest income was accrued on a monthly basis and was collected upon maturity. No such arrangement in fiscal 2023.

Provision for Income Taxes

Our income tax decreased by $0.6 million, or 194.5%, from income tax expense of $0.3 million for the fiscal year ended September 30, 2022 to income tax benefit of $0.3 million for the fiscal year ended September 30, 2023. The effective tax rate changed from 12% for the fiscal year ended September 30, 2022 to 5% for the fiscal year ended September 30, 2023. The fluctuation was mainly due to certain products being exempt from income tax and a subsidiary, Khingan Forasen, being entitled to a reduced income tax rate of 15%. According to the national comprehensive utilization of resources program, 10% of the revenue generated from selling certain products were exempt from income tax, upon approval by the tax authority. In fiscal year 2021, the local tax authority notified us that our revenue generated from activated carbon did not qualify for the tax exemption from 2018 to 2020 because activated carbon was not included in the program, and we paid approximately $135,000 income tax as assessed by the tax authority. Starting January 1, 2021, activated carbon has been included in the program, and we expect to be able to enjoy the income tax exemption going forward.

In November 2016,