Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 215

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 215
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 |     | $    |       303,433 |     | $    |     1,160,540 |

Note 12 - Related party transactions

The relationship and the nature of related party transactions are summarized as follow:

| Name of Related Party |     | Relationship to the Company |     | Nature of Transactions                                                                         |
| Yefang Zhang          |     | Principal shareholder       |     | Providing working capital loan to the Company and payment of expenses on behalf of the Company |

As of September 30, 2024 and 2023, the Company owed Yefang Zhang $611,327 (of which $311,150 was a loan from Yefang Zhang and $300,177 was payment of expenses on behalf of the Company) and $152,556, respectively. The balance of due to a related party is non-trade in nature, interest-free, unsecured, and due upon demand.

| F-22 |

Note 13 - Taxes

The Company is subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled.

CN Energy is incorporated in the British Virgin Islands as an offshore holding company and is not subject to tax on income or capital gain under the laws of the British Virgin Islands.

Under the Hong Kong tax laws, an entity, that incorporated under the laws of Hong Kong China, is not subject to income tax if no revenue is generated in Hong Kong.

Under the Enterprise Income Tax (“EIT”) Law of the PRC, an entity is subject to a 25% EIT rate while preferential tax rates, tax holidays, and even tax exemption may be granted on case-by-case basis.

The following table reconciles the statutory rate to the Company’s effective tax rate:

|                                                       |     | For the years ended September 30, |       |    |     |      |       |    |     |      |       |    |
|                                                       |     |                              2024 |       |    |     | 2023 |       |    |     | 2022 |       |    |
| China Statutory income tax rate                       |     |                                   |  25.0 | %  |     |      |  25.0 | %  |     |      |  25.0 | %  |
| Effect of PRC preferential tax rate and tax exemption |     |                                   |     - |    |     |      |   0.5 | %  |     |      |