Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 209

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 209
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 | $    |     2,655,233 |   |

The movement of allowance for inventory reserve was as follows:

|                                 |     | 2024 | September 30, |     | 2023 | September 30, |   |
|:--------------------------------|:----|:-----|--------------:|:----|:-----|--------------:|:--|
| Balance as of beginning of year |     | $    |       188,856 |     |      |             - |   |
| Addition                        |     |      |       107,008 |     |      |       195,355 |   |
| Translation adjustments         |     |      |        10,340 |     |      |        (6,499 | ) |
| Balance as of end of year       |     | $    |       306,204 |     | $    |       188,856 |   |

| F-18 |

Note 5 - Advances to suppliers, net

Advances to suppliers represent prepayments made to ensure continuous high-quality supply and favorable purchase prices. Advances to suppliers consisted of the following:

|                                       |     | 2024 | September 30, |   |     | 2023 | September 30, |   |
|:--------------------------------------|:----|:-----|--------------:|:--|:----|:-----|--------------:|:--|
| Advances for raw materials purchase   |     | $    |    28,400,856 |   |     | $    |    39,098,283 |   |
| Less: allowance for doubtful accounts |     |      |    (1,912,362 | ) |     |      |       (54,217 | ) |
| Advances to suppliers, net            |     | $    |    26,488,494 |   |     | $    |    39,044,066 |   |

The movement of allowance for doubtful accounts was as follows:

|                                 |     | 2024 | September 30, |     | 2023 | September 30, |   |
|:--------------------------------|:----|:-----|--------------:|:----|:-----|--------------:|:--|
| Balance as of beginning of year |     | $    |        54,217 |     | $    |       261,518 |   |
| Addition                        |     |      |     1,807,897 |