Company: JSKJ
Filing Date: 2025-11-17
Form Type: F-1
Source: 0001477932-25-008401
Chunk: 225

Company: Jiansu (Shanghai) Information Technology Co., Ltd
Filing Date: 2025-11-17
Form: F-1
Chunk 225
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”). In accordance with ASC 606, revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve the core principle of this standard, the Company applied the following five steps:

| 1. | Identification of the contract, or contracts, with the customer;                        |
| 2. | Identification of the performance obligations in the contract;                          |
| 3. | Determination of the transaction price;                                                 |
| 4. | Allocation of the transaction price to the performance obligations in the contract; and |
| 5. | Recognition of the revenue when, or as, a performance obligation is satisfied.          |

The Company commenced the supply chain management in PRC, for which the revenue is generated from the sales of the plastic and chemical raw material and other products. The Company accounts for revenue from sale of products on a gross basis as the Company is responsible for fulfilling the promise to transfer the control over the inventories to customers, and is subject to inventory risk before ownership and risk are transferred and has the discretion in establishing prices. The Company recognizes the revenue from sale of chemical and plastic raw material and other products at a point of time when control over the inventory is transferred to customer. Advance payment from customers is recorded as contract liabilities first and then recognized as revenue when products are delivered to the customers and our performance obligations are satisfied. The Company's revenue from sales of chemical and plastic raw material and other products is recognized when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. All of the Company’s contracts are fixed price contracts and there were no separately identifiable other promises in the contracts. The Company does not routinely allow customers to return products and historically return allowance was immaterial. There is no separate rebate, discount, or volume incentive involved. Revenue is reported net of all value added taxes (“VAT”).

Contract Liabilities

A contract liability would be recognized if the Company has an unconditional right to receive consideration before the Company recognizes the related revenue. Contract liability at the beginning of each reporting period included in revenue for years ended June 30, 2024 and 2023 are $ 641,072 and $6,385,490, respectively.

Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.

Other Revenue Policies

Applying the