# EDGAR Filing Document

**Accession Number:** 0001888525
**File Stem:** 0001213900-26-040018
**Filing Date:** 2026-4
**Character Count:** 111569
**Document Hash:** 6d8896a9f958f2e595cd446d429e68ff
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-040018.hdr.sgml**: 20260403

**ACCESSION NUMBER**: 0001213900-26-040018

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 73

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260403

**DATE AS OF CHANGE**: 20260403

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** U-BX Technology Ltd.
- **CENTRAL INDEX KEY:** 0001888525
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41987
- **FILM NUMBER:** 26838895

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO.1 LINKONG ER ROAD, SHUNYI DISTRICT
- **STREET 2:** ZHONGGUAN SCIENCE AND TECHNOLOGY PARK
- **CITY:** BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 101300
- **BUSINESS PHONE:** 8610065120297

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO.1 LINKONG ER ROAD, SHUNYI DISTRICT
- **STREET 2:** ZHONGGUAN SCIENCE AND TECHNOLOGY PARK
- **CITY:** BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 101300

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** U-Bx Technology Ltd.
- **DATE OF NAME CHANGE:** 20211018

?xml version='1.0' encoding='ASCII'? ubxg-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2026

Commission File Number: 001-41987

U-BX Technology Ltd.

Zhongguan Science and Technology Park

No. 1 Linkong Er Road, Shunyi District, Beijing

People's Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F ☐

EXHIBIT INDEX

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| | |
|:---|:---|
| **Exhibit No**. | Description |
| 99.1 | [Operating and Financial Review and Prospects in Connection with the Unaudited Consolidated Financial Statements for the Six Months Ended December 31, 2025 and 2024](ea028218701ex99-1.htm) |
| 99.2 | [Unaudited Consolidated Financial Statements for the Six Months Ended December 31, 2025 and 2024](ea028218701ex99-2.htm) |
| 101.INS | Inline XBRL Instance Document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | U-BX Technology Ltd. | U-BX Technology Ltd. |
| Date: April 3, 2025 | By: | */s/ Jian chen* |
|  | Name: | Jian Chen |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF<br> FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and related notes included elsewhere in this interim report. Our actual results may differ materially from those we currently anticipate as a result of many factors, including those we describe under "Risk Factors" and elsewhere in this interim report. See "Special Note Regarding Forward-Looking Statements."*

**Overview**

U-BX Technology Ltd. was incorporated on June 30, 2021 in the Cayman Islands. We conduct all of our business through U-BX Beijing, U-BX Suzhou, Jiangsu Jingmo, Jiangsu YJYC, and JZSC Technology. Since U-BX Beijing's establishment in 2018, we focus on providing value-added services using artificial intelligence-driven technology to businesses within the insurance industry, including insurance carriers and brokers.

Our business primarily consists of providing the following three services/products: i) digital promotion services, ii) risk assessment services, and iii) value-added bundled benefits. We help our institutional clients obtain visibility on various social media platforms and generate our revenue based on consumers' clicks, views or our clients' promotion time through those channels. We have also developed a unique algorithm and named it the "Magic Mirror" to calculate payout risks for insurance carriers to underwrite auto insurance coverage. Utilizing our proprietary algorithmic model, we are able to generate individualized risk reports based on the vehicle brand, model, travel area, and vehicle age. In turn, we are able to generate revenue based on the number of assessment reports we provide to the insurance carriers. Lastly, to help major insurance carriers or brokers attract their customers, we sell bundled benefits, including car wash, maintenance plan or parking notification, to these carriers, which then may then pass onto their customers for either low or no cost.

In addition to servicing institutional customers, we provide up-to-date insurance-related information to individual consumers through our mini-application embedded in other social media platforms. The information is provided to educate consumers and insurance brokers about the insurance industry, thus helping us build a stronger brand image within the general public.

At present, our client base consists of more than 300 city-level property and auto insurance carriers nationwide using our products and services to conduct business on a daily basis. Some of our clients include large corporations such as the People's Insurance Company of China, Dajia Property Insurance Co., Ltd., China Pacific Property Insurance Co., Ltd., China Life Property Insurance Co., Ltd., Yongcheng Property Insurance Co., Ltd., Huatai Insurance Brokers Co., Ltd. With the future digitization of the insurance industry, we expect to have a broader reach within the overall insurance industry, as our business focuses on providing insurance technology solutions to insurance carriers interested in applying artificial intelligence technology and online traffic promotion method in their operations. We believe the future digitization of the insurance industry will create more interest among insurance carriers in using the technology and promotion channels we offer.

**Factors Affecting Our Results of Operations**

Our business and results of operations are affected by China's overall economic conditions and structural transformations, especially the development of insurance industry and cloud-based communications industry, as well as the following industry- and company-specific factors.

***Government policies may impact our business and operating results.***

Our People's Republic of China ("PRC") entities are incorporated, and their operations and assets are located, in China. Accordingly, our results of operations, financial condition and prospects are affected by China's regulation conditions in the following factors: (a) economic policies and initiatives undertaken by the PRC government; (b) changes in the Chinese or regional business or regulatory environment affecting the purchase power of consumers of our products; and (c) changes in Chinese government policy affecting our industry. Unfavorable changes could affect demand for services that we sell and for services that we provide and could materially and adversely affect the results of operations. We have not seen any impact of unfavorable government policies upon our inception. However, we will seek to make adjustments as required if and when government policies shift.

 **

***New Customer Acquisition***

 **

Our operating results and growth prospects will depend on our ability to attract new customers. We are intensely focused on growing our customer base. We will enhance our sales and marketing efforts to attract new customers to try out our products and services and accelerate their adoption of our platform.

We will strengthen the network effects of our services and promote our brand awareness, which in turn enables us to acquire new customers rapidly at low acquisition costs. Furthermore, we seek to improve the breadth and quality of our platform and products, and to enhance our brand recognition, which will allow us to capture additional market share, better optimize the pricing of our products and services, and reach customers in a broader range of verticals and use cases.

***Our ability to compete effectively***

 ****

Our business and results of operations depend on our ability to compete effectively in the industry in which we operate. Our competitive position may be affected by, among other things, the scope of our services, the quality of our solutions and our ability to customize our services to meet customers' business needs. We believe that our proprietary technologies and research and development capabilities help us to develop products tailored to our customers and we can retain and develop business with existing customers and to attract new customers. However, if we are unable to keep up with our product development or innovation, we might not be able to develop new customers or expand our business effectively. In addition, we are subject to competition from within our industry. Increased competition could materially and adversely affect our business and results of operations.

***Expanding Usage by Existing Customers***

 ****

We have amassed a large and diversified customer base covering a wide spectrum of verticals. We believe that there are significant growth opportunities within our existing customers. We expect to expand into additional services categories, explore cross- and up-selling opportunities and continue to invest in sales and marketing and customer success activities to achieve additional revenue growth from existing customers. We believe that these efforts will have a long-term, positive impact on our business and results of operations.

***Strategic investment and acquisitions***

 ****

We intend to continue to pursue strategic acquisitions and investments in selective technologies and businesses in the insurance industry that will enhance our technology capabilities. We believe that a solid acquisition and investment strategy may be critical for us to accelerate our growth and strengthen our competitive position in the future. Our ability to identify and execute strategic acquisitions and investments will likely have an effect on our operating results over time.

**Results of Operations**

 ****

***For the six months*** *ended December 31, 2025 and 2024*

The following tables set forth our results of operations for the periods presented in dollars and as a percentage of our revenue:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **% of revenue** | **Amount** | **% of revenue** | **Amount** | **%** |
|  | **(Unaudited)** | | **(Unaudited)** | | | |
| **Revenues** | $11652959 | 100 | $17287465 | 100 | $(5634506) | (33) |
| **Cost of revenues** | (11622997) | (100) | (17079275) | (99) | 5456278 | (32) |
| **Gross profit** | 29962 | - | 208190 | 1 | (178228) | (86) |
| **Operating expenses:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (10241512) | (88) | (578914) | (3) | (9662598) | 1669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (10241512) | (88) | (578914) | (3) | (9662598) | 1669 |
| **Loss from operations** | (10211550) | (88) | (370724) | (2) | (9840826) | 2654 |
| **Other income (expenses):** |  |  |  |  |  |  |
| Interest income | 1160 |  | 220224 | 1 | (219064) | (99) |
| Interest expenses | (382) |  | (24259) |  | 23877 | (98) |
| &nbsp;&nbsp;&nbsp;(Loss)/ gain on deconsolidation of subsidiaries | (7579) | - | 523746 | 3 | (531325) | (101) |
| &nbsp;&nbsp;&nbsp;Other (loss) income, net |  | - | (2556) | - | 2556 | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income/(Loss) from equity method investment | (8924) | - | - | - | (8924) | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | (15725) | - | 717155 | 4 | (732880) | (102) |
| **Income (loss) before income taxes** | (10227275) | (88) | 346431 | 2 | (10573706) | (3052) |
| **Provision for income taxes** | 49792 | - | (570) | - | 50362 | (8835) |
| **Net loss (Income)** | $(10177483) | (87) | $345861 | 2 | $(10523344) | (3043) |

---

 ****

 ****

***Revenues***

 

*Digital promotion services*

The Company generates revenues primarily from digital promotion services to insurance companies on its various website channels, including pay for performance marketing services whereby customers are charged based on effective clicks on their insurance product information, and display advertising services that allow customers to place advertisements on various websites. Revenues from both types of transactions are recognized at a point in time when the performance obligation to deliver those online marketing services is checked and accepted by customers.

 

*Risk Assessment services*

The Company provides various risk assessment services of vehicle accident prediction to insurance companies to reduce their vehicle accident compensation risks. Based on the vehicle's information we collected, we build our customers predictive models with multi-dimensional, multi-features and the risk assessment results in visual form. Consideration received for risk assessment services reflects stand-alone selling prices and are settled monthly based on standard unit prices and service volumes rendered during the period. The service revenue is recognized at a point in time upon the service delivery and acceptance by the customers.

 

*Value-added Bundled Benefits*

The Company sells value-added bundled benefits to insurance carriers through service codes which carriers provide to their clients as part of the latter's service package. Upon presenting the code, vehicle owners are able to use a series of vehicle maintenance services such as car washing, car maintenance, driver services, and vehicle moving notification services. Revenue is recognized at the time when the related services have been delivered based on the specific terms of the contract.

The following table sets forth the breakdown of our revenue for the six months ended December 31, 2025 and 2024, respectively:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
|  | **(Unaudited)** | | **(Unaudited)** | | | |
| Digital promotion services | $11446522 | 98 | $13650715 | 79 | $(2204193) | (16) |
| Risk assessment services | 97375 | 1 | 3337798 | 19 | (3240423) | (97) |
| Value-added bundled benefits | 109062 | 1 | 298952 | 2 | (189889) | (64) |
| **Total** | $**11652959** | **100** | $**17287465** | **100** | $**(5634505)** | **(33)** |

---

Total revenue for the six months ended December 31, 2025 decreased by $5.6 million, or 33%, to $11.6 million from $17.3 million for the same period in 2024, primarily due to decreases in our revenue from digital promotion services and risk assessment services.

 

*Revenues from Digital Promotion Services.*

Revenues from digital promotion services accounted for 98% and 79% of our total revenues for the six months ended December 31, 2025 and 2024, respectively. Revenues from digital promotion services decreased by $2.2 million, or 16% from $13.7 million for the six months ended December 31, 2024, to $11.4 million for the same period in 2025. The revenues decrease was primarily caused by decreased customer demand in promotion business due to the overall economic downturn, which led to a contraction in clients' business activities and a decline in transaction volumes.

 

*Revenues from Risk Assessment Services.*

Revenues from risk assessment services accounted for 1% and 19% of our total revenues for the six months ended December 31, 2025 and 2024, respectively. Revenue for risk assessment services decreased by $3.2 million, or 97%, to $0.1 million for the six months ended December 31, 2025 from $3.3 million for the same period in 2024, which was mainly due to the contraction in client business scale causing by follows: ① macroeconomic conditions downturn; ② regulators require insurance companies to establish their own risk management systems covering the whole process; ③ technological breakthroughs represented by artificial intelligence ("AI") provide insurance companies with a powerful and cost-controlled internal alternative; ④ and the decreased demand and budget of insurance companies for the risk assessment services.

 

*Revenues from Value-added Bundled Benefits.*

Revenues from value-added bundled benefits accounted for 1% and 2% of our total revenues for the six months ended December 31, 2025 and 2024, respectively. Revenue for value-added bundled benefits decreased by $0.2 million, or 64%, to $0.1 million for the six months ended December 31, 2025 from $0.3 million for the same period in 2024. The decline was primarily attributable to the overall economic downturn, which led to a contraction in clients' business activities and a decline in transaction volumes.

 ****

***Cost of Revenues***

The following table sets forth the breakdown of our cost of revenue for the six months ended December 31, 2025 and 2024, respectively:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
|  | **(Unaudited)** | | **(Unaudited)** | | | |
| Digital promotion services | $11416844 | 98 | $13559624 | 79 | $(2142781) | (16) |
| Risk assessment services | 97341 | 1 | 3225408 | 19 | (3128065) | (97) |
| Value-added bundled benefits | 108812 | 1 | $294243 | 2 | (185431) | (63) |
| **Total** | $**11622997** | **100** | $**17079275** | **100** | $**(5456277)** | **(32)** |

---

Cost of digital promotion services decreased by $2.1 million or 16%, to $11.4 million for the six months ended December 31, 2025 from $13.6 million for the same period in 2024, which was in tandem with the decrease in digital promotion services revenue for the six months ended December 31, 2025.

Cost of risk assessment service decreased by $3.1 million for the six months ended December 31, 2025 from $3.2 million for the same period in 2024. The decrease was in line with the decrease in risk assessment services revenues.

Cost of value-added bundled benefits decreased by $0.2 million, or 63%, to $0.1 million for the six months ended December 31, 2025 from $0.3 million for the same period in 2024. The decrease was in line with the decrease in value-added bundled benefits revenues.

 ****

***Gross Profit***

Total gross profit decreased by $178,228, or 86%, to $29,962 for the six months ended December 31, 2025 from $208,190 for the six months ended December 31, 2024. Gross profit margin decreased by 0.9%, to 0.3% for the six months ended December 31, 2025, from 1.2% for the same period in 2024.

 ****

***Operating Expenses***

 

*General and Administrative Expenses*

Our general and administrative expenses mainly consist of (i) salaries, bonuses and benefits for our personnel engaged in general corporate functions, (ii) rental and related expenses, (iii) general office expenses, (iv) recruitment and training expenses, (v) professional fees, (vi) travel, reception and related expenses, and (vii) depreciation and amortization expenses related to general corporate activities. We expect that our general and administrative expenses to decrease modestly in the near future, as we imposed cost control.

General and administrative expenses increased by $9.7 million, or 1,669%, to $10.2 million for the six months ended December 31, 2025 from $0.6 million for the six months ended December 31, 2024. The increase was primarily attributable to the company executed the 2025 Equity Incentive Plan (the "ESOP").

 ****

***(Loss)/ gain on deconsolidation of subsidiaries***

Loss on deconsolidation of Jiangsu Jingmo primarily consisted of net income from the liquidation subsidiary of $7,579 for the six months ended December 31, 2025. Gain on deconsolidation of RDYJ was $523,746 for the six months ended December 31, 2024.

***Other (loss) income, net***

Other loss, net was nil for the six months ended December 31, 2025. Other loss, net primarily consisted of tax penalty for late payment of $2,556 for the six months ended December 31, 2024.

***Provision for Income Taxes***

Our provision for income taxes was $49,792 and $570 for the six months ended December 31, 2025 and 2024, respectively.

Under the Enterprise Income Tax ("EIT") Law of the PRC, taxable income of domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% EIT rate while preferential tax rates, tax holidays, and even tax exemption may be granted on case-by-case basis.

 ****

***Net loss (Income)***

As a result of the foregoing, we had a net loss of $10.2 million for the six months ended December 31, 2025 compared to a net income of $345,861 for the six months ended December 31, 2024.

***Cash flows***

 ****

***For the six months ended December 31, 2025 and 2024***

The following table sets forth a summary of our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Net cash used in operating activities | $(631510) | $(1584933) |
| Net cash (used in) provided by investing activities | (326876) | 9679064 |
| Net cash (used in) provided by financing activities | (392692) | 5810686 |
| Effect of foreign exchange rate on cash | 41347 | (40898) |
| Net (decrease) increase in cash | (1309731) | 13863919 |
| Cash at the beginning of the period | 11182783 | 4834349 |
| Cash at the end of the period | $**9873052** | $**18698268** |

---

 ****

***Operating Activities***

Net cash used in operating activities amounted to $631,890 for the six months ended December 31, 2025. It was primarily due to a) a net loss of $10,177,483, adjusted by depreciation and amortization of $106,001; b) a Share-based compensation expenses $9,678,348; c) a decrease in account receivable, net of $201,021; d) an increase in advances to vendors of $224,396; and e) a decrease in accounts payable of $128,259.

Net cash used in operating activities amounted to $1,584,933 for the six months ended December 31, 2024. It was primarily due to a) a net loss of $345,861, adjusted by depreciation and amortization of $4,936; b) a decrease in advances to vendors of $1.7 million; and c) an increase in accounts payable of $0.3 million.

 ****

***Investing Activities***

Net cash used in investing activities was $326,876 for the six months ended December 31, 2025 was for the payment of construction in progress.

Net cash provided by investing activities was $9,679,064 for the six months ended December 31, 2024 was for the collection of loans to third parties.

***Financing Activities***

Net cash used in financing activities amounted to $392,692 for the six months ended December 31, 2025, representing repayments of short-term bank loans.

Net cash provided by financing activities amounted to $5,810,686 for the six months ended December 31, 2024, representing receipt of issuance of ordinary shares from shareholders.

**Contractual Obligation**

As of December 31, 2025, the company had fully repaid all its bank loans; and the operating lease for the office expires on November 30, 2026, and all rent has been fully paid. Accordingly, these obligations are not expected to materially impact the Company's liquidity or future cash flows.

Other than those shown above, we did not have any significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2025.

**Trend Information**

Other than as disclosed elsewhere in this interim report, we are not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on our net revenue, income from operations, profitability, liquidity, or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**Off-Balance Sheet Arrangements**

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as shareholders' equity, or that are not reflected in our financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, we do not have any variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

**Critical Accounting Policies and Management Estimates**

 ****

***Use of estimates***

We prepare our unaudited interim consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgements, estimates and assumptions. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experiences and various other assumptions that that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. Our critical accounting estimates require a higher degree of judgement than others in their application and involve a significant level of uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our financial condition or results of operations. We believe the following accounting policies involve critical estimates. For a detailed discussion of our significant accounting policies and related judgements, see "Notes to Unaudited interim consolidated Financial Statements—Note 2 Significant Accounting Policies" of our unaudited interim consolidated financial statements included elsewhere in this report.

 ****

***Revenue recognition***

The Company recognizes revenue per FASB ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") for all periods presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess our revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided.

The Company's revenues are derived principally from digital promotion services, risk-assessment services and value-added services. Value added taxes ("VAT") are presented as a reduction of revenues.

 

*<u>Digital promotion services</u>*

The Company generates revenues primarily from digital promotion services to insurance companies on its various website channels, including pay for performance marketing services whereby customers are charged based on effective clicks on their insurance product information, and display advertising services that allow customers to place advertisements on various websites.

Pursuant to the digital promotion contracts, the performance obligation of the Company is to provide promotion services for the planning, designing, customizing strategy scheme and promoting for the customer. The Company considers that both of the digital market planning and promotion services are highly interrelated and not separately identifiable. The Company's overall promise represents a combined output that is a single performance obligation. Revenues are recorded at a point in time when the performance obligation to deliver those digital promotion services is checked and accepted.

For the contracts that involve the third-party vendors, the Company considers itself as provider of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the planning and producing the content for the promotion and (ii) having latitude in selecting third party vendors for promotions and establishment of the pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis.

 

*<u>Risk-assessment services</u>*

The Company generates risk-assessment revenue from service fees of providing assessment reports to the insurance carriers. Utilizing the self-developed proprietary algorithmic model, the Company generates individualized risk reports based on the vehicle brand, model, travel area, and driver's information.

Pursuant to the risk assessment contracts, the performance obligation of the Company is to utilize its self-developed risk assessment model and to provide risk assessment reports to customers. Consideration received reflects stand-alone selling prices and are settled monthly based on standard unit prices and service volumes rendered during the period. Revenue recognized at a point in time upon the services delivery and acceptance by the customers.

For the contracts that involve technical services provided by third-party vendors, the Company considers itself as provider of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the production of the risk assessment reports with self-developed models and (ii) having latitude in select outsourced technical services and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis.

 

*<u>Value-added bundled benefits services</u>*

The Company enters into value added benefits contracts with insurance companies. Pursuant to the value-added benefit contracts, the Company provides the digital code with value added bundled benefits to customers. The bundled benefits including but not limited to auto maintenance services, auto value added services, vehicle moving notification services and other services. The Company is primarily responsible for selecting the out-sourced vendors, integrating out-sourced services and services provided in house to generate various bundled benefits digital codes and providing technical support for the codes. The Company's overall promise represents a combined output that is a single performance obligation; there is no multiple performance obligations.

For the contracts that involve the third-party vendors, the Company considers itself as principal of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the generation of the codes and integrating various services provided by itself and outsourced vendors with the Company's promise to provide products and services according to the contract entered into with customers and (ii) having latitude in selecting third party vendors for some value added services and establishing pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. Revenue from value-added bundled benefits is recognized at a point in time when the Company satisfies the performance obligation by transferring promised services upon acceptance by customers.

 

*<u>Accounts receivable, net</u>*

Accounts receivable is presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer payment history, customer's current creditworthiness, and current economic trends. Accounts are written off against the allowance after unsuccessful collection.

 ****

***Income taxes***

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce net deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred for the six months ended December 31, 2025 and 2024. The Company does not believe that there were any uncertain tax positions as of December 31, 2025 and June 30, 2024. The Company's subsidiaries in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the six months ended December 31, 2025 and 2024.

**Emerging Growth Company Status**

We are an emerging growth company, as defined in the JOBS Act. The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of new accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period under the JOBS Act until the earlier of the date we (1) are no longer an emerging growth company or (2) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

**Recent accounting pronouncements**

For detailed discussion on recent accounting pronouncements, see Note 2 to our unaudited interim consolidated financial statements included elsewhere in this interim report.

## Exhibit 99.2

?xml version='1.0' encoding='ASCII'? ubxg-20251231

Exhibit 99.2

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

U-BX TECHNOLOGY LTD.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page |
| [Consolidated Balance Sheets as of December 31, 2025 (unaudited) and June 30, 2025](#a_001) | F-2 |
| [Interim Consolidated Statements of Operations and Comprehensive (Loss) Income for the Six Months ended December 31, 2025 and 2024](#a_002) | F-3 |
| [Interim Consolidated Statements of Changes in Shareholders' Equity for the Six Months ended December 31, 2025 and 2024](#a_003) | F-4 |
| [Unaudited Interim Consolidated Statements of Cash Flows for the Six Months ended December 31, 2025 and 2024](#a_004) | F-5 |
| [Notes to the Unaudited Interim Consolidated Financial Statements](#a_005) | F-6 |

---

U-BX TECHNOLOGY LTD.

CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **June 30,<br> 2025** |
|  | (unaudited) | (audited) |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $9873052 | $11182783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 28052 | 227044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to suppliers | 3929949 | 3635982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid shared-based payment, current | 4021920 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets, net | 16006 | 14334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **17868979** | **15060143** |
| &nbsp;&nbsp;&nbsp;**Non-current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investments | 73930 | 81429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 5891704 | 4093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 5182 | 5286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 6936 | 10525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 253508 | 5805109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid shared-based payment, non-current | 14229732 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 8778 | 13789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current assets** | **20469770** | **5920231** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $**38338749** | $**20980374** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;**Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term loans | $- | $389741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 75442 | 201369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payables | 608576 | 634584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals and other liabilities | 185639 | 237403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – current portion | - | 7550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **869657** | **1470647** |
| &nbsp;&nbsp;&nbsp;**Non-current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties – noncurrent | 499722 | 490662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 347 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current liabilities** | **500069** | **490811** |
| **Total Liabilities** | **1369726** | **1961458** |
| **Commitments and contingencies (Note 13)** |  |  |
| &nbsp;&nbsp;&nbsp;**Shareholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary Shares ($0.0016 par value, 625,000,000 authorized, 20,784,142 shares issued and outstanding as of June 30, 2025) |  | 33255 |
| &nbsp;&nbsp;&nbsp;Class A ordinary shares ($0.0016 par value, 151,250,000,000 authorized, 22,624,607 shares issued and outstanding as of December 31, 2025) , | 36200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B ordinary shares ($0.0016 par value, 5,000,000,000 shares authorized, and 7,659,535 shares issued and outstanding as of December 31, 2025) | 12255 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in-capital | 50327045 | 22412245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory reserves | 325813 | 374343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (13884513) | (3755560) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 152223 | (45367) |
| **Total shareholders' equity** | **36969023** | **19018916** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $**38338749** | $**20980374** |

---

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

U-BX TECHNOLOGY LTD.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
|  | **2025** | **2024** |
| **Revenues** | $11652959 | $17287465 |
| Cost of revenues | (11622997) | (17079275) |
| **Gross profit** | 29962 | 208190 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (10241512) | (578914) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (10241512) | (578914) |
| **Loss from operations** | (10211550) | (370724) |
| **Other income (expenses):** |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1160 | 220224 |
| &nbsp;&nbsp;&nbsp;Interest expenses | (382) | (24259) |
| &nbsp;&nbsp;&nbsp;(Loss)/gain on deconsolidation of subsidiaries | (7579) | 523746 |
| &nbsp;&nbsp;&nbsp;Other loss, net |  | (2556) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from equity method investment | (8924) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expenses) income, net | (15725) | 717155 |
| **(Loss) income before income taxes** | (10227275) | 346431 |
| **Income tax benefit (expenses)** | 49792 | (570) |
| **Net (loss) income** | $**(10177483)** | $**345861** |
| **Comprehensive (loss) income** |  |  |
| Foreign currency translation income (loss) | 197590 | (48687) |
| **Comprehensive (loss) income attributable to shareholders** | $**(9979893)** | $**297174** |
| **(Loss) earnings per ordinary share** |  |  |
| Basic and diluted \* | $(0.36) | $0.18 |
| **Weighted average number of ordinary shares outstanding** |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted \* | 28425446 | 1940833 |

---

\* Giving retroactive effect to the 1-for-16 reverse share split effected on November 27, 2024.

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

U-BX TECHNOLOGY LTD.

UNAUDITED **INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025 AND 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | | | | | | |
|  | **Shares\*** | **Amount** | **Subscription**<br>**receivable** | **Additional<br> paid-in**<br>**capital** | **Statutory**<br>**reserves** | **Accumulated**<br>**deficit** | **Accumulated<br> other<br> comprehensive**<br>**loss** | **Total shareholders'**<br>**equity** |
| **Balance as of July 1, 2024** | **1687500** | $**2700** | $**&nbsp;&nbsp;&nbsp;&nbsp; -** | $**14578800** | $**570807** | $**(1233509)** | $**(44800)** | $**13873998** |
| Issuance of ordinary shares for cash | 1425000 | 2280 |  | 5697720 |  |  |  | 5700000 |
| Net income |  |  |  |  |  | 345861 |  | 345861 |
| Reversal of statutory reserves | - | - | - | - | (169512) | 169512 | - | - |
| Foreign currency translation adjustment | - | - | - | - | - | - | (48687) | (48687 |
| **Balance as of December 31, 2024 (unaudited)** | **3112500** | $**4980** | $- | $**20276520** | $**401295** | **(718136)** | $**(93487)** | $**19871172** |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | **Class A <br> Ordinary shares** | **Class A <br> Ordinary shares** | **Class B <br> Ordinary shares** | **Class B <br> Ordinary shares** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional paid-in**<br>**capital** | **Statutory**<br>**reserves** | **Accumulated**<br>**deficit** | **Accumulated other comprehensive**<br>**(loss) income** | **Total shareholders'**<br>**equity** |
| **Balance as of July 1, 2025** | **20784142** | $**33255** | **-** | $**-** | **-** | $**-** | $**22412245** | $**374343** | $**(3755560)** | $**(45367)** | $**19018916** |
| Share based payment | 9500000 | 15200 |  |  |  |  | 27914800 |  |  |  | 27930000 |
| Re-designation of ordinary shares into Class A ordinary shares (Note 11) | (30284142) | (48455) | 30284142 | 48455 |  |  |  |  |  |  |  |
| Repurchase of Class A ordinary shares and issuance of Class B ordinary shares (Note 11) |  |  | (7659535) | (12255) | 7659535 | 12255 |  |  |  |  |  |
| Net loss |  |  |  |  |  |  |  |  | (10177483) |  | (10177483) |
| Reversal of statutory reserves |  |  |  |  |  |  |  | (48530) | 48530 |  |  |
| Foreign currency translation adjustment | - | - | - | - | - | - | - | - | - | 197590 | 197590 |
| **Balance as of December 31, 2025 (unaudited)** | **-** | $**-** | **22624607** | $**36200** | **7659535** | $**12255** | $**50327045** | $**325813** | $**(13884513)** | $**152223** | $**36969023** |

---

\* Giving retroactive effect to the 1-for-16 reverse share split effected on November 27, 2024.

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

U-BX TECHNOLOGY LTD.

UNAUDITED **INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Adjustments to reconcile net (loss) income to net cash used in operating activities: |  |  |
| Net (loss) income | $(10177483) | $345861 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on deconsolidation of subsidiaries | 7579 | (523746) |
| &nbsp;&nbsp;&nbsp;Loss from equity method investment | 8924 |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation expenses | 9678348 |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 106001 | 4936 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 3743 | 3726 |
| &nbsp;&nbsp;&nbsp;Change in allowance for credit losses | (7) | (113938) |
| &nbsp;&nbsp;&nbsp;Change in allowance for doubtful accounts |  | (13681) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 193 | 187 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Account receivable | 201021 | 365266 |
| &nbsp;&nbsp;&nbsp;Advance to suppliers | (224396) | (1682601) |
| &nbsp;&nbsp;&nbsp;Prepayments and other current assets | (8975) | (61872) |
| &nbsp;&nbsp;&nbsp;Other assets |  | (219493) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (128259) | 325934 |
| &nbsp;&nbsp;&nbsp;Taxes payable | (37325) | 17551 |
| &nbsp;&nbsp;&nbsp;Accruals and other liabilities | (53267) | (25594) |
| &nbsp;&nbsp;&nbsp;Operating lease liability | (7607) | (7469) |
| &nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(631510)** | **(1584933)** |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (326876) |  |
| &nbsp;&nbsp;&nbsp;Proceeds on disposal of property and equipment |  | 1807 |
| &nbsp;&nbsp;&nbsp;Collection of loans to third parties | - | 9677257 |
| &nbsp;&nbsp;&nbsp;**Net cash (used in) provided by investing activities** | **(326876)** | **9679064** |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of ordinary shares |  | 5700000 |
| &nbsp;&nbsp;&nbsp;Proceeds from short-term loan |  | 390904 |
| &nbsp;&nbsp;&nbsp;Repayments of short-term loan | (392692) | (280218) |
| **Net cash (used in) provided by financing activities** | **(392692)** | **5810686** |
| &nbsp;&nbsp;&nbsp;Effect of foreign exchange rate on cash | 41347 | (40898) |
| &nbsp;&nbsp;&nbsp;**Net (decrease) increase in cash** | **(1309731)** | **13863919** |
| &nbsp;&nbsp;&nbsp;**Cash at the beginning of the period** | 11182783 | 4834349 |
| &nbsp;&nbsp;&nbsp;**Cash at the end of the period** | $**9873052** | $**18698268** |
| **Supplemental disclosures of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $367 | $12720 |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $- | $- |

---

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION

U-BX Technology Ltd. ("U-BX") is an exempted company incorporated under the laws of the Cayman Islands on June 30, 2021. U-BX does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries.

U-BX together with its subsidiaries (the "Company") primarily provide value-added services using artificial intelligence-driven technology to businesses within the insurance industry in People's Republic of China ("PRC").

In order to raise capital through an initial public offering in the United States, UB-X has undertaken a series of transactions (the "Reorganization"):

On July 14, 2021, U-BX formed its wholly owned subsidiary, Snailinsur Group Limited ("U-BX HK") in Hong Kong. On July 23, 2021, U-BX HK formed its wholly owned subsidiary, Beijing Lianghua Technology Co., Ltd. ("WFOE Beijing") in PRC.

On August 16, 2021, WFOE Beijing entered into a series of contractual arrangements with the owners of U-BX Beijing. These agreements included a Consulting and a Service Agreement, a Business Operation Agreement, an Equity Pledge Agreement, an Exclusive Call Option Agreement and a Shareholder Voting Proxy Agreement (collectively "VIE Agreements"). Pursuant to the VIE Agreements, WFOE Beijing has the exclusive right to provide Youjiayoubao (Beijing) Technology Co., Ltd. ("U-BX Beijing") with comprehensive technical support, consulting services and other services in relation to the Principal Business during the term of this Agreement. All the above contractual arrangements obligate WFOE Beijing to absorb a majority of the risk of loss from the business activities of U-BX Beijing and entitle WFOE Beijing to receive a majority of their residual returns. In essence, WFOE Beijing has gained effective control over U-BX Beijing.

On February 20, 2022, with approval of WFOE Beijing and approval of the sole executive director of U-BX Beijing, U-BX Beijing issued 2.99% equity interest in U-BX Beijing for nil consideration to a third-party investor. The issuance was completed on February 28, 2022. On February 28, 2022, WFOE Beijing exercised its call option under the Exclusive Call Option Agreements with certain shareholders of U-BX Beijing, dated August 16, 2021, and entered into equity transfer agreements with all the shareholders of U-BX Beijing to purchase all the equity interest in U-BX Beijing. The restructuring was completed on March 3, 2022. As a result, U-BX Beijing became a wholly owned subsidiary of WFOE Beijing and the VIE structure was dissolved and the VIE Agreements were terminated. On May 21, 2024, WFOE Beijing signed an equity transfer agreement with Zhejiang JZSC Technology Co., Ltd. ("JZSC Technology"), transferring 100% equity of U-BX Beijing to WFOE Zhejiang.

U-BX together with its subsidiaries were effectively controlled by the controlling shareholder before and after the Reorganization and therefore the Reorganization was considered under common control and included at their historical carrying values. The consolidation has been prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION** (cont.)

U-BX, U-BX HK, the WFOEs, U-BX Beijing and their subsidiaries (the "Company") primarily provide value-added services using artificial intelligence-driven technology to businesses within the insurance industry in PRC.

As of December 31, 2025, the Company's principal subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Name of Entity | Date of Incorporation | Place of Incorporation | % of <br> Ownership | Principal Activities |
| Snailinsur Group Limited ("U-BX HK") | July 14, 2021 | Hong Kong | 100% | Investment holding |
| Beijing Lianghua Technology Co., Ltd ("WFOE Beijing") | July 23, 2021 | PRC | 100% | Investment holding |
| Youjiayoubao (Beijing) Technology Co., Ltd. ("U-BX Beijing") | March 27, 2018 | PRC | 100% | Provision of services |
| Rudong Youjia Smart Technology Co., Ltd. ("RDYJ") | July 27, 2018 | PRC | N/A | Liquidated in October 2024 |
| Jiangsu Jingmo Technology Co., Ltd. ("Jiangsu Jingmo") | July 9, 2020 | PRC | N/A | Liquidated in July 2025 |
| Jiangsu Youjiayouche Technology Co., Ltd. ("Jiangsu YJYC") | June 29, 2020 | PRC | N/A | Liquidated in December 2024 |
| Suzhou Lianghua Technology Co., Ltd. ("WFOE Suzhou") | November 28, 2022 | PRC | 100% | Investment holding |
| Suzhou Youjiayoubao Technology Co., Ltd. ("U-BX Suzhou") | December 2, 2022 | PRC | 100% | Provision of services |
| Zhejiang JZSC Enterprise Management Co., Ltd. ("WFOE Zhejiang") | July 10, 2023 | PRC | 100% | Investment holding |
| Zhejiang JZSC Technology Co., Ltd. ("JZSC Technology") | November 6, 2023 | PRC | 100% | Provision of services |
| Shanghai ZLQX Technology Service Co., Ltd. (WFOE Shanghai) | May 7, 2025 | PRC | 100% | Investment holding |
| Zhejiang Decision Intelligent Technology Co., Ltd.(JCZN Hangzhou) | May 21, 2025 | PRC | 100% | Provision of services |

---

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

*Basis of presentation*

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and have been consistently applied for information pursuant to the rules and regulations of the Securities Exchange Commission ("SEC") for interim financial statements. Results for the interim periods are not necessarily indicative of results to be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company's annual report on Form 20-F for the year ended June 30, 2025, which was filed with the SEC on October 24, 2025.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Principles of consolidation*

The unaudited interim consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation.

In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures necessary for a fair presentation of these interim consolidated financial statements have been included. The results reported in the consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The accompanying consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all information and footnotes necessary for a complete presentation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP").

 

*Use of estimates*

The preparation of unaudited interim consolidated financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. There is no significant estimates that required to be made by management.

 

*Functional currency and foreign currency translation*

The functional currencies of the Company are the local currency of the county in which the subsidiaries operate. The Company's financial statements are reported using U.S. Dollars. The results of operations and the unaudited interim consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect on that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital transactions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the unaudited interim consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component in accumulated other comprehensive income (loss) included in unaudited interim consolidated statements of changes in shareholders' equity. Gains and losses from foreign currency transactions are included in the unaudited interim consolidated statements of operations and comprehensive income (loss).

Since the Company operates primarily in the PRC, the Company's functional currency is the Chinese Yuan ("RMB"). The Company's unaudited interim consolidated financial statements have been translated into the reporting currency of U.S. Dollars ("$"). The RMB is not freely convertible into foreign currency. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China ("PBOC"). No representation is made that the RMB amounts could have been, or could be, converted into $ at the rates used in the translation.

The exchange rates as of December 31, 2025 and June 30, 2025 and for the six months ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **For the Six Months Ended<br> December 31,** | **For the Six Months Ended<br> December 31,** |
| | **December 31,**<br>**2025** | **June 30,**<br>**2025** | **2025** | **2024** |
| <br>**Foreign currency** | **Balance Sheet** | **Balance Sheet** | **Profits/Loss** | **Profits/Loss** |
| **RMB:1USD** | 7.0288 | 7.1586 | 7.1048 | 7.1373 |

---

 

*Cash*

Cash include cash on hand and demand deposits in accounts maintained with commercial banks. The Company maintains its bank accounts in Mainland China and United States, which RMB is not a freely convertible currency in China.

***Reclassification***

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on net loss or financial position.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Accounts receivable, net*

The Company adopted Accounting Standards Codification ("ASC") 326 on July 1, 2022. Accounts receivables are presented net of an allowance for credit losses. The Company maintains an allowance for credit losses in accordance with ASC 326 and records the allowance for credit losses as an offset to assets such as accounts receivable, and the estimated credit losses charged to the allowance is classified as "General and administrative expenses". The Company assesses collectability by reviewing receivables on a collective basis where similar characteristics exist, primarily based on size, nature and on an individual basis when identify specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the receivable balances, credit quality of the Company's customer based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers. Bad debts are written off as incurred.

 

*Advances to suppliers*

Advances to suppliers consist of advances to suppliers for services that have not been provided or received. When the supplier provides services and settlements are made with the company, advances to suppliers will be recognized as costs. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company or refund an advance.

*Property and equipment and construction in progress*

Property and equipment are carried at cost and are depreciated on the straight-line basis over the estimated useful lives of the underlying assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation and amortization are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of its property and equipment, when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
| Office equipment | $77931 | $4093 |
| Office building | 5813773 |  |
| Construction in progress | 253508 | 5805109 |
| &nbsp;&nbsp;&nbsp;**Total** | $**6145212** | $**5809202** |

---

The depreciation for property and equipment amount to $101,865 and $1,749 for the six months ended December 31, 2025, and 2024, respectively.

Construction in progress represents expenditures related to the ongoing construction of the newly acquired office building.

The renovation work is currently ongoing and not yet completed. Key unfinished items include wall repairs, electrical and plumbing system commissioning, and signage installation. The construction is expected to be completed in June 2026, when construction in progress will be the transferred to fixed assets.

Estimated useful lives are as follows, taking into account the assets' estimated residual value:

---

| | |
|:---|:---|
| **Category** | **Estimated<br> useful lives** |
| Office equipment | 3 years |
| Office building | 30 years |

---

*Intangible assets*

Intangible assets consist primarily of the computer software. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method. The amortization for intangible assets amounts to $214 and $196 for the six months ended December 31, 2025 and 2024, respectively.

---

| | |
|:---|:---|
| Computer software | 15 years |

---

 

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Fair value of financial instruments*

Financial Accounting Standards Board ("FASB") ASC Section 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

● Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company's financial instruments including cash, accounts receivable, and other current assets, short-term loans, accounts payable, due to related parties, and other current liabilities approximate their recorded values due to their short-term maturities.

*Equity method investments*

 

Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares of 20% to 50%, and other factors, such as representation on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence. The Company accounts for the investments in entities over which it has neither control nor significant influence, and no readily determinable fair value is available, using the investment cost minus any impairment, if necessary.

The Company's investment of 34% ownership of Fuzhou Infinite Matrix Technology Co., Ltd was $73,930 and $81,429 as of December 31, 2025 and June 30, 2025, respectively, and is accounted for using the equity method.

*Leases*

The Company accounted for leases in accordance with ASC Topic 842, Leases. The Company determines if an arrangement is a lease at inception. All the Company's leases are operating leases. Operating lease right-of-use ("ROU") assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate ("IBR"), which is prevalent lending prime rate, based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease right-of-use assets are reviewed for impairment annually. There was no impairment for operating lease right-of-use lease assets for the six months ended December 31, 2025 and 2024.

The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such lease on a straight-line basis over the lease term

 

*Revenue recognition*

The Company recognizes revenue per FASB ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") for all periods presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. We assess our revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided.

The Company's revenues are derived principally from digital promotion services, risk-assessment services and value-added services. Value added taxes ("VAT") are presented as a reduction of revenues.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*<u>Digital promotion services</u>*

The Company generates revenues primarily from digital promotion services to insurance companies on its various website channels, including pay for performance marketing services whereby customers are charged based on effective clicks on their insurance product information, and display advertising services that allow customers to place advertisements on various websites.

Pursuant to the digital promotion contracts, the performance obligation of the Company is to provide promotion services for the planning, designing, customizing strategy scheme and promoting for the customer. The Company considers that both of the digital market planning and promotion services are highly interrelated and not separately identifiable. The Company's overall promise represents a combined output that is a single performance obligation. Revenues are recorded at a point in time when the performance obligation to deliver those digital promotion services is checked and accepted.

For the contracts that involve the third-party vendors, the Company considers itself as provider of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the planning and producing the content for the promotion and (ii) having latitude in selecting third party vendors for promotions and establishing pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis.

*<u>Risk-assessment services</u>*

The Company generates risk-assessment revenue from service fees of providing assessment reports to the insurance carriers. Utilizing the self-developed proprietary algorithmic model, the Company generates individualized risk reports based on the vehicle brand, model, travel area, and driver's information.

Pursuant to the risk assessment contracts, the performance obligation of the Company is to utilize its self-developed risk assessment model and to provide risk assessment reports to customers. Consideration received reflects stand-alone selling prices and are settled monthly based on standard unit prices and service volumes rendered during the period. Revenue recognized at a point in time upon the service delivery and acceptance by the customers.

For the contracts that involve technical services provided by third-party vendors, the Company considers itself as provider of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the production of the risk assessment report with self-developed models and (ii) having latitude in select outsourced technical services and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis.

 

*<u>Value-added bundled benefits services</u>*

The Company enters into value added benefits contracts with insurance companies. Pursuant to the value-added benefits contracts, the Company provides the digital code with value added bundled benefits to customers. The bundled benefits including but not limited to auto maintenance service, auto value added service, vehicle moving notification services and other services. The Company is primarily responsible for selecting out-sourced vendors, integrating outsourced services and services provided in house to generate various bundled benefits digital code and providing technical supports for the code. The Company's overall promise represents a combined output that is a single performance obligation; there is no multiple performance obligations.

For the contracts that involve the third-party vendors, the Company considers itself as principal of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the generation of the code and integrating various services provided by itself and outsourced vendors with the Company's promise to provide products and services according to the contract entered into with customers and (ii) having latitude in select third party vendors for some value added services and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. Revenue from value-added bundled benefits is recognized at a point in time when the Company satisfies the performance obligation by transferring promised services upon acceptance by customers.

Disaggregation of revenues

The following table summarized disaggregated revenues for the six months ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> December 31,** | **For the six months ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Digital promotion services | $11446522 | $13650715 |
| Risk-assessment services | 97375 | 3337798 |
| Value-added services | 109062 | 298952 |
| **Total** | $**11652959** | $**17287465** |

---

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*<u>Contract balance</u>*

Accounts receivables are recorded when the Company performs a service in advance of receiving consideration and it has the unconditional right to receive consideration. Contract liabilities are recognized as advances from customers if the Company receives consideration but has not transferred the related goods or services to the customer, and included in advance from customers in the Company's consolidated balance sheets with the balance of nil as of December 31, 2025 and June 30, 2025 respectively. All unsatisfied performance obligation will be performed within the next twelve months and no significant financing component is involved. There is no significant financing component in the Company's revenue arrangement because the Company's expected length of time between the payment and when the Company transfers the promised services is less than 12 months.

 

*Cost of revenues*

Cost of revenues consists primarily of expenses incurred in connection with the third-party cloud infrastructure expenses, outsourcing services paid to suppliers and third-party procurement costs are recognized as incurred.

 

*Income taxes*

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the unaudited interim consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period including the enactment date. Valuation allowances are established, when necessary, to reduce net deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income taxes are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the six months ended December 31, 2025 and 2024. The Company does not believe that there were any uncertain tax provisions as of December 31, 2025 and June 30, 2025. The Company's subsidiaries in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the six months ended December 31, 2025 and 2024.

 

*Value added tax ("VAT")*

Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and the VAT rate is approximately 6%. The VAT collected may be offset by VAT paid by the Company on its purchases. The Company records a VAT payable or receivable net of payments in the accompanying unaudited interim consolidated financial statements. All of the VAT returns filed by the Company's subsidiaries in the PRC, have been and remain subject to examination by the tax authorities for five years from the date of filing.

 

*Earnings (loss) per ordinary share*

The Company computes earnings (loss) per ordinary share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing net income (loss) by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. When the Company has a loss or dilutive shares would increase EPS or decrease loss per share, dilutive shares are not included. As of December 31, 2025 and June 30, 2025, there were no dilutive shares.

*Warrants*

The accounting treatment of warrants issued is determined pursuant to the guidance provided by Debt ("ASC 470"), Distinguishing Liabilities from Equity ("ASC 480"), and Derivatives and Hedging ("ASC 815"), as applicable. Each feature of freestanding financial instruments including, without limitation, any rights relating to subsequent dilutive issuances, equity sales, rights offerings, conversions, optional redemptions and dividends are assessed with determinations made regarding the proper classification in the Company's consolidated financial statements.

 

*Share-based compensation*

Share based awards granted to employees or nonemployees are accounted for under ASC 718, "Compensation—Stock Compensation", which requires that such equity awards granted to employees or nonemployees be measured based on the grant date fair value and recognized as compensation expense immediately at grant date if no vesting conditions are required. The company will recognize it as expense on a straight-line basis over the total service period based on the total grant-date fair value.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Comprehensive income (loss)*

Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustments from the Company for translating the functional currencies to U.S. dollar, the reporting currency.

 

*Concentration and Risks*

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.

The Company maintains its bank accounts in the PRC. On May 1, 2015, China's new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company's accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000 (approximately $75,000) per bank. As of December 31, 2025, the Company has $1,369,512 of uninsured funds. However, management believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company's cash are financially sound based on public available information.

 

The Company conducts credit evaluations on its customers prior to delivery its services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site visits by senior management. Based on this analysis, the Company determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Company will not deliver the services to the customer or require the customer to pay cash, post letters of credit to secure payment or to make significant down payments.

 

*<u>Major customers</u>*

Customers from whom individually represent greater than 10% of total revenues of the company for the Six Months ended December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Customer A | $8665623 | 74.4 | $\* | \* |
| Customer B | \* | \* | 5273553 | 30.5 |

---

\* Indicates below 10%.

**U-BX TECHNOLOGY LTD.**

 **NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

 **(In U.S. dollars, except for number of shares, or otherwise noted)**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

Customers from whom individually represent greater than 10% of total balance of accounts receivable of the company as of December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **June 30,** | **June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Customer C | $26487 | 94.4 | $\* | \* |
| Customer D | \* | \* | 95744 | 42.2 |
| Customer E | \* | \* | 37412 | 16.5 |

---

\* Indicates below 10%.

Major suppliers

Suppliers from whom individually represent greater than 10% of total purchases of the company for the Six Months ended December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** | **For the Six Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Supplier A | $8507418 | 73.3 | $3956747 | 23.2 |
| Supplier B | 2020540 | 17.4 | 2768100 | 16.2 |
| Supplier C | 161103 | 1.4 | 2859908 | 16.8 |

---

Suppliers from whom individually represent greater than 10% of total balance of accounts payable of the company as of December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **June 30,** | **June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Supplier B | $\* | \* | $139692 | 69.4 |
| Supplier D | 71136 | 94.3 | \* | \* |
| Supplier E | \* | \* | 52442 | 26.0 |

---

\* Indicates below 10%.

Suppliers from whom individually represent greater than 10% of total balance of advance to suppliers of the company as of December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **June 30,** | **June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Supplier A | $2890265 | 73.6 | $2765346 | 76.1 |
| Supplier B | 541043 | 13.8 | \* | \* |
| Supplier C | \* | \* | 856960 | 23.6 |

---

\* Indicates below 10%.

***Segment reporting*** 

The Company operates and manages its business as a single segment and has one operating and reportable segment, providing value-added services using artificial intelligence-driven technology to businesses within the insurance industry. The Company's Chief Financial Officer ("CFO") is the chief operating decision-maker. When making decisions about allocating resources and assessing the performance of the Company as a whole, the CFO review operating metrics and consolidated financial statements.

The Company concluded that consolidated net income reported in the consolidated statements of comprehensive income is the measure of segment profitability, and consolidated total assets reported in the consolidated balance sheets is the measure of segment assets. The CFO refer to consolidated operating results and financial condition when addressing strategic and operational matters and allocating resources. Significant expense categories regularly provided to and reviewed by the CFO are those presented in the consolidated statements of comprehensive income. As substantially all of the Group's long-lived assets are located in the PRC, and substantially all of the Group's revenues are derived from within the PRC, no geographical segments are presented.

*Recently issued accounting pronouncements*

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. As a result, the Company's operating results and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted the new or revised accounting standards.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740): Improvements to Income Tax Disclosures ("ASU No. 2023-09"), to expand the disclosures in an entity's income tax rate reconciliation table and income taxes paid both in U.S. and foreign jurisdictions. ASU No. 2023-09 is effective for fiscal years beginning after December 15, 2025 for EGC. ASU 2023-09 is effective for the Company's annual reporting period beginning July 1, 2025. The Company is currently evaluating the impact of adopting this standard.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

In November 2024, the FASB issued ASU 2024 -03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). The amended guidance requires disaggregation of certain expense captions into specified natural expense categories in the disclosures within the notes to the financial statements. In addition, the guidance requires disclosure of selling expenses and its definition. In addition, in 2025, the FASB issued ASU 2025-01, which is issuing to clarify the effective date of Accounting Standards Update No. 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The Company is currently evaluating the impact of adopting ASU 2025-01 on its financial statement disclosures. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard.

In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05"). The amendment provides guidance for estimating expected credit losses on current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Management is in the process of reviewing this FASB update to assess the impact on future reporting periods.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies interim disclosure requirements resulting in a comprehensive list of interim disclosures that are required by GAAP, and includes a disclosure principle that requires the disclosure of events since the end of the last annual reporting period that have a material impact on the Company. ASU 2025-11 is effective for the Company's interim financial statements beginning with the first fiscal quarter of the year ended December 31, 2028, with early adoption permitted. ASU 2025-11 may be applied either prospectively or retrospectively. The Company is evaluating the disclosure requirements related to the new standard.

The Company does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.

NOTE 3 — ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Accounts receivable | $28052 | $227051 |
| Less: allowance for credit losses | - | (7) |
| **Accounts receivable, net** | $**28052** | $**227044** |

---

Allowance for credit losses movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> December 31,**<br>**2025** | **For the six months ended<br> December 31,**<br>**2024** |
| Beginning balance | $7 | $2443 |
| Provision |  |  |
| Reversal | (7) | (2234) |
| Effect of exchange rate |  | (5) |
| Ending balance | $- | $204 |

---

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

NOTE 4 — ADVANCES TO SUPPLIERS, NET

Advances to suppliers, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Advances to suppliers | $3929949 | $3635982 |
| Less: allowance for doubtful accounts | - | - |
| **Advances to suppliers, net** | $3929949 | $3635982 |

---

Allowance for doubtful accounts movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six <br> months <br> ended<br> December 31,**<br>**2025** | **For the six <br> months <br> ended<br> December 31,**<br>**2024** |
| Beginning balance | $&nbsp;&nbsp;&nbsp;&nbsp; - | $13681 |
| Provision |  |  |
| Reversal | - | (13681) |
| Ending balance | $- | $- |

---

NOTE 5 — PREPAYMENTS AND OTHER CURRENT ASSETS

Prepayments and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| VAT recoverable | $11995 | $1939 |
| Prepaid expenses and others current assets | 4841 | 13209 |
| Subtotal | 16836 | 15148 |
| Less: allowance for credit losses | (830) | (814) |
| **Total** | $16006 | $14334 |

---

Allowance for credit losses movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six <br> months <br> ended<br> December 31,**<br>**2025** | **For the six <br> months <br> ended<br> December 31,**<br>**2024** |
| Beginning balance | $814 | $112541 |
| Provision |  | 607 |
| Reversal |  | (112311) |
| Effect of exchange rate | 16 | (26) |
| Ending balance | $**830** | $**811** |

---

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

NOTE 6 — SHORT-TERM LOANS

Bank loans represent amounts due to various banks maturing within one year. The principal of the borrowings is due at maturity. Accrued interest is due either monthly or annually. The bank loans consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | (Audited) |
| Loans from financial institutions | $**&nbsp;&nbsp;&nbsp;&nbsp; -** | $**389741** |

---

On December 22, 2023, U-BX Beijing entered into a loan agreement with Industrial and Commercial Bank of China to obtain a loan of RMB2,000,000 ($280,631) for a term from December 22, 2023 to July 4, 2024 at a fixed annual interest rate of 2.8%. The loan is guaranteed by a third party, Beijing Shouchuang Financing Guarantee Limited. The loan was repaid on July 4, 2024 and U-BX Beijing subsequently obtained a new loan of RMB 2,790,000 ($391,497) from Industrial and Commercial Bank of China on July 5, 2024, with a loan term from July 5, 2024, to July 4, 2025, at an interest rate of 2.8%, and the loan was repaid on July 4, 2025.

NOTE 7 — TAXES PAYABLE

Tax payables consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Income tax payable | $594997 | $633818 |
| Property tax and land use tax payable | 13579 | 231 |
| VAT tax payable | - | 535 |
| **Tax payables** | $**608576** | $**634584** |

---

NOTE 8 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Payroll and welfare payable | $34076 | $31504 |
| Other current liabilities | 151563 | 205899 |
| **Accrued expenses and other current liabilities** | $**185639** | $**237403** |

---

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

NOTE 9 — RELATED PARTY TRANSACTIONS

The table below sets forth the related parties and their relationships with the Company as of December 31, 2025:

---

| | |
|:---|:---|
| Name of related parties | Relationship with the Company |
| Jian Chen | Founder and shareholder |

---

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | June 30, <br> 2025 |
|  | **(Unaudited)** | **(Audited)** |
| **Amounts due to related parties, non-current\*** |  |  |
| Jian Chen | $499722 | $490662 |

---

\* The balances mainly represent expenses paid on behalf of the Company for daily operations, and the movement of the balance was due to foreign exchange rate fluctuation.

NOTE 10 — TAXATION

 

*Income Taxes*

Cayman Islands

The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

Hong Kong

Under the current Hong Kong Revenue Ordinance, the Company's subsidiary in Hong Kong is subject to 16.5% Hong Kong profits tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

PRC

The Company's subsidiaries incorporated in the PRC are subject to PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income tax laws. Effective from January 1, 2008, a new Enterprise Income Tax Law, or the New EIT Law, combined the previous income tax laws for foreign invested and domestic invested enterprises in the PRC by the adoption of a unified tax rate of 25% for most enterprises with the following exceptions.

Entities qualifying as "small enterprise with low profit" and with a taxable income not exceeding RMB1.0 million are eligible for a preferential tax rate. For the six months ended December 31, 2025 and 2024, Jiangsu YJYC, WOFE Beijing, U-BX Suzhou, WOFE Suzhou and JZSC Technology were recognized as "small enterprise with low profit" and received a preferential income tax rate of 5%.

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

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> December 31,** | **For the six months ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Income tax expense computed at applicable tax rates | 25.0% | 25.0% |
| Effect of PRC preferential tax rate and tax exemption |  | (154.3)% |
| Non-deductible expenses | (24.5)% | (20.9)% |
| Change of valuation allowance | (0.5)% | 150.4% |
| Release of previously accrued income taxes | 0.5% | - |
| **Effective tax rate** | 0.5% | 0.2% |

---

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 10 — TAXATION** (cont.)

Significant components of the provision for income taxes are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> December 31,** | **For the six months ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Current income tax expense | $(49985) | $383 |
| Deferred tax expense | 193 | 187 |
| **Income tax (benefit) provision**  | $**(49792)** | $**570** |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The following table presents the significant components of the Company's deferred tax assets for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | (Audited) |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $199280 | $343406 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | 118 | 42 |
| &nbsp;&nbsp;&nbsp;Less: valuation allowances | (199398) | (343448) |
| &nbsp;&nbsp;&nbsp;**Total deferred tax assets** | $- | $- |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | $- | $(377) |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 347 | 526 |
| &nbsp;&nbsp;&nbsp;**Total deferred tax liabilities** | $347 | $149 |

---

As of December 31, 2025, the Company has net operating loss carryforwards of approximately $3,136,622 in the PRC that expire in 2029. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. For the six months ended December 31, 2025 and 2024, the change in valuation allowance amounted to a decrease of $144,008 and $212,865, respectively.

NOTE 11 — SHAREHOLDERS' EQUITY

Ordinary shares

In FY2021, the company issued a total of 10,000 ordinary shares; In FY2022, the company issued a total of 23,990,000 ordinary shares; In FY2024, the company issued 3,000,000 ordinary shares; In FY2025, the company issued 2,700,000 ordinary shares, carried out a 1-for-16 reverse stock split, and then issued an additional 18,823,535 ordinary shares. As a result, the Company had 20,784,142 ordinary shares issued and outstanding as of June 30, 2025.

On July 30, 2025, the Company adopted the 2025 Equity Incentive Plan (the "ESOP"), and the number of ordinary shares of USD0.0016 each of the Company (the "Shares") authorized and deliverable under the ESOP was 9,500,000. The ESOP provided for the grant of awards to eligible employees, consultants and advisors.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 11 — SHAREHOLDERS' EQUITY** (cont.)

On August 4, 2025, the Company granted a total of 9,500,000 Ordinary Shares with $2.94 per share which can be vested immediately to two employees and five consultants of the Company. Since the ESOP agreement impose a five year-service for five consultants, the Company estimated the fair value of the shares issued based on the granted date at $20,098,656, of which $1,862,204 were recorded as share-based compensation expense in the six months ended December 31, 2025, and the remaining was recorded as prepaid share-based payment. The prepaid services will be expensed over the attribution period of the remaining consulting service period. Such expense is included in the General and administrative expenses within the unaudited interim consolidated statements of operations and comprehensive loss. The ESOP granted to two employees are rewards based on their past contributions to the Company, and no restrictions related to employees' termination, the Company estimated the fairs value of the shares issued based on the granted date at $7,816,144, of which all were recorded as share-based compensation expense in the six months ended December 31, 2025.

On November 4, 2025, the shareholder and board resolution of the Company approved below issues: 1) the increase of the Company's authorized share capital from USD 1,000,000 divided into 625,000,000 ordinary shares of par value USD 0.0016 each to USD 250,000,000 divided into 156,250,000,000 ordinary shares of par value USD 0.0016 each by the creation of additional 155,625,000,000 ordinary shares of par value USD 0.0016 each; and 2) authorized share capital of the Company to be changed from USD 250,000,000 divided into 156,250,000,000 ordinary shares of par value USD 0.0016 each, to USD 250,000,000 divided into 151,250,000,000 class A ordinary shares of par value USD 0.0016 each and 5,000,000,000 class B ordinary shares of par value USD 0.0016 each; and the Re-designation of all the issued and outstanding ordinary shares of par value USD 0.0016 each in the capital of the Company (the Ordinary Shares) into Class A ordinary shares of USD 0.0016 par value each; 3) the repurchase of 7,659,535 Class A ordinary shares together with the issuance of 7,659,535 Class B ordinary shares. As foregoing, the Company had 22,624,607 Class A ordinary shares and 7,659,535 Class B ordinary shares issued and outstanding as of December 31, 2025. Holders of Class A ordinary shares and Class B ordinary shares have the same rights, except for voting and conversion rights. Each Class A ordinary share is entitled to one vote; and each Class B ordinary share is entitled to twenty (20) votes and is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances.

The change in authorized share capital and the designation of ordinary shares into different classes represent a capital structure change only and does not impact total shareholders' equity, net assets, or results of operations. The effect is limited to reclassification within equity, with no impact on the financial statements under U.S. GAAP.

Statutory reserves and restricted net assets

Relevant PRC laws and regulations permit payments of dividends by the Company's entities only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company's PRC subsidiaries are required to annually appropriate 10% of their net after-tax income to a statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As of December 31, 2025 and June 30, 2025, the Company's PRC entities collectively attributed nil and $374,343 retained earnings to their statutory reserves, respectively. For the Six Months Ended December 31, 2025, the company dissolved one subsidiary, and correspondingly, the statutory reserves of the subsidiary were reversed, as of $48,530. As a result, the statutory reserves of the parent company were reversed contemporaneously.

As a result of these PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with PRC accounting standards and regulations, the PRC entities are restricted from transferring a portion of their net assets. Amounts restricted include paid-in capital and statutory reserves of the Company's PRC subsidiaries. As of December 31, 2025 and June 30, 2025, the aggregate amounts of restricted net assets of the relevant PRC entities amounted to $626,543 and $548,657, respectively.

NOTE 12 — LEASES

Operating Leases

On November 30, 2023, the Company entered into an operating lease for an office. The lease term was from November 30, 2023 to November 29, 2026. ASC 842 requires leases to recognize right-of-use assets and lease liabilities on the balance sheet.

The lease agreement does not contain any material residual value guarantees or material restrictive covenants, and the extended lease contract does not contain options to extend at the time of expiration.

U-BX TECHNOLOGY LTD.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except for number of shares, or otherwise noted)

**NOTE 12 — LEASES** (cont.)

Operating lease expenses, which excluded short-term lease expenses were $3,743 and $3,726 for the six months ended December 31, 2025 and 2024, respectively.

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Operating lease right-of-use assets | $6936 | $10525 |
| Operating lease liabilities – current | - | 7550 |
| Total operating lease liabilities | $- | $7550 |

---

The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **June 30,<br> 2025** |
|  | **(Unaudited)** | **(Audited)** |
| Weighted-average remaining lease term (years) | 0.92 | 1.92 |
| Weighted-average discount rate | 2.80% | 2.80% |

---

The operating lease for the office expires on November 30, 2026, and as of December 31, 2025, the operating lease liabilities have matured; All rent has been fully paid on time.

NOTE 13 — COMMITMENTS AND CONTINGENCIES

*<u>a) Commitments</u>*

As of December 31, 2025 and June 30, 2025, the Company did not have commitments contracted but not yet reflected in the consolidated financial statements.

 

*<u>(b) Contingencies</u>*

From time to time, the Company is subject to legal proceedings, investigations, and claims incidental to the conduct of its business. As of December 31, 2025 and June 30, 2025, the Company was not involved in any legal or administrative proceedings.