Document And Entity Information
Document And Entity Information | 6 Months Ended |
Apr. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | JIUZI HOLDINGS INC. |
Document Type | 6-K |
Current Fiscal Year End Date | --10-31 |
Amendment Flag | false |
Entity Central Index Key | 0001816172 |
Document Period End Date | Apr. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 000-00000 |
Consolidated Balance Sheets Una
Consolidated Balance Sheets Unaudited - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 827,308 | $ 2,329,401 |
Restricted cash | 43,403 | 41,231 |
Short-term investment | 46,296 | 834,303 |
Accounts receivable | 41,414 | 39,347 |
Accounts receivable - related party | 201,440 | 214,946 |
Due from related parties | 65,501 | 67,153 |
Inventory, net | 490,994 | 628,187 |
Advances to suppliers | 303,350 | 392,776 |
Loans receivable from related parties, net - current portion | 5,101,224 | 6,661,290 |
Other receivables and other current assets | 1,600,731 | 1,039,762 |
Total Current Assets | 8,721,661 | 12,248,396 |
Non-Current Assets | ||
Property, plant and equipment, net | 574,723 | 641,358 |
Intangible assets, net | 12,010 | 12,393 |
Other non-current assets | 29,521 | 66,784 |
Operating lease right of use asset | 649,773 | 725,903 |
Loans receivable from related parties, net | 422,439 | 1,631,340 |
Total Non-Current Assets | 1,688,466 | 3,077,778 |
Total Assets | 10,410,127 | 15,326,174 |
Current Liabilities | ||
Accruals and other payables | 185,465 | 288,333 |
Accounts payable – related party | 7,379 | 6,986 |
Due to related parties | 7,234 | 6,849 |
Convertible debenture | 433,332 | 2,835,400 |
Taxes payable | 2,772,318 | 2,652,854 |
Operating lease liabilities - current | 390,807 | 374,676 |
Contract liability | 1,475,213 | 1,343,442 |
Contract liability - related party | 782,482 | 825,990 |
Total Current Liabilities | 6,054,230 | 8,334,530 |
Non-Current Liabilities | ||
Operating lease liabilities - non-current | 392,196 | 393,509 |
Deferred income | 216,291 | 236,290 |
Contract liability – related party non-current | 150,494 | |
Other long-term liability | 137,443 | 130,131 |
Total Non-Current Liabilities | 745,930 | 910,424 |
Total Liabilities | 6,800,160 | 9,244,954 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Ordinary Shares (8,333,333 shares authorized, $0.018 par value, 2,584,804 and 1,363,630 shares issued and outstanding as of April 30, 2023 and December 31, 2022, respectively)* | 46,526 | 24,545 |
Additional paid in capital | 18,835,352 | 15,444,233 |
Statutory reserve | 891,439 | 891,439 |
Accumulated deficit | (15,880,079) | (9,342,111) |
Accumulated other comprehensive loss | (386,400) | (1,074,299) |
Total equity attributable to Jiuzi Holdings, Inc. | 3,506,838 | 5,943,807 |
Non-controlling interest | 103,129 | 137,413 |
Total Equity | 3,609,967 | 6,081,220 |
Total Liabilities and Shareholders’ Equity | $ 10,410,127 | $ 15,326,174 |
Consolidated Balance Sheets U_2
Consolidated Balance Sheets Unaudited (Parentheticals) - $ / shares | Apr. 30, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares par value (in Dollars per share) | $ 0.018 | $ 0.018 |
Ordinary shares authorized | 8,333,333 | 8,333,333 |
Ordinary shares issued | 2,584,804 | 1,363,630 |
Ordinary shares outstanding | 2,584,804 | 1,363,630 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss Unaudited - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Income Statement [Abstract] | ||
Revenues, net | $ 912,232 | $ 3,574,697 |
Revenues – related party, net | 13,527 | 535,039 |
Total Revenues | 925,759 | 4,109,736 |
Cost of revenues | 908,039 | 2,816,572 |
Cost of revenues – related party | 28,275 | 824,737 |
Total cost of revenues | 936,314 | 3,641,309 |
Gross profit | (10,555) | 468,427 |
Selling and marketing expense | 1,760 | 3,005 |
General and administrative expenses | 2,145,198 | 2,678,998 |
Provision for credit loss on loans receivable | 4,186,862 | 3,846,415 |
Operating expense | 6,333,820 | 6,528,418 |
Earnings (loss) before tax | (6,344,375) | (6,059,991) |
Non-operating income (expense) items: | ||
Other income (expense), net | 31,467 | 1,391,065 |
Interest income | 3,623 | 1,657 |
Interest expense | (239,325) | (455,809) |
Non-operating income (expense) total | (204,235) | 936,913 |
Loss before income tax | (6,548,610) | (5,123,078) |
Income tax | 20 | 127,661 |
Net loss | (6,548,630) | (5,250,739) |
Less: Loss attributable to non-controlling interest | (10,662) | (7,507) |
Net loss attributable to controlling interest | $ (6,537,968) | $ (5,243,232) |
Earnings (Loss) per share | ||
Basic (in Dollars per share) | $ (3.44) | $ (0.24) |
Diluted (in Dollars per share) | $ (3.44) | $ (0.24) |
Weighted average number of ordinary shares outstanding* | ||
Basic (in Shares) | 1,905,793 | 1,190,380 |
Diluted (in Shares) | 1,905,793 | 1,190,380 |
Net loss | $ (6,548,630) | $ (5,250,739) |
Other comprehensive income (loss): | ||
Foreign currency translation income | 671,495 | 607,057 |
Total comprehensive loss | $ (5,877,135) | $ (4,643,682) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserve | Retained Earnings | Accumulated other Comprehensive Income | Equity attributable to Jiuzi | Non- Controlling interest | Total |
Balance at Oct. 31, 2021 | $ 21,427 | $ 13,150,667 | $ 891,439 | $ 7,459,539 | $ 541,615 | $ 22,064,687 | $ 264,685 | $ 22,329,372 |
Balance (in Shares) at Oct. 31, 2021 | 1,190,380 | |||||||
Contribution (Distribution) in capital | (95,990) | (95,990) | ||||||
Net Income (Loss) | (5,243,232) | (5,243,232) | (7,507) | (5,250,739) | ||||
Appropriations to statutory reserves | ||||||||
Foreign currency translation adjustment | (754,885) | (754,885) | 2,157 | (752,728) | ||||
Balance at Apr. 30, 2022 | $ 21,427 | 13,150,667 | 891,439 | 2,216,307 | (213,270) | 16,066,570 | 163,345 | 16,229,915 |
Balance (in Shares) at Apr. 30, 2022 | 1,190,380 | |||||||
Balance at Oct. 31, 2022 | $ 24,545 | 15,444,233 | 891,439 | (9,342,111) | (1,074,299) | 5,943,807 | 137,413 | 6,081,220 |
Balance (in Shares) at Oct. 31, 2022 | 1,363,630 | |||||||
Shares issued for cash proceeds, net | $ 8,000 | 1,192,000 | 1,200,000 | 1,200,000 | ||||
Shares issued for cash proceeds, net (in Shares) | 444,444 | |||||||
Shares issued for compensation | $ 3,200 | 536,800 | 540,000 | 540,000 | ||||
Shares issued for compensation (in Shares) | 177,778 | |||||||
Shares issued for debt conversion | $ 10,781 | 1,662,319 | 1,673,100 | 1,673,100 | ||||
Shares issued for debt conversion (in Shares) | 598,952 | |||||||
Contribution (Distribution) in capital | (7,218) | (7,218) | ||||||
Net Income (Loss) | (6,537,968) | (6,537,968) | (10,662) | (6,548,630) | ||||
Appropriations to statutory reserves | ||||||||
Foreign currency translation adjustment | 687,899 | 687,899 | (16,404) | 671,495 | ||||
Balance at Apr. 30, 2023 | $ 46,526 | $ 18,835,352 | $ 891,439 | $ (15,880,079) | $ (386,400) | $ 3,506,838 | $ 103,129 | $ 3,609,967 |
Balance (in Shares) at Apr. 30, 2023 | 2,584,804 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ (6,548,630) | $ (5,250,739) |
Depreciation and amortization | 106,469 | 44,178 |
Provision (Recovery) for doubtful accounts | 3,705,250 | 764 |
Amortization of operating lease ROU assets | 80,727 | |
Provision for credit losses | 3,846,415 | |
Imputed interest expense | 137,699 | 183,557 |
Loss (gain) from disposal of investments | ||
Loss (gain) from disposal of assets | 1,883 | |
Stock-based compensation | 540,000 | |
Changes in assets and liabilities | ||
(Increase) decrease in accounts receivable | 144 | 45,657 |
(Increase) decrease in accounts receivable – related party | (164,248) | |
(Increase) decrease in inventories | 175,840 | (1,379,033) |
(Increase) decrease in advances to suppliers | 111,251 | |
(Increase) decrease in notes receivable-related party customers sales | (212,472) | |
(Increase) decrease in loans to related parties | (33,203) | (3,054,582) |
(Increase) decrease in due from relates parties | 5,706 | |
(Increase) decrease in other assets | (718,346) | |
(Decrease) increase in accrued and other liabilities | 4,028 | 1,468,078 |
Decrease in account payable | 14,783 | (15,713) |
Increase in accounts payable – related party | (135,038) | (2,973) |
Increase in taxes payable | (29,527) | 283,725 |
(Decrease) increase in contract liability | (3,249) | |
(Decrease) increase in contract liability – related party | 108,416 | (99,098) |
(Decrease) increase in operating lease liabilities | 88,380 | (16,466) |
(Decrease) increase in other long term liabilities | (262,043) | |
Net cash used in operating activities | (2,677,367) | (4,295,043) |
Cash flows from investing activities | ||
Purchase of fixed assets | (7,499) | (8,362) |
Acquisition of investment | (938,568) | |
Disposal of fixed assets | 7,626 | |
Redemption/Disposal of investments | 828,121 | |
Net cash provided by (used in) investing activities | 828,248 | (946,930) |
Cash flows from financing activities | ||
Proceeds from owner’s injection of capital | 1,192,782 | 32,867 |
Proceeds from convertible debenture | 4,191,336 | |
Repayments to convertible debenture | (866,668) | |
Net cash provided by financing activities | 326,114 | 4,224,203 |
Net decrease of cash and cash equivalents | (1,523,005) | (1,017,770) |
Effect of foreign currency translation on cash and cash equivalents | 23,084 | (404,753) |
Cash, cash equivalents, and restricted cash – beginning of period | 2,370,632 | 7,372,895 |
Cash, cash equivalents, and restricted cash – end of period | 870,711 | 5,950,372 |
Reconciliation of Cash, Cash Equivalents & Restricted Cash to Statements of Cash Flows | ||
Cash & cash equivalents | 827,308 | 5,950,372 |
Restricted cash | 43,403 | |
Total cash, cash equivalents, and restricted cash | 870,711 | 5,950,372 |
Supplementary cash flow information: | ||
Interest received | 3,623 | |
Interest paid | 101,626 | |
Income taxes paid | ||
Non-cash financing and investing activities: | ||
Notes payable converted to common stock | $ 1,673,100 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Apr. 30, 2023 | |
Organization and Basis of Presentation [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Jiuzi Holdings, Inc. (“Company” or “Jiuzi”) was incorporated in the Cayman Islands on October 10, 2019. The Company is an investment holding company; its primary operations are conducted through subsidiaries and variable interest entities as described below. Jiuzi (HK) Limited (“Jiuzi HK”) was incorporated in Hong Kong on October 25, 2019. It is wholly owned subsidiary of the Company. Zhejiang Navalant New Energy Automobile Co., Ltd. (“Jiuzi WFOE”) was incorporated on June 5, 2020 as wholly foreign owned entity in the People’s Republic of China (“PRC”). Jiuzi WFOE is a wholly owned subsidiary of Jiuzi HK. Zhejiang Jiuzi (“Zhejiang Jiuzi”) was incorporated on May 26, 2017 in the PRC. Zhejiang Jiuzi’s scope of business includes the sale of new energy vehicles (“NEVs”) and NEV components and parts, and the related development of products and services for the NEV industry. Zhejiang Jiuzi generates revenues by both selling NEVs and NEV components and parts to Jiuzi branded licensed NEV dealerships, and by rendering professional services to new Jiuzi NEV dealerships, such as initial setup, NEV product procurement services, and specialized marketing campaigns. The Zhejiang Jiuzi also provides short term financing solutions to the new Jiuzi NEV dealerships for the procurement of NEVs. Shangli Jiuzi was incorporated on May 10, 2018 in the PRC. Its scope of business is similar to Zhejiang Jiuzi. Zhejiang Jiuzi owns 59.0% equity interest in Shangli Jiuzi, and the remaining 41% equity interest is owned by unrelated third-party investors; as such Shangli Jiuzi is accounted as a subsidiary of Zhejiang Jiuzi. Hangzhou Zhitongche Technology Co., Ltd. (“Hangzhou Zhitongche”) was incorporated on February 2, 2018 in the PRC. The company is providing technical services, technical development, technical consulting and trading for new energy for motor vehicle and its accessories. Zhitongche is a wholly owned subsidiary of Zhejiang Jiuzi. Zhejiang Jiuzi New Energy Network Technology Co., Ltd was incorporated on July 1, 2021 in PRC. Its scope of business includes software outsourcing services; industrial internet data services; network and information security software development; artificial intelligence application software development; Internet of Things technology research and development; internet security services; information system operation and maintenance services; artificial intelligence basic software development; cloud computing equipment technical services; research and development of robots (except for projects subject to approval according to law, business activities are carried out independently according to law with business licenses). Zhejiang Jiuzi owns 100% equity interest in Zhejiang Jiuzi Xinneng Network Technology Co., Ltd. Guangxi Nanning Zhitongche New Energy Technology Co., Ltd was incorporated on December 31, 2021 in PRC. Its scope of business includes technical service, development and consultation; sales of electrical accessories for new energy vehicles; automobiles new car sales; business agency services; motor vehicle charging sales; sales of new energy prime movers; R&D of emerging energy technologies; car trailers, assistance, and clearance services; auto parts wholesale; auto parts retail; sales agency; domestic trade agency; import and export agency. Hangzhou Zhitongche owns 90% equity interest in Guangxi Nanning Zhitongche New Energy Technology Co., Ltd, and the remaining 10% equity interest is owned by unrelated third-party investor; as such Guangxi Nanning Zhitongche New Energy Technology Co., Ltd is accounted as a subsidiary of Zhejiang Jiuzi. Hangzhou Jiuyao New Energy Automobile Technology Co. Ltd. was incorporated on January 24, 2022 in PRC. Its scope of business includes technical service, technology development, technical consultation and promotion, as well as sales of automobiles and new energy vehicles, and sales of electrical accessories and accessories for new energy vehicles. Hangzhou Jiuyao is 51% owned by Hangzhou Zhitongche, as such Hangzhou Jiuyao is accounted as a subsidiary of Zhejiang Jiuzi.; the remaining 49% equity interest is owned by unrelated third-party investors. Hangzhou Jiuzi Haoche Technology Co., Ltd. was incorporated on January 21, 2022 under the laws of the People’s Republic of China. Its registered business scope is software outsourcing services, industrial internet data services, network and information security software development, artificial intelligence application software development, technology development, consulting and transfer, market planning, convention planning, and cloud computing equipment technical services. Hangzhou Jiuzi Haoche Technology Co., Ltd. is a wholly owned subsidiary of Jiuzi New Energy and has a registered capital with the amount of RMB5,000,000. On November 10, 2022, Zhejiang Jiuzi New Energy Automobile Co., Ltd.(“Zhejiang Jiuzi”), the variable interest entity (the “VIE”) of the Company, entered into a termination agreement (the “Termination Agreement”) with Zhejiang Navalant New Energy Automobile Co. Ltd., a wholly foreign-owned entity of the Company (“Jiuzi WFOE”), pursuant to which the Exclusive Option Agreement, the Exclusive Business Cooperation Agreement and the Equity Pledge Agreement (collectively, the “VIE agreements”) entered into among Zhejiang Jiuzi, Jiuzi WFOE and certain shareholders of Zhejiang Jiuzi shall be terminated effective upon the conditions are met. On November 10, 2022, with approval of Jiuzi WFOE and approval of the board of directors of Zhejiang Jiuzi, Zhejiang Jiuzi issued 0.1% equity interest in Zhejiang Jiuzi to a third-party investor. The issuance was completed on November 27, 2022. On January 20, 2023, Jiuzi WFOE exercised its call option under the Exclusive Option Agreements dated June 15, 2020 with certain shareholder of Zhejiang Jiuzi and entered into equity transfer agreements with all the shareholders of Zhejiang Jiuzi to purchase all the equity interest in Zhejiang Jiuzi. The transaction underlying the equity transfer agreement was completed and the VIE Agreements were terminated pursuant to the Termination Agreement on January 20, 2023. As a result, the VIE structure is dissolved and Zhejiang Jiuzi became a wholly owned subsidiary of Jiuzi WFOE. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 20-F for the fiscal year ended October 31, 2022, filed with the SEC on March 15, 2023. The interim financial information is not necessarily indicative of the results to be expected for the fiscal year ended or for any other interim period or for any future year. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. Reverse Stock Split On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 for shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares will have a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split. Going Concern and Management’s Plan The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of April 30, 2023, the Company had an accumulated deficit of $15,880,079. The Company plans to establish provincial regional sales centers nationwide to geographically expand the market and adopt centralized procurement system to reduce overhead cost and obtain volume discount. The company will also cooperate with more brands of NEV, introduce more quality services and strengthen its publicity to attract more franchisees to join. Additionally, the Company will be undertaking capital raising activities to provide additional cash to meet current and future liquidity needs. Management believes that it will be able to obtain the necessary financing and fund future expansion plans; however, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. In particular, the novel coronavirus (“COVID-19”) pandemic and the resulting adverse impacts to global economic conditions, as well as our operations, may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, asset impairment charges and discount rate assumptions. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. Functional and presentation currency The functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese Yuan (“RMB”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Exchange rate used for the translation as follows: US$ to RMB Period Average April 30, 2023 6.9120 6.9270 October 31, 2022 7.3003 6.6105 April 30, 2022 6.6085 6.3894 Fair Values of Financial Instruments The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow: ● 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, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value. As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year. Related parties The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Cash and Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are recorded at the net value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of the original invoice amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts. Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. As of April 30, 2023 and October 31, 2022, the investments in bank wealth management and security that were recorded as short-term investments amounted to $46,926 and $834,303, respectively. Loans Receivable Loans receivable are recorded at origination at the fair value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for credit losses. When collection of the original amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for credit losses. Revenue Recognition In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes. The Company’s revenues consist of sales of vehicle by the Company’s own corporate retail store to third party customers, sales of vehicle to franchisees as a supplier, fees from retail stores operated by franchisees, and sublease of vehicles to third party customers. Revenues from franchised stores include initial franchise fees and annual royalties based on a percent of net incomes. The Company recognizes sales of vehicle revenues at the point in time when the Company has transferred physical possession of the goods to the customer and the customer has accepted the goods, therefore, indicating as control of the goods has been transferred to the customer. The transaction price is determined and allocated to the product prior to the transfer of the goods to the customer. The initial franchise services include a series of performance obligations and an indefinite license to use the Company’s trademark. The series of performance obligations are specific services and deliverables that are set forth in the agreement and are billed and receivable as delivered and accepted by the franchisee. These services and deliverables may be customized and are not transferable to other third parties. The royalty revenues are distinct from the initial franchise services. The Company recognizes royalty revenues only when the franchisee has generated positive annual net income, at which point the Company has the contractual right to request for payment of the royalty. The royalty is calculated as a percentage of the franchisees’ annual net income. The Company subleases vehicles to third party and recognizes revenues over time which is ratably on a monthly basis over the lease period according to the lease agreement. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. The Company has not experienced any sales returns. Inventory Inventories, which are primarily comprised of finished goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only defects products can be return to our suppliers. Advertising The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $79,400 and $220,850 of advertising and promotional expenses for the six months ended April 30. 2023 and 2022, respectively. Income Taxes Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the years of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. Earnings (loss) per share Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. All per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and 2 for 1 stock dividend on post-Share Subdivision basis. See Note 17. Property and Equipment & Depreciation Property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods: Equipment 5 years Furniture and fixtures 5 years Motor vehicles 10 years Intangible Assets & Amortization Intangible assets are stated at historical cost net of accumulated amortization. Software is amortized on a straight-line basis over the estimated useful life of the software which is 3 years. Impairment of Long-lived assets The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. New Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers”. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in purchase accounting. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. Besides the above, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted would have a material effect on the consolidated financial statements. |
Inventory
Inventory | 6 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 3 – INVENTORY Inventory, net comprised of the following: April 30, October 31, Finished goods 490,994 628,187 Total, net 490,994 628,187 Inventory write-down expense was $ nil nil |
Accounts Receivables
Accounts Receivables | 6 Months Ended |
Apr. 30, 2023 | |
Accounts Receivables [Abstract] | |
ACCOUNTS RECEIVABLES | NOTE 4 – ACCOUNTS RECEIVABLES Accounts receivables, net is comprised of the following: April 30, October 31, Accounts receivables 47,490 45,100 Allowance for doubtful accounts (6,076 ) (5,753 ) Total, net 41,414 39,347 April 30, October 31, 2023 2022 Accounts receivables-related parties 374,796 354,857 Allowance for doubtful accounts (173,356 ) (139,911 ) Total, net 201,440 214,946 The following is a summary of the activity in the allowance for doubtful accounts: April 30, October 31, Balance at beginning of year 145,664 18,458 Provision 25,528 143,003 Charge-offs - Recoveries - Effect of translation adjustment 8,240 (15,797 ) Balance at end 179,432 145,664 Bad debt expense (recoveries) was $25,528 and $(764) for the six months ended April 30, 2023 and 2022, respectively. |
Short-Term Investment
Short-Term Investment | 6 Months Ended |
Apr. 30, 2023 | |
Short-Term Investment [Abstract] | |
SHORT-TERM INVESTMENT | NOTE 5 – SHORT-TERM INVESTMENT Short-term investment comprised of the following: As of April 30, 2023 Level 1 Level 2 Level 3 Total Bank Wealth Management - 46,296 - Securities - - - - 46,296 - As of October 31, 2022 Level 1 Level 2 Level 3 Total Bank Wealth Management - 265,836 - 265,836 Securities - 568,467 - 568,467 - 834,303 - 834,303 |
Loans Receivables
Loans Receivables | 6 Months Ended |
Apr. 30, 2023 | |
Receivables [Abstract] | |
LOANS RECEIVABLES | NOTE 6 – LOANS RECEIVABLES Loans receivables include amounts due from related franchisees and are presented net of imputed interest and an allowance for estimated loan losses. The loans are provided in the form of credit line to related franchisee to support their operations. These loans are unsecured with a due date of 18 months upon initial drawing. Management has determined that the 18-month borrowing rate most appropriately capture the financing cost for these loans. Given that the loans are in the forms of credit lines to the franchisees that may have varying balances over time, as a practical expedient, management has elected to the expense the interest as a cost of revenue at inception rather than amortize over time. The amounts charged were $28,281, and $183,557 for the six months ended April 30, 2023 and 2022, respectively. The allowance for loan losses represents an estimated amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and expected to become evident during the following 12 months. Each lending request is evaluated by considering the borrower’s financial condition. The Company uses a proprietary model to assign each franchisee a risk rating. This model uses historical franchisee performance data to identify key factors about a franchisee that are considered most significant in predicting a franchisee’s ability to meet its financial obligations. The Company also considers numerous other financial and qualitative factors of the franchisee’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with the Company and other creditors. The Company also consider recent trends in delinquencies and defaults, recovery rates, age of the loans. and the economic environment in assessing the models used in estimating the allowance for loan losses, and may adjust the allowance for loan losses to reflect factors that may not be captured in the models. In addition, the Company periodically consider whether the use of additional metrics would result in improved model performance and revise the models when appropriate. The provision for loan losses is the periodic expense of maintaining an adequate allowance. An account is considered delinquent when the related franchisee fails to make a substantial portion of a scheduled payment 3 months after the due date. For purposes of determining impairment, loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment. As these loans are non-interest bearing, the Company recorded a discount to the face amount using an imputed interest rate of 11.75% for the six months ended April 30, 2023 and 2022 to reflect the fair value of the loan at origination. The imputed interest rate reflects the borrowing rate in the market under similar terms and duration. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred. April 30, October 31, Loan to related franchisees, gross 18,913,509 17,678,913 Discount based on imputed interest rate of 11.75% (2,221,797 ) (2,076,767 ) Loan to related franchisees, net of discount 16,691,712 15,602,146 April 30, October 31, Loan to related franchisees, net of discount 16,691,712 15,602,146 Provision for credit losses (11,168,049 ) (7,309,516 ) Loan to related franchisees, net of discount and allowance 5,523,663 8,292,630 The following is a summary of the activity in the allowance for credit loss: April 30, October 31, Balance at beginning of year 7,309,516 832,170 Provision 3,440,368 7,267,026 Charge-offs - - Recoveries - - Effect of translation adjustment 418,165 (789,680 ) Balance at end 11,168,049 7,309,516 Credit loss was $3,440,368 and $3,846,416 for the six months ended April 30, 2023 and 2022, respectively. The Company has made additional allowance for credit losses for the six months ended April 30, 2023 due to the aging of the balances and the current market and economic condition. The following is a summary of current and non-current loan receivables, net of allowance for credit losses: April 30, October 30, Loan to related franchisees, net of discount and allowances, current 5,101,224 6,661,290 Loan to related franchisees, net of discount and allowances, non-current 422,439 1,631,340 5,523,663 8,292,630 Credit Quality The Company extends credit to related franchisees primarily in the form of lines of credit to purchase vehicles and support their daily operations. Each of the franchisees are assigned to one of four groups according to risk ratings with Group I demonstrating the best credit history with the Company and Group IV demonstrating the weakest. ● Group I – strong to superior credit rating; ● Group II – fair to favorable credit rating; ● Group III – marginal to weak credit rating; and ● Group IV – poor credit rating, including franchisees classified as uncollectible. Generally, the Company suspends credit lines and does not extend further funding to franchisee who are unable to repay the balance within 3 months after the 18-month deadline. The credit quality of the loans receivables is evaluated based on the Company’s adjusted aging schedule. The Company regularly reviews the model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model. The credit quality analysis of franchisee loan receivables as follows: April 30, October 31, Franchisee Financing: Group I 684,247 3,622,174 Group II 4,334,921 6,109,130 Group III 7,284,933 4,358,992 Group IV 6,609,408 1,511,850 Balance at end 18,913,509 15,602,146 |
Other Receivables and Other Cur
Other Receivables and Other Current Assets | 6 Months Ended |
Apr. 30, 2023 | |
Other Receivables and Other Current Assets [Abstract] | |
OTHER RECEIVABLES AND OTHER CURRENT ASSETS | NOTE 7 – OTHER RECEIVABLES AND OTHER CURRENT ASSETS Other receivables and other current assets comprised of the following: April 30, October 31, 2023 2022 Deposits put down on the car 876,231 935,573 Excess input VAT credits 39,702 48,589 Prepaid expense 601,960 - Cash advance to employee 82,838 55,600 Total 1,600,731 1,039,762 |
Property & Equipment
Property & Equipment | 6 Months Ended |
Apr. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY & EQUIPMENT | NOTE 8 – PROPERTY & EQUIPMENT Property and equipment, net comprised of the following: April 30, October 31, 2023 2022 At Cost: Equipment 61,886 73,415 Motor vehicles 350,650 340,462 Leasehold Improvement 557,711 502,969 Furniture and fixtures 6,248 9,054 976,495 925,900 Less: Accumulated depreciation 401,772 284,542 Total, net 574,723 641,358 Depreciation expenses was $105,392 and $42,471 for the six months ended April 30, 2023 and 2022, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Apr. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 9 – INTANGIBLE ASSETS Intangible assets, net comprised of the following: April 30, October 31, 2023 2022 At Cost: Financial software 15,914 17,710 Domain name 2,792 2,643 18,706 17,711 Less: Accumulated Amortization 6,696 5,318 Total, net 12,010 12,393 Amortization expenses was $1,077 and $1,708 for the six months ended April 30 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Apr. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS The franchisees are related parties of the Company due to the nominal, symbolic equity interest ownership in the franchisees. The franchisees were originally incorporated with the Company shown as a 51.0% owner and subsequently as a 1.25% owner. The intent of having such ownership percentage in the franchisees was to enable the franchisees to register their respective individual business name to include the words “Jiuzi” as required by the local business bureau. Subsequent to the successful registration by the franchisees and completion of the Company’s obligations under the franchise and license agreement, the Company will decrease its ownership interest in these franchisees to 0%. The Company’s percentage of shareholding is nominal, inconsequential, and symbolic. The Company’s equity interest of 51.0% and 1.25% in the franchisees were symbolic in nature. The Company did not and does not control the franchisees, exert significant influence over the franchisees, have the power to direct the use of the franchisee’s assets and the fulfillment of their obligations, appoint or dismiss directors, authorized representatives, or executive officers of the franchisees. Management has also determined that the percentage shareholding in the franchisee is not compensatory to the Company in nature, and accordingly, would not be subject to consideration as income under revenue recognition criteria. The Company did not contribute any permanent equity capital in these franchisees and if these franchisees were to incur substantial losses and accumulate significant liabilities, the Company is not obligated to absorb such losses on behalf of the franchisees. Accordingly, the management has determined that the financial positions and results of operations of these franchisees should not be included as part of the Company’s consolidated financial statements. In addition, the Company did not and will not receive any actual ownership interest in the franchisees, nor receive any benefits from being a 51% or 1.25% owner in the franchisees. Any after tax profits generated by the franchisees that are potentially distributable to the Company are governed by the royalty agreements between the Company and the franchisee not the shareholding percentage. Accordingly, the management has determined that the ownership interest is not part of the initial franchise fee. Accounts receivable from related franchisees comprised of the following: April 30, October 31, 2023 2022 Yichun Jiuzi New Energy Automobile Co., Ltd 104,460 112608 Wanzai Jiuzi New Energy Automobile Co., Ltd 38,751 23,043 Xinyu Jiuzi New Energy Automobile Co., Ltd 55,225 65352 Quanzhou Jiuzi New Energy Automobile Co., Ltd 1,275 5,919 Yulin Jiuzi New Energy Automobile Co., Ltd 1,729 8,024 Total 201,440 214,946 Accounts receivables above derived from sales of vehicles supplied to the Company’s franchisees without any special payment terms. Sales revenues from related parties’ franchisees were $ nil Loan to related franchisees is comprised of the following (See Note 6 for details): As of April 30, 2023 As of October 31, 2022 Gross Discount Allowance Net Gross Discount Allowance Net Jiangsu Changshu $ 390,671 $ 45,893 $ 181,967 $ 162,811 $ 356,190 $ 41,842 $ 208,300 $ 106,048 Shandong Dongming 476,454 55,970 221,923 198,561 627,826 73,752 211,033 343,041 Jiangxi Gao’an 618,165 72,617 324,098 221,450 605,621 71,143 287,121 247,357 Hunan Huaihua 816,682 95,937 720,745 - 719,814 84,558 254,690 380,566 Jiangxi Jiujiang 310,538 36,479 274,059 - 279,279 32,807 171,188 75,284 Hunan Liuyang 416,474 48,924 193,985 173,565 413,509 48,576 223,766 141,167 Hunan Loudi 572,498 67,252 266,658 238,588 540,686 63,515 232,408 244,763 Hunan Pingjiang 385,991 45,343 179,787 160,861 392,004 46,049 175,230 170,725 Jiangxi Pingxiang 588,322 69,111 274,029 245,182 583,694 68,567 299,055 216,072 Henan Puyang 609,134 71,556 283,723 253,855 645,124 75,784 245,216 324,124 Fujian Quanzhou 483,652 56,815 426,837 - 437,376 51,379 288,737 97,260 Jiangxi Wanzai 556,151 65,332 259,044 231,775 512,867 60,247 207,450 245,170 Jiangxi Xinyu 994,646 116,843 499,456 378,347 921,187 108,213 338,524 474,450 Jiangxi Yichun 136,825 16,073 44,611 76,141 95,301 11,195 50,234 33,872 Jiangxi Yudu 575,913 67,653 268,249 240,011 565,823 66,468 264,583 234,772 Guangdong Zengcheng 468,562 55,043 218,247 195,272 456,895 53,672 294,661 108,562 Jiangxi Shanggao 627,650 73,731 353,784 200,135 594,055 69,784 177,529 346,742 Shandong Heze 889,832 104,530 450,636 334,666 856,193 100,578 323,148 432,467 Jiangxi Ganzhou 149,847 17,603 111,673 20,571 121,328 14,253 62,408 44,667 Hunan Liling 84,287 9,901 54,963 19,423 66,105 7,765 20,696 37,644 Hunan Zhuzhou 137,810 16,189 89,865 31,756 130,479 15,328 54,913 60,238 Hunan Changsha 9,404 1,105 6,570 1,729 8,904 1,046 1,962 5,896 Guangxi Guilin 41,718 4,901 29,147 7,670 39,499 4,640 8,703 26,156 Hunan Chenzhou 522,819 61,416 243,519 217,884 508,568 59,742 216,675 232,151 Jiangxi Ji’an 625,270 73,451 334,123 217,696 572,830 67,291 232,646 272,893 Guangxi Nanning 181,230 21,289 135,062 24,879 164,740 19,352 87,227 58,161 Hunan Leiyang 824,547 96,861 727,686 - 632,745 74,329 221,954 336,462 Guangdong Dongguan Changping 484,406 56,904 427,502 - 458,637 53,877 137,329 267,431 Hunan Changsha County 65,104 7,648 36,389 21,067 61,641 7,241 32,369 22,031 Guizhou Zunyi 262,993 30,894 220,494 11,605 242,153 28,446 92,445 121,262 Jiangsu Xuzhou 244,445 28,715 204,944 10,786 231,441 27,188 122,605 81,648 Hunan Yongxing 248,937 29,243 104,355 115,339 242,475 28,484 119,993 93,998 Hunan Hengyang 178,299 20,945 132,877 24,477 168,814 19,831 57,952 91,031 Hainan Sanya 135,186 15,880 119,305 1 127,994 15,036 112,958 - Hunan Changsha Yuhua 614,947 72,239 286,430 256,278 493,196 57,936 131,535 303,725 Shandong Heze Dingtao 564,310 66,290 262,845 235,175 520,592 61,155 140,112 319,325 Shandong Heze Yuncheng 491,972 57,793 434,179 - 465,800 54,718 158,529 252,553 Shandong Heze Gaoxin 101,346 11,905 41,304 48,137 54,860 6,445 17,169 31,246 Shandong Zouping 66,551 7,818 37,198 21,535 63,011 7,402 27,280 28,329 Shandong Juye 449,611 52,816 209,420 187,375 411,995 48,398 174,963 188,634 Shandong Juancheng 518,086 60,860 241,314 215,912 449,363 52,787 134,326 262,250 Shandong Shanxian 551,246 64,756 256,760 229,730 494,525 58,093 135,766 300,666 Jiangxi Zhangshu 70,891 8,328 49,530 13,033 67,120 7,885 27,949 31,286 Guangdong Foshan 102,214 12,007 66,653 23,554 96,776 11,368 43,582 41,826 Jiangxi Jingdezhen 82,466 9,687 67,219 5,560 78,079 9,172 18,728 50,179 Guangxi Yulin 413,428 48,566 364,862 - 391,435 45,982 266,698 78,755 Shandong Heze Cao County 448,569 52,694 208,935 186,940 438,404 51,500 137,247 249,657 Dongguan Nancheng 5,787 680 4,043 1,064 5,479 644 1,207 3,628 Hubei Macheng 104,587 12,286 68,201 24,100 99,023 11,632 21,819 65,572 Shandong Jining Liangshan 14,468 1,700 10,108 2,660 13,698 1,609 3,018 9,071 Guangdong Zhanjiang 37,978 4,461 26,534 6,983 35,957 4,224 7,923 23,810 Hunan Hengyang Shigu 21,701 2,549 15,162 3,990 20,547 2,414 4,527 13,606 Jiangxi Ji’an Yongfeng 19,531 2,294 13,646 3,591 18,492 2,172 4,075 12,245 Hunan Changde 39,786 4,674 27,797 7,315 37,669 4,425 8,300 24,944 Hunan Shaoyang 14,468 1,700 10,108 2,660 - - - - Hunan Yongzhou 14,468 1,700 10,108 2,660 - - - - Hunan Ningxiang 7,234 850 5,054 1,330 - - - - Guangxi Nanning Jiangnan 43,402 5,097 30,327 7,978 41,095 4,828 9,055 27,212 Total $ 18,913,509 $ 2,221,797 $ 11,168,049 $ 5,523,663 $ 17,678,913 $ 2,076,767 $ 7,309,516 $ 8,292,630 The advances paid above are derived from funds advanced to the Company’s franchisees as working capital to support its operations. Such advances are due within 18 months. Accounts payable to related parties’ franchisees comprised of the following: April 30, October 31, 2023 2022 Yudu Jiuzi New Energy Automobile Co., Ltd. 7,379 6,986 Total 7,379 6,986 Accounts payable above derived from vehicles purchased by the Company from the franchisees as inventory on a needed basis without any special payment terms. Contract liability – related party comprised of the following: April 30, October 31, 2023 2022 Current Portion Customer deposit 782,482 825,990 782,482 825,990 Non-current Portion Unearned franchise fee - 150,494 Total, net 782,482 976,484 Unearned franchise fee comprised of the following: April 30, October 31, 2023 2022 Unearned franchise fee - current Jinan Chuangtu New Energy Co., Ltd. 115,741 - Hunan Changsha 2,677 - Hunan Yueyang 2,677 - Zhejiang Hangzhou Xiaoshan 2,604 - Hunan Yueyang Xiangyin 2,677 - Guangdong Zhongshan 8,922 - Hunan Hengyang 1,447 Henan Luohe Yancheng Agent 2,894 - Guangdong Foshan Shunde Agent 4,340 - Chongqing Banan Agent 1,447 - Zhejiang Hangzhou Gongshu Agent 989 - Jiangsu Jingjiang Agent 2,894 - Shanghai Fengxian Agent 2,894 - Chengdu municipal level Agent 75,232 - Zhejiang Jiaxing Nanhu Agent 2,966 - Hunan Yueyang Miluo Agent 2,894 822 Zhejing JiaXing 72,338 68,490 Henan Jiuzi New Energy Vehicle Sales and Service Co. LTD - 13,698 Zhejiang Huasu Automobile Service Co., LTD - 68,490 Huzhou Fengtao New Energy Automobile Sales Co., LTD - 41,094 Shandong Shenglong Automobile Sales Co. LTD - 68,490 Nantong Meixinyao Vehicle Sales Service Co., LTD - 27,396 Anhui Auto e-Link Auto Sales Co., LTD - 27,396 Fengshang Network Technology (Shaoxing) Co., LTD - 41,094 Anhui LiuAn 43,403 41,094 Guangxi Qinzhou 14,468 13,698 Guangxi Qinzhou Lingshan 43,403 41,094 Zhejiang Shaoxing Shengzhou 72,338 68,490 Xinjiang Urumqi 72,338 68,490 Hunan Changzhutan - 2,740 Hunan Shaoyang 1,447 1,370 Guangxi Liuzhou (Guangxi Shuangru Trading Co., Ltd.) 72,338 68,490 Guangxi Nanning 14,468 13,697 Guangxi Yulin 4,340 4,109 Guangxi Nanning (Guangxi Zhanyuan Automobile) 43,403 41,094 Guangxi Yulin (Yulin Qihui Automobile) 43,403 82,188 Zhejiang Huzhou 7,234 6,849 Sanmen Xian Wuji Automobile Sales 289 274 Shandong Yuncheng (Yuncheng Zhanteng New Energy Automobile Co., Ltd.) 289 274 Zhejiang Shaoxing Niuniu Automobile Sales Service Co., Ltd. 289 274 Yongkang Yijie Automobile Trading Co., LTD - 5,479 Ningbo Jinhui Internet Technology Service Co., LTD - 1,370 Xingtai Wanhua Botian Automobile Trading Co., LTD - 822 Zhejiang Hangzhou Xiaoshan Agent - 822 Hunan Changsha Yuelu Agent - 822 Hunan Yueyang Xiangyin Agent - 822 Hunan Yueyang Yueyang Lou Agent - 822 Guangdong Zhongshan City Agent - 2,740 Guangxi Yulin (Yulin Haorui Automobile Sales Co., Ltd.) 43,399 - Zhejiang Hangzhou Gongshu Agent - 274 Zhejiang Jiaxing Nanhu Agent - 822 782,482 825,990 Unearned franchise fee – non-current Guizhou 320 Automobile Service Co., LTD - 13,698 Yongkang Yijie Automobile Trading Co., LTD - 21,004 Ningbo Jinhui Internet Technology Service Co., LTD - 5,250 Xingtai Wanhua Botian Automobile Trading Co., LTD - 3,219 Zhejiang Hangzhou Xiaoshan Agent - 2,055 Hunan Changsha Yuelu Agent - 2,123 Hunan Yueyang Xiangyin Agent - 2,123 Hunan Yueyang Yueyang Lou Agent - 2,123 Guangdong Zhongshan City Agent - 7,077 Hunan Yueyang Miluo Agent - 2,328 Henan Luohe Yancheng Agent - 2,740 Guangdong Foshan Shunde Agent - 4,109 Chongqing Banan Agent - 1,370 Zhejiang Hangzhou Gongshu Agent - 798 Jiangsu Jingjiang Agent - 2,740 Shanghai Fengxian Agent - 2,740 Chengdu municipal level Agent - 71,230 Zhejiang Jiaxing Nanhu Agent - 2,397 Hunan Hengyang Agent - 1,370 - 150,494 Total 782,482 976,484 The deferred revenues above derived from initial franchise fees payments received in advance for services which have not yet been performed. The initial franchise fees include a series of performance obligations and an indefinite license to use the Company’s trademark. Amounts are recognized as advances when received, and are recognized as deferred revenues when the minimum amount required under the franchise or license agreement is attained. The payments are received in advance progressively and are not refundable once the required amount is attained. Such amounts are recognized as revenues when the Company performed the initial services required under the franchise or license agreement, which is generally when a specific performance obligation is completed or when and if the franchise or license agreement is terminated. Related parties receivables comprised of the following: April 30, October 31, 2023 2022 Mr. Shuibo Zhang 14,611 13,556 Mr. Qi Zhang 4,207 22,922 Mr. Dewen Chen 14,468 - Mr. Ruchun Huang 32,215 30,675 Total 65,501 67,153 As of April 30, 2023 and October 31, 2022, the Company has an outstanding receivable of $14,611 and $13,556, respectively, from Mr. Shuibo Zhang, the Company’s shareholder, director, and officer. The amount was advanced to Mr. Zhang for business purposes. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing. As of April 30, 2023 and October 31, 2022, the Company has an outstanding receivable of $4,207 and $22,922, respectively, from Mr. Qi Zhang, the vice president of marketing department. The amount was advanced to Mr. Zhang for business purposes. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing and due on demand without a specified maturity date. As of April 30, 2023 and October 31, 2022, the Company has an outstanding receivable of $32,215 and $30,675, respectively, from Mr. Ruchun Huang, the Shangli Jiuzi New Energy Vehicle Co., Ltd.’s legal representative. The amount was advanced to Mr. Huang for business purposes. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing. As of April 30, 2023 and October 31, 2022, the Company has an outstanding receivable of $14,468 and $ nil Related parties payables comprised of the following: April 30, October 31, 2023 2022 Mr. Ligui Xu 7,234 6,849 Total 7,234 6,849 As of April 30, 2023 and October 31, 2022, the Company has an outstanding payable of $7,234 and $6,849, respectively, to Mr. Ligui Xu, the Company’s subsidiary legal representative officer. The amount was advanced by Mr. Xu for business purposes. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing. |
Deferred Income and Others Long
Deferred Income and Others Long Term Liabilities | 6 Months Ended |
Apr. 30, 2023 | |
Deferred Income and Others Long Term Liabilities [Abstract] | |
DEFERRED INCOME AND OTHERS LONG TERM LIABILITIES | NOTE 11 – DEFERRED INCOME AND OTHERS LONG TERM LIABILITIES Deferred income comprised of the following government grants which have not yet been earned: April 30, October 31, 2023 2022 Subsidy for the maintenance and repair of the office 216,291 236,290 Total 216,291 236,290 Franchise security deposits comprised of the following: April 30, October 31, 2023 2022 Guangxi Rongxian Junsheng Automobile Trading Co., Ltd. 21,701 20,547 Chongqing Suiqian Trading Co., Ltd. 28,935 27,396 Guangxi Yulin Shangfeng Automobile Sales Co., Ltd. 28,935 27,396 Jiangxi Haomen Automobile Sales Co., Ltd. 14,468 13,698 Guangxi Zhanyuan Automobile Sales Co., Ltd. 43,404 41,094 Total 137,443 130,131 |
Leases
Leases | 6 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 12 – LEASES The Company has one operating leases for its corporate office and retail store. The current lease agreement was signed to cover the lease for the period from August 1, 2021 to July 31, 2026. The Company does not expect to receive the subsidy from PRC government as the Company may not meets the requirement of paying RMB 20 million in income taxes to the government, therefore the specific deferred government subsidy was not recognized. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in PRC which is approximately 4.75%. Operating lease expenses of office and retail store were $83,306 and $97,191 for the six months ended April 30, 2023 and 2022, respectively. The Company has three operating leases for multiple vehicles. The leases have different leasing periods which are from June 1, 2022 to June 30, 2025. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in PRC which is approximately 4.45%. The Company subleases vehicles to third party and recognizes revenues over time which is ratably on a monthly basis over the lease period according to the lease agreement. Operating lease cost for the subleases of vehicles were $22,996 and $ nil The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Six Months Ended April 30, Lease Cost Operating lease cost (included in general and administrative expenses and cost in the Company’s statement of operations) $ 106,302 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 25,985 Weighted average remaining lease term – operating leases (in years) 3.12 Average discount rate – operating lease 4.75 % The supplemental balance sheet information related to leases is as follows: April 30, October 31, 2023 2022 Operating leases Right-of-use assets $ 649,773 $ 725,903 Operating lease liabilities $ 783,003 $ 768,185 The undiscounted future minimum lease payment schedule as follows: For the fiscal years ended October 31, Amounts 2023 (six months from May 1, 2023 to October 31, 2023) 388,496 2024 225,779 2025 202,733 Total 817,008 |
Convertible Debentures
Convertible Debentures | 6 Months Ended |
Apr. 30, 2023 | |
Convertible Debentures [Abstract] | |
CONVERTIBLE DEBENTURES | NOTE 13 – CONVERTIBLE DEBENTURES On December 2, 2021 and on December 6, 2021, the Company issued convertible debenture of $6,000,000 with annual interest rate of 5%, which is valid for 12 months from the date of funds receipt. The debentures are carried out in three stages. In the first stage, the company would issue a convertible debenture of $2,500,000 on December 3, 2021, which is the date of signing this Agreement. Second stage, convertible debenture of $2,500,000 was issued by the company on January 4, 2022, which is the date of filing Registration Statement with SEC. In the third stage, convertible debenture of $1,000,000 will be issued on or about the date the Registration Statement has first been declared effective by the SEC. On December 30, 2022 (the “Maturity Date”), the outstanding balance of the convertible debenture dated December 2, 2021 in the amount of $1,300,000 (principal, plus accrued and unpaid interest thereon) were due for payment. The Company and the Debenture Holder agreed to an extension (the “Extension”) that extends the Maturity Date to June 30, 2023, pursuant to which the Company shall repay the outstanding balance in cash through monthly payments beginning on January 6, 2023 and continue on the same day of each successive month, with each monthly payment equals to the sum of $216,667 of principal, the redemption premium and the accrued and unpaid interest on the Convertible Debentures as of each payment date. In addition, if the Company completes any financing transaction with gross proceeds of in excess of $250,000, the Company shall pay to the Debenture Holder as an optional redemption but no more than 50% of the total proceeds, an amount up to the total amount outstanding under the Convertible Debentures. The outstanding convertible debenture were $433,332 and $2,835,400 as of April 30, 2023 and October 31, 2022. Interest expenses were $239,325 and $ nil |
Taxes Payable
Taxes Payable | 6 Months Ended |
Apr. 30, 2023 | |
Taxes Payable [Abstract] | |
TAXES PAYABLE | NOTE 14 – TAXES PAYABLE Taxes payable comprised of the following: April 30, October 31, 2023 2022 Value-added tax, net 912,637 890,620 Company Income tax 1,733,416 1,645,556 Other taxes 126,265 116,678 Total 2,772,318 2,652,854 |
Contract Liability
Contract Liability | 6 Months Ended |
Apr. 30, 2023 | |
Contract Liability [Abstract] | |
CONTRACT LIABILITY | NOTE 15 – CONTRACT LIABILITY Contract liability comprised of the following: April 30, October 31, 2023 2022 Customer deposit for car purchase 1,475,213 1,343,442 Total, net 1,475,213 1,343,442 Contract liability – related party See Note 10 for details. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Apr. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 16 – SHAREHOLDERS’ EQUITY As of April 30, 2023 and October 31, 2022, the Company had 2,584,804 and 1,363,630 shares issued and outstanding. On October 31, 2020, pursuant to a special resolution adopted by its shareholders to amend and restate the memorandum and articles of associations, the Company conducted a subdivision of its par value with each share of a par value of $0.09 of the authorized share capital of the Company (including issued and unissued share capital) be subdivided into 5 shares of a par value of $0.018 each (the “Share Subdivision”). Immediately following the Share Subdivision, the authorized share capital of the Company was $27,778 divided into 2,777,778 shares of a par value of $0.018 each, and the total issued and outstanding shares were 277,778. Subsequent to the Share Subdivision, the Company increased its authorized share capital from 2,777,778 shares to 8,333,333 shares with a par value of $0.018 per share, and issued a stock dividend on 2 for 1 on post-Share Subdivision basis, whereby each shareholder holding 1 share of the 277,778 shares outstanding immediately preceding this stock dividend was issued an additional 2 shares; therefore, a total of 555,556 shares were issued; immediately following this transaction, there were a total of 833,333 shares issued and outstanding. All shares and per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and stock dividend as if it had occurred at the beginning of the first period presented. On May 20, 2021, we issued 288,889 ordinary shares to the investors in connection with the closing of the initial public offering at the offering price of $90.00 per share. On October 28, 2022, the Company issued 11,111 ordinary shares to a non-related party as service compensation for $60,000 For the year ended October 31, 2022, the Company also issued 162,139 ordinary shares for conversion of note payable in the amount of $2,236,684. For the six months ended April 30, 2023, the Company issued 598,952 ordinary shares for conversion of note payable in the amount of $1,673,099, issued 444,444 ordinary shares for net cash proceeds in the amount of $1,200,000, and issued 177,778 ordinary shares for compensation in the amount of $540,000. Reverse Stock Split On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 for shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares will have a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split. |
Segments and Geographic Informa
Segments and Geographic Information | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 17 – SEGMENTS AND GEOGRAPHIC INFORMATION The Company believes that it operates in two business segments which comprised of sales of NEVs and franchise services; and it operates in one geographical location China. The Company disaggregates its revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Sales of goods revenues comprised of sales of vehicles to third party customers and to the franchisees. Franchise services revenues comprised of initial fees and ongoing royalties from the franchisees. Under the franchise arrangement, franchisees are granted the right to operate retail store using the Company’s Jiuzi brand and system. Other service revenues comprised of sublease of vehicles to third party customers with a mark-up to the rental price. Sales revenues comprised of the following: Six Months Ended April 30, April 30, NEVs sales 884,083 95 % 3,208,591 78 % Franchisees service revenues 13,527 2 % 901,145 22 % Other service revenues 28,149 3 % - - % Total 925,759 100 % 4,109,736 100 % Direct costs comprised of the following: Six Months Ended April 30, April 30, NEVs sales 882,160 94 % 3,186,391 88 % Franchisees service revenues 28,275 3 % 454,918 12 % Other service revenues 25,879 3 % - - % Total 936,314 100 % 3,641,309 100 % Gross profit (loss) comprised of the following: Six Months Ended April 30, April 30, NEVs sales 1,923 (18 )% 22,200 5 % Franchisees service revenues (14,748 ) 140 % 446,227 95 % Other service revenues 2,270 (22 )% - - % Total (10,555 ) 100 % 468,427 100 % |
Income Tax
Income Tax | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 18 – INCOME TAX The Company is subject to profits tax rate at 25% for income generated for its operation in China and net operating losses can be carried forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred. The net taxable income (losses) before income taxes and its provision for income taxes comprised of the following: Six Months Ended April 30, April 30, Income (loss) attributed to China (4,927,475.00 ) (5,123,078 ) PRC statutory tax rate 25 % 25 % Income tax expense at statutory rate - - Reconciliation 20 127,661 Income tax expense/ (benefit) 20 127,661 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 – COMMITMENTS AND CONTINGENCIES The Company has filed civil claim suits against certain vendors for failing to deliver the purchased vehicles according to the terms of the agreements. The Company demands the vendors to refund the advance paid and to compensate the Company for liquidated damages. Given the uncertainty of collectability, the Company has fully written off the advance paid to the suppliers of $3,313,395 as of April 30. 2023, despite the fact that the Company has won the some of the cases. The details are shown as follows. Suppliers (Defendant) Status of the case Amount Shengzhou Baiyuan New Energy Vehicle Technology Co. Pending 2,059,300 Jiangsu Yakai Auto Sales & Service Co. Out-of-court settled 265,536 Hangzhou Shicheng Auto Trading Co. Successful 295,632 Nanning Huangyang Auto Sales Co. Successful 180,035 Anhui Junmao Automobile Sales and Service Co., Ltd Pending 157,987 Shanghai Aichi Yiwei Automobile Sales Co., Ltd Pending 147,194 Guangxi Runyin Automobile Sales Co., Ltd Pending 152,937 Other suppliers Pending 54,774 Total 3,313,395 |
Concentrations, Risks and Uncer
Concentrations, Risks and Uncertainties | 6 Months Ended |
Apr. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS, RISKS AND UNCERTAINTIES | NOTE 20 – CONCENTRATIONS, RISKS AND UNCERTAINTIES Credit risk Cash deposits with banks are held in financial institutions in China, which deposits are not federally insured. Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk. Concentration The Company has a concentration risk related to suppliers and customers. Failure to maintain existing relationships with the suppliers or customers to establish new relationships in the future could negatively affect the Company’s ability to obtain goods sold to customers in a price advantage and timely manner. If the Company is unable to obtain ample supply of goods from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues. The concentration on sales revenues generated by customers type comprised of the following: Six Months Ended April 30, April 30, Third party sales revenues 884,083 93 % 2,724,048 66 % Related party sales revenues - - % 484,543 12 % Third party franchise revenues - - % 850,649 21 % Related party franchise revenues 41,802 4 % 50,496 1 % Third party other revenues 28,149 3 % - - % Related party other revenues - - % - - % Total 954,034 100 % 4,109,736 100 % The concentration of sales revenues generated by third-party customers comprised of the following: Six Months Ended April 30, April 30, Customer A 88,189 10 % - - % Customer B 166,337 18 % - - % Customer C 270,120 29 % - - % Customer D 140,275 15 % - - % Customer E - % 742,374 27 % Customer F - % 508,306 19 % Customer G - % 310,690 11 % Customer H - % 309707 11 % Total 664,921 72 % 1,871,077 69 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 – SUBSEQUENT EVENTS The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. Subsequent to the date the financial statements were available to be issued. There was no subsequent event that would require disclosure to or adjustment to the financial statements. On July 17, 2023 the Company sold an aggregate of 1,395,151 ordinary shares and/or pre-funded warrants in a registered direct offering for aggregate gross proceeds of $2.3 million. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 20-F for the fiscal year ended October 31, 2022, filed with the SEC on March 15, 2023. The interim financial information is not necessarily indicative of the results to be expected for the fiscal year ended or for any other interim period or for any future year. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. |
Reverse Stock Split | Reverse Stock Split On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 for shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares will have a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split. |
Going Concern and management’s plan | Going Concern and Management’s PlanThe accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of April 30, 2023, the Company had an accumulated deficit of $15,880,079.The Company plans to establish provincial regional sales centers nationwide to geographically expand the market and adopt centralized procurement system to reduce overhead cost and obtain volume discount. The company will also cooperate with more brands of NEV, introduce more quality services and strengthen its publicity to attract more franchisees to join. Additionally, the Company will be undertaking capital raising activities to provide additional cash to meet current and future liquidity needs. Management believes that it will be able to obtain the necessary financing and fund future expansion plans; however, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations.These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. In particular, the novel coronavirus (“COVID-19”) pandemic and the resulting adverse impacts to global economic conditions, as well as our operations, may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, asset impairment charges and discount rate assumptions. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. |
Functional and presentation currency | Functional and presentation currency The functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese Yuan (“RMB”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Exchange rate used for the translation as follows: US$ to RMB Period Average April 30, 2023 6.9120 6.9270 October 31, 2022 7.3003 6.6105 April 30, 2022 6.6085 6.3894 |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow: ● 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, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value. As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year. |
Related parties | Related parties The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. |
Cash and Equivalents | Cash and Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the net value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of the original invoice amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts. |
Short-term investments | Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. As of April 30, 2023 and October 31, 2022, the investments in bank wealth management and security that were recorded as short-term investments amounted to $46,926 and $834,303, respectively. |
Loans Receivable | Loans Receivable Loans receivable are recorded at origination at the fair value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for credit losses. When collection of the original amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for credit losses. |
Revenue Recognition | Revenue Recognition In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes. The Company’s revenues consist of sales of vehicle by the Company’s own corporate retail store to third party customers, sales of vehicle to franchisees as a supplier, fees from retail stores operated by franchisees, and sublease of vehicles to third party customers. Revenues from franchised stores include initial franchise fees and annual royalties based on a percent of net incomes. The Company recognizes sales of vehicle revenues at the point in time when the Company has transferred physical possession of the goods to the customer and the customer has accepted the goods, therefore, indicating as control of the goods has been transferred to the customer. The transaction price is determined and allocated to the product prior to the transfer of the goods to the customer. The initial franchise services include a series of performance obligations and an indefinite license to use the Company’s trademark. The series of performance obligations are specific services and deliverables that are set forth in the agreement and are billed and receivable as delivered and accepted by the franchisee. These services and deliverables may be customized and are not transferable to other third parties. The royalty revenues are distinct from the initial franchise services. The Company recognizes royalty revenues only when the franchisee has generated positive annual net income, at which point the Company has the contractual right to request for payment of the royalty. The royalty is calculated as a percentage of the franchisees’ annual net income. The Company subleases vehicles to third party and recognizes revenues over time which is ratably on a monthly basis over the lease period according to the lease agreement. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. The Company has not experienced any sales returns. |
Inventory | Inventory Inventories, which are primarily comprised of finished goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only defects products can be return to our suppliers. |
Advertising | Advertising The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $79,400 and $220,850 of advertising and promotional expenses for the six months ended April 30. 2023 and 2022, respectively. |
Income Taxes | Income Taxes Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the years of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. |
Earnings (loss) per share | Earnings (loss) per share Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. All per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and 2 for 1 stock dividend on post-Share Subdivision basis. See Note 17. |
Property and Equipment & Depreciation | Property and Equipment & Depreciation Property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods: Equipment 5 years Furniture and fixtures 5 years Motor vehicles 10 years |
Intangible Assets & Amortization | Intangible Assets & Amortization Intangible assets are stated at historical cost net of accumulated amortization. Software is amortized on a straight-line basis over the estimated useful life of the software which is 3 years. |
Impairment of Long-lived assets | Impairment of Long-lived assets The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. |
New Accounting Pronouncements | New Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers”. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in purchase accounting. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. Besides the above, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted would have a material effect on the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Exchange Rate | Exchange rate used for the translation as follows: Period Average April 30, 2023 6.9120 6.9270 October 31, 2022 7.3003 6.6105 April 30, 2022 6.6085 6.3894 |
Schedule of Property and Equipment | Property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods: Equipment 5 years Furniture and fixtures 5 years Motor vehicles 10 years |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Net Comprised | Inventory, net comprised of the following: April 30, October 31, Finished goods 490,994 628,187 Total, net 490,994 628,187 |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Accounts Receivables [Abstract] | |
Schedule of Accounts Receivables, Net | Accounts receivables, net is comprised of the following: April 30, October 31, Accounts receivables 47,490 45,100 Allowance for doubtful accounts (6,076 ) (5,753 ) Total, net 41,414 39,347 April 30, October 31, 2023 2022 Accounts receivables-related parties 374,796 354,857 Allowance for doubtful accounts (173,356 ) (139,911 ) Total, net 201,440 214,946 |
Schedule of Allowance for Doubtful Accounts | The following is a summary of the activity in the allowance for doubtful accounts: April 30, October 31, Balance at beginning of year 145,664 18,458 Provision 25,528 143,003 Charge-offs - Recoveries - Effect of translation adjustment 8,240 (15,797 ) Balance at end 179,432 145,664 |
Short-Term Investment (Tables)
Short-Term Investment (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Short-Term Investment [Abstract] | |
Schedule of Short-Term Investment | Short-term investment comprised of the following: As of April 30, 2023 Level 1 Level 2 Level 3 Total Bank Wealth Management - 46,296 - Securities - - - - 46,296 - As of October 31, 2022 Level 1 Level 2 Level 3 Total Bank Wealth Management - 265,836 - 265,836 Securities - 568,467 - 568,467 - 834,303 - 834,303 |
Loans Receivables (Tables)
Loans Receivables (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans are Non-interest Bearing | Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred. April 30, October 31, Loan to related franchisees, gross 18,913,509 17,678,913 Discount based on imputed interest rate of 11.75% (2,221,797 ) (2,076,767 ) Loan to related franchisees, net of discount 16,691,712 15,602,146 April 30, October 31, Loan to related franchisees, net of discount 16,691,712 15,602,146 Provision for credit losses (11,168,049 ) (7,309,516 ) Loan to related franchisees, net of discount and allowance 5,523,663 8,292,630 |
Schedule of the Activity in the Allowance for Credit Loss | The following is a summary of the activity in the allowance for credit loss: April 30, October 31, Balance at beginning of year 7,309,516 832,170 Provision 3,440,368 7,267,026 Charge-offs - - Recoveries - - Effect of translation adjustment 418,165 (789,680 ) Balance at end 11,168,049 7,309,516 |
Schedule of Current and Non-current Loan Receivables, Net of Allowance for Credit Losses | The following is a summary of current and non-current loan receivables, net of allowance for credit losses: April 30, October 30, Loan to related franchisees, net of discount and allowances, current 5,101,224 6,661,290 Loan to related franchisees, net of discount and allowances, non-current 422,439 1,631,340 5,523,663 8,292,630 |
Schedule of Credit Quality Analysis of Franchisee Loan Receivables | The credit quality analysis of franchisee loan receivables as follows: April 30, October 31, Franchisee Financing: Group I 684,247 3,622,174 Group II 4,334,921 6,109,130 Group III 7,284,933 4,358,992 Group IV 6,609,408 1,511,850 Balance at end 18,913,509 15,602,146 |
Other Receivables and Other C_2
Other Receivables and Other Current Assets (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Other Receivables and Other Current Assets [Abstract] | |
Schedule of Other Receivables and Other Current Assets | Other receivables and other current assets comprised of the following: April 30, October 31, 2023 2022 Deposits put down on the car 876,231 935,573 Excess input VAT credits 39,702 48,589 Prepaid expense 601,960 - Cash advance to employee 82,838 55,600 Total 1,600,731 1,039,762 |
Property & Equipment (Tables)
Property & Equipment (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net comprised of the following: April 30, October 31, 2023 2022 At Cost: Equipment 61,886 73,415 Motor vehicles 350,650 340,462 Leasehold Improvement 557,711 502,969 Furniture and fixtures 6,248 9,054 976,495 925,900 Less: Accumulated depreciation 401,772 284,542 Total, net 574,723 641,358 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net comprised of the following: April 30, October 31, 2023 2022 At Cost: Financial software 15,914 17,710 Domain name 2,792 2,643 18,706 17,711 Less: Accumulated Amortization 6,696 5,318 Total, net 12,010 12,393 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Receivable from Related Franchisees | Accounts receivable from related franchisees comprised of the following: April 30, October 31, 2023 2022 Yichun Jiuzi New Energy Automobile Co., Ltd 104,460 112608 Wanzai Jiuzi New Energy Automobile Co., Ltd 38,751 23,043 Xinyu Jiuzi New Energy Automobile Co., Ltd 55,225 65352 Quanzhou Jiuzi New Energy Automobile Co., Ltd 1,275 5,919 Yulin Jiuzi New Energy Automobile Co., Ltd 1,729 8,024 Total 201,440 214,946 |
Schedule of Loan to Related Franchisees | Loan to related franchisees is comprised of the following (See Note 6 for details): As of April 30, 2023 As of October 31, 2022 Gross Discount Allowance Net Gross Discount Allowance Net Jiangsu Changshu $ 390,671 $ 45,893 $ 181,967 $ 162,811 $ 356,190 $ 41,842 $ 208,300 $ 106,048 Shandong Dongming 476,454 55,970 221,923 198,561 627,826 73,752 211,033 343,041 Jiangxi Gao’an 618,165 72,617 324,098 221,450 605,621 71,143 287,121 247,357 Hunan Huaihua 816,682 95,937 720,745 - 719,814 84,558 254,690 380,566 Jiangxi Jiujiang 310,538 36,479 274,059 - 279,279 32,807 171,188 75,284 Hunan Liuyang 416,474 48,924 193,985 173,565 413,509 48,576 223,766 141,167 Hunan Loudi 572,498 67,252 266,658 238,588 540,686 63,515 232,408 244,763 Hunan Pingjiang 385,991 45,343 179,787 160,861 392,004 46,049 175,230 170,725 Jiangxi Pingxiang 588,322 69,111 274,029 245,182 583,694 68,567 299,055 216,072 Henan Puyang 609,134 71,556 283,723 253,855 645,124 75,784 245,216 324,124 Fujian Quanzhou 483,652 56,815 426,837 - 437,376 51,379 288,737 97,260 Jiangxi Wanzai 556,151 65,332 259,044 231,775 512,867 60,247 207,450 245,170 Jiangxi Xinyu 994,646 116,843 499,456 378,347 921,187 108,213 338,524 474,450 Jiangxi Yichun 136,825 16,073 44,611 76,141 95,301 11,195 50,234 33,872 Jiangxi Yudu 575,913 67,653 268,249 240,011 565,823 66,468 264,583 234,772 Guangdong Zengcheng 468,562 55,043 218,247 195,272 456,895 53,672 294,661 108,562 Jiangxi Shanggao 627,650 73,731 353,784 200,135 594,055 69,784 177,529 346,742 Shandong Heze 889,832 104,530 450,636 334,666 856,193 100,578 323,148 432,467 Jiangxi Ganzhou 149,847 17,603 111,673 20,571 121,328 14,253 62,408 44,667 Hunan Liling 84,287 9,901 54,963 19,423 66,105 7,765 20,696 37,644 Hunan Zhuzhou 137,810 16,189 89,865 31,756 130,479 15,328 54,913 60,238 Hunan Changsha 9,404 1,105 6,570 1,729 8,904 1,046 1,962 5,896 Guangxi Guilin 41,718 4,901 29,147 7,670 39,499 4,640 8,703 26,156 Hunan Chenzhou 522,819 61,416 243,519 217,884 508,568 59,742 216,675 232,151 Jiangxi Ji’an 625,270 73,451 334,123 217,696 572,830 67,291 232,646 272,893 Guangxi Nanning 181,230 21,289 135,062 24,879 164,740 19,352 87,227 58,161 Hunan Leiyang 824,547 96,861 727,686 - 632,745 74,329 221,954 336,462 Guangdong Dongguan Changping 484,406 56,904 427,502 - 458,637 53,877 137,329 267,431 Hunan Changsha County 65,104 7,648 36,389 21,067 61,641 7,241 32,369 22,031 Guizhou Zunyi 262,993 30,894 220,494 11,605 242,153 28,446 92,445 121,262 Jiangsu Xuzhou 244,445 28,715 204,944 10,786 231,441 27,188 122,605 81,648 Hunan Yongxing 248,937 29,243 104,355 115,339 242,475 28,484 119,993 93,998 Hunan Hengyang 178,299 20,945 132,877 24,477 168,814 19,831 57,952 91,031 Hainan Sanya 135,186 15,880 119,305 1 127,994 15,036 112,958 - Hunan Changsha Yuhua 614,947 72,239 286,430 256,278 493,196 57,936 131,535 303,725 Shandong Heze Dingtao 564,310 66,290 262,845 235,175 520,592 61,155 140,112 319,325 Shandong Heze Yuncheng 491,972 57,793 434,179 - 465,800 54,718 158,529 252,553 Shandong Heze Gaoxin 101,346 11,905 41,304 48,137 54,860 6,445 17,169 31,246 Shandong Zouping 66,551 7,818 37,198 21,535 63,011 7,402 27,280 28,329 Shandong Juye 449,611 52,816 209,420 187,375 411,995 48,398 174,963 188,634 Shandong Juancheng 518,086 60,860 241,314 215,912 449,363 52,787 134,326 262,250 Shandong Shanxian 551,246 64,756 256,760 229,730 494,525 58,093 135,766 300,666 Jiangxi Zhangshu 70,891 8,328 49,530 13,033 67,120 7,885 27,949 31,286 Guangdong Foshan 102,214 12,007 66,653 23,554 96,776 11,368 43,582 41,826 Jiangxi Jingdezhen 82,466 9,687 67,219 5,560 78,079 9,172 18,728 50,179 Guangxi Yulin 413,428 48,566 364,862 - 391,435 45,982 266,698 78,755 Shandong Heze Cao County 448,569 52,694 208,935 186,940 438,404 51,500 137,247 249,657 Dongguan Nancheng 5,787 680 4,043 1,064 5,479 644 1,207 3,628 Hubei Macheng 104,587 12,286 68,201 24,100 99,023 11,632 21,819 65,572 Shandong Jining Liangshan 14,468 1,700 10,108 2,660 13,698 1,609 3,018 9,071 Guangdong Zhanjiang 37,978 4,461 26,534 6,983 35,957 4,224 7,923 23,810 Hunan Hengyang Shigu 21,701 2,549 15,162 3,990 20,547 2,414 4,527 13,606 Jiangxi Ji’an Yongfeng 19,531 2,294 13,646 3,591 18,492 2,172 4,075 12,245 Hunan Changde 39,786 4,674 27,797 7,315 37,669 4,425 8,300 24,944 Hunan Shaoyang 14,468 1,700 10,108 2,660 - - - - Hunan Yongzhou 14,468 1,700 10,108 2,660 - - - - Hunan Ningxiang 7,234 850 5,054 1,330 - - - - Guangxi Nanning Jiangnan 43,402 5,097 30,327 7,978 41,095 4,828 9,055 27,212 Total $ 18,913,509 $ 2,221,797 $ 11,168,049 $ 5,523,663 $ 17,678,913 $ 2,076,767 $ 7,309,516 $ 8,292,630 |
Schedule of Accounts Payable to Related Parties’ Franchisees | Accounts payable to related parties’ franchisees comprised of the following: April 30, October 31, 2023 2022 Yudu Jiuzi New Energy Automobile Co., Ltd. 7,379 6,986 Total 7,379 6,986 |
Schedule of Contract Liability – Related Party | Contract liability – related party comprised of the following: April 30, October 31, 2023 2022 Current Portion Customer deposit 782,482 825,990 782,482 825,990 Non-current Portion Unearned franchise fee - 150,494 Total, net 782,482 976,484 |
Schedule of Unearned Franchise Fee Comprised | Unearned franchise fee comprised of the following: April 30, October 31, 2023 2022 Unearned franchise fee - current Jinan Chuangtu New Energy Co., Ltd. 115,741 - Hunan Changsha 2,677 - Hunan Yueyang 2,677 - Zhejiang Hangzhou Xiaoshan 2,604 - Hunan Yueyang Xiangyin 2,677 - Guangdong Zhongshan 8,922 - Hunan Hengyang 1,447 Henan Luohe Yancheng Agent 2,894 - Guangdong Foshan Shunde Agent 4,340 - Chongqing Banan Agent 1,447 - Zhejiang Hangzhou Gongshu Agent 989 - Jiangsu Jingjiang Agent 2,894 - Shanghai Fengxian Agent 2,894 - Chengdu municipal level Agent 75,232 - Zhejiang Jiaxing Nanhu Agent 2,966 - Hunan Yueyang Miluo Agent 2,894 822 Zhejing JiaXing 72,338 68,490 Henan Jiuzi New Energy Vehicle Sales and Service Co. LTD - 13,698 Zhejiang Huasu Automobile Service Co., LTD - 68,490 Huzhou Fengtao New Energy Automobile Sales Co., LTD - 41,094 Shandong Shenglong Automobile Sales Co. LTD - 68,490 Nantong Meixinyao Vehicle Sales Service Co., LTD - 27,396 Anhui Auto e-Link Auto Sales Co., LTD - 27,396 Fengshang Network Technology (Shaoxing) Co., LTD - 41,094 Anhui LiuAn 43,403 41,094 Guangxi Qinzhou 14,468 13,698 Guangxi Qinzhou Lingshan 43,403 41,094 Zhejiang Shaoxing Shengzhou 72,338 68,490 Xinjiang Urumqi 72,338 68,490 Hunan Changzhutan - 2,740 Hunan Shaoyang 1,447 1,370 Guangxi Liuzhou (Guangxi Shuangru Trading Co., Ltd.) 72,338 68,490 Guangxi Nanning 14,468 13,697 Guangxi Yulin 4,340 4,109 Guangxi Nanning (Guangxi Zhanyuan Automobile) 43,403 41,094 Guangxi Yulin (Yulin Qihui Automobile) 43,403 82,188 Zhejiang Huzhou 7,234 6,849 Sanmen Xian Wuji Automobile Sales 289 274 Shandong Yuncheng (Yuncheng Zhanteng New Energy Automobile Co., Ltd.) 289 274 Zhejiang Shaoxing Niuniu Automobile Sales Service Co., Ltd. 289 274 Yongkang Yijie Automobile Trading Co., LTD - 5,479 Ningbo Jinhui Internet Technology Service Co., LTD - 1,370 Xingtai Wanhua Botian Automobile Trading Co., LTD - 822 Zhejiang Hangzhou Xiaoshan Agent - 822 Hunan Changsha Yuelu Agent - 822 Hunan Yueyang Xiangyin Agent - 822 Hunan Yueyang Yueyang Lou Agent - 822 Guangdong Zhongshan City Agent - 2,740 Guangxi Yulin (Yulin Haorui Automobile Sales Co., Ltd.) 43,399 - Zhejiang Hangzhou Gongshu Agent - 274 Zhejiang Jiaxing Nanhu Agent - 822 782,482 825,990 Unearned franchise fee – non-current Guizhou 320 Automobile Service Co., LTD - 13,698 Yongkang Yijie Automobile Trading Co., LTD - 21,004 Ningbo Jinhui Internet Technology Service Co., LTD - 5,250 Xingtai Wanhua Botian Automobile Trading Co., LTD - 3,219 Zhejiang Hangzhou Xiaoshan Agent - 2,055 Hunan Changsha Yuelu Agent - 2,123 Hunan Yueyang Xiangyin Agent - 2,123 Hunan Yueyang Yueyang Lou Agent - 2,123 Guangdong Zhongshan City Agent - 7,077 Hunan Yueyang Miluo Agent - 2,328 Henan Luohe Yancheng Agent - 2,740 Guangdong Foshan Shunde Agent - 4,109 Chongqing Banan Agent - 1,370 Zhejiang Hangzhou Gongshu Agent - 798 Jiangsu Jingjiang Agent - 2,740 Shanghai Fengxian Agent - 2,740 Chengdu municipal level Agent - 71,230 Zhejiang Jiaxing Nanhu Agent - 2,397 Hunan Hengyang Agent - 1,370 - 150,494 Total 782,482 976,484 |
Schedule of Related Parties Receivables | Related parties receivables comprised of the following: April 30, October 31, 2023 2022 Mr. Shuibo Zhang 14,611 13,556 Mr. Qi Zhang 4,207 22,922 Mr. Dewen Chen 14,468 - Mr. Ruchun Huang 32,215 30,675 Total 65,501 67,153 |
Schedule of Related Parties Payables | Related parties payables comprised of the following: April 30, October 31, 2023 2022 Mr. Ligui Xu 7,234 6,849 Total 7,234 6,849 |
Deferred Income and Others Lo_2
Deferred Income and Others Long Term Liabilities (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Deferred Income and Others Long Term Liabilities [Abstract] | |
Schedule of Deferred Income | Deferred income comprised of the following government grants which have not yet been earned: April 30, October 31, 2023 2022 Subsidy for the maintenance and repair of the office 216,291 236,290 Total 216,291 236,290 |
Schedule of Franchise Security Deposits | Franchise security deposits comprised of the following: April 30, October 31, 2023 2022 Guangxi Rongxian Junsheng Automobile Trading Co., Ltd. 21,701 20,547 Chongqing Suiqian Trading Co., Ltd. 28,935 27,396 Guangxi Yulin Shangfeng Automobile Sales Co., Ltd. 28,935 27,396 Jiangxi Haomen Automobile Sales Co., Ltd. 14,468 13,698 Guangxi Zhanyuan Automobile Sales Co., Ltd. 43,404 41,094 Total 137,443 130,131 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Six Months Ended April 30, Lease Cost Operating lease cost (included in general and administrative expenses and cost in the Company’s statement of operations) $ 106,302 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 25,985 Weighted average remaining lease term – operating leases (in years) 3.12 Average discount rate – operating lease 4.75 % |
Schedule of Supplemental Balance Sheet Information Related to Leases | The supplemental balance sheet information related to leases is as follows: April 30, October 31, 2023 2022 Operating leases Right-of-use assets $ 649,773 $ 725,903 Operating lease liabilities $ 783,003 $ 768,185 |
Schedule of Undiscounted Future Minimum Lease Payment Schedule | The undiscounted future minimum lease payment schedule as follows: For the fiscal years ended October 31, Amounts 2023 (six months from May 1, 2023 to October 31, 2023) 388,496 2024 225,779 2025 202,733 Total 817,008 |
Taxes Payable (Tables)
Taxes Payable (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Taxes Payable [Abstract] | |
Schedule of Taxes Payable | Taxes payable comprised of the following: April 30, October 31, 2023 2022 Value-added tax, net 912,637 890,620 Company Income tax 1,733,416 1,645,556 Other taxes 126,265 116,678 Total 2,772,318 2,652,854 |
Contract Liability (Tables)
Contract Liability (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Contract Liability [Abstract] | |
Schedule of Contract Liability | Contract liability comprised of the following: April 30, October 31, 2023 2022 Customer deposit for car purchase 1,475,213 1,343,442 Total, net 1,475,213 1,343,442 |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Sales Revenues | Sales revenues comprised of the following: Six Months Ended April 30, April 30, NEVs sales 884,083 95 % 3,208,591 78 % Franchisees service revenues 13,527 2 % 901,145 22 % Other service revenues 28,149 3 % - - % Total 925,759 100 % 4,109,736 100 % Direct costs comprised of the following: Six Months Ended April 30, April 30, NEVs sales 882,160 94 % 3,186,391 88 % Franchisees service revenues 28,275 3 % 454,918 12 % Other service revenues 25,879 3 % - - % Total 936,314 100 % 3,641,309 100 % Six Months Ended April 30, April 30, NEVs sales 1,923 (18 )% 22,200 5 % Franchisees service revenues (14,748 ) 140 % 446,227 95 % Other service revenues 2,270 (22 )% - - % Total (10,555 ) 100 % 468,427 100 % |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Taxable Income (Losses) Before Income Taxes and its Provision for Income Taxes | The net taxable income (losses) before income taxes and its provision for income taxes comprised of the following: Six Months Ended April 30, April 30, Income (loss) attributed to China (4,927,475.00 ) (5,123,078 ) PRC statutory tax rate 25 % 25 % Income tax expense at statutory rate - - Reconciliation 20 127,661 Income tax expense/ (benefit) 20 127,661 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fully Written Off the Advance Paid to the Suppliers | Given the uncertainty of collectability, the Company has fully written off the advance paid to the suppliers of $3,313,395 as of April 30. 2023, despite the fact that the Company has won the some of the cases. The details are shown as follows. Suppliers (Defendant) Status of the case Amount Shengzhou Baiyuan New Energy Vehicle Technology Co. Pending 2,059,300 Jiangsu Yakai Auto Sales & Service Co. Out-of-court settled 265,536 Hangzhou Shicheng Auto Trading Co. Successful 295,632 Nanning Huangyang Auto Sales Co. Successful 180,035 Anhui Junmao Automobile Sales and Service Co., Ltd Pending 157,987 Shanghai Aichi Yiwei Automobile Sales Co., Ltd Pending 147,194 Guangxi Runyin Automobile Sales Co., Ltd Pending 152,937 Other suppliers Pending 54,774 Total 3,313,395 |
Concentrations, Risks and Unc_2
Concentrations, Risks and Uncertainties (Tables) | 6 Months Ended |
Apr. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration on Sales Revenues Generated by Customers Type Comprised | The concentration on sales revenues generated by customers type comprised of the following: Six Months Ended April 30, April 30, Third party sales revenues 884,083 93 % 2,724,048 66 % Related party sales revenues - - % 484,543 12 % Third party franchise revenues - - % 850,649 21 % Related party franchise revenues 41,802 4 % 50,496 1 % Third party other revenues 28,149 3 % - - % Related party other revenues - - % - - % Total 954,034 100 % 4,109,736 100 % |
Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised | The concentration of sales revenues generated by third-party customers comprised of the following: Six Months Ended April 30, April 30, Customer A 88,189 10 % - - % Customer B 166,337 18 % - - % Customer C 270,120 29 % - - % Customer D 140,275 15 % - - % Customer E - % 742,374 27 % Customer F - % 508,306 19 % Customer G - % 310,690 11 % Customer H - % 309707 11 % Total 664,921 72 % 1,871,077 69 % |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 6 Months Ended |
Apr. 30, 2023 CNY (¥) | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest | 10% |
Share pledge agreement description | On November 10, 2022, with approval of Jiuzi WFOE and approval of the board of directors of Zhejiang Jiuzi, Zhejiang Jiuzi issued 0.1% equity interest in Zhejiang Jiuzi to a third-party investor. |
Zhejiang Jiuzi [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest percentage | 59% |
Shangli Jiuzi [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest percentage | 41% |
Zhejiang Jiuzi [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest | 100% |
Zhejiang Jiuzi [Member] | Guangxi Nanning [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest | 90% |
Hangzhou Zhitongche [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest | 51% |
Investor [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Equity interest | 49% |
Hangzhou Jiuzi Haoche Technology Co., Ltd [Member] | |
Organization and Basis of Presentation (Details) [Line Items] | |
Registered capital (in Yuan Renminbi) | ¥ 5,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Accounting Policies [Abstract] | |||
Reverse stock split, description | On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 for shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares will have a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split. | ||
Accumulated deficit | $15,880,079 | ||
Short term investments | $ 46,926 | $ 834,303 | |
Advertising expense | $ 79,400 | $ 220,850 | |
Estimated useful life | 3 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rate | 6 Months Ended |
Apr. 30, 2023 $ / shares | |
April 30, 2023 [Member] | |
Intercompany Foreign Currency Balance [Line Items] | |
Period End | 6.912 |
Average | $ 6.927 |
October 31, 2022 [Member] | |
Intercompany Foreign Currency Balance [Line Items] | |
Period End | 7.3003 |
Average | $ 6.6105 |
April 30, 2022 [Member] | |
Intercompany Foreign Currency Balance [Line Items] | |
Period End | 6.6085 |
Average | $ 6.3894 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment | 6 Months Ended |
Apr. 30, 2023 | |
Schedule of Property and Equipment [Abstract] | |
Equipment | 5 years |
Furniture and fixtures | 5 years |
Motor vehicles | 10 years |
Inventory (Details)
Inventory (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Inventory Disclosure [Abstract] | ||
Inventory write-down expense |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory Net Comprised - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Schedule of Inventory Net Comprised [Abstract] | ||
Finished goods | $ 490,994 | $ 628,187 |
Total, net | $ 490,994 | $ 628,187 |
Accounts Receivables (Details)
Accounts Receivables (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Accounts Receivables [Abstract] | ||
Bad debt expense | $ 25,528 | $ 764 |
Accounts Receivables (Details)
Accounts Receivables (Details) - Schedule of Accounts Receivables, Net - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (173,356) | $ (139,911) |
Total, net | 201,440 | 214,946 |
Accounts receivables-related parties | 374,796 | 354,857 |
Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivables | 47,490 | 45,100 |
Allowance for doubtful accounts | (6,076) | (5,753) |
Total, net | $ 41,414 | $ 39,347 |
Accounts Receivables (Details_2
Accounts Receivables (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of the Activity in the Allowance for Doubtful Accounts [Abstract] | ||
Balance at beginning of year | $ 145,664 | $ 18,458 |
Provision | 25,528 | 143,003 |
Charge-offs | ||
Recoveries | ||
Effect of translation adjustment | 8,240 | (15,797) |
Balance at end | $ 179,432 | $ 145,664 |
Short-Term Investment (Details)
Short-Term Investment (Details) - Schedule of Short-Term Investment - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Short-Term Debt [Line Items] | ||
Bank Wealth Management | $ 265,836 | |
Securities | 568,467 | |
Total short-term investment | $ 46,296 | 834,303 |
Fair Value, Inputs, Level 1 [Member] | ||
Short-Term Debt [Line Items] | ||
Bank Wealth Management | ||
Securities | ||
Total short-term investment | ||
Fair Value, Inputs, Level 2 [Member] | ||
Short-Term Debt [Line Items] | ||
Bank Wealth Management | 46,296 | 265,836 |
Securities | 568,467 | |
Total short-term investment | 46,296 | 834,303 |
Fair Value, Inputs, Level 3 [Member] | ||
Short-Term Debt [Line Items] | ||
Bank Wealth Management | ||
Securities | ||
Total short-term investment |
Loans Receivables (Details)
Loans Receivables (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Receivables [Abstract] | ||
Loan receivables charges | $ 28,281 | $ 183,557 |
Face amount using an imputed interest rate | 11.75% | 11.75% |
Credit loss | $ 3,440,368 | $ 3,846,416 |
Loans Receivables (Details) - S
Loans Receivables (Details) - Schedule of Loans are Non-interest Bearing - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of Loans Are Non-Interest Bearing [Abstract] | ||
Loan to related franchisees, gross | $ 18,913,509 | $ 17,678,913 |
Discount based on imputed interest rate of 11.75% | (2,221,797) | (2,076,767) |
Loan to related franchisees, net of discount | 16,691,712 | 15,602,146 |
Provision for credit losses | (11,168,049) | (7,309,516) |
Loan to related franchisees, net of discount and allowance | $ 5,523,663 | $ 8,292,630 |
Loans Receivables (Details) -_2
Loans Receivables (Details) - Schedule of Loans are Non-interest Bearing (Parentheticals) | 6 Months Ended |
Apr. 30, 2023 | |
Schedule of Loans Are Non-Interest Bearing [Abstract] | |
Discount based on imputed interest rate | 11.75% |
Loans Receivables (Details) -_3
Loans Receivables (Details) - Schedule of the Activity in the Allowance for Credit Loss - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of the Activity in the Allowance for Credit Loss [Abstract] | ||
Balance at beginning of year | $ 7,309,516 | $ 832,170 |
Provision | 3,440,368 | 7,267,026 |
Charge-offs | ||
Recoveries | ||
Effect of translation adjustment | 418,165 | (789,680) |
Balance at end | $ 11,168,049 | $ 7,309,516 |
Loans Receivables (Details) -_4
Loans Receivables (Details) - Schedule of Current and Non-current Loan Receivables, Net of Allowance for Credit Losses - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Schedule of Current and Non Current Loan Receivables Net of Allowance for Credit Losses [Abstract] | ||
Loan to related franchisees, net of discount and allowances, current | $ 5,101,224 | $ 6,661,290 |
Loan to related franchisees, net of discount and allowances, non-current | 422,439 | 1,631,340 |
Loan to related franchisees, net of discount and allowances, total | $ 5,523,663 | $ 8,292,630 |
Loans Receivables (Details) -_5
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables - USD ($) | Apr. 30, 2023 | Oct. 31, 2021 |
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
Franchisee loan receivables | $ 18,913,509 | $ 15,602,146 |
Group I [Member] | ||
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
Franchisee loan receivables | 684,247 | 3,622,174 |
Group II [Member] | ||
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
Franchisee loan receivables | 4,334,921 | 6,109,130 |
Group III [Member] | ||
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
Franchisee loan receivables | 7,284,933 | 4,358,992 |
Group IV [Member] | ||
Loans Receivables (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
Franchisee loan receivables | $ 6,609,408 | $ 1,511,850 |
Other Receivables and Other C_3
Other Receivables and Other Current Assets (Details) - Schedule of Other Receivables and Other Current Assets - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of Other Receivables and Other Current Assets [Abstract] | ||
Deposits put down on the car | $ 876,231 | $ 935,573 |
Excess input VAT credits | 39,702 | 48,589 |
Prepaid expense | 601,960 | |
Cash advance to employee | 82,838 | 55,600 |
Total | $ 1,600,731 | $ 1,039,762 |
Property & Equipment (Details)
Property & Equipment (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 105,392 | $ 42,471 |
Property & Equipment (Details)
Property & Equipment (Details) - Schedule of Property and Equipment, Net - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Schedule of Property and Equipment Net [Abstract] | ||
Equipment | $ 61,886 | $ 73,415 |
Motor vehicles | 350,650 | 340,462 |
Leasehold Improvement | 557,711 | 502,969 |
Furniture and fixtures | 6,248 | 9,054 |
Total cost | 976,495 | 925,900 |
Less: Accumulated depreciation | 401,772 | 284,542 |
Total, net | $ 574,723 | $ 641,358 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Apr. 30, 2023 | Apr. 30, 2022 |
Intangible Assets [Abstract] | ||
Amortization expenses | $ 1,077 | $ 1,708 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets, Net - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
At Cost: | ||
Financial software | $ 15,914 | $ 17,710 |
Domain name | 2,792 | 2,643 |
Total cost, net | 18,706 | 17,711 |
Less: Accumulated Amortization | 6,696 | 5,318 |
Total, net | $ 12,010 | $ 12,393 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Related Party Transactions (Details) [Line Items] | |||
Equity interest ownership | The franchisees were originally incorporated with the Company shown as a 51.0% owner and subsequently as a 1.25% owner. The intent of having such ownership percentage in the franchisees was to enable the franchisees to register their respective individual business name to include the words “Jiuzi” as required by the local business bureau. Subsequent to the successful registration by the franchisees and completion of the Company’s obligations under the franchise and license agreement, the Company will decrease its ownership interest in these franchisees to 0%. The Company’s percentage of shareholding is nominal, inconsequential, and symbolic. The Company’s equity interest of 51.0% and 1.25% in the franchisees were symbolic in nature. | ||
Revenues from related party | $ 484,543 | ||
Maximum [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Ownership interest percentage | 51% | ||
Minimum [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Ownership interest percentage | 1.25% | ||
Shuibo Zhang [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Outstanding receivable | $ 14,611 | $ 13,556 | |
Qi Zhang [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Outstanding receivable | 4,207 | 22,922 | |
Mr. Ruchun Huang [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Outstanding receivable | 32,215 | 30,675 | |
Mr. Dewen Chen [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Outstanding receivable | 14,468 | ||
Mr. Ligui Xu [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Outstanding payable | $ 7,234 | $ 6,849 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | $ 201,440 | $ 214,946 |
Yichun Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | 104,460 | 112,608 |
Wanzai Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | 38,751 | 23,043 |
Xinyu Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | 55,225 | 65,352 |
Quanzhou Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | 1,275 | 5,919 |
Yulin Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
Accounts receivable | $ 1,729 | $ 8,024 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | $ 18,913,509 | $ 17,678,913 |
Discount | 2,221,797 | 2,076,767 |
Allowance | 11,168,049 | 7,309,516 |
Net | 5,523,663 | 8,292,630 |
Jiangsu Changshu [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 390,671 | 356,190 |
Discount | 45,893 | 41,842 |
Allowance | 181,967 | 208,300 |
Net | 162,811 | 106,048 |
Shandong Dongming [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 476,454 | 627,826 |
Discount | 55,970 | 73,752 |
Allowance | 221,923 | 211,033 |
Net | 198,561 | 343,041 |
Jiangxi Gao’an [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 618,165 | 605,621 |
Discount | 72,617 | 71,143 |
Allowance | 324,098 | 287,121 |
Net | 221,450 | 247,357 |
Hunan Huaihua [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 816,682 | 719,814 |
Discount | 95,937 | 84,558 |
Allowance | 720,745 | 254,690 |
Net | 380,566 | |
Jiangxi Jiujiang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 310,538 | 279,279 |
Discount | 36,479 | 32,807 |
Allowance | 274,059 | 171,188 |
Net | 75,284 | |
Hunan Liuyang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 416,474 | 413,509 |
Discount | 48,924 | 48,576 |
Allowance | 193,985 | 223,766 |
Net | 173,565 | 141,167 |
Hunan Loudi [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 572,498 | 540,686 |
Discount | 67,252 | 63,515 |
Allowance | 266,658 | 232,408 |
Net | 238,588 | 244,763 |
Hunan Pingjiang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 385,991 | 392,004 |
Discount | 45,343 | 46,049 |
Allowance | 179,787 | 175,230 |
Net | 160,861 | 170,725 |
Jiangxi Pingxiang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 588,322 | 583,694 |
Discount | 69,111 | 68,567 |
Allowance | 274,029 | 299,055 |
Net | 245,182 | 216,072 |
Henan Puyang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 609,134 | 645,124 |
Discount | 71,556 | 75,784 |
Allowance | 283,723 | 245,216 |
Net | 253,855 | 324,124 |
Fujian Quanzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 483,652 | 437,376 |
Discount | 56,815 | 51,379 |
Allowance | 426,837 | 288,737 |
Net | 97,260 | |
Jiangxi Wanzai [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 556,151 | 512,867 |
Discount | 65,332 | 60,247 |
Allowance | 259,044 | 207,450 |
Net | 231,775 | 245,170 |
Jiangxi Xinyu [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 994,646 | 921,187 |
Discount | 116,843 | 108,213 |
Allowance | 499,456 | 338,524 |
Net | 378,347 | 474,450 |
Jiangxi Yichun [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 136,825 | 95,301 |
Discount | 16,073 | 11,195 |
Allowance | 44,611 | 50,234 |
Net | 76,141 | 33,872 |
Jiangxi Yudu [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 575,913 | 565,823 |
Discount | 67,653 | 66,468 |
Allowance | 268,249 | 264,583 |
Net | 240,011 | 234,772 |
Guangdong Zengcheng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 468,562 | 456,895 |
Discount | 55,043 | 53,672 |
Allowance | 218,247 | 294,661 |
Net | 195,272 | 108,562 |
Jiangxi Shanggao [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 627,650 | 594,055 |
Discount | 73,731 | 69,784 |
Allowance | 353,784 | 177,529 |
Net | 200,135 | 346,742 |
Shandong Heze [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 889,832 | 856,193 |
Discount | 104,530 | 100,578 |
Allowance | 450,636 | 323,148 |
Net | 334,666 | 432,467 |
Jiangxi Ganzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 149,847 | 121,328 |
Discount | 17,603 | 14,253 |
Allowance | 111,673 | 62,408 |
Net | 20,571 | 44,667 |
Hunan Liling [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 84,287 | 66,105 |
Discount | 9,901 | 7,765 |
Allowance | 54,963 | 20,696 |
Net | 19,423 | 37,644 |
Hunan Zhuzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 137,810 | 130,479 |
Discount | 16,189 | 15,328 |
Allowance | 89,865 | 54,913 |
Net | 31,756 | 60,238 |
Hunan Changsha [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 9,404 | 8,904 |
Discount | 1,105 | 1,046 |
Allowance | 6,570 | 1,962 |
Net | 1,729 | 5,896 |
Guangxi Guilin [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 41,718 | 39,499 |
Discount | 4,901 | 4,640 |
Allowance | 29,147 | 8,703 |
Net | 7,670 | 26,156 |
Hunan Chenzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 522,819 | 508,568 |
Discount | 61,416 | 59,742 |
Allowance | 243,519 | 216,675 |
Net | 217,884 | 232,151 |
Jiangxi Ji’an [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 625,270 | 572,830 |
Discount | 73,451 | 67,291 |
Allowance | 334,123 | 232,646 |
Net | 217,696 | 272,893 |
Guangxi Nanning [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 181,230 | 164,740 |
Discount | 21,289 | 19,352 |
Allowance | 135,062 | 87,227 |
Net | 24,879 | 58,161 |
Hunan Leiyang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 824,547 | 632,745 |
Discount | 96,861 | 74,329 |
Allowance | 727,686 | 221,954 |
Net | 336,462 | |
Guangdong Dongguan Changping [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 484,406 | 458,637 |
Discount | 56,904 | 53,877 |
Allowance | 427,502 | 137,329 |
Net | 267,431 | |
Hunan Changsha County [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 65,104 | 61,641 |
Discount | 7,648 | 7,241 |
Allowance | 36,389 | 32,369 |
Net | 21,067 | 22,031 |
Guizhou Zunyi [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 262,993 | 242,153 |
Discount | 30,894 | 28,446 |
Allowance | 220,494 | 92,445 |
Net | 11,605 | 121,262 |
Jiangsu Xuzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 244,445 | 231,441 |
Discount | 28,715 | 27,188 |
Allowance | 204,944 | 122,605 |
Net | 10,786 | 81,648 |
Hunan Yongxing [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 248,937 | 242,475 |
Discount | 29,243 | 28,484 |
Allowance | 104,355 | 119,993 |
Net | 115,339 | 93,998 |
Hunan Hengyang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 178,299 | 168,814 |
Discount | 20,945 | 19,831 |
Allowance | 132,877 | 57,952 |
Net | 24,477 | 91,031 |
Hainan Sanya [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 135,186 | 127,994 |
Discount | 15,880 | 15,036 |
Allowance | 119,305 | 112,958 |
Net | 1 | |
Hunan Changsha Yuhua [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 614,947 | 493,196 |
Discount | 72,239 | 57,936 |
Allowance | 286,430 | 131,535 |
Net | 256,278 | 303,725 |
Shandong Heze Dingtao [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 564,310 | 520,592 |
Discount | 66,290 | 61,155 |
Allowance | 262,845 | 140,112 |
Net | 235,175 | 319,325 |
Shandong Heze Yuncheng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 491,972 | 465,800 |
Discount | 57,793 | 54,718 |
Allowance | 434,179 | 158,529 |
Net | 252,553 | |
Shandong Heze Gaoxin [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 101,346 | 54,860 |
Discount | 11,905 | 6,445 |
Allowance | 41,304 | 17,169 |
Net | 48,137 | 31,246 |
Shandong Zouping [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 66,551 | 63,011 |
Discount | 7,818 | 7,402 |
Allowance | 37,198 | 27,280 |
Net | 21,535 | 28,329 |
Shandong Juye [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 449,611 | 411,995 |
Discount | 52,816 | 48,398 |
Allowance | 209,420 | 174,963 |
Net | 187,375 | 188,634 |
Shandong Juancheng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 518,086 | 449,363 |
Discount | 60,860 | 52,787 |
Allowance | 241,314 | 134,326 |
Net | 215,912 | 262,250 |
Shandong Shanxian [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 551,246 | 494,525 |
Discount | 64,756 | 58,093 |
Allowance | 256,760 | 135,766 |
Net | 229,730 | 300,666 |
Jiangxi Zhangshu [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 70,891 | 67,120 |
Discount | 8,328 | 7,885 |
Allowance | 49,530 | 27,949 |
Net | 13,033 | 31,286 |
Guangdong Foshan [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 102,214 | 96,776 |
Discount | 12,007 | 11,368 |
Allowance | 66,653 | 43,582 |
Net | 23,554 | 41,826 |
Jiangxi Jingdezhen [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 82,466 | 78,079 |
Discount | 9,687 | 9,172 |
Allowance | 67,219 | 18,728 |
Net | 5,560 | 50,179 |
Guangxi Yulin [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 413,428 | 391,435 |
Discount | 48,566 | 45,982 |
Allowance | 364,862 | 266,698 |
Net | 78,755 | |
Shandong Heze Cao County [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 448,569 | 438,404 |
Discount | 52,694 | 51,500 |
Allowance | 208,935 | 137,247 |
Net | 186,940 | 249,657 |
Dongguan Nancheng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 5,787 | 5,479 |
Discount | 680 | 644 |
Allowance | 4,043 | 1,207 |
Net | 1,064 | 3,628 |
Hubei Macheng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 104,587 | 99,023 |
Discount | 12,286 | 11,632 |
Allowance | 68,201 | 21,819 |
Net | 24,100 | 65,572 |
Shandong Jining Liangshan [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 14,468 | 13,698 |
Discount | 1,700 | 1,609 |
Allowance | 10,108 | 3,018 |
Net | 2,660 | 9,071 |
Guangdong Zhanjiang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 37,978 | 35,957 |
Discount | 4,461 | 4,224 |
Allowance | 26,534 | 7,923 |
Net | 6,983 | 23,810 |
Hunan Hengyang Shigu [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 21,701 | 20,547 |
Discount | 2,549 | 2,414 |
Allowance | 15,162 | 4,527 |
Net | 3,990 | 13,606 |
Jiangxi Ji’an Yongfeng [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 19,531 | 18,492 |
Discount | 2,294 | 2,172 |
Allowance | 13,646 | 4,075 |
Net | 3,591 | 12,245 |
Hunan Changde [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 39,786 | 37,669 |
Discount | 4,674 | 4,425 |
Allowance | 27,797 | 8,300 |
Net | 7,315 | 24,944 |
Hunan Shaoyang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 14,468 | |
Discount | 1,700 | |
Allowance | 10,108 | |
Net | 2,660 | |
Hunan Yongzhou [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 14,468 | |
Discount | 1,700 | |
Allowance | 10,108 | |
Net | 2,660 | |
Hunan Ningxiang [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 7,234 | |
Discount | 850 | |
Allowance | 5,054 | |
Net | 1,330 | |
Guangxi Nanning Jiangnan [Member] | ||
Related Party Transactions (Details) - Schedule of Loan to Related Franchisees [Line Items] | ||
Gross | 43,402 | 41,095 |
Discount | 5,097 | 4,828 |
Allowance | 30,327 | 9,055 |
Net | $ 7,978 | $ 27,212 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Accounts Payable to Related Parties’ Franchisees - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Related Party Transactions (Details) - Schedule of Accounts Payable to Related Parties’ Franchisees [Line Items] | ||
Total | $ 7,379 | $ 6,986 |
Yudu Jiuzi New Energy Automobile Co., Ltd [Member] | ||
Related Party Transactions (Details) - Schedule of Accounts Payable to Related Parties’ Franchisees [Line Items] | ||
Total | $ 7,379 | $ 6,986 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of Contract Liability – Related Party - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Current Portion | ||
Customer deposit | $ 782,482 | $ 825,990 |
Total, net | 782,482 | 825,990 |
Non-current Portion | ||
Unearned franchise fee | 150,494 | |
Total, net | $ 782,482 | $ 976,484 |
Related Party Transactions (D_6
Related Party Transactions (Details) - Schedule of Unearned Franchise Fee Comprised - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Unearned franchise fee - current | ||
Unearned franchise fee - current | $ 782,482 | $ 825,990 |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 150,494 | |
Total | 782,482 | 976,484 |
Jinan Chuangtu New Energy Co., Ltd. [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 115,741 | |
Hunan Changsha [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,677 | |
Hunan Yueyang [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,677 | |
Zhejiang Hangzhou Xiaoshan [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,604 | |
Hunan Yueyang Xiangyin [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,677 | |
Guangdong Zhongshan [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 8,922 | |
Hunan Hengyang [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 1,447 | |
Henan Luohe Yancheng Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,894 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,740 | |
Guangdong Foshan Shunde Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 4,340 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 4,109 | |
Chongqing Banan Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 1,447 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 1,370 | |
Zhejiang Hangzhou Gongshu Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 989 | 274 |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 798 | |
Jiangsu Jingjiang Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,894 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,740 | |
Shanghai Fengxian Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,894 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,740 | |
Chengdu municipal level Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 75,232 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 71,230 | |
Zhejiang Jiaxing Nanhu Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,966 | 822 |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,397 | |
Hunan Yueyang Miluo Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,894 | 822 |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,328 | |
Zhejing JiaXing [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 72,338 | 68,490 |
Henan Jiuzi New Energy Vehicle Sales and Service Co. LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 13,698 | |
Zhejiang Huasu Automobile Service Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 68,490 | |
Huzhou Fengtao New Energy Automobile Sales Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 41,094 | |
Shandong Shenglong Automobile Sales Co. LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 68,490 | |
Nantong Meixinyao Vehicle Sales Service Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 27,396 | |
Anhui Auto e-Link Auto Sales Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 27,396 | |
Fengshang Network Technology (Shaoxing) Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 41,094 | |
Anhui LiuAn [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 43,403 | 41,094 |
Guangxi Qinzhou [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 14,468 | 13,698 |
Guangxi Qinzhou Lingshan [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 43,403 | 41,094 |
Zhejiang Shaoxing Shengzhou [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 72,338 | 68,490 |
Xinjiang Urumqi [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 72,338 | 68,490 |
Hunan Changzhutan [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,740 | |
Hunan Shaoyang [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 1,447 | 1,370 |
Guangxi Liuzhou (Guangxi Shuangru Trading Co., Ltd.) [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 72,338 | 68,490 |
Guangxi Nanning [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 14,468 | 13,697 |
Guangxi Yulin [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 4,340 | 4,109 |
Guangxi Nanning (Guangxi Zhanyuan Automobile) [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 43,403 | 41,094 |
Guangxi Yulin (Yulin Qihui Automobile) [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 43,403 | 82,188 |
Zhejiang Huzhou [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 7,234 | 6,849 |
Sanmen Xian Wuji Automobile Sales [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 289 | 274 |
Shandong Yuncheng (Yuncheng Zhanteng New Energy Automobile Co., Ltd.) [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 289 | 274 |
Zhejiang Shaoxing Niuniu Automobile Sales Service Co., Ltd. [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 289 | 274 |
Yongkang Yijie Automobile Trading Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 5,479 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 21,004 | |
Ningbo Jinhui Internet Technology Service Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 1,370 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 5,250 | |
Xingtai Wanhua Botian Automobile Trading Co., LTD [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 822 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 3,219 | |
Zhejiang Hangzhou Xiaoshan Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 822 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,055 | |
Hunan Changsha Yuelu Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 822 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,123 | |
Hunan Yueyang Xiangyin Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 822 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,123 | |
Hunan Yueyang Yueyang Lou Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 822 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 2,123 | |
Guangdong Zhongshan City Agent [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | 2,740 | |
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 7,077 | |
Guangxi Yulin (Yulin Haorui Automobile Sales Co., Ltd.) [Member] | ||
Unearned franchise fee - current | ||
Unearned franchise fee - current | $ 43,399 | |
Guizhou 320 Automobile Service Co., LTD [Member] | ||
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | 13,698 | |
Hunan Hengyang Agent [Member] | ||
Unearned franchise fee – non-current | ||
Unearned franchise fee – non-current | $ 1,370 |
Related Party Transactions (D_7
Related Party Transactions (Details) - Schedule of Related Parties Receivables - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Related Party Transactions (Details) - Schedule of Related Parties Receivables [Line Items] | ||
Total | $ 65,501 | $ 67,153 |
Mr. Shuibo Zhang [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Receivables [Line Items] | ||
Total | 14,611 | 13,556 |
Mr. Qi Zhang [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Receivables [Line Items] | ||
Total | 4,207 | 22,922 |
Mr. Dewen Chen [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Receivables [Line Items] | ||
Total | 14,468 | |
Mr. Ruchun Huang [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Receivables [Line Items] | ||
Total | $ 32,215 | $ 30,675 |
Related Party Transactions (D_8
Related Party Transactions (Details) - Schedule of Related Parties Payables - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Related Party Transactions (Details) - Schedule of Related Parties Payables [Line Items] | ||
Total | $ 7,234 | $ 6,849 |
Mr. Ligui Xu [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Payables [Line Items] | ||
Total | $ 7,234 | $ 6,849 |
Deferred Income and Others Lo_3
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Deferred Income - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of Deferred Income [Abstract] | ||
Subsidy for the maintenance and repair of the office | $ 216,291 | $ 236,290 |
Total | $ 216,291 | $ 236,290 |
Deferred Income and Others Lo_4
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | $ 137,443 | $ 130,131 |
Guangxi Rongxian Junsheng Automobile Trading Co., Ltd [Member] | ||
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | 21,701 | 20,547 |
Chongqing Suiqian Trading Co., Ltd [Member] | ||
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | 28,935 | 27,396 |
Guangxi Yulin Shangfeng Automobile Sales Co., Ltd [Member] | ||
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | 28,935 | 27,396 |
Jiangxi Haomen Automobile Sales Co., Ltd [Member] | ||
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | 14,468 | 13,698 |
Guangxi Zhanyuan Automobile Sales Co., Ltd [Member] | ||
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Franchise Security Deposits [Line Items] | ||
Total franchise security deposits | $ 43,404 | $ 41,094 |
Leases (Details)
Leases (Details) ¥ in Millions | 6 Months Ended | ||
Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Apr. 30, 2022 USD ($) | |
Leases (Details) [Line Items] | |||
Number of operating leases | 1 | 1 | |
Requirement amount (in Yuan Renminbi) | ¥ | ¥ 20 | ||
Incremental borrowing rate | 4.75% | 4.75% | |
Operating lease expense | $ 83,306 | $ 97,191 | |
Subleases of Vehicles [Member] | |||
Leases (Details) [Line Items] | |||
Operating lease expense | $ 22,996 | ||
PRC [Member] | |||
Leases (Details) [Line Items] | |||
Incremental borrowing rate | 4.45% | 4.45% |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Leases | 6 Months Ended |
Apr. 30, 2023 USD ($) | |
Lease Cost | |
Operating lease cost (included in general and administrative expenses and cost in the Company’s statement of operations) | $ 106,302 |
Other Information | |
Cash paid for amounts included in the measurement of lease liabilities | $ 25,985 |
Weighted average remaining lease term – operating leases (in years) | 3 years 1 month 13 days |
Average discount rate – operating lease | 4.75% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to Leases - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Operating leases | ||
Right-of-use assets | $ 649,773 | $ 725,903 |
Operating lease liabilities | $ 783,003 | $ 768,185 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Undiscounted Future Minimum Lease Payment Schedule | Oct. 31, 2022 USD ($) |
Schedule of Undiscounted Future Minimum Lease Payment Schedule [Abstract] | |
2023 (six months from May 1, 2023 to October 31, 2023) | $ 388,496 |
2024 | 225,779 |
2025 | 202,733 |
Total | $ 817,008 |
Convertible Debentures (Details
Convertible Debentures (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Jan. 06, 2023 | Jan. 04, 2022 | Dec. 06, 2021 | Dec. 03, 2021 | Dec. 02, 2021 | Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2022 | |
Debt Disclosure [Abstract] | ||||||||
Convertible debenture issued | $ 2,500,000 | $ 6,000,000 | $ 2,500,000 | $ 6,000,000 | $ 1,673,100 | |||
Annual interest rate | 5% | 5% | ||||||
Convertible debenture | $ 1,000,000 | |||||||
Outstanding balance of convertible debenture | $ 1,300,000 | |||||||
Maturity date | Jun. 30, 2023 | |||||||
Principal amount | $ 216,667 | |||||||
Financing transaction with gross proceeds | $ 250,000 | |||||||
Total proceeds percentage | 50% | |||||||
Convertible debenture outstanding | $ 433,332 | $ 2,835,400 | ||||||
Interest expenses | $ 239,325 |
Taxes Payable (Details) - Sched
Taxes Payable (Details) - Schedule of Taxes Payable - USD ($) | Apr. 30, 2023 | Oct. 31, 2022 |
Schedule Of Taxes Payable Abstract | ||
Value-added tax, net | $ 912,637 | $ 890,620 |
Company Income tax | 1,733,416 | 1,645,556 |
Other taxes | 126,265 | 116,678 |
Total | $ 2,772,318 | $ 2,652,854 |
Contract Liability (Details) -
Contract Liability (Details) - Schedule of Contract Liability - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Oct. 31, 2022 | |
Schedule of Contract Liability [Abstract] | ||
Customer deposit for car purchase | $ 1,475,213 | $ 1,343,442 |
Total, net | $ 1,475,213 | $ 1,343,442 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 28, 2022 | Apr. 30, 2023 | Jul. 07, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | May 20, 2021 | |
Shareholders' Equity (Details) [Line Items] | |||||||
Shares issued | 2,584,804 | 1,363,630 | |||||
Shares outstanding | 2,584,804 | 1,363,630 | |||||
Subdivided shares | 5 | ||||||
Shares, par value (in Dollars per share) | $ 0.018 | ||||||
Total shares issued | 177,778 | ||||||
Stock dividend description | stock dividend on 2 for 1 on post-Share Subdivision basis, whereby each shareholder holding 1 share of the 277,778 shares outstanding immediately preceding this stock dividend was issued an additional 2 shares | ||||||
Ordinary shares issued | 11,111 | 598,952 | 162,139 | 288,889 | |||
Offering price per share (in Dollars per share) | $ 90 | ||||||
Service compensation (in Dollars) | $ 60,000 | ||||||
Conversion of note payable (in Dollars) | $ 1,673,099 | $ 2,236,684 | |||||
Net cash proceeds (in Dollars) | 1,200,000 | ||||||
Compensation amount (in Dollars) | $ 540,000 | ||||||
Share Subdivision [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Shares issued | 555,556 | ||||||
Authorized share capital par value (in Dollars per share) | $ 0.09 | ||||||
Common stock, par value (in Dollars per share) | $ 0.018 | ||||||
Authorized share capital (in Dollars) | $ 27,778 | ||||||
Shares, authorized | 2,777,778 | ||||||
Shares, par value (in Dollars per share) | $ 0.018 | ||||||
Total shares issued | 277,778 | 833,333 | |||||
Ordinary Shares [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Total shares issued | 444,444 | ||||||
Minimum [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Shares, authorized | 2,777,778 | ||||||
Maximum [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Shares, authorized | 8,333,333 | ||||||
Forecast [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Description of reverse stock split | On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 for shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares will have a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split. |
Segments and Geographic Infor_3
Segments and Geographic Information (Details) | 6 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segments and Geographic Infor_4
Segments and Geographic Information (Details) - Schedule of Sales Revenues - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Total, sales revenues | $ 925,759 | $ 4,109,736 |
Total, sales revenues, percentage | 100% | 100% |
Total, direct costs | $ 936,314 | $ 3,641,309 |
Total, direct costs, percentage | 100% | 100% |
Total, gross profit (loss) | $ (10,555) | $ 468,427 |
Total, gross profit (loss), percentage | 100% | 100% |
NEVs sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Total, sales revenues | $ 884,083 | $ 3,208,591 |
Total, sales revenues, percentage | 95% | 78% |
Total, direct costs | $ 882,160 | $ 3,186,391 |
Total, direct costs, percentage | 94% | 88% |
Total, gross profit (loss) | $ 1,923 | $ 22,200 |
Total, gross profit (loss), percentage | (18.00%) | 5% |
Franchisees service revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Total, sales revenues | $ 13,527 | $ 901,145 |
Total, sales revenues, percentage | 2% | 22% |
Total, direct costs | $ 28,275 | $ 454,918 |
Total, direct costs, percentage | 3% | 12% |
Total, gross profit (loss) | $ (14,748) | $ 446,227 |
Total, gross profit (loss), percentage | 140% | 95% |
Other service revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Total, sales revenues | $ 28,149 | |
Total, sales revenues, percentage | 3% | |
Total, direct costs | $ 25,879 | |
Total, direct costs, percentage | 3% | |
Total, gross profit (loss) | $ 2,270 | |
Total, gross profit (loss), percentage | (22.00%) |
Income Tax (Details)
Income Tax (Details) | 6 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Profit tax rate | 25% |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Net Taxable Income (Losses) Before Income Taxes and its Provision for Income Taxes - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Schedule of Net Taxable Income Losses Before Income Taxes and its Provision for Income Taxes [Abstract] | ||
Income (loss) attributed to China | $ (4,927,475) | $ (5,123,078) |
PRC statutory tax rate | 25% | 25% |
Income tax expense at statutory rate | ||
Reconciliation | 20 | 127,661 |
Income tax expense/ (benefit) | $ 20 | $ 127,661 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 6 Months Ended |
Apr. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Paid to the suppliers | $ 3,313,395 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers | 6 Months Ended |
Apr. 30, 2023 USD ($) | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Suppliers amount involved | $ 3,313,395 |
Shengzhou Baiyuan New Energy Vehicle Technology Co. [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Pending |
Suppliers amount involved | $ 2,059,300 |
Jiangsu Yakai Auto Sales & Service Co. [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Out-of-court settled |
Suppliers amount involved | $ 265,536 |
Hangzhou Shicheng Auto Trading Co. [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Successful |
Suppliers amount involved | $ 295,632 |
Nanning Huangyang Auto Sales Co. [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Successful |
Suppliers amount involved | $ 180,035 |
Anhui Junmao Automobile Sales and Service Co., Ltd [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Pending |
Suppliers amount involved | $ 157,987 |
Shanghai Aichi Yiwei Automobile Sales Co., Ltd [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Pending |
Suppliers amount involved | $ 147,194 |
Guangxi Runyin Automobile Sales Co., Ltd [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Pending |
Suppliers amount involved | $ 152,937 |
Other suppliers [Member] | |
Commitments and Contingencies (Details) - Schedule of Fully Written Off the Advance Paid to the Suppliers [Line Items] | |
Status of the case | Pending |
Suppliers amount involved | $ 54,774 |
Concentrations, Risks and Unc_3
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration on Sales Revenues Generated by Customers Type Comprised - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Schedule of Concentration on Sales Revenues Generated by Customers Type Comprised [Abstract] | ||
Third party sales revenues | $ 884,083 | $ 2,724,048 |
Third party sales revenues, percentage | 93% | 66% |
Related party sales revenues | $ 484,543 | |
Related party sales revenues, percentage | 12% | |
Third party franchise revenues | $ 850,649 | |
Third party franchise revenues, percentage | 21% | |
Related party franchise revenues | $ 41,802 | $ 50,496 |
Related party franchise revenues, percentage | 4% | 1% |
Third party other revenues | $ 28,149 | |
Third party other revenues, percentage | 3% | |
Related party other revenues | ||
Related party other revenues, percentage | ||
Total | $ 954,034 | $ 4,109,736 |
Total percentage | 100% | 100% |
Concentrations, Risks and Unc_4
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised - USD ($) | 6 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Customer A [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 88,189 | |
Total | 10% | |
Customer B [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 166,337 | |
Total | 18% | |
Customer C [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 270,120 | |
Total | 29% | |
Customer D [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 140,275 | |
Total | 15% | |
Customer E [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 742,374 | |
Total | 27% | |
Customer F [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 508,306 | |
Total | 19% | |
Customer G [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 310,690 | |
Total | 11% | |
Customer H [Member] | ||
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers Comprised [Line Items] | ||
Total | $ 309,707 | |
Total | 11% | |
Total | $ 664,921 | $ 1,871,077 |
Total | 72% | 69% |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] $ in Millions | 1 Months Ended |
Jul. 17, 2023 USD ($) shares | |
Subsequent Events (Details) [Line Items] | |
Aggregate of ordinary shares | shares | 1,395,151 |
Gross proceeds | $ | $ 2.3 |