Ping An Biomedical Co., Ltd. (NASDAQ: PASW)

Ping An Biomedical Co., Ltd. is a holding company incorporated under the laws of the Cayman Islands on November 3 2021. The company does not conduct material operations directly. It carries out its business through its wholly owned PRC subsidiary New Brand Cashmere Products Co., Ltd. New Brand operates as a provider of supply chain management services in the apparel industry. Its core activities include market trend analysis, product design and development, raw material sourcing, production oversight, quality control and logistics management. The company focuses on yarn products and finished garments as the primary categories handled for customers. By integrating these functions New Brand offers a one stop solution that aims to meet the specific requirements of apparel sector participants. The holding company structure allows Ping An Biomedical Co., Ltd. to oversee strategic direction while operational execution resides in the subsidiary. The subsidiary is headquartered in Hong Kong although its operational activities are mainly conducted in mainland China.

We generate revenue by supplying supply chain management services to customers in the People's Republic of China. Our service offerings cover product design, raw material procurement, production coordination, quality inspection and delivery logistics. Revenue is recognized when we complete the agreed upon scope of work for each customer order. Pricing follows a cost plus approach that takes into account the nature of raw materials, design complexity, third party supplier quotes, order volume, timing requirements and prevailing market prices for comparable apparel items. All transactions are denominated in renminbi and the company's sales are generated exclusively within China. The customer base includes brand owners, textile manufacturers, apparel sourcing agents and online fashion retailers who pay for the value added services we provide across the supply chain. Our top five customers contributed approximately ninety one percent of revenue for the fiscal year ended September 30 2025 and eighty six percent for the prior year. We do not rely on long term contracts with customers which aligns with typical market practice in the apparel SCM sector.

We operate in a highly fragmented apparel supply chain management market in China where many providers offer similar services. Our competitive position stems from our vertically integrated capability that connects design, sourcing, production and logistics under a single coordination framework. This integration enables us to control lead times, maintain consistent quality and offer cost effective solutions to customers. We differentiate ourselves through an established network of raw material vendors and contract manufacturers that we select based on reputation, capacity and price competitiveness. Our management team possesses extensive industry experience which enhances our ability to anticipate market trends and respond to customer demands quickly. While we do not disclose specific competitor names we acknowledge that other SCM providers compete on price, quality and speed of delivery. Our focus on providing a one stop solution and maintaining flexible supplier relationships aims to secure a sustainable advantage in the evolving Chinese apparel sector. Additionally we invest in technology infrastructure to improve efficiency and reduce lead time further strengthening our market stance.

Our customers are primarily located within the People's Republic of China and span various stages of the apparel supply chain. They include brand owners who design and market finished apparel, textile manufacturers that produce fabrics and yarns, apparel sourcing agents that mediate between brands and factories and online fashion and garment retailers that sell directly to consumers. The company does not disclose the individual names of its customers in the filing. However it notes that the five largest customers accounted for roughly ninety one percent of revenue in the most recent fiscal year and eighty six percent in the preceding year indicating a concentrated but diversified client mix across the aforementioned categories. We aim to broaden this base by pursuing opportunities in the United States and Europe while continuing to serve existing clients in China. Our strategy includes increasing engagement with new customer segments and tailoring our service offerings to meet regional preferences and regulatory requirements.