2022 Q3 Form 20-F Financial Statement

#000121390023010349 Filed on February 10, 2023

View on sec.gov

Income Statement

Concept 2022 Q3 2022 2021 Q3
Revenue $15.94M $40.14M $47.98M
YoY Change -66.78% -16.34% 56.27%
Cost Of Revenue $7.806M $18.25M $22.66M
YoY Change -65.55% -19.44% 36.4%
Gross Profit $8.135M $21.89M $25.33M
YoY Change -67.88% -13.56% 79.7%
Gross Profit Margin 51.03% 54.53% 52.78%
Selling, General & Admin $10.78M $21.69M $6.098M
YoY Change 76.7% 255.63% 98.61%
% of Gross Profit 132.45% 99.06% 24.08%
Research & Development $7.500M $7.644M $5.447M
YoY Change 37.69% 40.34% 860.29%
% of Gross Profit 92.19% 34.92% 21.51%
Depreciation & Amortization $241.8K $533.9K $203.4K
YoY Change 18.89% 19.48% 1.66%
% of Gross Profit 2.97% 2.44% 0.8%
Operating Expenses $18.27M $29.33M $11.74M
YoY Change 55.72% 149.92% 205.46%
Operating Profit -$10.14M -$7.439M $13.59M
YoY Change -174.61% -154.74% 32.56%
Interest Expense -$35.42K $162.4K -$70.77K
YoY Change -49.95% -329.48% -30.58%
% of Operating Profit -0.52%
Other Income/Expense, Net -$1.119M -$545.3K $160.7K
YoY Change -796.21% -439.42% -425.57%
Pretax Income -$11.29M -$7.984M $13.68M
YoY Change -182.57% -158.37% 35.42%
Income Tax -$825.8K $752.4K $2.359M
% Of Pretax Income 17.24%
Net Earnings -$10.47M -$8.737M $11.32M
YoY Change -192.48% -177.18% 49.77%
Net Earnings / Revenue -65.67% -21.76% 23.59%
Basic Earnings Per Share -$0.40
Diluted Earnings Per Share -$0.48 -$0.40 $596.4K
COMMON SHARES
Basic Shares Outstanding 21.75M shares 21.75M shares
Diluted Shares Outstanding 21.75M shares

Balance Sheet

Concept 2022 Q3 2022 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $18.86M $5.711M $8.078M
YoY Change 133.48% -29.3% -19.69%
Cash & Equivalents $5.711M $8.078M
Short-Term Investments $13.15M
Other Short-Term Assets $5.255M $18.40M $24.37M
YoY Change -78.43% -24.47% 5391.62%
Inventory $2.206M $2.206M $2.463M
Prepaid Expenses
Receivables $15.18M $15.18M $15.57M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $41.51M $41.51M $50.48M
YoY Change -17.78% -17.78% 116.84%
LONG-TERM ASSETS
Property, Plant & Equipment $4.251M $13.58M $15.39M
YoY Change -72.39% -11.8% 247.64%
Goodwill
YoY Change
Intangibles $157.5K $178.5K
YoY Change -11.78%
Long-Term Investments $702.9K $702.9K $744.9K
YoY Change -5.64% -5.64% 1.35%
Other Assets $3.597M $3.597M $3.347M
YoY Change 7.47% 7.47% 1694.15%
Total Long-Term Assets $18.03M $18.03M $19.66M
YoY Change -8.29% -8.29% 255.94%
TOTAL ASSETS
Total Short-Term Assets $41.51M $41.51M $50.48M
Total Long-Term Assets $18.03M $18.03M $19.66M
Total Assets $59.54M $59.54M $70.14M
YoY Change -15.12% -15.12% 143.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.075M $3.075M $5.311M
YoY Change -42.09% -42.09% 97.33%
Accrued Expenses $2.539M $2.539M $444.3K
YoY Change 471.52% 471.52% 18.18%
Deferred Revenue
YoY Change
Short-Term Debt $3.936M $7.315M $4.354M
YoY Change -9.6% 68.01% 20.86%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $13.10M $13.10M $11.21M
YoY Change 16.83% 16.83% 40.11%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $13.10M $13.10M $11.21M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $13.10M $13.10M $11.21M
YoY Change 16.83% 16.83% 40.11%
SHAREHOLDERS EQUITY
Retained Earnings $16.32M $25.06M
YoY Change -34.86%
Common Stock $67.97K $67.97K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $46.44M $46.44M $58.93M
YoY Change
Total Liabilities & Shareholders Equity $59.54M $59.54M $70.14M
YoY Change -15.12% -15.12% 143.52%

Cashflow Statement

Concept 2022 Q3 2022 2021 Q3
OPERATING ACTIVITIES
Net Income -$10.47M -$8.737M $11.32M
YoY Change -192.48% -177.18% 49.77%
Depreciation, Depletion And Amortization $241.8K $533.9K $203.4K
YoY Change 18.89% 19.48% 1.66%
Cash From Operating Activities -$7.431M -$1.312M -$3.114M
YoY Change 138.62% -36.17% 37.49%
INVESTING ACTIVITIES
Capital Expenditures $38.07K $93.70K -$393.6K
YoY Change -109.67% -121.08% 21768.33%
Acquisitions
YoY Change
Other Investing Activities -$3.815M -$3.814M -$26.62M
YoY Change -85.67% -85.67%
Cash From Investing Activities -$3.853M -$3.908M -$27.01M
YoY Change -85.73% -85.56% 1500404.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $6.808M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.338M $3.318M 2.445M
YoY Change 36.51% -87.52% 2120.13%
NET CHANGE
Cash From Operating Activities -7.431M -$1.312M -3.114M
Cash From Investing Activities -3.853M -$3.908M -27.01M
Cash From Financing Activities 3.338M $3.318M 2.445M
Net Change In Cash -7.946M -$2.366M -27.68M
YoY Change -71.29% -6.61% 1183.46%
FREE CASH FLOW
Cash From Operating Activities -$7.431M -$1.312M -$3.114M
Capital Expenditures $38.07K $93.70K -$393.6K
Free Cash Flow -$7.469M -$1.406M -$2.720M
YoY Change 174.55% -12.74% 20.21%

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OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-3755464 usd
CY2022Q3 us-gaap Stockholders Equity
StockholdersEquity
46442323 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-8736566 usd
CY2021 us-gaap Net Income Loss
NetIncomeLoss
11319952 usd
CY2020 us-gaap Net Income Loss
NetIncomeLoss
7558222 usd
CY2022 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
533949 usd
CY2021 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
446878 usd
CY2020 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
410079 usd
CY2022 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
983 usd
CY2021 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
1559 usd
CY2022 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
419353 usd
CY2021 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-230175 usd
CY2020 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
98102 usd
CY2022 us-gaap Inventory Lifo Reserve Period Charge
InventoryLIFOReservePeriodCharge
15774 usd
CY2020 us-gaap Inventory Lifo Reserve Period Charge
InventoryLIFOReservePeriodCharge
-75391 usd
CY2022 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-605278 usd
CY2021 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-668341 usd
CY2020 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-9886 usd
CY2022 upc Shortterm Investments Income
ShorttermInvestmentsIncome
470477 usd
CY2021 upc Shortterm Investments Income
ShorttermInvestmentsIncome
-239549 usd
CY2022 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
1549312 usd
CY2021 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
3867457 usd
CY2020 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
4107520 usd
CY2022 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-16586 usd
CY2021 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
451634 usd
CY2020 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-888607 usd
CY2022 us-gaap Increase Decrease In Prepaid Supplies
IncreaseDecreaseInPrepaidSupplies
-2681214 usd
CY2021 us-gaap Increase Decrease In Prepaid Supplies
IncreaseDecreaseInPrepaidSupplies
2717085 usd
CY2022 us-gaap Increase Decrease In Prepaid Advertising
IncreaseDecreaseInPrepaidAdvertising
-7385695 usd
CY2021 us-gaap Increase Decrease In Prepaid Advertising
IncreaseDecreaseInPrepaidAdvertising
7434240 usd
CY2022 us-gaap Increase Decrease In Due From Related Parties
IncreaseDecreaseInDueFromRelatedParties
-236982 usd
CY2021 us-gaap Increase Decrease In Due From Related Parties
IncreaseDecreaseInDueFromRelatedParties
237720 usd
CY2022 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
1699929 usd
CY2021 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
168188 usd
CY2020 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-12407 usd
CY2022 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-1896621 usd
CY2021 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
2457337 usd
CY2020 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
639427 usd
CY2022 us-gaap Increase Decrease In Property And Other Taxes Payable
IncreaseDecreaseInPropertyAndOtherTaxesPayable
-904127 usd
CY2021 us-gaap Increase Decrease In Property And Other Taxes Payable
IncreaseDecreaseInPropertyAndOtherTaxesPayable
-298620 usd
CY2020 us-gaap Increase Decrease In Property And Other Taxes Payable
IncreaseDecreaseInPropertyAndOtherTaxesPayable
731518 usd
CY2022 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
2318474 usd
CY2021 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
31436 usd
CY2020 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
-30408 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1312346 usd
CY2021 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2055847 usd
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
6115157 usd
CY2022 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
93703 usd
CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
444505 usd
CY2020 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
51798 usd
CY2022 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
523 usd
CY2021 upc Prepayments Made To A Related Party For Purchase Of Property
PrepaymentsMadeToARelatedPartyForPurchaseOfProperty
2457600 usd
CY2021 us-gaap Repayments Of Advances For Construction
RepaymentsOfAdvancesForConstruction
10629120 usd
CY2022 us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
3814925 usd
CY2021 us-gaap Payments For Proceeds From Short Term Investments
PaymentsForProceedsFromShortTermInvestments
15330660 usd
CY2021 upc Redemption Of Shortterm Investments
RedemptionOfShorttermInvestments
1801927 usd
CY2022 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-3908105 usd
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-27059958 usd
CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-51798 usd
CY2022 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
4272716 usd
CY2021 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
4300800 usd
CY2020 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
1427000 usd
CY2022 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
4272716 usd
CY2021 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
2764800 usd
CY2020 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
1427000 usd
CY2021 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
28750000 usd
CY2021 us-gaap Payments For Repurchase Of Initial Public Offering
PaymentsForRepurchaseOfInitialPublicOffering
2792543 usd
CY2020 us-gaap Payments For Repurchase Of Initial Public Offering
PaymentsForRepurchaseOfInitialPublicOffering
441064 usd
CY2022 upc Proceeds Fromprepayments For Related Parties Borrowings
ProceedsFromprepaymentsForRelatedPartiesBorrowings
-3317943 usd
CY2021 upc Proceeds Fromprepayments For Related Parties Borrowings
ProceedsFromprepaymentsForRelatedPartiesBorrowings
911648 usd
CY2020 upc Proceeds Fromprepayments For Related Parties Borrowings
ProceedsFromprepaymentsForRelatedPartiesBorrowings
-911200 usd
CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
3317943 usd
CY2021 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
26581809 usd
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
470136 usd
CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-463942 usd
CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
553702 usd
CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
347386 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-2366450 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-1980294 usd
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
6880881 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
8077908 usd
CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
10058202 usd
CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
3177321 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
5711458 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
8077908 usd
CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
10058202 usd
CY2022 us-gaap Interest Paid Net
InterestPaidNet
199852 usd
CY2021 us-gaap Interest Paid Net
InterestPaidNet
149303 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
157528 usd
CY2022 us-gaap Income Taxes Paid
IncomeTaxesPaid
2748629 usd
CY2021 us-gaap Income Taxes Paid
IncomeTaxesPaid
3271219 usd
CY2020 us-gaap Income Taxes Paid
IncomeTaxesPaid
2167963 usd
CY2021Q1 upc Shares Issued01
SharesIssued01
5000000 shares
CY2021Q1 us-gaap Share Price
SharePrice
0.003125
CY2021Q1 upc Public Offering Price
PublicOfferingPrice
5
CY2021Q1 us-gaap Proceeds From Debt Net Of Issuance Costs
ProceedsFromDebtNetOfIssuanceCosts
28750000 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Uses of estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for estimated uncollectible receivables, the realizability of advance to suppliers, inventory valuations, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, revenue recognition and realization of deferred tax assets. Actual results could differ from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Risks and Uncertainties</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The main operation of the Company is located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The development and commercialization of new pharmaceutical products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. The Company may face competition with respect to its current and future pharmaceutical product candidates from major pharmaceutical companies in China.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s operations may be further affected by the ongoing COVID-19 pandemic. Due to the resurgence of COVID-19 pandemic in China in 2022, there had been delays in purchase of raw material supplies and deliver products to the customers of the PRC operating entities on a timely basis as a consequence of the travel restrictions. The prices of the raw materials also increased by about 5% from January 2022 to May 2022 as compared to the same period last year. In addition, the Company has granted some of its customers extended payment terms of 30 days to 120 days since January 2022, as a result of the COVID-19 pandemic. However, based on the present relationship with these customers and the evaluation of their financial health, the Company does not anticipate any material collectability problems. Even though the Company does not expect that the COVID-19 pandemic will have a negative impact on the business operations of the PRC operating entities and the financial results, due to the high uncertainty of the evolving situation, the Company has limited visibility on how the COVID-19 pandemic affects the execution of customer contracts, the collection of customer payments, or disrupt our supply chain, and the continued uncertainties associated with COVID-19 may cause the revenue and cash flows to underperform in the next 12 months from the date the consolidated financial statements are released. The extent of the future impact of the COVID-19 pandemic on the business and results of operations is still uncertain. Any resurgence of the COVID-19 pandemic could negatively affect the execution of customer contracts, the collection of customer payments, or disrupt the Company’s supply chain, and the continued uncertainties associated with COVID-19 may negatively impact the Company’s revenue and cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2022 upc Material Price Percentage
MaterialPricePercentage
0.05 pure
CY2022 upc Allowance For Uncollectable Balances Amount
AllowanceForUncollectableBalancesAmount
791827 usd
CY2021 upc Allowance For Uncollectable Balances Amount
AllowanceForUncollectableBalancesAmount
446527 usd
CY2022Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
120286 usd
CY2021Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
116453 usd
CY2022 us-gaap Equity Method Investment Sold Carrying Amount
EquityMethodInvestmentSoldCarryingAmount
702890 usd
CY2022 us-gaap Equity Method Investment Sold Carrying Amount
EquityMethodInvestmentSoldCarryingAmount
5000000 cny
CY2021 us-gaap Equity Method Investment Sold Carrying Amount
EquityMethodInvestmentSoldCarryingAmount
744924 usd
CY2021 us-gaap Equity Method Investment Sold Carrying Amount
EquityMethodInvestmentSoldCarryingAmount
5000000 cny
CY2022 us-gaap Net Investment Income
NetInvestmentIncome
38588 usd
CY2021 us-gaap Net Investment Income
NetInvestmentIncome
30827 usd
CY2020 us-gaap Net Investment Income
NetInvestmentIncome
21820 usd
CY2021 us-gaap Advertising Expense
AdvertisingExpense
1316654 usd
CY2020 us-gaap Advertising Expense
AdvertisingExpense
343962 usd
CY2022 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7644375 usd
CY2021 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5465662 usd
CY2020 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
583125 usd
CY2022 us-gaap Advertising Expense
AdvertisingExpense
17527318 usd
CY2022 upc Tax Benefit Percentage
TaxBenefitPercentage
0.50 pure
CY2022 upc Percentage Of Vat Rate
PercentageOfVatRate
0.17 pure
CY2022 upc Description Of Year End Spot Rate
DescriptionOfYearEndSpotRate
US$1=RMB7.1135
CY2021 upc Description Of Year End Spot Rate
DescriptionOfYearEndSpotRate
US$1=RMB6.4580
CY2022 upc Accounts Receivable Description
AccountsReceivableDescription
The Company’s accounts receivable primarily includes the balance due from customers when the Company’s pharmaceutical products are sold and delivered to customers. All of the Company’s accounts receivable balance at September 30, 2021 has been collected in the fiscal year 2022. As of date of this report, approximately 71.9%, or $10.9 million, of the Company’s net account receivable balance at September 30, 2022 has been subsequently collected and the remaining balance is expected to be substantially collected before March 31, 2023. 
CY2020 upc Description Of Year End Spot Rate
DescriptionOfYearEndSpotRate
US$1=RMB6.8033
CY2022 upc Description Of Average Rate
DescriptionOfAverageRate
US$1=RMB6.5532
CY2021 upc Description Of Average Rate
DescriptionOfAverageRate
US$1=RMB6.5095
CY2020 upc Description Of Average Rate
DescriptionOfAverageRate
US$1=RMB7.0077
CY2022 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
465689 usd
CY2021 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
617145 usd
CY2020 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
347312 usd
CY2022Q3 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
15975717 usd
CY2021Q3 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
16020269 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
791827 usd
CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
446527 usd
CY2022Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
15183890 usd
CY2021Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
15573742 usd
CY2022Q3 us-gaap Accounts Receivable Gross
AccountsReceivableGross
15975717 usd
CY2022Q3 upc Sunsequent Collections Total Gross Accounts Receivable
SunsequentCollectionsTotalGrossAccountsReceivable
10918976 usd
CY2022 upc Total Gross Accounts Receivable Percentage
TotalGrossAccountsReceivablePercentage
0.683 pure
CY2022Q3 us-gaap Accounts And Financing Receivable Allowance For Credit Loss
AccountsAndFinancingReceivableAllowanceForCreditLoss
791827 usd
CY2022Q3 us-gaap Accounts Receivable Net
AccountsReceivableNet
15183890 usd
CY2022Q3 upc Sunsequent Collection Accounts Receivable Net
SunsequentCollectionAccountsReceivableNet
10918976 usd
CY2022 upc Accounts Receivable Net Percentage
AccountsReceivableNetPercentage
0.719 pure
CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
446527 usd
CY2020Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
639991 usd
CY2022 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
419353 usd
CY2021 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
225660 usd
CY2022 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
-74053 usd
CY2021 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
32196 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
791827 usd
CY2021Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
446527 usd
CY2022Q3 us-gaap Inventory Raw Materials
InventoryRawMaterials
989043 usd
CY2021Q3 us-gaap Inventory Raw Materials
InventoryRawMaterials
607661 usd
CY2022Q3 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1337731 usd
CY2021Q3 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1971334 usd
CY2022Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
120286 usd
CY2021Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
116453 usd
CY2022Q3 us-gaap Inventory Net
InventoryNet
2206488 usd
CY2021Q3 us-gaap Inventory Net
InventoryNet
2462542 usd
CY2022 upc Schedule Of Advances To Suppliers Net
ScheduleOfAdvancesToSuppliersNet
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30, <br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30, <br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Advances to suppliers for inventory raw materials</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">16,701</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,738,313</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: allowance for doubtful accounts</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 4pt">Advances to suppliers, net</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,701</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,738,313</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b> </b></p>
CY2022Q3 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
16701 usd
CY2021Q3 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
2738313 usd
CY2022 us-gaap Payments To Suppliers And Employees
PaymentsToSuppliersAndEmployees
16701 usd
CY2021 us-gaap Payments To Suppliers And Employees
PaymentsToSuppliersAndEmployees
2738313 usd
CY2021Q3 us-gaap Other Selling General And Administrative Expense
OtherSellingGeneralAndAdministrativeExpense
55000000 cny
CY2021Q3 us-gaap Other Selling General And Administrative Expense
OtherSellingGeneralAndAdministrativeExpense
8500000 usd
CY2021Q3 upc Percentage Of Advance Payment
PercentageOfAdvancePayment
0.30 pure
CY2021Q3 upc Additional Contract Price Percentage
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CY2022 us-gaap Depreciation
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CY2022 dei Amendment Flag
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CY2021Q3 us-gaap Due To Related Parties Noncurrent
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CY2021Q2 us-gaap Deconsolidation Related Party Description
DeconsolidationRelatedPartyDescription
As disclosed in Note 12, on May 6, 2021, the Company entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang, to purchase certain residential apartment and commercial office space totaling 2,749.30 square meters with total purchase price of RMB32 million (approximately $4.5 million).
CY2022 upc Prepayment Amount
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CY2022 upc Prepayment Amount
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CY2022Q1 upc Equity Interest Ownership Percentage
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0.05 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
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0.25 pure
CY2022 upc Preferential Tax Treatment Description
PreferentialTaxTreatmentDescription
Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for their HNTE status every three years. Jiangxi Universe, one of the Company’s main operating subsidiaries in the PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning November 2016 with a term of three years. In December 2019, Jiangxi Universe successfully renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2022. In November 2022, Jiangxi Universe successfully further renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through November 2025. Universe Trade, another operating subsidiary of the Company in the PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning December 2020 with a term of three years through December 2023. EIT is typically governed by the local tax authority in the PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The corporate income taxes for the years ended September 30, 2022, 2021 and 2020 were reported at a blended reduced rate as a result of certain of the PRC subsidiaries of the Company’s being approved as a HNTE and enjoying a 15% reduced income tax rate.
CY2022Q3 us-gaap Taxes Payable Current And Noncurrent
TaxesPayableCurrentAndNoncurrent
694955 usd
CY2021Q3 us-gaap Taxes Payable Current And Noncurrent
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CY2020Q3 us-gaap Taxes Payable Current And Noncurrent
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CY2022 us-gaap Income Tax Holiday Income Tax Benefits Per Share
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0.03
CY2021 us-gaap Income Tax Holiday Income Tax Benefits Per Share
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0.09
CY2020 us-gaap Income Tax Holiday Income Tax Benefits Per Share
IncomeTaxHolidayIncomeTaxBenefitsPerShare
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CY2022 dei Document Fiscal Period Focus
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CY2021 us-gaap Current Income Tax Expense Benefit
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CY2022 us-gaap Income Tax Expense Benefit
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CY2021 us-gaap Income Tax Expense Benefit
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IncomeTaxExpenseBenefit
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CY2022 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.094 pure
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0.171 pure
CY2020 us-gaap Effective Income Tax Rate Continuing Operations
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CY2022Q3 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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CY2022Q3 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Allowance For Doubtful Accounts
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CY2021Q3 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Allowance For Doubtful Accounts
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CY2022Q3 us-gaap Deferred Tax Assets Liabilities Net
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CY2022 dei Entity Central Index Key
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CY2021Q3 us-gaap Accrued Income Taxes Current
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CY2022Q3 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
115087 usd
CY2021Q3 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
326468 usd
CY2022Q3 us-gaap Accrual For Taxes Other Than Income Taxes Current
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52263 usd
CY2021Q3 us-gaap Accrual For Taxes Other Than Income Taxes Current
AccrualForTaxesOtherThanIncomeTaxesCurrent
105212 usd
CY2022Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
167350 usd
CY2021Q3 us-gaap Taxes Payable Current
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CY2022Q3 us-gaap Foreign Financial Institutions Mandated Deposits
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5711423 usd
CY2021Q3 us-gaap Foreign Financial Institutions Mandated Deposits
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CY2021Q3 us-gaap Shares Outstanding
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CY2022Q3 us-gaap Shares Issued
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21750000 shares
CY2022 upc Reserve Is Equal Percentage
ReserveIsEqualPercentage
0.50 pure
CY2022Q3 us-gaap Cash Equivalents At Carrying Value
CashEquivalentsAtCarryingValue
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CY2022 us-gaap Capital Expenditure Discontinued Operations
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CY2022 us-gaap Interest Expense Capital Securities
InterestExpenseCapitalSecurities
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CY2022 us-gaap Number Of Reportable Segments
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1 pure
CY2022 us-gaap Cost Of Other Property Operating Expense
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23988177 usd
CY2021 us-gaap Cost Of Other Property Operating Expense
CostOfOtherPropertyOperatingExpense
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CY2020 us-gaap Cost Of Other Property Operating Expense
CostOfOtherPropertyOperatingExpense
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CY2022 us-gaap Cost Of Goods And Services Sold
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16154974 usd
CY2021 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
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CY2020 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
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CY2022 us-gaap Revenues
Revenues
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CY2021 us-gaap Revenues
Revenues
47982031 usd
CY2020 us-gaap Revenues
Revenues
30703960 usd
CY2022 upc Subtotal Of Tcmd Products Sales
SubtotalOfTCMDProductsSales
23988177 usd
CY2021 upc Subtotal Of Tcmd Products Sales
SubtotalOfTCMDProductsSales
29559286 usd
CY2020 upc Subtotal Of Tcmd Products Sales
SubtotalOfTCMDProductsSales
18374751 usd
CY2022 upc Subtotal Of Thirdparty Products Sales
SubtotalOfThirdpartyProductsSales
16154974 usd
CY2021 upc Subtotal Of Thirdparty Products Sales
SubtotalOfThirdpartyProductsSales
18422745 usd
CY2020 upc Subtotal Of Thirdparty Products Sales
SubtotalOfThirdpartyProductsSales
12329209 usd
CY2022 us-gaap Revenues
Revenues
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CY2021 us-gaap Revenues
Revenues
47982031 usd
CY2020 us-gaap Revenues
Revenues
30703960 usd
CY2022 us-gaap Subsequent Event Description
SubsequentEventDescription
The Company evaluated the subsequent event through the date of this report, and concluded that there are no material reportable subsequent events need to be disclosed.
CY2022Q3 upc Minority Interests Ownership Percentage By Parent
MinorityInterestsOwnershipPercentageByParent
0.25 pure
CY2022Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
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CY2020 upc Shortterm Investment Income
ShorttermInvestmentIncome
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CY2020 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
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CY2021 us-gaap Inventory Lifo Reserve Period Charge
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CY2020 upc Shortterm Investments Income
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CY2020 us-gaap Increase Decrease In Prepaid Supplies
IncreaseDecreaseInPrepaidSupplies
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CY2020 us-gaap Increase Decrease In Prepaid Advertising
IncreaseDecreaseInPrepaidAdvertising
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CY2020 us-gaap Increase Decrease In Due From Related Parties
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CY2021 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
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CY2020 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
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CY2022 upc Prepayments Made To A Related Party For Purchase Of Property
PrepaymentsMadeToARelatedPartyForPurchaseOfProperty
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CY2020 upc Prepayments Made To A Related Party For Purchase Of Property
PrepaymentsMadeToARelatedPartyForPurchaseOfProperty
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CY2022 us-gaap Repayments Of Advances For Construction
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CY2020 us-gaap Repayments Of Advances For Construction
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CY2021 us-gaap Payments To Acquire Businesses Gross
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CY2020 us-gaap Payments To Acquire Businesses Gross
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CY2022 us-gaap Payments For Proceeds From Short Term Investments
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CY2020 us-gaap Payments For Proceeds From Short Term Investments
PaymentsForProceedsFromShortTermInvestments
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CY2022 upc Redemption Of Shortterm Investments
RedemptionOfShorttermInvestments
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CY2020 upc Redemption Of Shortterm Investments
RedemptionOfShorttermInvestments
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CY2022 us-gaap Payments Of Dividends
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CY2021 us-gaap Payments Of Dividends
PaymentsOfDividends
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CY2020 us-gaap Payments Of Dividends
PaymentsOfDividends
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CY2022 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
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