Description of Maitong Sunshine Cultural Development Co. Ltd's Business Segments

The Company operates in a single segment under FASB ASC Topic 280, with revenues primarily from customers in the People's Republic of China (PRC) and most assets located there. It provides cultural tourism services and small-scale training services, recognizing service revenue upon completion of the services. Product sales revenue includes cultural and creative products as well as gift products, recognized at the point of delivery when ownership and risk transfer to purchasers. The Company also develops arts expositions featuring Chinese artistic practices, which are presented in various public or private venues and marketed through the same sales network as its cultural tours. Costs associated with service revenue include purchase, staff, and contract fulfillment expenses, while product sale costs mainly consist of product procurement and contract fulfillment expenses.

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