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Exhibit 99.2

Management’s discussion and analysis of the financial condition and results of operations of Pop Culture Group Co., Ltd (the “Company,” “we,” “our,” or “us”) for six months ended December 31, 2025 is set forth below:

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this filing. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This discussion contains forward-looking statements. All statements contained in this discussion other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in the “Risk Factors” section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

OVERVIEW

We primarily conduct our business in mainland China through the People’s Republic of China (the “PRC”) operating entities, while gradually expanding a modest presence in Hong Kong and overseas through our offshore entities. Originally focused on hip-hop culture, we have since evolved into a diversified performing arts and entertainment group, dedicated to promoting pan-Chinese pop culture. Our integrated ecosystem spans both online and offline platforms, and encompasses the following: (1) live entertainment events (including concerts, music festivals, street dance competitions, artist management and agency services, and other performances); (2) digital entertainment services; (3) other services.

For live entertainment services, the operating entities deliver high-quality and immersive cultural experiences to clients and end-users primarily by providing artist management and agency services, and in limited cases by organizing concerts, music festivals, street dance competitions, artist management and agency services, Chinese Pop events, and other live activities. The operating entities generate revenue from offering sponsorship packages to advertisers in exchange for sponsorship fees, and providing related services. During the six months ended December 31, 2025, the operating entities participated in three large-scale concerts and touring projects, serving 8 corporate clients. These events collectively attracted approximately 5,145,300 social media engagements, representing an increase from 300,000 social media engagements in the same period of 2024.

For digital entertainment services, the operating entities offer customized digital marketing solutions services to clients by leveraging extensive internet media resources, enabling effective brand promotion campaigns. Revenue from digital entertainment increased by 79%, from US$37.18 million for the six months ended December 31, 2024 to US$66.57 million for the six months ended December 31, 2025, primarily attributable to (i) the changing consumer trends that increase the public dependence on digital channels (especially short-form video platforms) for brand and product information; and (ii) the budget reallocation by clients, the material expansion in corporate online marketing expenditures directed toward our internet media-based solutions.

For other services, the operating entities generate service revenue through digital collectible sales to individual collectors, SaaS software services to hip-hop dance training institutions, property subleasing of company-leased facilities to third parties, and other ancillary service offerings for service fees. Other revenue for the six months ended December 31, 2025 was US$0.66 million, which represents an increase of US$0.61 million, compared to that in the six months ended December 31, 2024.

RECENT DEVELOPMENTS

During the six months ended December 31, 2025, the Company completed a strategic investment totaling approximately $33,000,000 in Bitcoin (BTC), representing 300 BTC. As at 31 December 2025, the market price of Bitcoin decreased. Accordingly, the Company recognized an impairment loss to adjust the carrying amount of such Bitcoin assets to their fair value at that date.

On July 8, 2025, the Company closed a private placement pursuant to certain subscription agreements dated July 8, 2025 with 10 investors. The Company issued and sold an aggregate of 50,000,000 Class A ordinary shares and 10,000,000 Class B ordinary shares, to the investors at a price of $0.50 per share and $0.55 per share, respectively, with total gross proceeds of $30.5 million.

On September 8, 2025, the Company changed its dual foreign name to 华流文化集团有限公司.

On September 25, 2025, the Company entered into securities purchase agreements with certain institutional accredited investors, pursuant to which the Company agreed to sell and issue 5,000,000 Class A ordinary shares of a par value of US$0.01 each to the investors at a purchase price of US$1.20 per share, in a registered direct offering of $6 million of its securities. 

KEY FACTORS AFFECTING OUR FINANCIAL PERFORMANCE

In assessing our financial performance, we consider a variety of financial performance measures, including principal growth in net revenue and gross profit, our ability to control costs and operating expenses to improve our operating efficiency and net income. Our review of these indicators facilitates timely evaluation of the performance of our business and effective communication of results and key decisions, allowing our business to respond promptly to competitive market conditions and different demands and preferences from our customers. The key measures that we use to evaluate the performance of our business are set forth below.

RESULTS OF OPERATIONS

Revenue

Total revenue for the six months ended December 31, 2025 was US$68.90 million, representing an increase of US$27.09 million, or 65%, year-over-year.

The following table presents our revenue by sources and proportion:

Revenue from live entertainment services, which includes artist management and agency services, as well as event hosting, planning, and execution, decreased by 63% from US$4.58 million for the six months ended December 31, 2024 to US$1.68 million for the six months ended December 31, 2025. The decrease was mainly attributable to the rationalization of end-market demand and the fading of revenge consumption. Consumer preferences have become more concentrated on top-tier IPs and high-reputation live entertainment content. Non-headline and homogenized events experienced a sharp decline in box office performance, with revenue halved in many cases. As a result, corporate clients adopted a prudent investment stance and primarily engaged in project-based cooperation for A-list artist IP resources. The above factors collectively resulted in a reduction in our live entertainment revenue.

Revenue from digital entertainment services increased by 79% from US$37.18 million for the six months ended December 31, 2024 to US$66.57 million for the six months ended December 31, 2025, which was primarily attributable to the trend of increasing online promotion budgets of advertisers.

Revenue from other services amounted to US$0.65 million for the six months ended December 31, 2025, representing an increase of US$0.61 million compared with the corresponding period in 2024. Revenue from other services primarily comprises income from software development services, digital collectible sales and rental income. The year-on-year increase was mainly attributable to the recognition of US$0.65 million rental income during the current six-month period. Such rental income will no longer be recurring, as Heliheng, the subsidiary generating this stream of rental income, has been disposed of.

Cost of Revenue

The cost of revenue for the six months ended December 31, 2025 increased by 67% to US$67.06 million from US$40.11 million of the previous period.

The cost of revenue was derived from the following sources:

Cost of Live Entertainment Revenue

Cost of live entertainment revenue decreased by 64% from US$4.35 million for the six months ended December 31, 2024 to US$1.59 million for the six months ended December 31, 2025, which was generally in line with the decrease in the revenue from this segment.

Cost of Digital Entertainment Revenue

Cost of digital entertainment revenue increased by 81% from US$35.74 million for the six months ended December 31, 2024 to US$64.84 million for the six months ended December 31, 2025, which was in line with the growth in the revenue from this segment.

Cost of Other Services Revenue

Cost of other services revenue increased by 3,084% from US$0.02 million for the six months ended December 31, 2024 to US$0.63 million for the six months ended December 31, 2025, which mainly resulted from the rental cost and was generally in line with the increase in the revenue from other services. Such rental cost will no longer be recurring, as Heliheng, the subsidiary generating this stream of rental income, has been disposed of.

Gross Profit and Gross Margin

Gross profit increased by US$0.14 million from US$1.71 million in the six months ended December 31, 2024 to US$1.85 million in the six months ended December 31, 2025. Gross margin was 3% in the six months ended December 31, 2025 compared to 4% in the six months ended December 31, 2024. The lower gross profit margin mainly resulted from lower gross margin for digital entertainment services. During the six months ended December 31, 2025, digital entertainment services contributed 94% of the total gross profit, which mainly resulted from the 97% revenue contribution of this segment. However, the gross margin of this segment decreased to 3% during the six months ended December 31, 2025, from 4% for the previous period. The decrease of the segment was mainly because the operating entities decreased service prices in order to maintain their market share. In addition, gross margin for other services during the six months ended December 31, 2025 also decreased to 4% from 63% during the same period of 2024 due to lower margin rental service taking the majority of this segment during the six months ended December 31, 2025.

The following table displays the gross profit:

Operating Expenses

Total negative operating expenses for the six months ended December 31, 2025 increased by 1021% to negative US$11.39 million from negative US$1.02 million for the six months ended December 31, 2024.

The following table shows the breakdown of our operating expenses:

Other income (expenses) for the Period

Other expenses, net was US$13.0 million during the six months ended December 31, 2025, compared to US$0.03 million during the same period of 2024. The other expenses mainly attributed to a loss resulted from fair value change on invested securities of $8.38 million and a loss resulted from fair value change on digital assets of $6.65 million, offset by $1.47 million gain on disposal of a subsidiary and $0.61 million gain on disposal of distressed assets.

Operating Profit for the Period

Operating profit was US$6.58 million during the six months ended December 31, 2025, compared to an operating profit of US$2.72 million during the same period of 2024. 

Income Tax Expenses

Income tax expenses amounted to US$26,578 and US$139,982 for the six months ended December 31, 2025 and 2024, respectively. The decrease resulted from the lower taxable income after considering deferred tax effect.

Net Profit for the Period

Net profit attributable to the Company’s equity holders for the six months ended December 31, 2025 was US$0.20 million, compared to a net profit of US$2.56 million in the same period of 2024.

LIQUIDITY AND CAPITAL RESOURCES 

As of December 31, 2025, the combined balance of the Company’s cash, cash equivalents, term deposits, and short-term investments amounted to US$6.45 million, compared to US$2.93 million as of June 30, 2025. As of December 31, 2025, the Company has working capital of $29.23 million, compared to $21.58 million as of June 30, 2025.

Our principal sources of liquidity are cash and cash flows generated from our operations. As of December 31, 2025, we had cash of approximately US$4.44 million. Of that amount, US$1.22 million was held in financial institutions inside mainland China and US$3.22 million was held in financial institutions outside of mainland China. The Company is actively applying for new bank credit in 2025. We believe our current liquidity and capital resources are sufficient to meet anticipated working capital needs (net cash used in operating activities), commitments, and capital expenditures for at least the next 12 months. We may, however, require additional cash resources due to changes in business conditions and other future developments, or changes in general economic conditions.

Cash Generating Ability

Our cash flows are summarized below:

Net Cash Provided by (Used in) Operating Activities

Net cash used in operating activities was US$1.32 million for the six months ended December 31, 2025, compared to net cash provided by operating activities of US$0.14 million for the six months ended December 31, 2024. The negative operating cash flow for the six months ended December 31, 2025 primarily resulted from an increase in operating receivables netting off operating payables of $2.13 million, partially offset by non-cash items of $0.61 million and net profit of $0.20 million. In contrast, the positive operating cash flow for the six months ended December 31, 2024 primarily resulted from net profit of $2.56 million, partially offset by non-cash items of $1.63 million and an increase in working capital of $0.79 million.

Net Cash Used in Investing Activities

The net cash used in investing activities was US$31.79 million for the six months ended December 31, 2025, representing an increase of US$22.45 million as compared to US$9.34 million for the six months ended December 31, 2024. The cash used in investing activities for the six months ended December 31, 2025 mainly represented the cash outflows for a strategic investment into bitcoin of $33.00 million, partially offset by proceeds from disposal of distressed assets of $0.61 million and net proceeds on investment in films of $0.58 million. While, the cash used in investing activities for the six months ended December 31, 2024 mainly represented the cash outflows for an equity investment of $10.00 million into China Ailia International Holdings Co. Ltd, a company incorporated in the Cayman Islands.

Net Cash Provided by Financing Activities

The net cash provided by financing activities was US$34.98 million for the six months ended December 31, 2025, an increase of US$24.95 million, compared to US$10.03 million for the six months ended December 31, 2024. The cash provided by financing activities for the six months ended December 31, 2025 mainly represented the cash proceeds from two Private Placements in July 2025 and September 2025. The cash provided by financing activities for the six months ended December 31, 2024 mainly represented the cash proceeds from the Private Placement in August 2024.

EXCHANGE RATE

This report contains translations of certain RMB, the legal currency in mainland China, amounts into U.S. dollars (“USD,” “US$,” or “$”) at specified rates solely for the convenience of the reader. Assets and liabilities denominated in RMB at the balance sheet date are translated at the applicable rates of exchange in effect on that date. Translations from RMB to USD were made at the rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Statement of income and comprehensive income and statement of cash flows are translated based on the average translation rates, which is RMB7.1235 to US$1.00. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

OFF-BALANCE SHEET ARRANGEMENTS

As of December 31, 2025, there were no off-balance sheet arrangements.

POP CULTURE GROUP CO., LTD

CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars, except the number of shares)

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

POP CULTURE GROUP CO., LTD

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In U.S. dollars, except the number of shares)

(UNAUDITED)

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

POP CULTURE GROUP CO., LTD

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In U.S. dollars, except the number of shares)

(UNAUDITED)

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

POP CULTURE GROUP CO., LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. dollars)

(UNAUDITED)

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

POP CULTURE GROUP CO., LTD

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

Xiamen Pop Culture Co., Ltd (“Pop Culture” or the “VIE”) was incorporated in Xiamen, the People’s Republic of China (the “PRC” or “China”) on March 29, 2007 under the laws of the PRC. Pop Culture hosts entertainment events and provides event planning and execution services and brand promotion services to corporate clients.

Reorganization

On January 3, 2020, Pop Culture Group Co., Ltd (“Pop Group” or the “Company”) was incorporated as an exempted company with limited liability under the laws of the Cayman Islands.

On January 20, 2020, Pop Culture (HK) Holding Limited (“Pop HK”) was established as a wholly-owned subsidiary of Pop Group formed in accordance with laws and regulations of Hong Kong. Pop HK is a holding company and holds all the equity interests of Heliheng Culture Co., Ltd. (“Original WFOE” or “Heliheng”), which was established in the PRC on March 13, 2020.

On March 30, 2020, Original WFOE entered into a series of agreements with Pop Culture and the shareholders of Pop Culture who collectively held 93.55% of the shares in Pop Culture, including an Exclusive Services Agreement, an Exclusive Option Agreement, a Share Pledge Agreement, Powers of Attorney, and Spousal Consents (collectively the “Original VIE Agreements”). The Original VIE Agreements are designed to provide Original WFOE with the power, rights, and obligations with respect to Pop Culture as set forth under the Original VIE Agreements. The Original VIE Agreements obligate Original WFOE to absorb a majority of the risk of loss from business activities of Pop Culture and entitle Original WFOE to receive a majority of Pop Culture’s residual returns. Therefore, the Company believes that Pop Culture should be considered as a Variable Interest Entity under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.”

Between February and May 2020, the Company and its shareholders undertook a series of corporate actions, including share issuances in February 2020, re-designation of ordinary shares of the Company into Class A and Class B ordinary shares in April 2020, and share issuances and transfers in May 2020.

The above-mentioned transactions, including the incorporation of Pop Group, Pop HK, and Original WFOE, the entry into the Original VIE Agreements, the share issuances, share re-designation, and share transfers, were considered a reorganization of the Company (the “Reorganization”). After the Reorganization, Pop Group ultimately owns 100% equity interests of Pop HK and Original WFOE, and, for accounting purposes, controls and receives the economic benefits of the business operations of Pop Culture and its subsidiaries through the Original VIE Agreements, which enables Pop Group to consolidate the financial results of Pop Culture and its subsidiaries in its consolidated financial statements under accounting principles generally accepted in the United States of America (“U.S. GAAP”).

In accordance with ASC 805-50-25, the Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholder controls all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries and the VIE have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Furthermore, ASC 805-50-45-5 indicates that the financial statements and financial information presented for prior years shall also be retrospectively adjusted to furnish comparative information.

Acquisition of non-controlling interest in the VIE

On February 9, 2021, the Company issued 106,509 Class A ordinary shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. On February 19, 2021, the Original VIE Agreements were amended and restated, through which Original WFOE is entitled to 100% of the net income of Pop Culture. Original WFOE is obliged to absorb all risk of loss from business activities of Pop Culture and entitled to receive all its residual returns. Upon the above transactions, the Company consummated the acquisition of non-controlling interests in Pop Culture, and Pop Culture does not have any non-controlling interests anymore.

The consolidated financial statements of the Company included the following entities:

Risks in relation to the VIE structure

The Company believes that the Original VIE Agreements are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the Original VIE Agreements. If the legal structure and the Original VIE Agreements were found to be in violation of PRC laws and regulations, the PRC government could:

The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying unaudited condensed consolidated financial statements after the elimination of intercompany transactions:

The Company believes that there are no assets in Pop Culture that can be used only to settle specific obligations of Pop Culture except for the registered capital of Pop Culture and non-distributable statutory reserves. As Pop Culture is incorporated as a limited liability company under the PRC Company Law, creditors of Pop Culture do not have recourse to the general credit of the Company for any of the liabilities of Pop Culture. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to Pop Culture. However, if Pop Culture were ever to need financial support, the Company may, at its discretion and subject to statutory limits and restrictions, provide financial support to Pop Culture through loans.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. GAAP. The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for expected loss, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates.

Recent accounting pronouncements

Recently issued Accounting Standards Updates (“ASUs”) by the FASB are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures.

3. INVESTMENTS IN FILM 

As of December 31, 2025, the investments in film relate to a single motion picture, which is expected to be fully liquidated by June 2026. A separate investment in film, included in the corresponding balance as of June 30, 2025, was liquidated during the six-month period ended December 31, 2025.

4. INVESTMENT IN SECURITIES 

In August 2025, the Company exchanged its prepayment for purchase 10% equity interest in China Alia for 877,193 shares of Smart Digital Group Limited (“SDM”), a company traded on NASDAQ.

5. ACCOUNTS RECEIVABLE, NET 

As of December 31, 2025 and June 30, 2025, accounts receivable consisted of the following:

The Company (reversed) a recorded credit loss of ($8,169,151) and ($2,016,645) for the six months ended December 31, 2025 and 2024, respectively. 

6. ADVANCES TO SUPPLIERS

The Company did not make any allowance for credit loss for the advances to suppliers as of December 31, 2025.

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS

As of December 31, 2025 and June 30, 2025, prepaid expenses and other current assets consisted of the following:

8. DIGITAL ASSETS

9. PROPERTY AND EQUIPMENT

As of December 31, 2025 and June 30, 2025, property and equipment consisted of the following:

Depreciation expenses were $47,457 and $36,608 for the six months ended December 31, 2025 and 2024, respectively.

10. INTANGIBLE ASSETS

As of December 31, 2025 and June 30, 2025, intangible assets consisted of the following:

Copyright Licenses of Move It

Currently, the MOVE IT project is losing money, and the carrying value of the amortizable intangible asset could not be recoverable due to the poor financial performance, including declining customer numbers. As of December 31, 2024, the production copyright was fully impaired.

11. GOODWILL

As of December 31, 2025 and June 30, 2025, goodwill consisted of the following:

On February 10, 2025, the Company acquired 99% of Xiamen Hand in Hand Network Technology Co., Ltd. (“Hand in Hand”), a company incorporated in China and principally engaged in Online and offline advertising marketing and exhibitions. Pursuant to the acquisition agreement, the Company issue to Ling Yang, former shareholder of Hand in Hand, 2,000,000 Class A ordinary shares of the Company with an aggregate value of $2,000,000. As a result of the transaction, the Company obtained control over Hand in Hand and accounted for the acquisition as a business combination under ASC 805, Business Combinations.

Following table illustrates the FV of the assets and liabilities of Hand in Hand as of the acquisition date and the goodwill on acquisition:

On September 8, 2025, the Company further acquired 1% equity interest of Hand in Hand to make Hand in Hand a 100% owned subsidiary of the Company. As the acquisition cost for the 1% equity interest is less than the net equity value of Hand in hand, it resulted a premium on acquisition of minority interest of $24,325, which was recorded in additional paid in capital of the consolidated financial statements of the Company.

12. OTHER NON-CURRENT ASSETS

As of December 31, 2025 and June 30, 2025, other non-current assets consisted of the following:

13. ACCRUED LIABILITIES AND OTHER PAYABLES

As of December 31, 2025 and June 30, 2025, accrued liabilities and other payables consisted of the following:

14. TAXES PAYABLE

As of December 31, 2025 and June 30, 2025, taxes payable consisted of the following:

15. BANK LOANS

Bank loans represent the amounts due to various banks. As of December 31, 2025 and June 30, 2025, short-term and long-term bank loans consisted of the following:

Summary of short-term bank loans

Summary of long-term bank loans

The weighted average interest rate on short-term bank loans outstanding as of December 31, 2025 and June 30, 2025 was 2.98% and 3.42%, respectively. The effective interest rate for bank loans was approximately 3.69% and 4.23% for the six months ended December 31, 2025 and 2024, respectively.

16. RELATED PARTY TRANSACTIONS 

Balance with related parties

As of December 31, 2025 and June 30, 2025, accounts receivable, net - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, Operating lease income receivable - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, Deferred operating lease income receivable - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, advance to suppliers - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, Prepaid expenses and other current assets - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, accounts payable - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, accrued liabilities and other payables - related parties consisted of the following:

As of December 31, 2025 and June 30, 2025, due to related parties consisted of the following:

Related party transaction

Related party transaction during the six months ended December 31, 2025:

During the six months ended December 31, 2025, the Company sold all of its equity investment in Shenzhen Jambox at consideration of RMB1,000,000.

Related party transaction during the six months ended December 31, 2024:

During the six months ended December 31, 2024, the Company generated revenue from following related parties:

During the six months ended December 31, 2024, Mr. Zhuoqin Huang, the Chief Executive Officer of the Company (the “CEO”) guaranteed the short-term bank loans of $1,835,792 for the Company.

During the six months ended December 31, 2024, the Company received $394,471 from Shenzhen JamBox for the outstanding receivable as of disposal date.

During the six months ended December 31, 2024, the Company received $250,812 from Wanquan Yi and Lei Wang for the proceeds on disposal of a subsidiary.

During the six months ended December 31, 2024, the Company received $12,053 from Lei Wang for the proceeds on disposal of an equity investment.

17. INCOME TAXES

Cayman Islands

The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.

Hong Kong

On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%.

PRC

Generally, the Company’s PRC subsidiaries, the VIE, and the VIE subsidiaries, which were incorporated in PRC, are subject to enterprise income tax on their taxable income as determined under PRC tax laws and accounting standards at a rate of 25%.

According to Taxation 2023 No. 6, which was effective from January 1, 2023 to December 31, 2024, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 5% on its taxable income below RMB3 million. In accordance with Taxation 2023 No. 12, the preference tax policy as stipulated in Taxation 2023 No. 6 will be extended to December 31, 2027. During the six months ended December 31, 2024, the Company’s PRC subsidiaries and the VIE’s subsidiaries, except for Pop Culture, Heliheng, and Guangzhou Shuzhi, were qualified as small-scale and low-profit enterprises.

i) The components of the income tax provision are as follows:

The following table reconciles the statutory rate to the Company’s effective tax rate for the six months ended December 31, 2025 and 2024:

The deferred tax assets as of December 31, 2025 and June 30, 2025 were as follows: 

18. LEASE

Operating leases as lessor

Heliheng, a subsidiary disposed during the six months ended December 31, 2025, has entered into lease agreement with a customer for rental of apartments. The leases are fixed payment and the lease terms are 19 years. The Company recognized the lease payments as revenue in profit or loss over the lease term on a straight-line basis as below:

Operating leases as lessee

Supplemental balance sheet information related to the operating lease was as follows:

The weighted average remaining lease terms and discount rates for the operating lease as of December 31, 2025 were as follows:

Remaining lease term and discount rate:

During the six months ended December 31, 2025 and 2024, the Company incurred total operating lease expenses of $612,194 and $320,863, respectively.

As of December 31, 2025, the future minimum rent payable under the non-cancellable operating lease for twelve months ending December 31 were:

19. ORDINARY SHARES 

On October 9, 2023, the Company held an extraordinary meeting of shareholders, during which the shareholders approved a proposal to effect a share consolidation of each 10 ordinary shares with par value of $0.001 each in the Company’s issued and unissued share capital into one ordinary share with par value of $0.01 each. Consolidation became effective on October 26, 2023, and the Class A Ordinary Shares began trading on a post-Share Consolidation basis on the Nasdaq Capital Market when the market opened on October 27, 2023 under the same symbol “CPOP.” 34,040 fractional shares were issued in connection with the Share Consolidation. All fractional shares were rounded up to the whole number of shares. Each 10 pre-split ordinary shares outstanding automatically combined and converted to one issued and outstanding ordinary share without any action on the part of the shareholders. The Company has retroactively restated all share and per share data for all of the periods presented pursuant to ASC 260 to reflect the Share Consolidation.

On March 21, 2024, the Company issued 1,500,000 Class A ordinary shares to several shareholders to raise capital of $4,290,000 with price of $2.86 per share. After deducting the offering cost of $1,989,777, the net proceeds from the capital raising were $2,300,223.

On July 11, 2024, the Company issued an aggregate of 1,000,000 Class A ordinary shares, at price $1.1 per share, with an aggregate value of $1,100,000, to Shaorong Zheng as 98% of the total consideration of acquiring Yi Caishen,  a limited liability company incorporated in China.

On August 23, 2024, the Company closed the Private Placement pursuant to certain subscription agreements dated August 6, 2024 with the Subscribers. The Company issued and sold an aggregate of 10,000,000 Class A ordinary shares, par value $0.01 per share, to the Subscribers at a price of $1.00 per share and received gross proceeds of $10 million.

On February 21, 2025, the Company issued 2,000,000 Class A ordinary shares of the Company with an aggregate value of $2,000,000 to acquired 99% of Xiamen Hand in Hand Network Technology Co., Ltd. (“Hand in Hand”).

On July 8, 2025, the Company closed a private placement pursuant to certain subscription agreements dated July 8, 2025 with 10 investors. The Company issued and sold an aggregate of 50,000,000 Class A ordinary shares and 10,000,000 Class B ordinary shares, to the investors at a price of $0.50 per share and $0.55 per share, respectively, with total gross proceeds of $30.5 million.

On September 25, 2025, the Company entered into securities purchase agreements with certain institutional accredited investors, pursuant to which the Company agreed to sell and issue 5,000,000 Class A ordinary shares of a par value of US$0.01 each to the investors at a purchase price of US$1.20 per share, in a registered direct offering of $6 million of its securities. 

20. STATUTORY RESERVE

The Company’s PRC subsidiaries, the VIE, and the VIE’s subsidiaries, which are incorporated in PRC, are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital, which was $13,679,012 as of December 31, 2025. This statutory reserve is not distributable in the form of cash dividends.

For the six months ended December 31, 2025, the Company provided statutory reserve as follows: 

21. RESTRICTED NET ASSETS

Relevant PRC laws and regulations restrict the Company’s PRC subsidiaries, Pop Culture, and the subsidiaries of Pop Culture from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances, or cash dividends. Relevant PRC statutory laws and regulations permit the payments of dividends by the Company’s PRC subsidiaries, Pop Culture, and the subsidiaries of Pop Culture from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As of December 31, 2025 and June 30, 2025, the balance of restricted net assets was $12,809,728 and $17,115,199, respectively.

22. SUBSEQUENT EVENTS

An Extraordinary General Meeting of shareholders (the “Meeting”) of the Company convened on May 15, 2026. At the Meeting, the shareholders passed the resolutions set out below, which are deemed material and required to be disclosed in the consolidated financial statements:

As of June 8, 2026, the share consolidation or increase of share capital has not yet been completed.

The Company has evaluated subsequent events through the date the financial statements were available to be issued. Based on the review, the Company did not identify any material subsequent events except disclosed above that require disclosure in the accompanying financial statements.

23. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The Company performed a test on the restricted net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only.

The subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.

As of December 31, 2025, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements.

POP CULTURE GROUP CO., LTD

PARENT COMPANY BALANCE SHEETS

POP CULTURE GROUP CO., LTD

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME