Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Hongchang International Co., Ltd | |
Entity Central Index Key | 0001086303 | |
Entity File Number | 000-26731 | |
Entity Tax Identification Number | 87-0627910 | |
Entity Incorporation, State or Country Code | NV | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
Entity Address, Address Line One | Block 20 | |
Entity Address, Address Line Two | Hongchang Food Co., Ltd., Yuanhong Investment Zone | |
Entity Address, Address Line Three | Donggao Village | |
Entity Address, City or Town | Fuzhou City | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 350300 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | (86) | |
Local Phone Number | 180 5901 6050 | |
Entity Listings [Line Items] | ||
Title of 12(b) Security | None | |
Trading Symbol | None | |
Security Exchange Name | NONE | |
Entity Common Stock, Shares Outstanding | 518,831,367 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 317,374 | $ 895,730 |
Accounts receivable, net | 1,033,707 | 742,851 |
Other receivable, net | 6,977 | 1,106,574 |
Inventories, net | 1,780,691 | 13,713 |
Advance to supplier | 942,056 | 13,811 |
Other current assets | 969,209 | 1,128,598 |
Total current assets | 5,050,014 | 3,960,742 |
Non-current assets: | ||
Property and equipment, net | 15,752 | 3,193 |
Construction-in-progress | 42,277,536 | 41,423,399 |
Intangible assets, net | 2,969 | 3,213 |
Land use right, net | 3,969,005 | 4,118,101 |
Other non-current assets | 4,903,175 | 706,920 |
Total non-current assets | 51,168,437 | 46,254,826 |
Total assets | 56,218,451 | 50,215,568 |
Current liabilities: | ||
Accounts payable | 151,470 | 650,905 |
Accounts payable-construction in progress | 15,672 | 18,493 |
Advances from customers | 161,225 | |
Accrued expenses and other liabilities | 119,429 | 385,805 |
Total current liabilities | 866,454 | 1,055,203 |
Non-current liabilities | ||
Deferred subsidies | 1,938,094 | 1,989,463 |
Long term loans | 5,916,793 | |
Total non-current liabilities | 16,051,390 | 8,672,422 |
Total liabilities | 16,917,844 | 9,727,625 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock (US$0.001 par value; 2,000,000,000 shares authorized; 518,831,367 and 518,831,367 issued and outstanding as of December 31, 2023 and June 30, 2024, respectively) | 518,831 | 518,831 |
Additional paid-in capital | 39,905,228 | 39,905,228 |
Accumulated deficit | (973,915) | (812,539) |
Accumulated other comprehensive (loss) income | (192,263) | 876,423 |
Total Hongchang International Co., Ltd’s stockholders’ equity | 39,257,881 | 40,487,943 |
Non-controlling interests | 42,726 | |
Total equity | 39,300,607 | 40,487,943 |
Total liabilities and equity | 56,218,451 | 50,215,568 |
Related Party | ||
Current assets: | ||
Amount due from a related party | 141 | |
Advance to supplier-related party | 59,324 | |
Current liabilities: | ||
Accounts payable-related party | 418,658 | |
Non-current liabilities | ||
Amounts due to related parties | $ 8,196,503 | $ 6,682,959 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 518,831,367 | 518,831,367 |
Common stock, shares outstanding | 518,831,367 | 518,831,367 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net revenue: | $ 1,981,898 | $ 2,000,102 | $ 26,807 | |
Cost of revenue | 1,883,183 | 3,011 | 1,901,660 | 41,475 |
Gross loss | 98,715 | (3,011) | 98,442 | (14,668) |
Sales and marketing expenses | (155) | (191) | ||
General and administrative expenses | (122,574) | (146,300) | (224,574) | (244,386) |
Total operating expenses | (122,729) | (146,300) | (224,765) | (244,386) |
Operating loss | (24,014) | (149,311) | (126,323) | (259,054) |
Interest income | 445 | 267 | 905 | 471 |
Other income | 1,155 | 10,679 | 1,156 | 10,679 |
Other expenses | 1 | (16) | (146) | (38) |
Loss before income taxes | (22,413) | (138,381) | (124,408) | (247,942) |
Income tax benefit | 733 | 6,159 | ||
Net loss | (21,680) | (138,381) | (118,249) | (247,942) |
Less: net income attributable to non-controlling interests | 43,124 | 43,124 | ||
Net loss attributable to Hongchang International Co., Ltd’s common stockholders | (64,804) | (138,381) | (161,373) | (247,942) |
Comprehensive loss net of tax: | ||||
Net loss | (21,680) | (138,381) | (118,249) | (247,942) |
Foreign currency translation difference net of tax | (253,677) | (2,032,617) | (1,069,087) | 107,001 |
Total comprehensive loss | (275,357) | (2,170,998) | (1,187,336) | (140,941) |
Less: comprehensive income attributable to non-controlling interest | 42,726 | 42,726 | ||
Comprehensive loss attributable to Hongchang International Co., Ltd’s common stockholders | $ (318,083) | $ (2,170,998) | $ (1,230,062) | $ (140,941) |
Loss per share: | ||||
Common stock - basic (in Dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding used in calculating basic and diluted loss per share: | ||||
Common stock - basic (in Shares) | 518,831,367 | 428,355,467 | 518,831,367 | 428,355,467 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Loss per share common stock - diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding common stock - diluted | 518,831,367 | 415,582,375 | 518,831,367 | 415,582,375 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes In Stockholders’ Equity - USD ($) | Ordinary Shares | Subscription receivable | Additional Paid-in Capital | Accumulated Deficit | Accumulated other comprehensive income | Total Hongchang International Co., Ltd’s stockholders’ equity | Non-controlling interests | Total |
Balance at Dec. 31, 2022 | $ 415,582 | $ (415,582) | $ (433,745) | $ 15,092 | $ (418,653) | $ (418,653) | ||
Balance (in Shares) at Dec. 31, 2022 | 415,582,375 | |||||||
Net loss | (247,942) | (247,942) | (247,942) | |||||
Foreign currency translation adjustment | 29,153 | 29,153 | 29,153 | |||||
Contribution from shareholder | 415,582 | 40,825,526 | 41,241,108 | 41,241,108 | ||||
Deemed issuance of share upon the Merger transaction | ||||||||
Balance at Jun. 30, 2023 | $ 415,582 | 40,825,526 | (681,687) | 44,245 | 40,603,666 | 40,603,666 | ||
Balance (in Shares) at Jun. 30, 2023 | 415,582,375 | |||||||
Balance at Dec. 31, 2023 | $ 518,831 | 39,905,228 | (812,542) | 876,426 | 40,487,943 | $ 40,487,943 | ||
Balance (in Shares) at Dec. 31, 2023 | 518,831,367 | 518,831,367 | ||||||
Net loss | (161,373) | (161,373) | 43,124 | $ (118,249) | ||||
Foreign currency translation adjustment | (1,068,689) | (1,068,689) | (398) | (1,069,087) | ||||
Contribution from shareholder | ||||||||
Deemed issuance of share upon the Merger transaction | ||||||||
Balance at Jun. 30, 2024 | $ 518,831 | $ 39,905,228 | $ (973,915) | $ (192,263) | $ 39,257,881 | $ 42,726 | $ 39,300,607 | |
Balance (in Shares) at Jun. 30, 2024 | 518,831,367 | 518,831,367 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (118,249) | $ (247,942) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 43,879 | 37,369 |
Accrued interest income derived from loan to third party | (10,390) | |
Deferred tax benefit | (10,791) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (312,923) | (12,309) |
Inventories | (1,783,784) | (26,749) |
Advance to supplier | (937,246) | |
Advance to supplier-related party | 58,330 | |
Other receivable | (2,898) | |
Other current assets | 142,251 | (867,382) |
Accounts payable | (487,123) | 16,011 |
Accounts payable-related party | 422,555 | |
Accrued expenses and other payables | (261,937) | 1,151 |
Advance from customers | 162,726 | |
Deferred subsidies | 2,032,732 | |
Net cash provided by (used in) operating activities | (3,085,210) | 922,491 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (6,211,043) | (40,627,234) |
Repayments from a related party | 139 | |
Repayments from a third party | 1,083,893 | |
Loan to a third party | (1,030,437) | |
Net cash used in investing activities | (5,127,011) | (41,657,671) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Capital contribution by stockholders | 41,241,108 | |
Proceeds from long term loans | 5,971,873 | |
Repayments of a loan from a related party | (1,755,467) | (2,695,155) |
Proceeds from loans from related parties | 3,435,416 | 1,331,757 |
Net cash provided by financing activities | 7,651,822 | 39,877,710 |
Effect of exchange rate changes | (17,957) | 1,728,475 |
Net increase (decrease) in cash | (578,356) | 871,005 |
Cash at beginning of year | 895,730 | 3,141 |
Cash at end of year | 317,374 | 874,146 |
Supplemental disclosure of cash flow information | ||
Interest paid | 127,657 | |
Interest capitalized | 135,109 | |
Supplemental disclosure of non-cash transactions | ||
Decreased accounts payable-construction in progress for construction-in-progress | $ 2,365 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization [Abstract] | |
ORGANIZATION | 1. ORGANIZATION (a) Nature of operations Hongchang International Co., Ltd (the “Company”) was incorporated in the state of Nevada on May 18, 1987. The Company is a holding company. On September 4, 2023, Heyu Biological Technology Corporation (“HYBT”), the Company’s predecessor, completed the merger and other related transactions (the “Merger Transactions”) with Hongchang Global Investment Holdings Limited (“Hongchang BVI”), as a result of which Hongchang BVI became a wholly-owned subsidiary of HYBT and HYBT assumed and began conducting the principal business of Hongchang BVI. The name of the Company was changed from “Heyu Biological Technology Corporation” to “Hongchang International Co., Ltd.” (HCIL). The “Group” means (i) prior to the completion of the Reorganization, Hongchang BVI and its subsidiaries that engage in businesses of food trade and biotechnology in China (ii) upon and after completion of the Merger Transactions, the Company and its subsidiaries that engage in businesses of food trade and meat processing in China. (b) History and reorganization of the Group In preparation of the Merger Transactions, the following transactions were undertaken to reorganize the legal structure of Operating Entity (“Reorganization”). On January 13, 2023, Mr. Zengqiang Lin and Ms. Zhenzhu Lin, the existing stockholders of Fuqing Hongchang Food Co., Ltd (“Hongchang Food”) established two wholly-owned subsidiaries (“BVI-1” and “BVI-2”) in British Virgin Island, respectively. On January 18, 2023, Hong Chang Global Investment Holdings Limited (“Hongchang BVI”) was then incorporated by BVI-1 and BVI-2 which held 70% and 30% equity interest of Hongchang BVI, respectively. On February 6, 2023, Hongchang BVI incorporated a wholly-owned subsidiary, Hong Chang Biotechnologies (HK) Limited (“Hongchang HK”). On February 28, 2023, Hongchang HK incorporated a wholly-owned subsidiary, Fujian Hongjin Biotechnology Co., Ltd. (“WFOE”) in the People’s Republic of China (“PRC”). WFOE then purchased the total equity interest of Hongchang Food. After the Reorganization, Mr. Zengqiang Lin and Ms. Zhenzhu Lin hold 70% and 30% equity interest of Hongchang Food through WFOE, respectively. As all the entities involved in the process of the Reorganization are under common ownership of Hongchang Food’s stockholders before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling of interests with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. Therefore, the accompanying unaudited condensed consolidated financial statements were prepared as if the corporate structure of the Group had been in existence since the beginning of the periods presented. (c) Reverse merger On August 21, 2023, HYBT entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Hongchang BVI and Hongchang BVI’s stockholders, Zengqiang Investment Limited, a business company incorporated in the BVI, and Hong Jin Investment Limited, a business company incorporated in the BVI (the “Selling Stockholders” and each a “Selling Stockholder”), in relation to the acquisition of Hongchang BVI by HYBT (the “Hongchang Acquisition”). Zengqiang Investment Limited is wholly-owned by Mr. Zengqiang Lin and Hong Jin Investment Limited is wholly-owned by Ms. Zhenzhu Lin. Mr. Zengqiang Lin has been a director of HYBT since February 17, 2023, and Ms. Zhenzhu Lin is the sister of Mr. Zengqiang Lin. In accordance with the terms of the Share Exchange Agreement, the Selling Stockholders sold and transferred 100 shares of Hongchang BVI, constituting all of the issued and outstanding share capital of Hongchang BVI, to HYBT in exchange for an aggregate of 415,582,375 new shares of HYBT’s common stock (the “Consideration Shares”), of which 353,322,843 shares were issued to Zengqiang Investment Limited and 62,259,532 shares were issued to Hong Jin Investment Limited. Immediately following the closing of the Hongchang Acquisition, HYBT had a total of 518,831,367 issued and outstanding shares of common stock. The 415,582,375 Consideration Shares constitute 80.1% of its enlarged share capital following the closing of the Hongchang Acquisition. The exchange consideration for the Hongchang Acquisition was determined on an arms’ length basis based on our valuation of Hongchang BVI and its subsidiaries and its assets. As HYBT, the legal acquirer and accounting acquiree, does not meet the definition of a business, management concluded that the Merger should be accounted for as a continuation of the financial statements of Hongchang BVI (the legal subsidiary), together with a deemed issue of shares and a re-capitalization of the equity of Hongchang BVI. Hongchang BVI is the continuing entity and is deemed to have issued shares in exchange for the identifiable net assets held by HYBT together with the listing status of HYBT. Management concluded that September 4, 2023 is the acquisition date of the Merger. Upon the completion of the reverse merger, the Company has set up a few new subsidiaries: Fujian Hongchang Global Food Co., Ltd (“Hongchang Global Food”), Fuqing Hongchang Global Import & Export Co., Ltd (“Hongchang Import & Export”), Fuqing Hongchang Global Supply Chain Co., Ltd (“Hongchang Supply Chain”), and Hongchang Global (Fuqing City) Agricultural Technology Development Co., Ltd (“Hongchang Agricultural”) in order for the company to develop different businesses. As of the date of this report, these subsidiaries have not generated significant revenue. In May 2024, the Company set up a new subsidiary Hongfu Food (Fujian) Co., Ltd (“Hongfu Food”), which is mainly engaged in the initial processing of agricultural products, specializing in pork segmentation and trade. Hongfu Food purchasing pork as raw materials and processing or dividing them into various finished products according to customer needs, or through secondary segmentation into various specifications of packed finished products. Based on above transactions, the accompanying unaudited condensed consolidated financial statements reflect the activities of each of the following entities: Entity Place of Percentage of Principal activities Subsidiaries: Hong Chang Global Investment Holdings Limited (Hongchang BVI) British Virgin Island 100% Investment holding Hong Chang Biotechnologies (HK) Limited (Hongchang HK) Hong Kong 100% Investment holding Fujian Hongjin Biotechnology Co., Ltd.(WFOE) PRC 100% Provision of technical and consultation services Fuqing Hongchang Food Co., Ltd(Hongchang Food) PRC 100% Provision of Food Industry Park operation, food trade and meat processing Fujian Hongchang Global Food Co., Ltd (“Hongchang Global Food”) PRC 100% Provision of food trade Fuqing Hongchang Global Import & Export Co., Ltd(“Hongchang Import&Export”) PRC 100% Provision of food trade Fuqing Hongchang Global Supply Chain Co., Ltd(“Hongchang Supply Chain”) PRC 100% Provision of food trade Hongchang Global (Fuqing City) Agricultural Technology Development Co., Ltd (“Hongchang Agricultural”) PRC 100% Provision of food trade and biotechnology Hongfu Food (Fujian) Co., Ltd (“Hongfu Food”) PRC 51% Provision of food trade and meat processing |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements include the accounts of the Group and its subsidiaries and have been prepared in accordance with U.S. GAAP and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as its annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Group’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. Through the Reorganization, the Company became the holding company of the companies now comprising the Group. Accordingly, for the purpose of preparation of the unaudited condensed consolidated financial statements of the Group, the Company is considered as the holding company of the companies now comprising the Group throughout the reporting period. Through the Reorganization, the Company became the holding company of the contributed businesses now comprising the Group, which were under the common control of the controlling stockholder before and after the Reorganization. Accordingly, the financial statements were prepared on a consolidated basis by applying the principles of the pooling of interest method as if the Reorganization had been completed at the date when contributed business first came under the control of the controlling party. The unaudited condensed consolidated statements of operations and comprehensive income(loss), changes in equity and cash flows of the Group included the results and cash flows of all companies now comprising the Group from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling stockholder, whenever the period is shorter. Principles of consolidation The accompanying unaudited condensed consolidated financial statements of the Company include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported period in the unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s unaudited condensed consolidated financial statements mainly include, but are not limited to, assessment for impairment of long-lived assets, valuation of deferred tax assets and current expected credit loss of receivables. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the unaudited condensed consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management evaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the Group to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially differ from these estimates. Foreign Currency The Group’s principal country of operations is the PRC. The accompanying unaudited condensed consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The unaudited condensed consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of stockholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. As of June 30, December 31, RMB: US$ exchange rate 7.2675 7.0798 For the six months ended June 30, 2024 2023 RMB: US$ exchange rate 7.2004 6.9291 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. Cash Cash consists of cash on hand and cash in bank, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. The Group maintains cash with various financial institutions primarily in mainland China. Deposit insurance system in China only insured each depositor at one bank for a maximum of approximately US$70,000 (RMB 500,000). The amount in excess of the insurance as of June 30, 2024, was approximately $167,400, the Group has not experienced any losses in bank accounts. Accounts receivable and allowance for credit losses Accounts receivable are stated at the historical carrying amount net of allowance for expected credit losses. The Group adopted ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1, 2023 using a modified retrospective approach. The Group also adopted this guidance to other receivables. To estimate expected credit losses, The Group has identified the relevant risk characteristics of its customers and the related receivables. The Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. Cost of inventory are determined using the weighted average cost method. The Group records inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Category Estimated useful life Equipment 3 years Construction-in-progress Property and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use. Capitalized Interest Interest incurred during and directly related to construction-in-progress is capitalized to the related property under construction during the active construction period, which generally commences when borrowings are used to acquire assets of construction-in-progress and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. All other interest is expensed as incurred. For the six months ended June 30, 2024 and 2023, the total interest capitalized in the construction-in-progress was US$135,109 and US$ nil Intangible assets Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. Category Estimated useful life Purchased software 10 years Land use right, net The land use rights represent the operating lease prepayments for the rights to use the land in the PRC. Amortization of the prepayments is provided on a straight-line basis over the terms of the respective land use rights certificates. Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, The Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. Impairment charge recognized for the six months ended June 30, 2024 and 2023 was US$ nil nil Fair value of financial instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, amounts due from related party, other receivables, accounts payables, accounts payable-related party, accounts payables - construction in progress and accrued expenses and other liabilities. As of June 30, 2024 and December 31, 2023, the carrying values of these financial assets and liabilities approximate their fair values due to the short-term nature. Revenue recognition The Group adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer. To determine revenue recognition for contracts with customers, the Group performs the following five steps: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when The Group satisfies a performance obligation The Group generates revenue from food trading business. The Group enters into contract with their customers to provide food, mainly frozen pork. All of the Group’s contracts have single performance obligation as the promise is to transfer the goods to customers, and there are no other separately identifiable promises in the contracts. The Group recognizes revenue when it transfers its goods to customers in an amount that reflects the consideration to which The Group expects to be entitled in such exchange. The Group accounts for the revenue generated from sales of its products to its customers on a gross basis, because the Group is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods. The Group’s revenue is recognized at a point in time when the control has been transferred, usually when the customer accepts the goods. Cost of revenue Costs of revenues consist primarily of purchase price of products, shipping and handling expense from supplier to the Group and related costs, which are directly attributable to products. Write-down of inventories is also recorded in cost of sales, if any. Shipping and handling costs incurred to transport goods to customers are expensed in the periods incurred and are included in cost of revenues. The Group accounts for shipping and handling expenses as fulfillment costs because shipping and handling activities occur before the customers obtains control of the goods. Shipping and handling expenses amounted to US$7,644 and US$ nil Sales and marketing expenses Sales and marketing expenses consist primarily of travelling expenses, marketing conference expenses, advertising expenses and salaries and other compensation-related expenses to sales and marketing personnel. The Group expenses all advertising costs as incurred. Advertising costs amounted to US$ nil nil General and administrative expenses General and administrative expenses consist primarily of salaries and benefits for employees involved in general corporate functions, amortization of land use right, legal and other professional services fees, rental and other general corporate related expenses. Government Subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy on a systematic basis to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is recognized as deferred subsidies and is released to the statement of operations over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Total government subsidies recorded in the deferred subsidies were US$1,938,094 and US$1,989,463 as of June 30, 2024 and December 31, 2023, respectively. Value-added taxes Sales revenue represents the invoiced value of goods, net of VAT. The applicable VAT rate was 13% or 9% (depending on the type of goods involved) for products sold in the PRC. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Group’s subsidiaries in China, have been and remain subject to examination by the tax authorities Income taxes Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax The Group records liabilities related to uncertain tax positions when, despite the Group’s belief that the Group’s tax return positions are supportable, the Group believes that it is more likely than not that those positions may not be fully sustained upon review by tax authorities. Accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense. The Group did not recognize uncertain tax positions as of June 30, 2024 and December 31, 2023. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Earnings per share The Group calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common stock that would have been outstanding if the potential common stock equivalents had been issued and if the additional common stock were dilutive. On September 4, 2023, the Group completed its reorganization whereby Hongchang BVI’s stockholders received 415,582,375 shares in exchange for all the share capital of Hongchang BVI, which is reflected retroactively to December 31, 2021 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both periods for the unaudited condensed consolidated financial statements of the Group. The impact of the stock exchange is also shown on the Group’s Condensed Consolidated Statements of Changes in Stockholders’ Equity. Before the reorganization, Hongchang Food depended on loans from stockholders for the construction of the Hongchang Food Industrial Park and its daily operations. These were recorded as loans from related parties. In May 2023, Hongchang Food reached an agreement with a stockholder to convert an outstanding loan balance of US$41,241,108 into a capital contribution. The company then recalculated the weighted average number of common stock outstanding during the period, based on the timing of the cash inflows from the stockholder loans. Comprehensive income The Group applies ASC 220, Comprehensive Income (“ASC 220”), with respect to reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income is defined to include all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting from investments by stockholders and distributions to stockholders. For the six months ended June 30, 2024 and 2023, the Group’s comprehensive income(loss) includes net income(loss) and other comprehensive income(loss). Segment reporting ASC 280, Segment Reporting, (“ASC 280”), establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, our chief operating decision maker (“CODM”) has been identified as our Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. As a whole and hence, we have only one reportable segment. We do not distinguish between markets or segments for the purpose of internal reporting. As our long-lived assets are substantially located in the PRC, no geographical segments are presented. Uncertainty and risks Political, social and economic risks The Group has substantial operations in China through its PRC subsidiaries. Accordingly, the Group’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 Group’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Group 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. The Group’s business, financial condition and results of operations may also be negatively impacted by risks related to regional wars, geopolitical tensions, natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could potentially and significantly disrupt The Group’s operations. Liquidity The Company had an accumulated deficit of US$973,915 as of June 30, 2024 and a net loss of US$118,249 during the six months ended June 30, 2024. However, in May 2023, Hongchang BVI received a cash injection of US$41,241,108 from shareholders via its subsidiary, Hongchang Food. On April 1, 2023, Hongchang Food secured an interest-free loan agreement with Zengqiang Lin, enabling it to access up to RMB60.0 million (approximately US$8.5 million) from April 1, 2023, to March 31, 2026. Consequently, the combination of the Company’s current cash reserves, the capital contributions received, and the loans from shareholders are anticipated to provide sufficient funds to carry out the Company’s planned operations through the next twelve months. Concentration risks Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash in bank and accounts receivable. The Group places its cash with financial institutions with high credit ratings and quality. The Group conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Group establishes an allowance for expected credit losses primarily based upon the factors surrounding the credit risk of specific customers. Concentration of customers and suppliers For the six months ended June 30, 2024, one major client accounted for 35% of the Group’s total revenues, and one major supplier accounted for 31% of the Group’s total procurement. For the six months ended June 30, 2023, one major client accounted for 99% of The Group’s total revenues, and one major supplier accounted for 99% of the Group’s total procurement. As of June 30, 2024, five major clients accounted for 17%, 16%, 11%,10% and 10% of The Group’s total accounts receivable, two vendors accounted for 71% and 14% of the Group’s total account payable. As of December 31, 2023, one major client accounted for 96% of the Group’s total accounts receivable, two vendors accounted for 81% and 15% of the Group’s total account payable. Financial Statement Reclassification Certain balances in the prior year consolidated financial statements have been reclassified for comparison purposes to conform to the presentation in the current year consolidated financial statements. These reclassifications had no effect on the reported results of operations or financial position. Recent accounting pronouncements In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Group is currently evaluating the potential impact of adopting this new guidance on its unaudited condensed consolidated financial statements and related disclosures. Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the unaudited condensed consolidated financial statements upon adoption. The Group 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. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | 3. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: As of June 30, December 31, US$ US$ Accounts receivable 1,033,707 742,851 1,033,707 742,851 For the six months ended June 30, 2024, and 2023, the Company had no |
Other Receivalbe
Other Receivalbe | 6 Months Ended |
Jun. 30, 2024 | |
Other Receivalbe [Abstract] | |
OTHER RECEIVALBE | 4. OTHER RECEIVALBE Other receivable consisted of the following: As of June 30, December 31, US$ US$ Loans to third parties - 1,079,127 Others 6,977 27,447 6,977 1,106,574 For the six months ended June 30, 2024, and 2023, the Company had no Outstanding balances of loan to third parties consist of the following: As of December 31, 2023 Balance Maturity Effective Collateral/Guarantee US$ Sichuan Xiongji Construction Engineering Co., Ltd (Sichuan Xiongji)* 1,079,127 February 28, 2024 3.00 % N/A Total 1,079,127 * Sichuan Xiongji is the general contractor of the Group’s industrial park currently under construction, and the Group provided loans to Sichuan Xiongji for construction capital turnover. As of June 30, 2024, the outstanding balances of loans to third parties have been collected in full. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventories [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: As of June 30, December 31, US$ US$ Raw materials 218,885 - Finished goods 1,561,806 13,713 1,780,691 13,713 Less: provision for impairment of inventories - - 1,780,691 13,713 |
Advance to Supplier
Advance to Supplier | 6 Months Ended |
Jun. 30, 2024 | |
Advance to Supplier [Abstract] | |
ADVANCE TO SUPPLIER | 6. ADVANCE TO SUPPLIER Advance to supplier consisted of the following: As of June 30, December 31, US$ US$ Advance to supplier 942,056 13,811 Advance to supplier-related party 59,324 942,056 73,135 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 7. OTHER CURRENT ASSETS Other current assets consisted of the following: As of June 30, December 31, US$ US$ VAT recoverable 894,360 1,039,421 Deferred tax assets 74,849 65,858 Prepaid Expenses - 23,319 969,209 1,128,598 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 8. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: As of June 30, December 31, US$ US$ Office equipment 16,483 3,381 Accumulated depreciation (731 ) (188 ) 15,752 3,193 Depreciation expense was US$554 and US$0 for the six months ended June 30, 2024, and 2023, respectively. |
Construction-In-Progress
Construction-In-Progress | 6 Months Ended |
Jun. 30, 2024 | |
Construction-In-Progress [Abstract] | |
CONSTRUCTION-IN-PROGRESS | 9. CONSTRUCTION-IN-PROGRESS Construction-in-progress consisted of the following: As of June 30, December 31, US$ US$ Construction in progress 42,277,536 41,423,399 42,277,536 41,423,399 Hongchang Food Industrial Park covers a site area of 108,000 square meters, with a floor area of about 130,000 square meters. Hongchang Food Industrial Park is still under construction and expected to complete construction by 2024. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS Intangible assets consist of the following: As of June 30, December 31, US$ US$ Purchased software 3,210 3,295 Less: accumulated amortization (241 ) (82 ) 2,969 3,213 Amortization expenses for the Purchased software were US$162 and US$ nil No For the years ended December 31, 2024* 2025 2026 2027 2028 2029 and US$ US$ US$ US$ US$ US$ Amortization expenses 160 321 321 321 321 1,525 * For the six months ended December 31,2024 |
Land Use Right, Net
Land Use Right, Net | 6 Months Ended |
Jun. 30, 2024 | |
Land Use Right, Net [Abstract] | |
LAND USE RIGHT, NET | 11. LAND USE RIGHT, NET Land use rights, net consist of the following: As of June 30, December 31, US$ US$ Land use rights 4,275,487 4,388,808 Less: accumulated amortization (306,482 ) (270,707 ) 3,969,005 4,118,101 Amortization expenses for the land use rights were US$ 43,163, and US$37,369 for the six months ended June 30, 2024, and 2023, respectively. No For the years ended December 31, 2024* 2025 2026 2027 2028 2029 and US$ US$ US$ US$ US$ US$ Amortization expenses 42,755 85,510 85,510 85,510 85,510 3,584,210 * For the six months ended December 31,2024 |
Other Non-Current Asstes
Other Non-Current Asstes | 6 Months Ended |
Jun. 30, 2024 | |
Other Non-Current Assets [Abstract] | |
OTHER NON-CURRENT ASSTES | 12. OTHER NON-CURRENT ASSTES Other non-current assets consisted of the following: As of June 30, December 31, US$ US$ Advance payment for construction 4,900,616 706,920 Advance payment for equipment 2,559 - 4,903,175 706,920 Advance payment for construction were US$4,900,616, and US$706,920 as of June 30, 2024 and December 31, 2023, respectively, which is advanced payment to Sichuan Xiongji for the construction of Hongchang Food Industrial Park. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Expenses and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 13. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: As of June 30, December 31, US$ US$ Payroll and welfare payables 97,336 92,262 Value-added tax and other taxes payable 6,385 239,543 Others 15,708 54,000 119,429 385,805 |
Long Term Loans
Long Term Loans | 6 Months Ended |
Jun. 30, 2024 | |
Long Term Loans [Abstract] | |
LONG TERM LOANS | 14. LONG TERM LOANS Long-term loans represent the amounts due to various banks lasting over one year. Usually, the long-term bank loans cannot be renewed with these banks upon maturities. The Group is in compliance with all long-term bank loan covenants. As of December 31, 2023, the Group had no loans, from 2024, the Group entered four loan agreements and the outstanding balances of loans consist of the following: Effective Maturity Interest As of June 30, 2024 Balance Date Rate Collateral/Guarantee US$ Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. 1 2,201,597 16-Jan-34 5.25 % Construction in progress of the Hongchang Food Industrial Park 2 2,476,797 3 963,199 4 275,200 Total 5,916,793 The future maturities of long-term loans are as follows: For the years ended December 31, Principal Remainder of 2024 $ — 2025 68,800 2026 129,344 2027 129,344 2028 247,680 Thereafter 5,341,625 $ 5,916,793 The purposes of these long term loans are for the construction of Hongchang Food Industrial Park, the interest of these loans was capitalized in construction-in-progress, Interest capitalized in construction-in-progress was US$135,109 and US$ nil |
Common Stock and Additional Pai
Common Stock and Additional Paid-in Capital | 6 Months Ended |
Jun. 30, 2024 | |
Common Stock and Additional Paid-in Capital [Abstract] | |
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL | 15. COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL In January 2023, 100 shares of common stock of Hongchang BVI were allotted and issued to the controlling stockholders, of par value US$1. As per the Reorganization described in Note 1(b) History and reorganization of the Group, the unaudited condensed consolidated financial statements were prepared as if the 100 shares had been in existence since the beginning of the periods presented. As per the Reverse merger described in Note 1(c), in the “Unaudited Condensed Consolidated Statements of Stockholder’s Equity”, the 100 shares of the legal subsidiary (the accounting acquirer) was restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal parent (the accounting acquiree) issued in the reverse acquisition. In preparation of the Merger Transactions, the following transactions were undertaken to reorganize the legal structure of Operating Entity (“Reorganization”). On January 13, 2023, Mr. Zengqiang Lin and Ms. Zhenzhu Lin, the existing stockholders of Fuqing Hongchang Food Co., Ltd (“Hongchang Food”) established two wholly-owned subsidiaries (“BVI-1” and “BVI-2”) in British Virgin Island, respectively. On January 18, 2023, Hong Chang Global Investment Holdings Limited (“Hongchang BVI”) was then incorporated by BVI-1 and BVI-2 which held 70% and 30% equity interest of Hongchang BVI, respectively. On February 6, 2023, Hongchang BVI incorporated a wholly-owned subsidiary, Hong Chang Biotechnologies (HK) Limited (“Hongchang HK”). On February 28, 2023, Hongchang HK incorporated a wholly-owned subsidiary, Fujian Hongjin Biotechnology Co., Ltd. (“WFOE”) in the People’s Republic of China (“PRC”). WFOE then purchased the total equity interest of Hongchang Food. After the Reorganization, Mr. Zengqiang Lin and Ms. Zhenzhu Lin hold 70% and 30% equity interest of Hongchang Food through WFOE, respectively. As all the entities involved in the process of the Reorganization are under common ownership of Hongchang Food’s stockholders before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling of interests with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. Therefore, the unaudited condensed consolidated financial statements were prepared as if the 100 shares had been in existence since the beginning of the periods presented. On August 21, 2023, HYBT entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Hongchang BVI and Hongchang BVI’s stockholders, Zengqiang Investment Limited, a business company incorporated in the BVI, and Hong Jin Investment Limited, a business company incorporated in the BVI (the “Selling Stockholders” and each a “Selling Stockholder”), in relation to the acquisition of Hongchang BVI by HYBT (the “Hongchang Acquisition”). Zengqiang Investment Limited is wholly-owned by Mr. Zengqiang Lin and Hong Jin Investment Limited is wholly-owned by Ms. Zhenzhu Lin. Mr. Zengqiang Lin has been a director of HYBT since February 17, 2023, and Ms. Zhenzhu Lin is the sister of Mr. Zengqiang Lin. In accordance with the terms of the Share Exchange Agreement, the Selling Stockholders sold and transferred 100 shares of Hongchang BVI, constituting all of the issued and outstanding share capital of Hongchang BVI, to HYBT in exchange for an aggregate of 415,582,375 new shares of HYBT’s common stock (the “Consideration Shares”), of which 353,322,843 shares were issued to Zengqiang Investment Limited and 62,259,532 shares were issued to Hong Jin Investment Limited. Therefore, in the “Unaudited Condensed Consolidated Statements of Stockholders’ Equity”, the 100 shares of the legal subsidiary (the accounting acquirer) was restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal parent (the accounting acquiree) issued in the reverse acquisition In May 2023, Hongchang BVI received US$41,241,108 cash contribution from stockholders through its subsidiary Hongchang Food. On September 1, 2023, upon closing the Merger, 100 shares of Hongchang BVI par value US$1.00, constituting all of the issued and outstanding share capital of Hongchang BVI, were exchanged for the right to receive 415,582,375 shares of common stock of the Company, par value US$0.001. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS (a) Related parties The principal related parties with which the Group had transactions during the years presented are as follows: Names of related parties Relationship with The Group Zengqiang Lin The principal stockholder and director of the Company Fuqing Xinhongbo Trading Co., Ltd. (“Xinhongbo”) An entity controlled by the principal stockholder of the Company Fuqing Changhong Agricultural Products Supply Chain Co. Ltd.(“Changhong”) An entity controlled by the principal stockholder of the Company Zhenzhu Lin The principal stockholder of the Company Fujian Xindefu Agricultural Products Co., Ltd.(“Xindefu”) Non-controlling shareholder of Hongfu Food Xiuhua Zhou Owner of Xindefu (b) Other than disclosed elsewhere, the Group had the following significant related party transactions for the six months ended June 30, 2024 and 2023: For six months ended June 30, 2024 2023 US$ US$ Proceeds from loans from related parties: -Zengqiang Lin 366,563 1,331,757 -Zhenzhu Lin 1,680,457 - -Xiuhua Zhou 1,388,396 - 3,435,416 1,331,757 Repayment of a loan from a related party: -Zengqiang Lin (1,755,467 ) (2,695,155 ) Refunds from a related party -Xinhongbo 58,330 - -Changhong 139 - 58,469 Capital contribution to Hongchang Food: -Zengqiang Lin - 41,241,108 Sales of goods: -Fujian Xindefu Agricultural Products Co., Ltd. 1,470 - Procurement of goods: -Fujian Xindefu Agricultural Products Co., Ltd. 276,032 - Procurement of service: -Fujian Xindefu Agricultural Products Co., Ltd. 147,993 - (c) The Group had the following related party balances as of June 30, 2024 and December 31, 2023: As of June 30, December 31, US$ US$ Advance to supplier-related party -Xinhongbo - 59,324 Amount due from a related party -Changhong - 141 Accounts payable-related party -Fujian Xindefu Agricultural Products Co., Ltd. 418,658 - Amounts due to related parties: -Zengqiang Lin 5,155,954 6,682,959 -Zhenzhu Lin 1,664,958 - -Xiuhua Zhou 1,375,591 - All balances with the related parties as of June 30, 2024 and December 31, 2023 were unsecured, interest-free and had no fixed terms of repayments except the followings: On April 1, 2023, Hongchang Food entered into an interest-free loan agreement with Zengqiang Lin to obtain aggregate maximum loans of up to RMB60.0 million (US $8.5million On May 16, 2024, Hongfu Food entered into an interest-free loan agreement with Zhenzhu Lin to obtain aggregate maximum loans of up to RMB30.0 million (US $4 On May 30, 2024, Hongfu Food entered into an interest-free loan agreement with Xiuhua Zhou to obtain aggregate maximum loans of up to RMB20.0 million (US $2 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES As of June 30, 2024, the Group has entered into several contracts for construction of the Hongchang Food Industrial Park and the improvement of Industrial Buildings. Total outstanding commitments under these contracts were US$17,128,091 and US$23,698,063 as of June 30, 2024 and December 31, 2023, respectively. The Group expected to pay off all the balances within 1-3 years. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS The Group has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Based on the Company’s evaluation, no event has occurred requiring adjustment or disclosure in the notes to the unaudited condensed consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (64,804) | $ (138,381) | $ (161,373) | $ (247,942) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The unaudited condensed consolidated financial statements include the accounts of the Group and its subsidiaries and have been prepared in accordance with U.S. GAAP and the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as its annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Group’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2024, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. Through the Reorganization, the Company became the holding company of the companies now comprising the Group. Accordingly, for the purpose of preparation of the unaudited condensed consolidated financial statements of the Group, the Company is considered as the holding company of the companies now comprising the Group throughout the reporting period. Through the Reorganization, the Company became the holding company of the contributed businesses now comprising the Group, which were under the common control of the controlling stockholder before and after the Reorganization. Accordingly, the financial statements were prepared on a consolidated basis by applying the principles of the pooling of interest method as if the Reorganization had been completed at the date when contributed business first came under the control of the controlling party. The unaudited condensed consolidated statements of operations and comprehensive income(loss), changes in equity and cash flows of the Group included the results and cash flows of all companies now comprising the Group from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling stockholder, whenever the period is shorter. |
Principles of consolidation | Principles of consolidation The accompanying unaudited condensed consolidated financial statements of the Company include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported period in the unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s unaudited condensed consolidated financial statements mainly include, but are not limited to, assessment for impairment of long-lived assets, valuation of deferred tax assets and current expected credit loss of receivables. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the unaudited condensed consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management evaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the Group to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially differ from these estimates. |
Foreign Currency | Foreign Currency The Group’s principal country of operations is the PRC. The accompanying unaudited condensed consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The unaudited condensed consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of stockholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. As of June 30, December 31, RMB: US$ exchange rate 7.2675 7.0798 For the six months ended June 30, 2024 2023 RMB: US$ exchange rate 7.2004 6.9291 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. |
Cash | Cash Cash consists of cash on hand and cash in bank, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. The Group maintains cash with various financial institutions primarily in mainland China. Deposit insurance system in China only insured each depositor at one bank for a maximum of approximately US$70,000 (RMB 500,000). The amount in excess of the insurance as of June 30, 2024, was approximately $167,400, the Group has not experienced any losses in bank accounts. |
Accounts receivable and allowance for credit losses | Accounts receivable and allowance for credit losses Accounts receivable are stated at the historical carrying amount net of allowance for expected credit losses. The Group adopted ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1, 2023 using a modified retrospective approach. The Group also adopted this guidance to other receivables. To estimate expected credit losses, The Group has identified the relevant risk characteristics of its customers and the related receivables. The Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. Cost of inventory are determined using the weighted average cost method. The Group records inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Category Estimated useful life Equipment 3 years |
Construction-in-progress | Construction-in-progress Property and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use. |
Capitalized Interest | Capitalized Interest Interest incurred during and directly related to construction-in-progress is capitalized to the related property under construction during the active construction period, which generally commences when borrowings are used to acquire assets of construction-in-progress and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. All other interest is expensed as incurred. For the six months ended June 30, 2024 and 2023, the total interest capitalized in the construction-in-progress was US$135,109 and US$ nil |
Intangible assets | Intangible assets Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. Category Estimated useful life Purchased software 10 years |
Land use right, net | Land use right, net The land use rights represent the operating lease prepayments for the rights to use the land in the PRC. Amortization of the prepayments is provided on a straight-line basis over the terms of the respective land use rights certificates. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, The Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. Impairment charge recognized for the six months ended June 30, 2024 and 2023 was US$ nil nil |
Fair value of financial instruments | Fair value of financial instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, amounts due from related party, other receivables, accounts payables, accounts payable-related party, accounts payables - construction in progress and accrued expenses and other liabilities. As of June 30, 2024 and December 31, 2023, the carrying values of these financial assets and liabilities approximate their fair values due to the short-term nature. |
Revenue recognition | Revenue recognition The Group adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customer. To determine revenue recognition for contracts with customers, the Group performs the following five steps: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when The Group satisfies a performance obligation The Group generates revenue from food trading business. The Group enters into contract with their customers to provide food, mainly frozen pork. All of the Group’s contracts have single performance obligation as the promise is to transfer the goods to customers, and there are no other separately identifiable promises in the contracts. The Group recognizes revenue when it transfers its goods to customers in an amount that reflects the consideration to which The Group expects to be entitled in such exchange. The Group accounts for the revenue generated from sales of its products to its customers on a gross basis, because the Group is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods. The Group’s revenue is recognized at a point in time when the control has been transferred, usually when the customer accepts the goods. |
Cost of revenue | Cost of revenue Costs of revenues consist primarily of purchase price of products, shipping and handling expense from supplier to the Group and related costs, which are directly attributable to products. Write-down of inventories is also recorded in cost of sales, if any. Shipping and handling costs incurred to transport goods to customers are expensed in the periods incurred and are included in cost of revenues. The Group accounts for shipping and handling expenses as fulfillment costs because shipping and handling activities occur before the customers obtains control of the goods. Shipping and handling expenses amounted to US$7,644 and US$ nil |
Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses consist primarily of travelling expenses, marketing conference expenses, advertising expenses and salaries and other compensation-related expenses to sales and marketing personnel. The Group expenses all advertising costs as incurred. Advertising costs amounted to US$ nil nil |
General and administrative expenses | General and administrative expenses General and administrative expenses consist primarily of salaries and benefits for employees involved in general corporate functions, amortization of land use right, legal and other professional services fees, rental and other general corporate related expenses. |
Government Subsidies | Government Subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy on a systematic basis to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is recognized as deferred subsidies and is released to the statement of operations over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Total government subsidies recorded in the deferred subsidies were US$1,938,094 and US$1,989,463 as of June 30, 2024 and December 31, 2023, respectively. |
Value-added taxes | Value-added taxes Sales revenue represents the invoiced value of goods, net of VAT. The applicable VAT rate was 13% or 9% (depending on the type of goods involved) for products sold in the PRC. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Group’s subsidiaries in China, have been and remain subject to examination by the tax authorities |
Income Taxes | Income taxes Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax The Group records liabilities related to uncertain tax positions when, despite the Group’s belief that the Group’s tax return positions are supportable, the Group believes that it is more likely than not that those positions may not be fully sustained upon review by tax authorities. Accrued interest and penalties related to unrecognized tax benefits are classified as income tax expense. The Group did not recognize uncertain tax positions as of June 30, 2024 and December 31, 2023. |
Related party transactions | Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Earnings per share | Earnings per share The Group calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common stock that would have been outstanding if the potential common stock equivalents had been issued and if the additional common stock were dilutive. On September 4, 2023, the Group completed its reorganization whereby Hongchang BVI’s stockholders received 415,582,375 shares in exchange for all the share capital of Hongchang BVI, which is reflected retroactively to December 31, 2021 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both periods for the unaudited condensed consolidated financial statements of the Group. The impact of the stock exchange is also shown on the Group’s Condensed Consolidated Statements of Changes in Stockholders’ Equity. Before the reorganization, Hongchang Food depended on loans from stockholders for the construction of the Hongchang Food Industrial Park and its daily operations. These were recorded as loans from related parties. In May 2023, Hongchang Food reached an agreement with a stockholder to convert an outstanding loan balance of US$41,241,108 into a capital contribution. The company then recalculated the weighted average number of common stock outstanding during the period, based on the timing of the cash inflows from the stockholder loans. |
Comprehensive income | Comprehensive income The Group applies ASC 220, Comprehensive Income (“ASC 220”), with respect to reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income is defined to include all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting from investments by stockholders and distributions to stockholders. For the six months ended June 30, 2024 and 2023, the Group’s comprehensive income(loss) includes net income(loss) and other comprehensive income(loss). |
Segment reporting | Segment reporting ASC 280, Segment Reporting, (“ASC 280”), establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, our chief operating decision maker (“CODM”) has been identified as our Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. As a whole and hence, we have only one reportable segment. We do not distinguish between markets or segments for the purpose of internal reporting. As our long-lived assets are substantially located in the PRC, no geographical segments are presented. |
Uncertainty and risks | Uncertainty and risks Political, social and economic risks The Group has substantial operations in China through its PRC subsidiaries. Accordingly, the Group’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 Group’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Group 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. The Group’s business, financial condition and results of operations may also be negatively impacted by risks related to regional wars, geopolitical tensions, natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could potentially and significantly disrupt The Group’s operations. Liquidity The Company had an accumulated deficit of US$973,915 as of June 30, 2024 and a net loss of US$118,249 during the six months ended June 30, 2024. However, in May 2023, Hongchang BVI received a cash injection of US$41,241,108 from shareholders via its subsidiary, Hongchang Food. On April 1, 2023, Hongchang Food secured an interest-free loan agreement with Zengqiang Lin, enabling it to access up to RMB60.0 million (approximately US$8.5 million) from April 1, 2023, to March 31, 2026. Consequently, the combination of the Company’s current cash reserves, the capital contributions received, and the loans from shareholders are anticipated to provide sufficient funds to carry out the Company’s planned operations through the next twelve months. Concentration risks Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash in bank and accounts receivable. The Group places its cash with financial institutions with high credit ratings and quality. The Group conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Group establishes an allowance for expected credit losses primarily based upon the factors surrounding the credit risk of specific customers. Concentration of customers and suppliers For the six months ended June 30, 2024, one major client accounted for 35% of the Group’s total revenues, and one major supplier accounted for 31% of the Group’s total procurement. For the six months ended June 30, 2023, one major client accounted for 99% of The Group’s total revenues, and one major supplier accounted for 99% of the Group’s total procurement. As of June 30, 2024, five major clients accounted for 17%, 16%, 11%,10% and 10% of The Group’s total accounts receivable, two vendors accounted for 71% and 14% of the Group’s total account payable. As of December 31, 2023, one major client accounted for 96% of the Group’s total accounts receivable, two vendors accounted for 81% and 15% of the Group’s total account payable. |
Financial Statement Reclassification | Financial Statement Reclassification Certain balances in the prior year consolidated financial statements have been reclassified for comparison purposes to conform to the presentation in the current year consolidated financial statements. These reclassifications had no effect on the reported results of operations or financial position. |
Recent accounting pronouncements | Recent accounting pronouncements In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Group is currently evaluating the potential impact of adopting this new guidance on its unaudited condensed consolidated financial statements and related disclosures. Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the unaudited condensed consolidated financial statements upon adoption. The Group 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. |
Organization (Tables)
Organization (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization [Abstract] | |
Schedule of Unaudited Condensed Consolidated Financial Statements | Based on above transactions, the accompanying unaudited condensed consolidated financial statements reflect the activities of each of the following entities: Entity Place of Percentage of Principal activities Subsidiaries: Hong Chang Global Investment Holdings Limited (Hongchang BVI) British Virgin Island 100% Investment holding Hong Chang Biotechnologies (HK) Limited (Hongchang HK) Hong Kong 100% Investment holding Fujian Hongjin Biotechnology Co., Ltd.(WFOE) PRC 100% Provision of technical and consultation services Fuqing Hongchang Food Co., Ltd(Hongchang Food) PRC 100% Provision of Food Industry Park operation, food trade and meat processing Fujian Hongchang Global Food Co., Ltd (“Hongchang Global Food”) PRC 100% Provision of food trade Fuqing Hongchang Global Import & Export Co., Ltd(“Hongchang Import&Export”) PRC 100% Provision of food trade Fuqing Hongchang Global Supply Chain Co., Ltd(“Hongchang Supply Chain”) PRC 100% Provision of food trade Hongchang Global (Fuqing City) Agricultural Technology Development Co., Ltd (“Hongchang Agricultural”) PRC 100% Provision of food trade and biotechnology Hongfu Food (Fujian) Co., Ltd (“Hongfu Food”) PRC 51% Provision of food trade and meat processing |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Foreign Currency Transactions | Gains and losses from foreign currency transactions are included in profit or loss. As of June 30, December 31, RMB: US$ exchange rate 7.2675 7.0798 For the six months ended June 30, 2024 2023 RMB: US$ exchange rate 7.2004 6.9291 |
Schedule of Estimated Useful Lives s on a Straight-Line Basis | Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Category Estimated useful life Equipment 3 years |
Schedule of Intangible Assets Less Accumulated Amortization and Impairment | The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. Category Estimated useful life Purchased software 10 years |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: As of June 30, December 31, US$ US$ Accounts receivable 1,033,707 742,851 1,033,707 742,851 |
Other Receivalbe (Tables)
Other Receivalbe (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Receivalbe [Abstract] | |
Schedule of Other Receivable | Other receivable consisted of the following: As of June 30, December 31, US$ US$ Loans to third parties - 1,079,127 Others 6,977 27,447 6,977 1,106,574 |
Schedule of Outstanding Balances of Loan to Third Parties | Outstanding balances of loan to third parties consist of the following: As of December 31, 2023 Balance Maturity Effective Collateral/Guarantee US$ Sichuan Xiongji Construction Engineering Co., Ltd (Sichuan Xiongji)* 1,079,127 February 28, 2024 3.00 % N/A Total 1,079,127 * Sichuan Xiongji is the general contractor of the Group’s industrial park currently under construction, and the Group provided loans to Sichuan Xiongji for construction capital turnover. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: As of June 30, December 31, US$ US$ Raw materials 218,885 - Finished goods 1,561,806 13,713 1,780,691 13,713 Less: provision for impairment of inventories - - 1,780,691 13,713 |
Advance to Supplier (Tables)
Advance to Supplier (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Advance to Supplier [Abstract] | |
Schedule of Advance to Supplier | Advance to supplier consisted of the following: As of June 30, December 31, US$ US$ Advance to supplier 942,056 13,811 Advance to supplier-related party 59,324 942,056 73,135 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: As of June 30, December 31, US$ US$ VAT recoverable 894,360 1,039,421 Deferred tax assets 74,849 65,858 Prepaid Expenses - 23,319 969,209 1,128,598 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of June 30, December 31, US$ US$ Office equipment 16,483 3,381 Accumulated depreciation (731 ) (188 ) 15,752 3,193 |
Construction-In-Progress (Table
Construction-In-Progress (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Construction-In-Progress [Abstract] | |
Schedule of Construction-In-Progress | Construction-in-progress consisted of the following: As of June 30, December 31, US$ US$ Construction in progress 42,277,536 41,423,399 42,277,536 41,423,399 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Asstes [Line Items] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of June 30, December 31, US$ US$ Purchased software 3,210 3,295 Less: accumulated amortization (241 ) (82 ) 2,969 3,213 |
Purchased Software [Member] | |
Intangible Asstes [Line Items] | |
Schedule of Amortization Expenses | Amortization expenses for the Purchased software were US$162 and US$ nil No For the years ended December 31, 2024* 2025 2026 2027 2028 2029 and US$ US$ US$ US$ US$ US$ Amortization expenses 160 321 321 321 321 1,525 * For the six months ended December 31,2024 |
Land Use Right, Net (Tables)
Land Use Right, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Land Use Right, Net [Line Items] | |
Schedule of Land Use Rights, Net | Land use rights, net consist of the following: As of June 30, December 31, US$ US$ Land use rights 4,275,487 4,388,808 Less: accumulated amortization (306,482 ) (270,707 ) 3,969,005 4,118,101 |
Land Use Right [Member] | |
Land Use Right, Net [Line Items] | |
Schedule of Amortization Expenses for the Land Use Rights | The term is 50 years of the land use right and will terminate in 2070. For the years ended December 31, 2024* 2025 2026 2027 2028 2029 and US$ US$ US$ US$ US$ US$ Amortization expenses 42,755 85,510 85,510 85,510 85,510 3,584,210 * For the six months ended December 31,2024 |
Other Non-Current Asstes (Table
Other Non-Current Asstes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Non-Current Assets [Abstract] | |
Schedule of Other Non-Current Assets | Other non-current assets consisted of the following: As of June 30, December 31, US$ US$ Advance payment for construction 4,900,616 706,920 Advance payment for equipment 2,559 - 4,903,175 706,920 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: As of June 30, December 31, US$ US$ Payroll and welfare payables 97,336 92,262 Value-added tax and other taxes payable 6,385 239,543 Others 15,708 54,000 119,429 385,805 |
Long Term Loans (Tables)
Long Term Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long Term Loans [Abstract] | |
Schedule of Loan Agreements and the Outstanding Balances | As of December 31, 2023, the Group had no loans, from 2024, the Group entered four loan agreements and the outstanding balances of loans consist of the following: Effective Maturity Interest As of June 30, 2024 Balance Date Rate Collateral/Guarantee US$ Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. 1 2,201,597 16-Jan-34 5.25 % Construction in progress of the Hongchang Food Industrial Park 2 2,476,797 3 963,199 4 275,200 Total 5,916,793 |
Schedule of Future Maturities of Long-Term Loans | The future maturities of long-term loans are as follows: For the years ended December 31, Principal Remainder of 2024 $ — 2025 68,800 2026 129,344 2027 129,344 2028 247,680 Thereafter 5,341,625 $ 5,916,793 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Related Party Transactions | The principal related parties with which the Group had transactions during the years presented are as follows: Names of related parties Relationship with The Group Zengqiang Lin The principal stockholder and director of the Company Fuqing Xinhongbo Trading Co., Ltd. (“Xinhongbo”) An entity controlled by the principal stockholder of the Company Fuqing Changhong Agricultural Products Supply Chain Co. Ltd.(“Changhong”) An entity controlled by the principal stockholder of the Company Zhenzhu Lin The principal stockholder of the Company Fujian Xindefu Agricultural Products Co., Ltd.(“Xindefu”) Non-controlling shareholder of Hongfu Food Xiuhua Zhou Owner of Xindefu |
Schedule of Significant Related Party Transactions | Other than disclosed elsewhere, the Group had the following significant related party transactions for the six months ended June 30, 2024 and 2023: For six months ended June 30, 2024 2023 US$ US$ Proceeds from loans from related parties: -Zengqiang Lin 366,563 1,331,757 -Zhenzhu Lin 1,680,457 - -Xiuhua Zhou 1,388,396 - 3,435,416 1,331,757 Repayment of a loan from a related party: -Zengqiang Lin (1,755,467 ) (2,695,155 ) Refunds from a related party -Xinhongbo 58,330 - -Changhong 139 - 58,469 Capital contribution to Hongchang Food: -Zengqiang Lin - 41,241,108 Sales of goods: -Fujian Xindefu Agricultural Products Co., Ltd. 1,470 - Procurement of goods: -Fujian Xindefu Agricultural Products Co., Ltd. 276,032 - Procurement of service: -Fujian Xindefu Agricultural Products Co., Ltd. 147,993 - As of June 30, December 31, US$ US$ Advance to supplier-related party -Xinhongbo - 59,324 Amount due from a related party -Changhong - 141 Accounts payable-related party -Fujian Xindefu Agricultural Products Co., Ltd. 418,658 - Amounts due to related parties: -Zengqiang Lin 5,155,954 6,682,959 -Zhenzhu Lin 1,664,958 - -Xiuhua Zhou 1,375,591 - |
Organization (Details)
Organization (Details) - shares | 6 Months Ended | ||||
Feb. 17, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Feb. 28, 2023 | Jan. 18, 2023 | |
Organization [Line Items] | |||||
Share capital issued and outstanding | 100 | ||||
Common Stock, Shares, Outstanding | 518,831,367 | 518,831,367 | |||
Percentage of share capital | 80.10% | ||||
Hongchang Acquisition [Member] | |||||
Organization [Line Items] | |||||
Consideration shares | 415,582,375 | ||||
Hongchang BVI 1 [Member] | |||||
Organization [Line Items] | |||||
Equity interest | 70% | ||||
Hongchang BVI 2 [Member] | |||||
Organization [Line Items] | |||||
Equity interest | 30% | ||||
Mr. Zengqiang Lin [Member] | |||||
Organization [Line Items] | |||||
Equity interest | 70% | ||||
Ms. Zhenzhu Lin [Member] | |||||
Organization [Line Items] | |||||
Equity interest | 30% | ||||
Hongchang BVI [Member] | |||||
Organization [Line Items] | |||||
Share capital issued and outstanding | 100 | ||||
Heyu Biological Technology Corporation [Member] | |||||
Organization [Line Items] | |||||
Exchange for new aggregate shares | 415,582,375 | 415,582,375 | |||
Common Stock, Shares, Outstanding | 518,831,367 | ||||
Zengqiang Investment Limited [Member] | |||||
Organization [Line Items] | |||||
Issued shares | 353,322,843 | 353,322,843 | |||
Hong Jin Investment Limited [Member] | |||||
Organization [Line Items] | |||||
Issued shares | 62,259,532 |
Organization (Details) - Schedu
Organization (Details) - Schedule of Unaudited Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2024 | |
Hong Chang Global Investment Holdings Limited (Hongchang BVI) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | British Virgin Island |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Investment holding |
Hong Chang Biotechnologies (HK) Limited (Hongchang HK) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | Hong Kong |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Investment holding |
Fujian Hongjin Biotechnology Co., Ltd.(WFOE) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of technical and consultation services |
Fuqing Hongchang Food Co., Ltd(Hongchang Food) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of Food Industry Park operation, food trade and meat processing |
Fujian Hongchang Global Food Co., Ltd (“Hongchang Global Food”) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of food trade |
Fuqing Hongchang Global Import & Export Co., Ltd(“Hongchang Import&Export”) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of food trade |
Fuqing Hongchang Global Supply Chain Co., Ltd(“Hongchang Supply Chain”) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of food trade |
Hongchang Global (Fuqing City) Agricultural Technology Development Co., Ltd (“Hongchang Agricultural”) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 100% |
Principal activities | Provision of food trade and biotechnology |
Hongfu Food (Fujian) Cp., Ltd(Hongfu Food) [Member] | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Percentage of direct or indirect ownership by the Company | 51% |
Principal activities | Provision of food trade and meat processing |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
May 30, 2024 USD ($) | May 30, 2024 CNY (¥) | May 16, 2024 USD ($) | May 16, 2024 CNY (¥) | Sep. 04, 2023 shares | May 31, 2023 USD ($) | Apr. 01, 2023 USD ($) | Apr. 01, 2023 CNY (¥) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2024 CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Deposit insurance | $ 70,000 | $ 70,000 | ¥ 500,000 | |||||||||||
Excess of the insurance | 167,400 | |||||||||||||
Interest capitalized | 135,109 | |||||||||||||
Impairment charge | ||||||||||||||
Advertising costs | ||||||||||||||
Deferred subsidies | 1,938,094 | $ 1,938,094 | $ 1,989,463 | |||||||||||
Capital contribution | $ 41,241,108 | |||||||||||||
Reportable segment | 1 | |||||||||||||
Accumulated deficit | (973,915) | $ (973,915) | $ (812,539) | |||||||||||
Net loss | $ (21,680) | $ (138,381) | $ (118,249) | (247,942) | ||||||||||
Cash received | $ 41,241,108 | |||||||||||||
Interest-free loan | $ 2,800,000 | ¥ 20,000,000 | $ 4,100,000 | ¥ 30,000,000 | $ 8,500,000 | ¥ 60,000,000 | ||||||||
Maximum [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of value-added taxes | 13% | |||||||||||||
Minimum [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of value-added taxes | 9% | |||||||||||||
Hongchang BVI [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Exchange shares | shares | 415,582,375 | |||||||||||||
Shipping and Handling [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Shipping and handling expenses | $ 7,644 | |||||||||||||
One Major Supplier [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 31% | |||||||||||||
Five Major Clients [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 10% | |||||||||||||
Vendors One [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 71% | 81% | ||||||||||||
Vendors Two [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 14% | 15% | ||||||||||||
One Major Clients [Member] | Customer Concentration Risk [Member] | Revenue [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 35% | 99% | ||||||||||||
One Major Clients [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 17% | 96% | ||||||||||||
One Major Supplier [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 99% | |||||||||||||
Two Major Clients [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 16% | |||||||||||||
Three Major Clients [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 11% | |||||||||||||
Four Major Clients [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||
Concentration of credit risk, percentage | 10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Foreign Currency Transactions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Maximum [Member] | |||
Schedule of Foreign Currency Transactions [Line Items] | |||
RMB: US$ exchange rate | 7.2675 | 7.0798 | |
Minimum [Member] | |||
Schedule of Foreign Currency Transactions [Line Items] | |||
RMB: US$ exchange rate | 7.2004 | 6.9291 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives s on a Straight-Line Basis | Jun. 30, 2024 |
Equipment [Member] | |
Schedule of Estimated Useful Lives s on a Straight-Line Basis [Line Items] | |
Equipment | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Less Accumulated Amortization and Impairment | Jun. 30, 2024 |
Purchased Software [Member] | |
Schedule of Intangible Assets Less Accumulated Amortization and Impairment [Line Items] | |
Purchased software | 10 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Accounts Receivable [Abstract] | ||
Allowance for expected credit losses for accounts receivable |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts Receivable - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable | $ 1,033,707 | $ 742,851 |
Accounts receivable Net | $ 1,033,707 | $ 742,851 |
Other Receivalbe (Details)
Other Receivalbe (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Other Receivalbe [Abstract] | ||
Allowance for credit losses for other receivable |
Other Receivalbe (Details) - Sc
Other Receivalbe (Details) - Schedule of Other Receivable - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Other Receivable [Abstract] | ||
Loans to third parties | $ 1,079,127 | |
Others | 6,977 | 27,447 |
Other receivable | $ 6,977 | $ 1,106,574 |
Other Receivalbe (Details) - _2
Other Receivalbe (Details) - Schedule of Outstanding Balances of Loan to Third Parties - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2024 | ||
Schedule of Outstanding Balances of Loan to Third Parties [Line Items] | |||
Loan to third parties, Balance | $ 1,079,127 | ||
Sichuan Xiongji Construction Engineering Co., Ltd (Sichuan Xiongji) [Member] | |||
Schedule of Outstanding Balances of Loan to Third Parties [Line Items] | |||
Loan to third parties, Balance | [1] | $ 1,079,127 | |
Loan to third parties, Maturity Date | [1] | February 28, 2024 | |
Loan to third parties, Effective Interest Rate | [1] | 3% | |
Loan to third parties, Collateral/Guarantee | [1] | N/A | |
[1]Sichuan Xiongji is the general contractor of the Group’s industrial park currently under construction, and the Group provided loans to Sichuan Xiongji for construction capital turnover. |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 218,885 | |
Finished goods | 1,561,806 | 13,713 |
Inventories, net | 1,780,691 | 13,713 |
Less: provision for impairment of inventories | ||
Inventories, Total | $ 1,780,691 | $ 13,713 |
Advance to Supplier (Details) -
Advance to Supplier (Details) - Schedule of Advance to Supplier - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Advance To Supplier Abstract | ||
Advance to supplier | $ 942,056 | $ 13,811 |
Advance to supplier-related party | 59,324 | |
Total advance to supplier | $ 942,056 | $ 73,135 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Other Current Assets [Abstract] | ||
VAT recoverable | $ 894,360 | $ 1,039,421 |
Deferred tax assets | 74,849 | 65,858 |
Prepaid Expenses | 23,319 | |
Total other current assets | $ 969,209 | $ 1,128,598 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property and Equipment [Abstract] | ||
Depreciation expenses | $ 554 | $ 0 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Property and Equipment [Abstract] | ||
Office equipment | $ 16,483 | $ 3,381 |
Accumulated depreciation | (731) | (188) |
Property and equipment | $ 15,752 | $ 3,193 |
Construction-In-Progress (Detai
Construction-In-Progress (Details) | Jun. 30, 2024 m² |
Site Area [Member] | |
Construction-In-Progress [Line Items] | |
Construction area | 108,000 |
Floor Area [Member] | |
Construction-In-Progress [Line Items] | |
Construction area | 130,000 |
Construction-In-Progress (Det_2
Construction-In-Progress (Details) - Schedule of Construction-In-Progress - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Construction-In-Progress [Abstract] | ||
Construction in progress | $ 42,277,536 | $ 41,423,399 |
Construction in progress Total | $ 42,277,536 | $ 41,423,399 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Intangible Assets [Abstract] | ||
Amortization expenses | $ 162 | |
Impairment charge |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Intangible Assets [Abstract] | ||
Purchased software | $ 3,210 | $ 3,295 |
Less: accumulated amortization | (241) | (82) |
Intangible assets | $ 2,969 | $ 3,213 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Amortization Expenses - Purchased Software [Member] | Jun. 30, 2024 USD ($) | |
Intangible Assets (Details) - Schedule of Amortization Expenses [Line Items] | ||
2024 | $ 160 | [1] |
2025 | 321 | |
2026 | 321 | |
2027 | 321 | |
2028 | 321 | |
2029 and thereafter | $ 1,525 | |
[1]For the six months ended December 31,2024 |
Land Use Right, Net (Details)
Land Use Right, Net (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Land Use Right, Net [Line Items] | ||
Amortization expenses | $ 162 | |
Impairment charge | ||
Land use right | 50 years | |
Land Use Right [Member] | ||
Land Use Right, Net [Line Items] | ||
Amortization expenses | $ 43,163 | 37,369 |
Impairment charge |
Land Use Right, Net (Details) -
Land Use Right, Net (Details) - Schedule of Land Use Rights, Net - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Land Use Rights Net [Abstract] | ||
Land use rights | $ 4,275,487 | $ 4,388,808 |
Less: accumulated amortization | (306,482) | (270,707) |
Net book value | $ 3,969,005 | $ 4,118,101 |
Land Use Right, Net (Details)_2
Land Use Right, Net (Details) - Schedule of Amortization Expenses for the Land Use Rights - Land Use Right Net [Member] | Jun. 30, 2024 USD ($) | |
Schedule of Amortization Expenses for the Land Use Rights [Line Items] | ||
2024 | $ 42,755 | [1] |
2025 | 85,510 | |
2026 | 85,510 | |
2027 | 85,510 | |
2028 | 85,510 | |
2029 and thereafter | $ 3,584,210 | |
[1]For the six months ended December 31,2024 |
Other Non-Current Asstes (Detai
Other Non-Current Asstes (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Other Non-Current Assets [Abstract] | ||
Advance payment for construction | $ 4,900,616 | $ 706,920 |
Other Non-Current Asstes (Det
Other Non-Current Asstes (Details) - Schedule of Other Non-Current Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Other Non-Current Assets [Abstract] | ||
Advance payment for construction | $ 4,900,616 | $ 706,920 |
Advance payment for equipment | 2,559 | |
Total | $ 4,903,175 | $ 706,920 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - Schedule of Accrued Expenses and Other Liabilities - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Accrued Expenses and Other Liabilities [Abstract] | ||
Payroll and welfare payables | $ 97,336 | $ 92,262 |
Value-added tax and other taxes payable | 6,385 | 239,543 |
Others | 15,708 | 54,000 |
Total accrued expenses and other liabilities | $ 119,429 | $ 385,805 |
Long Term Loans (Details)
Long Term Loans (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Long Term Loans [Abstract] | ||
Interest capitalized in construction-in-progress | $ 135,109 |
Long Term Loans (Details) - Sch
Long Term Loans (Details) - Schedule of Loan Agreements and the Outstanding Balances | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Schedule of Loan Agreements and the Outstanding Balances [Line Items] | |
Balance | $ 5,916,793 |
Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. [Member] | |
Schedule of Loan Agreements and the Outstanding Balances [Line Items] | |
Balance | $ 2,201,597 |
Maturity Date | Jan. 16, 2034 |
Effective Interest Rate | 5.25% |
Collateral/Guarantee | Construction in progress of the Hongchang Food Industrial Park |
Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. [Member] | |
Schedule of Loan Agreements and the Outstanding Balances [Line Items] | |
Balance | $ 2,476,797 |
Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. [Member] | |
Schedule of Loan Agreements and the Outstanding Balances [Line Items] | |
Balance | 963,199 |
Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd. [Member] | |
Schedule of Loan Agreements and the Outstanding Balances [Line Items] | |
Balance | $ 275,200 |
Long Term Loans (Details) - S_2
Long Term Loans (Details) - Schedule of Future Maturities of Long-Term Loans | Jun. 30, 2024 USD ($) |
Schedule of Future Maturities of Long-Term Loans [Abstract] | |
Remainder of 2024 | |
2025 | 68,800 |
2026 | 129,344 |
2027 | 129,344 |
2028 | 247,680 |
Thereafter | 5,341,625 |
Total | $ 5,916,793 |
Common Stock and Additional P_2
Common Stock and Additional Paid-in Capital (Details) - USD ($) | 6 Months Ended | |||||||
Sep. 01, 2023 | May 31, 2023 | Feb. 28, 2023 | Feb. 17, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Jan. 31, 2023 | Jan. 18, 2023 | |
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Allotted shares | 100 | |||||||
Par value (in Dollars per share) | $ 1 | |||||||
Shares transfer | 100 | 100 | 100 | |||||
Shares of legal subsidiary | 100 | 100 | ||||||
Issued and outstanding share capital | 100 | |||||||
Cash contribution (in Dollars) | $ 41,241,108 | |||||||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Hong Jin Investment Limited [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Issued shares | 62,259,532 | |||||||
Hongchang BVI 1 [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Equity interest | 70% | |||||||
Common stocks receive exchange rights | 415,582,375 | |||||||
Hongchang BVI 2 [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Equity interest | 30% | |||||||
Mr. Zengqiang Lin [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Equity interest | 70% | |||||||
Ms. Zhenzhu Lin [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Equity interest | 30% | |||||||
Heyu Biological Technology Corporation [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Exchange for new aggregate shares | 415,582,375 | 415,582,375 | ||||||
Zengqiang Investment Limited [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Issued shares | 353,322,843 | 353,322,843 | ||||||
Hongchang BVI [Member] | ||||||||
Common Stocks and Additional Paid-In Capital [Line Items] | ||||||||
Par value (in Dollars per share) | $ 1 | |||||||
Issued and outstanding share capital | 100 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Millions, $ in Millions | May 30, 2024 USD ($) | May 30, 2024 CNY (¥) | May 16, 2024 USD ($) | May 16, 2024 CNY (¥) | Apr. 01, 2023 USD ($) | Apr. 01, 2023 CNY (¥) |
Related Party Transactions [Abstract] | ||||||
Aggregate maximum loans | $ 2.8 | ¥ 20 | $ 4.1 | ¥ 30 | $ 8.5 | ¥ 60 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Principal Related Parties | 6 Months Ended |
Jun. 30, 2024 | |
Zengqiang Lin [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | The principal stockholder and director of the Company |
Fuqing Xinhongbo Trading Co., Ltd. (“Xinhongbo”) [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | An entity controlled by the principal stockholder of the Company |
Fuqing Changhong Agricultural Products Supply Chain Co. Ltd.(“Changhong”) [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | An entity controlled by the principal stockholder of the Company |
Zhenzhu Lin [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | The principal stockholder of the Company |
Fujian Xindefu Agricultural Products Co., Ltd.(“Xindefu”) [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | Non-controlling shareholder of Hongfu Food |
Xiuhua Zhou [Member] | |
Schedule of Principal Related Parties [Line Items] | |
Relationship with the group | Owner of Xindefu |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Significant Related Party Transactions - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Proceeds from loans from related parties: | |||
Proceeds from a loan from a related party | $ 3,435,416 | $ 1,331,757 | |
Repayment of a loan from a related party: | |||
Repayment of a loan from a related party | (1,755,467) | (2,695,155) | |
Refunds from a related party | |||
Refunds from a related party | 58,469 | ||
Zengqiang Lin [Member] | |||
Proceeds from loans from related parties: | |||
Proceeds from a loan from a related party | 366,563 | 1,331,757 | |
Repayment of a loan from a related party: | |||
Repayment of a loan from a related party | (1,755,467) | (2,695,155) | |
Capital contribution to Hongchang Food: | |||
Capital contribution to Hongchang Food | 41,241,108 | ||
Accounts payable-related party | |||
Amount due to a related party | 5,155,954 | $ 6,682,959 | |
Zhenzhu Lin [Member] | |||
Proceeds from loans from related parties: | |||
Proceeds from a loan from a related party | 1,680,457 | ||
Accounts payable-related party | |||
Amount due to a related party | 1,664,958 | ||
Xiuhua Zhou [Member] | |||
Proceeds from loans from related parties: | |||
Proceeds from a loan from a related party | 1,388,396 | ||
Accounts payable-related party | |||
Amount due to a related party | 1,375,591 | ||
Xinhongbo [Member] | |||
Refunds from a related party | |||
Refunds from a related party | 58,330 | ||
Advance to supplier-related party | |||
Advance to supplier-related party | 59,324 | ||
Changhong [Member] | |||
Refunds from a related party | |||
Refunds from a related party | 139 | ||
Amount due from a related party | |||
Amount due from a related party | 141 | ||
Fujian Xindefu Agricultural Products Co., Ltd.[Member] | |||
Accounts payable-related party | |||
Amount due to a related party | 418,658 | ||
Fujian Xindefu Agricultural Products Co., Ltd.[Member] | Capital contribution to Hongchang Food [Member] | |||
Capital contribution to Hongchang Food: | |||
Capital contribution to Hongchang Food | 1,470 | ||
Fujian Xindefu Agricultural Products Co., Ltd.[Member] | Procurement of goods and service [Member] | |||
Capital contribution to Hongchang Food: | |||
Capital contribution to Hongchang Food | 276,032 | ||
Fujian Xindefu Agricultural Products Co., Ltd.[Member] | Procurement of service [Member] | |||
Capital contribution to Hongchang Food: | |||
Capital contribution to Hongchang Food | $ 147,993 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Commitments and Contingencies [Line Items] | ||
Outstanding commitments | $ 17,128,091 | $ 23,698,063 |
Minimum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Term of expected to pay | 1 year | |
Maximum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Term of expected to pay | 3 years |