Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | PLANET GREEN HOLDINGS CORP. | |
Trading Symbol | PLAG | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 72,081,930 | |
Amendment Flag | false | |
Entity Central Index Key | 0001117057 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34449 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 87-0430320 | |
Entity Address, Address Line One | 130-30 31st Ave | |
Entity Address, Address Line Two | Suite 512 | |
Entity Address, City or Town | Flushing | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11354 | |
City Area Code | (718) | |
Local Phone Number | 799-0380 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 313,500 | $ 93,487 |
Accounts receivable, net | 2,771,347 | 2,996,638 |
Inventories | 5,076,675 | 4,153,680 |
Advances to suppliers | 8,314,422 | 5,417,449 |
Other receivables | 361,872 | 413,315 |
Other receivables-related parties | 769,427 | 180,578 |
Prepaid expenses | 966,169 | 579,826 |
Total current assets | 18,573,412 | 13,834,973 |
Non-current assets | ||
Plant and equipment, net | 20,453,897 | 22,569,125 |
Intangible assets, net | 2,840,646 | 3,070,172 |
Construction in progress, net | 43,622 | 33,260 |
Long-term investments | 2,785,593 | 16,488,157 |
Goodwill | 4,724,698 | 4,724,699 |
Total non-current assets | 30,848,456 | 46,885,413 |
Total assets | 49,421,868 | 60,720,386 |
Current liabilities | ||
Loans-current | 3,481,991 | 3,589,582 |
Accounts payable | 3,442,950 | 3,528,057 |
Advance from customers | 4,677,016 | 2,624,070 |
Taxes payable | 1,188,653 | 1,083,493 |
Other payables and accrued liabilities | 4,545,063 | 4,412,833 |
Other payables-related parties | 6,357,043 | 4,282,841 |
Deferred income | 39,641 | 52,088 |
Total current liabilities | 23,732,357 | 19,572,964 |
Non-current liabilities | ||
other long-term liabilities | 209,118 | 273,757 |
Loans-noncurrent | 278,559 | 287,167 |
Total non-current liabilities | 487,677 | 560,924 |
Total liabilities | 24,220,034 | 20,133,888 |
Stockholders’ equity | ||
Preferred stock: $0.001 par value, 5,000,000 shares authorized; none issued and outstanding as of September 30, 2023 and December 31,2022 | ||
Common stock: $0.001 par value, 200,000,000 shares authorized; 72,081,930 and 72,081,930 shares issued and outstanding as of September 30, 2023 and December 31,2022, respectively | 72,082 | 72,082 |
Additional paid-in capital | 155,702,975 | 155,702,975 |
Accumulated deficit | (134,644,946) | (119,880,801) |
Accumulated other comprehensive income | 4,071,723 | 4,692,242 |
Total stockholders’ equity | 25,201,834 | 40,586,498 |
Total liabilities and stockholders’ equity | $ 49,421,868 | $ 60,720,386 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares Issued | 72,081,930 | 72,081,930 |
Common stock, shares outstanding | 72,081,930 | 72,081,930 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenues | $ 4,183,478 | $ 10,264,434 | $ 17,291,213 | $ 37,788,044 |
Cost of revenues | 3,834,083 | 9,566,309 | 16,652,738 | 35,184,898 |
Gross profit | 349,395 | 698,125 | 638,475 | 2,603,146 |
Operating expenses: | ||||
Selling and marketing expenses | 234,019 | 562,313 | 721,456 | 1,497,194 |
General and administrative expenses | 1,179,676 | 2,166,074 | 3,257,511 | 5,656,922 |
Research & Developing expenses | 61,985 | 79,031 | 195,892 | 150,977 |
Total operating expenses | 1,475,680 | 2,807,418 | 4,174,859 | 7,305,093 |
Operating (loss) income | (1,126,285) | (2,109,293) | (3,536,384) | (4,701,947) |
Other (expenses) income | ||||
Interest income | 303 | 108 | 668 | 9,231 |
Interest expenses | (123,216) | (160,636) | (368,950) | (488,331) |
Other income | 6,390 | 20,230 | 107,588 | 339,518 |
Other expenses | (2,871) | (8,796) | (6,290) | (35,858) |
Loss on disposal of equity investments | (10,848,632) | |||
Total other (expenses) income | (119,394) | (149,094) | (11,115,616) | (175,440) |
(Loss) income before income taxes | (1,245,679) | (2,258,387) | (14,652,000) | (4,877,387) |
Income tax expenses | (33,447) | (37,644) | (112,145) | (175,101) |
Net (loss) income | (1,279,126) | (2,296,031) | (14,764,145) | (5,052,488) |
Less: Net (loss) income attributable to non-controlling interest | (139,895) | (181,728) | ||
Net (loss) income attributable to common shareholders | (1,279,126) | (2,156,136) | (14,764,145) | (4,870,760) |
Net (loss) income | (1,279,126) | (2,296,031) | (14,764,145) | (5,052,488) |
Foreign currency translation adjustment | 164,227 | (1,713,581) | (620,519) | (3,565,463) |
Total comprehensive (loss) income | (1,114,899) | (4,009,612) | (15,384,664) | (8,617,951) |
Less: Comprehensive (loss) income attribute to non-controlling interest | (161,138) | (232,832) | ||
Comprehensive (loss) income attribute to common share holders | $ (1,114,899) | $ (3,848,474) | $ (15,384,664) | $ (8,385,119) |
(Loss) earnings per common share - basic (in Dollars per share) | $ (0.02) | $ (0.03) | $ (0.2) | $ (0.09) |
Basic weighted average shares outstanding (in Shares) | 72,081,930 | 69,708,304 | 72,081,930 | 55,335,606 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
(Loss) earnings per common share - diluted | $ (0.02) | $ (0.03) | $ (0.20) | $ (0.09) |
Diluted weighted average shares outstanding diluted | 72,081,930 | 69,708,304 | 72,081,930 | 55,335,606 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Non- Controlling Interests | Total |
Balance at Dec. 31, 2021 | $ 35,582 | $ 133,232,224 | $ (94,072,383) | $ 7,711,057 | $ 4,349,870 | $ 51,256,350 |
Balance (in Shares) at Dec. 31, 2021 | 35,581,930 | |||||
Net (loss) income | (4,870,760) | (181,728) | (5,052,488) | |||
Issuance of common stock for cash | $ 17,000 | 11,083,000 | 11,100,000 | |||
Issuance of common stock for cash (in Shares) | 17,000,000 | |||||
Issuance of shares for acquisition | $ 7,500 | 7,422,000 | 7,429,500 | |||
Issuance of shares for acquisition (in Shares) | 7,500,000 | |||||
Issuance of shares for long-term investment | $ 12,000 | 9,588,000 | 9,600,000 | |||
Issuance of shares for long-term investment (in Shares) | 12,000,000 | |||||
Acquiring non-controlling interests | (5,622,249) | (2,627,751) | (8,250,000) | |||
Foreign currency translation adjustment | (3,514,359) | (51,104) | (3,565,463) | |||
Balance at Sep. 30, 2022 | $ 72,082 | 155,702,975 | (98,943,143) | 4,196,698 | 1,489,287 | 62,517,899 |
Balance (in Shares) at Sep. 30, 2022 | 72,081,930 | |||||
Balance at Jun. 30, 2022 | $ 60,082 | 148,836,482 | (96,787,007) | 5,889,037 | 1,928,918 | 59,927,512 |
Balance (in Shares) at Jun. 30, 2022 | 60,081,930 | |||||
Net (loss) income | (2,156,136) | (139,895) | (2,296,031) | |||
Issuance of shares for long-term investment | $ 12,000 | 9,588,000 | 9,600,000 | |||
Issuance of shares for long-term investment (in Shares) | 12,000,000 | |||||
Acquiring non-controlling interests | (2,721,507) | (278,493) | (3,000,000) | |||
Foreign currency translation adjustment | (1,692,339) | (21,243) | (1,713,582) | |||
Balance at Sep. 30, 2022 | $ 72,082 | 155,702,975 | (98,943,143) | 4,196,698 | 1,489,287 | 62,517,899 |
Balance (in Shares) at Sep. 30, 2022 | 72,081,930 | |||||
Balance at Dec. 31, 2022 | $ 72,082 | 155,702,975 | (119,880,801) | 4,692,242 | 40,586,498 | |
Balance (in Shares) at Dec. 31, 2022 | 72,081,930 | |||||
Net (loss) income | (14,365,365) | (14,764,145) | ||||
Foreign currency translation adjustment | (620,519) | (620,519) | ||||
Balance at Sep. 30, 2023 | $ 72,082 | 155,702,975 | (134,246,166) | 4,071,723 | 25,201,834 | |
Balance (in Shares) at Sep. 30, 2023 | 72,081,930 | |||||
Balance at Jun. 30, 2023 | $ 72,082 | 155,702,975 | (133,365,820) | 3,907,496 | 26,316,733 | |
Balance (in Shares) at Jun. 30, 2023 | 72,081,930 | |||||
Net (loss) income | (1,279,126) | (1,279,126) | ||||
Foreign currency translation adjustment | 164,227 | 164,227 | ||||
Balance at Sep. 30, 2023 | $ 72,082 | $ 155,702,975 | $ (134,246,166) | $ 4,071,723 | $ 25,201,834 | |
Balance (in Shares) at Sep. 30, 2023 | 72,081,930 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPFRATING ACTIVITIFS: | ||
Net (loss) income | $ (14,764,145) | $ (5,052,488) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | ||
Depreciation | 1,531,932 | 716,964 |
Amortization | 140,790 | 56,931 |
Amortization of operating lease right-of-use assets | 377,332 | |
Impairment of equipment | (90,894) | |
Loss on disposal of equity investments | 10,848,632 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 142,602 | 2,020,575 |
Inventories | (1,072,128) | (420,971) |
Prepayments and deposit | (3,351,255) | 169,187 |
Other receivables | 39,975 | 221,050 |
Accounts payables | 9,041 | 880,486 |
Advance from customer | 2,067,118 | (1,559,954) |
Other payables and accruals | 273,793 | (7,437,104) |
Taxes payable | (94,936) | 184,151 |
Deferred income | (12,048) | (19,951) |
Lease liability | (253,347) | |
Net cash provided by (used in) operating activities | (4,240,629) | (10,208,033) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (70,931) | |
Purchase of long-term investment | (3,517,590) | |
Proceeds from disposal of equity method investments | 2,770,000 | |
Net increase in cash from acquisition subsidiaries | 246,322 | |
Net cash provided by (used) in investing activities | 2,699,069 | (3,271,268) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of short-term loan | (677,604) | |
Proceeds from long-term loans | (59,000) | |
Changes in related party balances, net | 1,586,688 | 892,112 |
Proceeds from issuance of common stock | 11,100,000 | |
Net cash provided by (used in) financing activities | 1,527,688 | 11,314,508 |
Net decrease in cash and cash equivalents | (13,872) | (2,164,792) |
EFFECT OF EXCHANGE RATE ON CASH | 233,885 | 1,344,480 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 93,487 | 1,131,408 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 313,500 | 311,095 |
SUPPLEMENTARY OF CASH FLOW INFORMATION | ||
Interest received | 668 | 9,231 |
Interest paid | 368,950 | 488,331 |
NON-CASH TRANSACTIONS | ||
Operating lease right-of-use assets | 233,671 | |
Issuance of shares for acquisition | $ 7,429,500 |
Organization and Principal Acti
Organization and Principal Activities | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities Planet Green Holdings Corp. (the “Company” or “PLAG”) is a holding company incorporated in Nevada. The Company are engaged in various businesses through our subsidiaries and variable interest entities. The accompanying unaudited condensed consolidated financial statements reflect the activities of Planet Green Holdings Corp. and each of the following entities: Attributable Place of equity Registered Name of Company incorporation interest % capital Promising Prospect BVI Limited The British Virgin Islands 100 $ 10,000 Promising Prospect HK Limited Hong Kong 100 1 Jiayi Technologies (Xianning) Co., Ltd. PRC 100 2,000,000 Fast Approach Inc. Canada 100 79 Shanghai Shuning Advertising Co., Ltd. (a subsidiary of Fast Approach) PRC 100 - Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. PRC 100 4,710,254 Xianning Bozhuang Tea Products Co., Ltd. PRC 100 6,277,922 Jilin Chuangyuan Chemical Co., Ltd. PRC VIE 9,280,493 Bless Chemical Co., Ltd. (a subsidiary of Shine Chemical) Hong Kong 100 10,000 Hubei Bryce Technology Co., Ltd. (a subsidiary of Bless Chemical) PRC 100 30,000,000 Shandong Yunchu Supply Chain Co., Ltd. PRC 100 5,000,000 Allinyson Ltd. The United States 100 100,000 Shine Chemical Co., Ltd. The British Virgin Islands 100 8,000 Guangzhou Haishi Technology Co., Ltd. PRC 100 156,250 Baokuan Technology (Hongkong) Limited Hong Kong 100 1,250 Management has eliminated all significant inter-company balances and transactions in preparing the accompanying consolidated financial statements. Ownership interests of subsidiaries that the Company does not wholly own are accounted for as non-controlling interests. On May 29, 2020, the Promising Prospect BVI Limited incorporated Lucky Sky Planet Green Holdings Co., Limited, a limited company incorporated in Hong Kong. On June 5, 2020, the Promising Prospect BVI Limited acquired all of the outstanding equity interests of Fast Approach Inc. It was incorporated under Canada’s laws and the operation of a demand-side platform targeting the Chinese education market in North America. On December 9, 2020, Lucky Sky Petrochemical Technology (Xianning) Co., Ltd. changed its name to Jiayi Technologies (Xianning) Co., Ltd. On March 9, 2021, Planet Green Holdings Corporation (Nevada) issued an aggregate of 3,300,000 shares of common stock of the Company to the equity holders of Jilin Chuangyuan Chemical Co., Ltd in exchange for the transfer of 75% of the equity interest of Jilin Chuangyuan Chemical Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. On July 15, 2021, Planet Green Holdings Corporation (Nevada) issued an aggregate of 4,800,000 shares of common stock of the Company to the equity holders of Anhui Ansheng Petrochemical Equipment Co., Ltd for the transfer to 66% of the equity interest if Anhui Ansheng Petrochemical Equipment Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. On August 1, 2021, Jiayi Technologies (Xianning) Co., Ltd. has terminated the VIE agreements with Xianning Bozhuang Tea Products Co., Ltd and acquired 100% equity of Xianning Bozhuang Tea Products Co., Ltd. As a result, Xianning Bozhuang Tea Products Co., Ltd has been wholly-owned subsidiaries of the Jiayi Technologies (Xianning) Co., Ltd. On August 3, 2021, the Planet Green Holding Corp has acquired 8,000,000 ordinary shares of the Shine Chemical Co., Ltd. As a result, Shine Chemical Co., Ltd, Bless Chemical Co., Ltd. and Hubei Bryce Technology Co., Ltd have been wholly-owned subsidiaries of the Planet Green Holding Corp. On September 1st, 2021, Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd has changed its major shareholder from Mr. Feng Chao to Hubei Bryce Technology Co., Ltd and Hubei Bryce Technology Co., Ltd has hold 85% shares of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd after the alteration of shareholders. On December 9, 2021, Planet Green Holdings Corporation (Nevada) issued an aggregate of 5,900,000 shares of common stock to the equity holders of Shandong Yunchu Supply Chain Co., Ltd for the transfer to 100% of the equity interest of Shandong Yunchu Supply Chain Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. On April 8, 2022, Planet Green Holdings Corporation (Nevada) issued an aggregate of 7,500,000 shares of common stock to the equity holders of Allinyson Ltd. for the acquisition of 100% of the equity interest of Allinyson Ltd. On September 14, 2022, Planet Green Holdings Corp. and Hubei Bulaisi Technology Co., Ltd. a subsidiary of the Company, entered into a Share Purchase Agreement with Xue Wang, a shareholder of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd., pursuant to which, among other things and subject to the terms and conditions contained therein, the Purchaser agreed to effect share purchase from the Seller of 15% of the outstanding equity interests of Jingshan, and the Company shall pay to the Seller an aggregate of U.S. $3,000,000 in exchange for 15% of the issued and outstanding shares. Before the closing of this Share Purchase transaction, the Company owns 85% equity interest of Jingshan through the Purchaser. On September 14, 2022, the Company closed the Share Purchase transaction. As of September 30, 2022, Hubei Bryce Technology Co., Ltd. has hold 100% shares of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. after the alteration of shareholders. Consolidation of Variable Interest Entity On March 9, 2021, through Jiayi Technologies (Xianning) Co., Ltd., formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd, the Company entered into exclusive VIE agreements (“VIE Agreements”) with Jilin Chuangyuan Chemical Co., Ltd, as well as their shareholders, which give the Company the ability to substantially influence those companies’ daily operations and financial affairs and appoint their senior executives. The Company is considered the primary beneficiary of these operating companies, and it consolidates their accounts as VIEs. On July 15, 2021 through Jiayi Technologies (Xianning) Co., Ltd., formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd, the Company entered into exclusive VIE agreements (“VIE Agreements”) with Anhui Ansheng Petrochemical Equipment Co., Ltd, as well as their shareholders, which give the Company the ability to substantially influence those companies’ daily operations and financial affairs and appoint their senior executives. The Company is considered the primary beneficiary of these operating companies, and it consolidates their accounts as VIEs. On December 16, 2022, Jiayi Technologies (Xianning) Co., Ltd terminated the VIE agreements with Xiaodong Cai and Anhui Ansheng Petrochemical Equipment Co., Ltd. Each of the VIE Agreements is described in detail below: Consultation and Service Agreement Under the Consultation and Service Agreement, WFOE has the exclusive right to provide consultation and services to the operating entities in China in business management, human resource, technology, and intellectual property rights. WFOE exclusively owns any intellectual property rights arising from the performance of this Consultation and Service Agreement. The service fees and payment terms can be amended by mutual agreement by the WFOE and operating companies based on the circumstances of the implementation of this agreement. The duration of the Consultation and Service Agreement is 30 years. WFOE may terminate this agreement at any time by giving 30 day’s prior written notice. Business Cooperation Agreement Pursuant to the Business Cooperation Agreement, WFOE has the exclusive right to provide complete technical support, business support, and related consulting services, including but not limited to specialized services, business consultations, equipment or property leasing, marketing consultancy, system integration, product research and development, and system maintenance. WFOE exclusively owns any intellectual property rights arising from the performance of this Business Cooperation Agreement. The rate of service fees may be adjusted based on the services rendered by WFOE in that month and the operational needs of the operating entities. The Business Cooperation Agreement shall maintain effective unless it was terminated or was compelled to release under applicable PRC laws and regulations. WFOE may terminate this Business Cooperation Agreement at any time by giving 30 day’s prior written notice. Equity Pledge Agreements According to the Equity Pledge Agreements among WFOE, operating entities, and each of operating entities’ shareholders, shareholders of the operating entities pledge all of their equity interests in the functional entities to WFOE to guarantee their performance of relevant obligations and indebtedness under the Technical Consultation and Service Agreement and other control agreements. Besides, shareholders of the operating entities are in the process of registering the equity pledge with the competent local authority. Equity Option Agreements According to the Equity Option Agreements, WFOE has the exclusive right to require each shareholder of the operating companies to fulfill and complete all approval and registration procedures required under PRC laws for WFOE to purchase or designate one or more persons to buy, each shareholder’s equity interests in the operating companies, once or at multiple times at any time in part or in whole at WFOE’s sole and absolute discretion. The purchase price shall be the lowest price allowed by PRC laws. The Equity Option Agreements shall remain effective until all the equity interest owned by each operating entity shareholder has been legally transferred to WFOE or its designee(s). Voting Rights Proxy Agreements According to the Voting Rights Proxy Agreements, each shareholder irrevocably appointed WFOE or WFOE’s designee to exercise all his or her rights as the shareholders of the operating entities under the Articles of Association of each operating entity, including but not limited to the power to exercise all shareholder’s voting rights concerning all matters to be discussed and voted in the shareholders’ meeting. The term of each Voting Rights Proxy Agreement is 20 years. WOFE has the right to extend each Voting Proxy Agreement by giving written notification. Based on the foregoing contractual arrangements, The Company consolidates the accounts of Xianning Bozhuang Tea Products Co., Ltd., Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. and Jilin Chuangyuan Chemical Co., Ltd. in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”), and Accounting Standards Codification (“ASC”) 810-10, Consolidation. Enterprise-wide disclosure The Company’s chief operating decision-makers (i.e. chief executive officer and her direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by business lines for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Based on qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, the Company considers itself to be operating within one reportable segment. Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern; however, the Company has incurred a net loss of $14,365,365 for the nine months ended September 30, 2023. As of September 30, 2023, the Company had an accumulated deficit of $134,246,166, cash and cash equivalents of $313,500, working capital deficit of $4,769,328; its net cash used in operating activities for the nine months ended September 30, 2023 was $4,240,629. These factors raise substantial doubt on the Company’s ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management’s plan for the Company’s continued existence is dependent upon management’s ability to execute the business plan, develop the plan to generate profit; additionally, Management may need to continue to rely on private placements or certain related parties to provide funding for investment, for working capital and general corporate purposes. If management is unable to execute its plan, the Company may become insolvent. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected through December 31, 2023 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on March 31, 2023. Use of Estimates The unaudited condensed consolidated financial statements preparation requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available when the calculations are made; however, actual results could differ materially from those estimates. Significant estimates required to be made by management include but are not limited to add accounts that use significant estimates, such as the allowance for estimated uncollectible receivables, realizability of advance to suppliers, inventory valuations, etc. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. As of September 30, 2023, the Company had cash and cash equivalents (including restricted cash) of $313,500 compared to $93,487 as of December 31, 2022. Accounts Receivables Accounts receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when the collection of the total amount is no longer probable. Bad debts are written off as incurred. Inventories Inventories consist of raw materials and finished goods, stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. Advances and Prepayments to Suppliers The Company makes an advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers, the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company typically applies a salvage value of 0% to 10%. The estimated useful lives of the plant and equipment are as follows: Buildings 20-40 years Landscaping, plant, and tree 30 years Machinery and equipment 1-10 years Motor vehicles 5-10 years Office equipment 5-20 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss is included in the Company’s results of operations. The costs of maintenance and repairs are recognized as incurred; significant renewals and betterments are capitalized. Intangible Assets Intangible assets are carried at cost less accumulated amortization. Amortization is provided over their useful lives, using the straight-line method. The estimated useful lives of the intangible assets are as follows: Land use rights 50 years Software licenses 2 years Trademarks 10 years Construction in Progress and Prepayments for Equipment Construction in progress and prepayments for equipment represent direct and indirect acquisition and construction costs for plants and fees of purchase and installation of related equipment. Amounts classified as construction in progress and prepayments for equipment are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Depreciation is not provided for assets classified in this account. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. The Company conducts an annual assessment of its goodwill for impairment. If the carrying value of its goodwill exceeds its fair value, then impairment has been incurred; accordingly, a charge to the Company’s operations results will be recognized during the period. Impairment losses on goodwill are not reversed. Fair value is generally determined using a discounted expected future cash flow analysis. Accounting for the Impairment of Long-lived Assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may become obsolete from a difference in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported lower the carrying amount or fair value fewer costs to selling. Statutory Reserves Statutory reserves refer to the amount appropriated from the net income following laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum equal to 50% of the enterprise’s PRC registered capital. Foreign Currency Translation The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates. Its revenues and expenses are translated at the average exchange rate during the period. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 09/30/2023 12/31/2022 09/30/2022 Period-end US$: CAD$ exchange rate 1.3406 1.3554 1.3631 Period-end US$: RMB exchange rate 7.1798 6.9646 7.0998 Period-end US$: HK exchange rate 7.8243 7.7967 7.8499 Period average US$: CAD$ exchange rate 1.3415 1.3012 1.2831 Period average US$: RMB exchange rate 7.0148 6.7261 6.6068 Period average US$: HK exchange rate 7.8335 7.831 7.8347 The RMB is not freely convertible into foreign currencies, and all foreign exchange transactions must be conducted through authorized financial institutions. Revenue Recognition The Company adopted ASC 606 “Revenue Recognition.” It recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services. The Company derives its revenues from selling explosion-proof skid-mounted refueling device, SF double-layer buried oil storage tank, high-grade synthetic fuel products, industrial formaldehyde solution, urea-formaldehyde pre-condensate (UFC), methylal, urea-formaldehyde glue for environment-friendly artificial board chemicals, food products like frozen fruits, beef & mutton products and vegetables and tea products. The Company applies the following five steps to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and; ● Recognize revenue as the performance obligation is satisfied. Advertising All advertising costs are expensed as incurred. Shipping and Handling All outbound shipping and handling costs are expensed as incurred. Research and Development All research and development costs are expensed as incurred. Retirement Benefits Retirement benefits in the form of mandatory government-sponsored defined contribution plans are charged to either expense as incurred or allocated to inventory as part of overhead. Stock-Based Compensation The Company records stock compensation expense for employees at fair value on the grant date and recognizes the expense one time because there is no employee’s requisite service period requirement. Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes”, accounts for income tax using an asset and liability approach and recognizes deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets. If it is more likely than not, these items will either expire before the Company can realize their benefits or uncertain future realization. Comprehensive Income The Company uses Financial Accounting Standards Board (“FASB”) ASC Topic 220, “Reporting Comprehensive Income.” Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. Net Loss per Share of Common Stock The Company computes earnings per share (“EPS”) following ASC Topic 260, “Earnings per share.” Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive impacts of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warranties are computed using the treasury stock method. Potentially anti-dilutive securities (i.e., those that increase income per share or decrease loss per share) are excluded from diluted EPS calculation. Fair Value Measurement The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities, and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosing the Company’s fair value of financial instruments. ASC Topic 825, “Financial Instruments,” defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and information that are observable for the asset or liability, either directly or indirectly, for substantially the financial instrument’s full term. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Long-term Investments Investments in entities over which the Company does not have significant influence are recorded as equity investments and are accounted for either at fair value with any changes recognized in net income, or for those without readily determinable fair values, at cost less impairment, adjusted for subsequent observable price changes. Under the equity method, the Company’s share of the post-acquisition profits or losses of equity investments is recognized in the Company’s unaudited condensed consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the Company’s condensed consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which the Company has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Commitments and Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The majority of these claims and proceedings related to or arise from commercial disputes. The Company first determine whether a loss from a claim is probable, and if it is reasonable to estimate the potential loss. The Company accrues costs associated with these matters when they become probable, and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Also, the Company disclose a range of possible losses, if a loss from a claim is probable but the amount of loss cannot be reasonably estimated, which is in line with the applicable requirements of Accounting Standard Codification 450. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. Recent Accounting Pronouncements, In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1st, 2020. The Company adopted this guidance on January 1, 2023. The adoption did not have significant impact on the Company’s unaudited condensed consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Variable Interest Entity (_VIE_
Variable Interest Entity (“VIE”) | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity (“VIE”) [Abstract] | |
Variable Interest Entity (“VIE”) | 3. Variable Interest Entity (“VIE”) A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. If any, the variable interest holder with a controlling financial interest in a VIE is deemed the primary beneficiary and must consolidate the VIE. PLAG WOFE is deemed to have the controlling financial interest and be the primary beneficiary of Jilin Chuangyuan Chemical Co., Ltd because it has both of the following characteristics: 1) The power to direct activities at Jilin Chuangyuan Chemical Co., Ltd that most significantly impact such entity’s economic performance, and 2) The obligation to absorb losses and the right to receive benefits from Jilin Chuangyuan Chemical Co., Ltd. that could potentially be significant to such entity. Under the Contractual Arrangements, Jilin Chuangyuan Chemical Co., Ltd. pay service fees equal to all of its net income to PLAG WFOE. At the same time, PLAG WFOE is obligated to absorb all of the Jilin Chuangyuan Chemical Co., Ltd.’s losses. The Contractual Arrangements are designed to operate Jilin Chuangyuan Chemical Co., Ltd. for the benefit of PLAG WFOE and ultimately, the Company. Accordingly, the accounts of Jilin Chuangyuan Chemical Co., Ltd. are consolidated in the accompanying consolidated financial statements. In addition, those financial positions and results of operations are included in the Company’s consolidated financial statements. The carrying amount of VIE’s consolidated assets and liabilities are as follows 9/30/2023 12/31/2022 Assets Current assets Cash and cash equivalents $ 16,558 $ 39,815 Accounts receivable, net 306,023 730,341 Inventories 734,503 947,466 Advances to suppliers 411,086 187,708 Other receivables 63,752 65,531 Inter-company receivable 1,532,076 1,579,416 Prepaid expenses 8,120 - Total current assets 3,072,118 3,550,277 Non-current assets Plant and equipment, net 8,109,038 9,115,598 Intangible assets, net 1,840,385 1,932,386 Construction in progress, net 20,335 20,963 Total non-current assets 9,969,758 11,068,947 Total assets $ 13,041,876 $ 14,619,224 Liabilities and Stockholders’ Equity Current liabilities Short-term bank loans $ 3,481,991 $ 3,589,582 Accounts payable 590,899 540,371 Advance from customers 126,156 14,395 Taxes payable (2,050 ) 18,005 Other payables and accrued liabilities 3,096,230 2,590,572 Intercompany Payable 2,990,418 3,082,819 Other payables-related parties 1,409,981 1,535,974 Long term payable-current portion 179,280 287,167 Deferred income 24,722 37,332 Total current liabilities 11,897,627 11,696,217 Non-current liabilities Long-term payables 278,559 244,245 Total non-current liabilities 278,559 244,245 Total Liabilities 12,176,186 11,940,462 Paid-in capital 9,280,493 9,280,493 Statutory Reserve 29,006 29,006 Accumulated deficit (7,549,428 ) (5,775,895 ) Accumulated other comprehensive income (894,381 ) (854,842 ) Total stockholders’ equity 865,6690 2,678,762 Total liabilities and stockholders’ equity $ 13,041,876 $ 14,619,224 The summarized operating results of the VIE’s are as follows: 09/30/2023 09/30/2022 Operating revenues $ 6,230,097 $ 12,579,725 Gross profit (77,816 ) 1,931,426 Income (loss) from operations (1,773,533 ) (1,053,978 ) Net income (loss) (1,773,533 ) (1,399,778 ) |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combination | 4. Business Combination Acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. On January 4, 2021, Planet Green Holdings Corporation (Nevada) and its wholly-owned subsidiary Jiayi Technologies (Xianning) Co., Ltd., formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd., entered into a series of VIE agreements with Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. and its equity holders to obtain control and become the primary beneficiary of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. The Company consolidated Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd.’s accounts as its VIE. According to the VIE agreements, Planet Green Holdings Corporation (Nevada) issued an aggregate of 2,200,000 shares of common stock of the Company to the equity holders of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. in exchange for the transfer of 85% of the equity interest of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. The Company’s acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. was accounted for as a business combination following ASC 805. The Company has allocated the purchase price of Jingshan Sanhe based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities taken at the acquisition date following the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as the acquisition date and considering several other available factors. Acquisition-related costs incurred for the acquisitions are not material and expensed as incurred in general and administrative expenses. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd.: Fair Value Cash $ 114,162 Accounts receivable, net - Inventories, net 584,119 Advances to suppliers 1,104,705 Other receivables 536,090 Right-of-use assets 1,044,933 Plant and equipment, net 3,867,906 Deferred tax assets 281,243 Goodwill 923,313 Total assets $ 8,456,471 Short-term loan – bank (440,522 ) Lease payable-current portion (406,376 ) Accounts payable (715,019 ) Advance from customers (627,128 ) Other payables and accrued liabilities (50,085 ) Lease payable-non current portion (818,446 ) Income taxes payable (217 ) Total liabilities (3,057,793 ) Noncontrolling interest (668,678 ) Net assets acquired $ 4,730,000 Approximately $0.92 million of goodwill arising from the acquisition consists mainly of synergies expected from combining the operations of the Company and Jingshan Sanhe. None of the goodwill is expected to be deductible for income tax purposes. Acquisition of Jilin Chuangyuan Chemical Co., Ltd. On March 9, 2021, the Company and its wholly-owned subsidiary Jiayi Technologies (Xianning) Co., Ltd, formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd., entered into a series of VIE agreements with Jilin Chuangyuan Chemical Co., Ltd and its equity holders to obtain control and become the primary beneficiary of Jilin Chuangyuan Chemical Co., Ltd. The Company consolidated Jilin Chuangyuan Chemical Co., Ltd’s accounts as its VIE. Under the VIE agreements, the Company issued an aggregate of 3,300,000 shares of common stock of the Company to the equity holders of Jilin Chuangyuan Chemical Co., Ltd in exchange for the transfer of 75% of the equity interest of Jilin Chuangyuan Chemical Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. The significant terms of these VIE agreements are summarized in “Note 2 - Summary of Significant Accounting Policies” above. The Company’s acquisition of Jilin Chuangyuan Chemical Co., Ltd was accounted for as a business combination following ASC 805. The Company has allocated the purchase price of Jilin Chuangyuan based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities taken at the acquisition date following the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and considering several other available factors. Acquisition-related costs incurred for the acquisitions are not material and expensed as incurred in general and administrative expenses. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Jilin Chuangyuan Chemical Co., Ltd. Fair Value Cash $ 95,237 Accounts receivable, net 868,874 Inventories, net 581,569 Advances to suppliers 388,349 Other receivables 123,969 Other receivables-RP 212,594 Plant and equipment, net 11,109,220 Intangible assets, net 2,149,910 Deferred tax assets 415,154 Goodwill 3,191,897 Total assets $ 19,136,773 Short-term loan – bank (3,826,934 ) Long term payable (1,162,355 ) Accounts payable (575,495 ) Advance from customers (291,655 ) Other payables and accrued liabilities (2,815,356 ) Other payables-RP (765,387 ) Income taxes payable (1,073 ) Total liabilities (9,438,255 ) Non controlling interest (1,613,518 ) Net assets acquired $ 8,085,000 Approximately $3.19 million of goodwill arising from the acquisition consists mainly of synergies expected from combining the operations of the Company and Jilin Chuangyuan Chemical Co., Ltd. None of the goodwill is expected to be deductible for income tax purposes. Acquisition of Shandong Yunchu Trading Co., Ltd. On December 9, 2021, the Company and its wholly-owned subsidiary Jiayi Technologies (Xianning) Co., Ltd, formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd., entered into a Share Exchange Agreement with Shandong Yunchu Supply Chain Co., Ltd, and each of shareholders of Shandong Yunchu Supply Chain Co., Ltd. The Company issued an aggregate of 5,900,000 shares of common stock to the equity holders of Shandong Yunchu Supply Chain Co., Ltd for the transfer to 100% of the equity interest of Shandong Yunchu Supply Chain Co., Ltd to the Jiayi Technologies (Xianning) Co., Ltd. The Company’s acquisition of Shandong Yunchu Supply Chain Co., Ltd was accounted for as a business combination following ASC 805. The Company has allocated the purchase price of Shandong Yunchu Supply Chain Co., Ltd based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities taken at the acquisition date following the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and considered several other available factors. Acquisition-related costs incurred for the acquisitions are not material and expensed as incurred in general and administrative expenses. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Shandong Yunchu Supply Chain Co., Ltd: Fair Value Cash and cash equivalents, and Restricted Cash $ 77,427 Trade receivable and Note receivable 780,556 Inventories - Related party receivable 86,448 Other current assets 4,899,559 Plant and equipment, net - Intangible assets, net - Goodwill 4,724,698 Total assets $ 10,568,688 Short-term loan-bank - Related party payable - Accounts payable (992,424 ) Other current liabilities (4,155,344 ) Total liabilities (5,147,768 ) Non-controlling interest - Net assets acquired $ 5,420,920 Approximately $4.72 million of goodwill arising from the acquisition consists mainly of synergies expected from combining the operations of the Company and Shandong Yunchu Supply Chain Co., Ltd. None of the goodwill is expected to be deductible for income tax purposes. Acquisition of Anhui Ansheng Petrochemical Equipment Co., Ltd. On July 15, 2021, the Company and its wholly-owned subsidiary Jiayi Technologies (Xianning) Co., Ltd., formerly known as Lucky Sky Petrochemical Technology (Xianning) Co., Ltd., entered into a series of VIE agreements with Anhui Ansheng Petrochemical Equipment Co., Ltd and its equity holders to obtain control and become the primary beneficiary of Anhui Ansheng Petrochemical Equipment Co., Ltd. The Company consolidated Anhui Ansheng Petrochemical Equipment Co., Ltd.’s accounts as its VIE. Under the VIE agreements, the Company issued an aggregate of 4,800,000 shares of common stock of the Company to the equity holders of Anhui Ansheng Petrochemical Equipment Co., Ltd. in exchange for the transfer of 66% of the equity interest of Anhui Ansheng Petrochemical Equipment Co., Ltd. to the Jiayi Technologies (Xianning) Co., Ltd. The significant terms of these VIE agreements are summarized in “Note 2 - Summary of Significant Accounting Policies” above. The Company’s acquisition of Anhui Ansheng Petrochemical Equipment Co., Ltd. was accounted for as a business combination following ASC 805. The Company has allocated the purchase price of Anhui Ansheng Petrochemical Equipment Co., Ltd. based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities taken at the acquisition date following the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed, and intangible assets identified as of the acquisition date and considered several other available factors. Acquisition-related costs incurred for the acquisitions are not material and expensed as incurred in general and administrative expenses. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Anhui Ansheng Petrochemical Equipment Co., Ltd. Fair Value Cash and cash equivalents, and Restricted Cash $ 288,122 Trade receivable and Note receivable 944,704 Inventories 3,236,008 Related party receivable 2,500,117 Other current assets 1,393,817 Plant and equipment, net 4,036,649 Intangible assets, net 635,738 Goodwill 10,263,937 Total assets $ 23,299,092 Short-term loan-bank (3,735,614 ) Related party payable (2,639,938 ) Accounts payable (1,966,099 ) Other current liabilities (3,902,896 ) Total liabilities (12,244,547 ) Non controlling interest (3,758,545 ) Net assets acquired $ 7,296,000 Approximately $10.26 million of goodwill arising from the acquisition consists mainly of synergies expected from combining the operations of the Company and Anhui Ansheng Petrochemical Equipment Co., Ltd. None of the goodwill is expected to be deductible for income tax purposes. On December 12, 2022, the Company disposed of the interest held of Anhui Ansheng Petrochemical Equipment Co., Ltd. Acquisition of Allinyson Ltd. On April 8, 2022, Planet Green Holdings Corp. (the “Company”) entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Allinyson Ltd., and each of shareholders of Allinyson Ltd. Allinyson Ltd. Allinyson Ltd. The Company’s acquisition of Allinyson Ltd. Allinyson Ltd. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Allinyson Ltd. Total consideration at fair value $ 7,429,500 Fair Value Cash and cash equivalents, and Restricted Cash $ 246,322 Trade receivable and Note receivable 372,538 Goodwill 7,193,965 Total assets $ 7,812,825 Related party payable (73,623 ) Accounts payable (273,000 ) Other current liabilities (36,702 ) Total liabilities (383,325 ) Net assets acquired $ 7,429,500 Approximately $7.19 million of goodwill arising from the acquisition consists mainly of synergies expected from combining the operations of the Company and Allinyson Ltd. |
Account Receivable, Net
Account Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Account Receivable, Net [Abstract] | |
Account Receivable, Net | 5. Account Receivable, Net The Company extends credit terms of 15 to 60 days to the majority of its domestic customers, which include third-party distributors, supermarkets, and wholesalers 09/30/2023 12/31/2022 Trade accounts receivable $ 3,126,670 $ 3,362,939 Less: Allowance for doubtful accounts (355,323 ) (366,301 ) $ 2,771,347 $ 2,996,638 Allowance for doubtful accounts Beginning balance: (366,301 ) (1,662,516 ) Additions to allowance 10,978 (64,899 ) Bad debt written-off - 1,361,114 Ending balance $ (355,323 ) $ (366,301 ) |
Advances and Prepayments to Sup
Advances and Prepayments to Suppliers | 9 Months Ended |
Sep. 30, 2023 | |
Advances and Prepayments to Suppliers [Abstract] | |
Advances and Prepayments to Suppliers | 6. Advances and Prepayments to Suppliers Prepayments include advance payment to suppliers and vendors to procure raw materials. Prepayments consist of the following: 09/30/2023 12/31/2022 Payment to suppliers and vendors $ 8,314,422 5,417,449 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
Inventories | 7. Inventories Inventories consisted of the following as of September 30, 2023 and December 31, 2022 09/30/2023 12/31/2022 Raw materials $ 1,799,788 $ 1,965,389 Inventory of supplies - - Work in progress 1,376,908 1,455,229 Finished goods 2,093,208 932,261 Allowance for inventory reserve (193,229 ) (199,199 ) Total $ 5,076,675 $ 4,153,680 |
Plant and Equipment
Plant and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Plant and Equipment [Abstract] | |
Plant and Equipment | 8. Plant and Equipment Plant and equipment consisted of the following as of September 30, 2023 and December 31, 2022: 09/30/2023 12/31/2022 At Cost: Buildings $ 19,339,471 $ 19,924,811 Machinery and equipment 11,024,151 11,322,085 Office equipment 747,349 765,413 Motor vehicles 1,421,308 1,465,225 32,532,279 33,477,534 Less : Impairment (736,446 ) (759,201 ) Less : Accumulated depreciation (11,341,936 ) (10,149,207 ) 20,453,897 22,569,125 Construction in progress 43,622 33,260 $ 20,497,519 $ 22,602,385 Depreciation expense for the nine months ended September 30, 2023 and 2022 was $1,531,932 and $716,964, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
Intangible Assets | 9. Intangible Assets 09/30/2023 12/31/2022 At Cost: Land use rights 2,960,275 3,051,744 Software licenses 67,534 67,464 Trademark 889,478 916,963 $ 3,917,287 $ 4,036,171 Less: Accumulated amortization (1,076,641 ) (966,000 ) Net intangible assets $ 2,840,646 $ 3,070,171 Amortization expense for the nine months ended September 30, 2023 and 2022 was $140,790 and $56,931 respectively. |
Long-Term Investment
Long-Term Investment | 9 Months Ended |
Sep. 30, 2023 | |
Long-term Investment [Abstract] | |
Long-term Investment | 10. Long-term Investment The Company entered into an investment agreement with Xianning Xiangtian Energy Holdings Group Co., Ltd. to acquire 40% of the equity interests in the company, with total consideration of $13.62 million, which was paid in 2022. The investment was accounted for under the equity method because the Company can exercise significant influence over the company as the investee but does not own a majority of the equity interests in or control the company. On June 27, 2023, the investment which the balance was $13.62 million, was completely disposed of with a total consideration of $2.77 million, resulting in the total loss of $10.85 million. In September 2019, the Company made an initial investment of $2.91 million in return for a limited partner interest in Shandong Ningwei New Energy Technology Co., Ltd. The Company accounted for the investment using the cost method, as the investment did not have a readily determinable fair value. As of September 30, 2023 and December 31, 2022, the balance of long term investment was $2,785,593 and $16,488,157. |
Other Payable
Other Payable | 9 Months Ended |
Sep. 30, 2023 | |
Other Payable [Abstract] | |
Other Payable | 11. Other Payable As of September 30, 2023 and December 31, 2022, the balance of other payable was $4,545,063 and $4,412,833. Other payables – third parties are those non-trade payables arising from transactions between the Company and certain third parties. |
Advance From Customer
Advance From Customer | 9 Months Ended |
Sep. 30, 2023 | |
Advance From Customer [Abstract] | |
Advance From Customer | 12. Advance from Customer For our operation, the proceeds received from sales are initially recorded as advances from customers, which was usually related to unsatisfied performance obligations at the end of an applicable reporting period. As of September 30, 2023, and December 31, 2022, the outstanding balance of the advance from customers was $4,677,016 and $2,624,070 respectively. Due to the generally short-term duration of the relevant contracts, most of the performance obligations are satisfied in the following reporting period. |
Related Parties Transaction
Related Parties Transaction | 9 Months Ended |
Sep. 30, 2023 | |
Related Parties Transaction [Abstract] | |
Related Parties Transaction | 13. Related Parties Transaction As of September 30, 2023 and December 31, 2022, the outstanding balance due from related parties was $769,427 and $180,578, respectively. Significant related parties comprised much of the total outstanding balance as of September 30, 2023 are stated below: The outstanding balance of $293,087 was due from Mr. Chen Xing, the management of the Shandong Yunchu; The outstanding balance of $455,117 was due from Mr. Bin Zhou, Chief Executive Officer and Chairman of the Company; The outstanding balance of $21,223 was due from Mr. Lu Jun, the management of the Jingshan Sanhe. These above nontrade receivables arising from transactions between the Company and certain related parties, such as loans to these related parties. These loans are unsecured, non-interest bearing and due on demand. As of September 30, 2023 and December 31, 2022, the outstanding balance due to related parties was $6,357,043 and $4,412,833, respectively. Significant parties comprised much of the total outstanding balance as of September 30, 2023 are stated below: The outstanding balance of $1,177,765 was due to Anhui Ansheng Petrochemical Equipment Co. Ltd., a former subsidiary of the company. The outstanding balance of $1,082,203 was due to Ms. Yan Yan, the spouse of the legal representative of Jilin Chuangyuan Chemical Co., Ltd.; The outstanding balance of $959,839 was due to Mr. Bin Zhou, Chief Executive Officer and Chairman of the Company; The outstanding balance of $1,143,507 was due to a couple of executives of the subsidiaries of the Company; The balance was advanced for working capital of the Company, non-interest bearing, and unsecured unless further disclosed. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Goodwill | 14. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries and VIEs. If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. The changes in the carrying amount of goodwill by entities are as follows : Ansheng Baokuan JLCY SDYC Balance as of December 31, 2021 $ 1,026,337 $ - $ 3,191,897 $ 4,724,698 Goodwill acquired - 7,193,965 - - Goodwill impairment - (7,193,965 ) (3,191,897 ) - Disposal of subsidiaries (1,026,337 ) - - - Balance as of December 31, 2022 $ - $ - $ - $ 4,724,698 Goodwill acquired - - - - Goodwill impairment - - - - Balance as of September 30, 2023 $ - $ - $ - $ 4,724,698 |
Bank Loans
Bank Loans | 9 Months Ended |
Sep. 30, 2023 | |
Bank Loans [Abstract] | |
Bank Loans | 15. Bank Loans The outstanding balances on bank loans consisted of the following: Weighted average Lender Maturities interest rate 09/30/2023 12/31/2022 Rural Credit Cooperatives of Jilin Province, Jilin Branch Due in November 2023 7.83 % 3,481,991 3,589,582 Tonghua Dongchang Yuyin Village Bank Co., LTD Due in June 2025 8.00 % 278,559 287,167 Buildings and land use rights in the amount of $10,178,520 are used as collateral for Jiling Branch. The short-term bank loan which is denominated in Renminbi was primarily obtained for general working capital. The loan from Tonghua Dongchang Yuyin Village Bank, as a three-year long-term debt, was denominated in Renminbi and was primarily obtained for general working capital. On June 15, 2022, Mr. Chen Yongsheng and Mr. Cai Xiaodong pledged 28,465,000 stocks of Jilin Chuangyuan Chemical Co., Ltd. to the pledgee-Tonghua Dongchang Yuyin Village Bank. As the pledgee, Tonghua Dongchang Yuyin Village Bank shall have custody of these stocks, which accounted for approximately 71.43% of the total share during the entire Term of Pledge set forth in this Agreement. As of September 30, 2022, the Company completed the finance with equity in pledge. Interest expense for the nine months ended September 30, 2023 and 2022 was $ 221,193 and $488,331 respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | 16. Equity As of December 31, 2021, there were 35,581,930 shares of common stock outstanding. On January 13, 2022, the Company entered into a Securities Purchase Agreement, pursuant to which three individuals residing in the People’s Republic of China agreed to purchase an aggregate of 7,000,000 shares of the Company’s common stock, par value $0.001 per share, for an aggregate purchase price of $7,000,000, representing a purchase price of $1.00 per Share. On April 8, 2022, Planet Green Holdings Corporation (Nevada) issued an aggregate of 7,500,000 shares of common stock to the equity holders of Allinyson Ltd. for the acquisition of 100% of the equity interest of Allinyson Ltd. On May 19, 2022, the Company entered into a Securities Purchase Agreement, pursuant to which two investors agreed to purchase an aggregate of 10,000,000 shares of the Company’s common stock, par value $0.001 per share, for an aggregate purchase price of $4,100,000, representing a purchase price of $0.41 per Share. On July 20, 2022, the Company acquired 30% equity interest of the Xianning Xiangtian Energy Holdings Group Co., Ltd. and the Company issued 12,000,000 shares of common stock to the Sellers. As of September 30, 2023, there were 72,081,930 shares of common stock outstanding. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 17. Income Taxes United States On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 34% to 21%. As the Company has a December 31 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of 21% for the Company’s fiscal year ending December 31, 2022 and 2021, respectively. Accordingly, the Company has remeasured the Company’s deferred tax assets on net operating loss carryforwards (“NOLs”) in the U.S at the lower enacted cooperated tax rate of 21%. However, this remeasurement has no effect on the Company’s income tax expenses as the Company has provided a 100% valuation allowance on its deferred tax assets previously. Additionally, the Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused the Company to remeasure all U.S. deferred income tax assets and liabilities for temporary differences and NOLs and recorded one time income tax payable to be paid in 8 years. However, this one-time transition tax has no effect on the Company’s income tax expenses as the Company has no undistributed foreign earnings prior to September 30, 2023 which the Company has foreign cumulative losses at September 30, 2023. British Virgin Islands Planet Green Holdings Corporation BVI is incorporated in the British Virgin Islands and is not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong Lucky Sky Planet Green Holdings Co., Limited (H.K.) is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, Lucky Sky Planet Green Holdings Co., Limited (H.K.) is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC The Company PRC subsidiaries and VIEs and their controlled entities are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC, Chinese enterprises are subject to income tax at a rate of 25% after appropriate tax adjustments. Significant components of the income tax expense consisted of the following for the three months ended September 30, 2023 and 2022: All of the Company’s continuing operations are located in the PRC. The corporate income tax rate in the PRC is 25%. The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the nine months ended September 30, 2023 and 2022: 09/30/2023 09/30/2022 Loss attributed to PRC operations $ (3,203,789 ) $ (3,006,160 ) Loss attributed to U.S. operations (11,483,446 ) (1,162,736 ) Loss attributed to Canada operations 35,235 (277,383 ) Income attributed to BVI & Hong Kong operations - (431,108 ) Loss before tax $ (14,652,000 ) $ (4,877,387 ) PRC Statutory Tax at 25% Rate (800,947 ) (751,540 ) Effect of tax exemption granted - - Valuation allowance 913,092 926,641 Income tax $ 112,145 $ 175,101 Per Share Effect of Tax Exemption Effect of tax exemption granted $ - $ - Weighted-Average Shares Outstanding Basic 72,081,930 55,335,606 Per share effect $ - $ - The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows as of September 30, 2023 and 2022: 09/30/2023 09/30/2022 U.S. federal statutory income tax rate 21 % 21 % Higher (lower) rates in PRC, net 4 % 4 % Non-recognized deferred tax benefits in the PRC (25.77 )% (21.40 )% The Company’s effective tax rate (0.77 )% (0.04 )% |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings/(Loss) Per Share [Abstract] | |
Earnings/(Loss) Per Share | 18. Earnings/(Loss) Per Share Components of basic and diluted earnings per share were as follows: For the nine months ended September 30, 2023 2022 Loss from operations attributable to common stockholders $ (14,764,145 ) $ (4,870,760 ) Basic and diluted (loss) earnings per share denominator: Original Shares at the beginning: 72,081,930 35,581,930 Additions from Actual Events – issuance of common stock for cash - 11,680,147 Additions from Actual Events – issuance of common stock for acquisition - 4,852,941 Additions from Actual Events – issuance of common stock for investment - 3,220,588 Basic Weighted Average Shares Outstanding 72,081,930 55,335,606 (Loss) income per common shareholders - Basic and diluted $ (0.20 ) $ (0.09 ) Basic and diluted weighted average shares outstanding 72,081,930 55,335,606 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2023 | |
Concentrations [Abstract] | |
Concentrations | 19. Concentrations Customers Concentrations: The following table sets forth information about each customer that accounted for 10% or more of the Company’s revenues for the nine months ended September 30, 2023 and 2022. For the period ended Customers 30-September-23 30-September-22 Amount $ % Amount $ % A 2,868,854 20 - - B 1,814,561 13 - - C 1,385,955 10 - - Suppliers Concentrations The following table sets forth information about each supplier that accounted for 10% or more of the Company’s purchase for the nine months ended September 30, 2023 and 2022. For the period ended Suppliers 30- September -23 30- September -22 Amount $ % Amount $ % A 4,369,675 30 8,857,285 21 B 2,309,332 16 6,281,237 15 C 1,961,289 13 6,161,585 15 D 1,628,062 11 5,752,312 14 |
Risks
Risks | 9 Months Ended |
Sep. 30, 2023 | |
Risks [Abstract] | |
Risks | 20. Risks A. Credit risk The Company’s deposits are made with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss of the banks become insolvent. Since the Company’s inception, the age of account receivables has been less than one year, indicating that the Company is subject to the minimal risk borne from credit extended to customers. B. Interest risk The Company is subject to interest rate risk when short-term loans become due and require refinancing. C. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On October 10, 2023, Planet Green Holdings Corp. announced that its subsidiary Allinyson Ltd. has achieved a one-year-term groundbreaking strategic partnership with MetaMind AI Limited (“MetaMind”), aiming to revolutionize the landscape of artificial intelligence (AI) technology services. This collaboration, established through a Cooperation Agreement, is set to drive innovation and propel both companies into the forefront of the AI industry. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected through December 31, 2023 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on March 31, 2023. |
Use of Estimates | Use of Estimates The unaudited condensed consolidated financial statements preparation requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available when the calculations are made; however, actual results could differ materially from those estimates. Significant estimates required to be made by management include but are not limited to add accounts that use significant estimates, such as the allowance for estimated uncollectible receivables, realizability of advance to suppliers, inventory valuations, etc. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. As of September 30, 2023, the Company had cash and cash equivalents (including restricted cash) of $313,500 compared to $93,487 as of December 31, 2022. |
Accounts Receivables | Accounts Receivables Accounts receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when the collection of the total amount is no longer probable. Bad debts are written off as incurred. |
Inventories | Inventories Inventories consist of raw materials and finished goods, stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. |
Advances and Prepayments to Suppliers | Advances and Prepayments to Suppliers The Company makes an advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers, the applicable amount is reclassified from advances and prepayments to suppliers to inventory. |
Plant and Equipment | Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. The Company typically applies a salvage value of 0% to 10%. The estimated useful lives of the plant and equipment are as follows: Buildings 20-40 years Landscaping, plant, and tree 30 years Machinery and equipment 1-10 years Motor vehicles 5-10 years Office equipment 5-20 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss is included in the Company’s results of operations. The costs of maintenance and repairs are recognized as incurred; significant renewals and betterments are capitalized. |
Intangible Assets | Intangible Assets Intangible assets are carried at cost less accumulated amortization. Amortization is provided over their useful lives, using the straight-line method. The estimated useful lives of the intangible assets are as follows: Land use rights 50 years Software licenses 2 years Trademarks 10 years |
Construction in Progress and Prepayments for Equipment | Construction in Progress and Prepayments for Equipment Construction in progress and prepayments for equipment represent direct and indirect acquisition and construction costs for plants and fees of purchase and installation of related equipment. Amounts classified as construction in progress and prepayments for equipment are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Depreciation is not provided for assets classified in this account. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. The Company conducts an annual assessment of its goodwill for impairment. If the carrying value of its goodwill exceeds its fair value, then impairment has been incurred; accordingly, a charge to the Company’s operations results will be recognized during the period. Impairment losses on goodwill are not reversed. Fair value is generally determined using a discounted expected future cash flow analysis. |
Accounting for the Impairment of Long-lived Assets | Accounting for the Impairment of Long-lived Assets The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may become obsolete from a difference in the industry, introduction of new technologies, or if the Company has inadequate working capital to utilize the long-lived assets to generate adequate profits. Impairment is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported lower the carrying amount or fair value fewer costs to selling. |
Statutory Reserves | Statutory Reserves Statutory reserves refer to the amount appropriated from the net income following laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum equal to 50% of the enterprise’s PRC registered capital. |
Foreign Currency Translation | Foreign Currency Translation The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates. Its revenues and expenses are translated at the average exchange rate during the period. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 09/30/2023 12/31/2022 09/30/2022 Period-end US$: CAD$ exchange rate 1.3406 1.3554 1.3631 Period-end US$: RMB exchange rate 7.1798 6.9646 7.0998 Period-end US$: HK exchange rate 7.8243 7.7967 7.8499 Period average US$: CAD$ exchange rate 1.3415 1.3012 1.2831 Period average US$: RMB exchange rate 7.0148 6.7261 6.6068 Period average US$: HK exchange rate 7.8335 7.831 7.8347 The RMB is not freely convertible into foreign currencies, and all foreign exchange transactions must be conducted through authorized financial institutions. |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606 “Revenue Recognition.” It recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services. The Company derives its revenues from selling explosion-proof skid-mounted refueling device, SF double-layer buried oil storage tank, high-grade synthetic fuel products, industrial formaldehyde solution, urea-formaldehyde pre-condensate (UFC), methylal, urea-formaldehyde glue for environment-friendly artificial board chemicals, food products like frozen fruits, beef & mutton products and vegetables and tea products. The Company applies the following five steps to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and; ● Recognize revenue as the performance obligation is satisfied. |
Advertising | Advertising All advertising costs are expensed as incurred. |
Shipping and Handling | Shipping and Handling All outbound shipping and handling costs are expensed as incurred. |
Research and Development | Research and Development All research and development costs are expensed as incurred. |
Retirement Benefits | Retirement Benefits Retirement benefits in the form of mandatory government-sponsored defined contribution plans are charged to either expense as incurred or allocated to inventory as part of overhead. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock compensation expense for employees at fair value on the grant date and recognizes the expense one time because there is no employee’s requisite service period requirement. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes”, accounts for income tax using an asset and liability approach and recognizes deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets. If it is more likely than not, these items will either expire before the Company can realize their benefits or uncertain future realization. |
Comprehensive Income | Comprehensive Income The Company uses Financial Accounting Standards Board (“FASB”) ASC Topic 220, “Reporting Comprehensive Income.” Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders due to investments by stockholders. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock The Company computes earnings per share (“EPS”) following ASC Topic 260, “Earnings per share.” Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis from the potential conversion of convertible securities or the exercise of options and or warrants; the dilutive impacts of potentially convertible securities are calculated using the as-if method; the potentially dilutive effect of options or warranties are computed using the treasury stock method. Potentially anti-dilutive securities (i.e., those that increase income per share or decrease loss per share) are excluded from diluted EPS calculation. |
Fair Value Measurement | Fair Value Measurement The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities, and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosing the Company’s fair value of financial instruments. ASC Topic 825, “Financial Instruments,” defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and information that are observable for the asset or liability, either directly or indirectly, for substantially the financial instrument’s full term. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Long-term Investments | Long-term Investments Investments in entities over which the Company does not have significant influence are recorded as equity investments and are accounted for either at fair value with any changes recognized in net income, or for those without readily determinable fair values, at cost less impairment, adjusted for subsequent observable price changes. Under the equity method, the Company’s share of the post-acquisition profits or losses of equity investments is recognized in the Company’s unaudited condensed consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the Company’s condensed consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which the Company has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The majority of these claims and proceedings related to or arise from commercial disputes. The Company first determine whether a loss from a claim is probable, and if it is reasonable to estimate the potential loss. The Company accrues costs associated with these matters when they become probable, and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Also, the Company disclose a range of possible losses, if a loss from a claim is probable but the amount of loss cannot be reasonably estimated, which is in line with the applicable requirements of Accounting Standard Codification 450. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements, In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1st, 2020. The Company adopted this guidance on January 1, 2023. The adoption did not have significant impact on the Company’s unaudited condensed consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Consolidated Financial Statements | The accompanying unaudited condensed consolidated financial statements reflect the activities of Planet Green Holdings Corp. and each of the following entities: Attributable Place of equity Registered Name of Company incorporation interest % capital Promising Prospect BVI Limited The British Virgin Islands 100 $ 10,000 Promising Prospect HK Limited Hong Kong 100 1 Jiayi Technologies (Xianning) Co., Ltd. PRC 100 2,000,000 Fast Approach Inc. Canada 100 79 Shanghai Shuning Advertising Co., Ltd. (a subsidiary of Fast Approach) PRC 100 - Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. PRC 100 4,710,254 Xianning Bozhuang Tea Products Co., Ltd. PRC 100 6,277,922 Jilin Chuangyuan Chemical Co., Ltd. PRC VIE 9,280,493 Bless Chemical Co., Ltd. (a subsidiary of Shine Chemical) Hong Kong 100 10,000 Hubei Bryce Technology Co., Ltd. (a subsidiary of Bless Chemical) PRC 100 30,000,000 Shandong Yunchu Supply Chain Co., Ltd. PRC 100 5,000,000 Allinyson Ltd. The United States 100 100,000 Shine Chemical Co., Ltd. The British Virgin Islands 100 8,000 Guangzhou Haishi Technology Co., Ltd. PRC 100 156,250 Baokuan Technology (Hongkong) Limited Hong Kong 100 1,250 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Live | The estimated useful lives of the plant and equipment are as follows: Buildings 20-40 years Landscaping, plant, and tree 30 years Machinery and equipment 1-10 years Motor vehicles 5-10 years Office equipment 5-20 years |
Schedule of Intangible Assets | Intangible assets are carried at cost less accumulated amortization. Amortization is provided over their useful lives, using the straight-line method. The estimated useful lives of the intangible assets are as follows: Land use rights 50 years Software licenses 2 years Trademarks 10 years |
Schedule of Average Exchange Rates | Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 09/30/2023 12/31/2022 09/30/2022 Period-end US$: CAD$ exchange rate 1.3406 1.3554 1.3631 Period-end US$: RMB exchange rate 7.1798 6.9646 7.0998 Period-end US$: HK exchange rate 7.8243 7.7967 7.8499 Period average US$: CAD$ exchange rate 1.3415 1.3012 1.2831 Period average US$: RMB exchange rate 7.0148 6.7261 6.6068 Period average US$: HK exchange rate 7.8335 7.831 7.8347 |
Variable Interest Entity (_VI_2
Variable Interest Entity (“VIE”) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity (“VIE”) [Abstract] | |
Schedule of Carrying Amount of VIE's Consolidated Assets and Liabilities | The carrying amount of VIE’s consolidated assets and liabilities are as follows 9/30/2023 12/31/2022 Assets Current assets Cash and cash equivalents $ 16,558 $ 39,815 Accounts receivable, net 306,023 730,341 Inventories 734,503 947,466 Advances to suppliers 411,086 187,708 Other receivables 63,752 65,531 Inter-company receivable 1,532,076 1,579,416 Prepaid expenses 8,120 - Total current assets 3,072,118 3,550,277 Non-current assets Plant and equipment, net 8,109,038 9,115,598 Intangible assets, net 1,840,385 1,932,386 Construction in progress, net 20,335 20,963 Total non-current assets 9,969,758 11,068,947 Total assets $ 13,041,876 $ 14,619,224 Liabilities and Stockholders’ Equity Current liabilities Short-term bank loans $ 3,481,991 $ 3,589,582 Accounts payable 590,899 540,371 Advance from customers 126,156 14,395 Taxes payable (2,050 ) 18,005 Other payables and accrued liabilities 3,096,230 2,590,572 Intercompany Payable 2,990,418 3,082,819 Other payables-related parties 1,409,981 1,535,974 Long term payable-current portion 179,280 287,167 Deferred income 24,722 37,332 Total current liabilities 11,897,627 11,696,217 Non-current liabilities Long-term payables 278,559 244,245 Total non-current liabilities 278,559 244,245 Total Liabilities 12,176,186 11,940,462 Paid-in capital 9,280,493 9,280,493 Statutory Reserve 29,006 29,006 Accumulated deficit (7,549,428 ) (5,775,895 ) Accumulated other comprehensive income (894,381 ) (854,842 ) Total stockholders’ equity 865,6690 2,678,762 Total liabilities and stockholders’ equity $ 13,041,876 $ 14,619,224 |
Schedule of Summarized Operating Results of the VIE’s | The summarized operating results of the VIE’s are as follows: 09/30/2023 09/30/2022 Operating revenues $ 6,230,097 $ 12,579,725 Gross profit (77,816 ) 1,931,426 Income (loss) from operations (1,773,533 ) (1,053,978 ) Net income (loss) (1,773,533 ) (1,399,778 ) |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd.: Fair Value Cash $ 114,162 Accounts receivable, net - Inventories, net 584,119 Advances to suppliers 1,104,705 Other receivables 536,090 Right-of-use assets 1,044,933 Plant and equipment, net 3,867,906 Deferred tax assets 281,243 Goodwill 923,313 Total assets $ 8,456,471 Short-term loan – bank (440,522 ) Lease payable-current portion (406,376 ) Accounts payable (715,019 ) Advance from customers (627,128 ) Other payables and accrued liabilities (50,085 ) Lease payable-non current portion (818,446 ) Income taxes payable (217 ) Total liabilities (3,057,793 ) Noncontrolling interest (668,678 ) Net assets acquired $ 4,730,000 |
Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed Acquisition of Jilin Chuangyuan Chemical Co., Ltd | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Jilin Chuangyuan Chemical Co., Ltd. Fair Value Cash $ 95,237 Accounts receivable, net 868,874 Inventories, net 581,569 Advances to suppliers 388,349 Other receivables 123,969 Other receivables-RP 212,594 Plant and equipment, net 11,109,220 Intangible assets, net 2,149,910 Deferred tax assets 415,154 Goodwill 3,191,897 Total assets $ 19,136,773 Short-term loan – bank (3,826,934 ) Long term payable (1,162,355 ) Accounts payable (575,495 ) Advance from customers (291,655 ) Other payables and accrued liabilities (2,815,356 ) Other payables-RP (765,387 ) Income taxes payable (1,073 ) Total liabilities (9,438,255 ) Non controlling interest (1,613,518 ) Net assets acquired $ 8,085,000 |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition of Shandong Yunchu Trading Co Ltd | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Shandong Yunchu Supply Chain Co., Ltd: Fair Value Cash and cash equivalents, and Restricted Cash $ 77,427 Trade receivable and Note receivable 780,556 Inventories - Related party receivable 86,448 Other current assets 4,899,559 Plant and equipment, net - Intangible assets, net - Goodwill 4,724,698 Total assets $ 10,568,688 Short-term loan-bank - Related party payable - Accounts payable (992,424 ) Other current liabilities (4,155,344 ) Total liabilities (5,147,768 ) Non-controlling interest - Net assets acquired $ 5,420,920 |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Anhui Ansheng Petrochemical Equipment Co., Ltd | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Anhui Ansheng Petrochemical Equipment Co., Ltd. Fair Value Cash and cash equivalents, and Restricted Cash $ 288,122 Trade receivable and Note receivable 944,704 Inventories 3,236,008 Related party receivable 2,500,117 Other current assets 1,393,817 Plant and equipment, net 4,036,649 Intangible assets, net 635,738 Goodwill 10,263,937 Total assets $ 23,299,092 Short-term loan-bank (3,735,614 ) Related party payable (2,639,938 ) Accounts payable (1,966,099 ) Other current liabilities (3,902,896 ) Total liabilities (12,244,547 ) Non controlling interest (3,758,545 ) Net assets acquired $ 7,296,000 |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Acquisition of Allinyson Ltd | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition of Allinyson Ltd. Fair Value Cash and cash equivalents, and Restricted Cash $ 246,322 Trade receivable and Note receivable 372,538 Goodwill 7,193,965 Total assets $ 7,812,825 Related party payable (73,623 ) Accounts payable (273,000 ) Other current liabilities (36,702 ) Total liabilities (383,325 ) Net assets acquired $ 7,429,500 |
Account Receivable, Net (Tables
Account Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Account Receivable, Net [Abstract] | |
Schedule of Trade Accounts Receivable | The Company extends credit terms of 15 to 60 days to the majority of its domestic customers, which include third-party distributors, supermarkets, and wholesalers 09/30/2023 12/31/2022 Trade accounts receivable $ 3,126,670 $ 3,362,939 Less: Allowance for doubtful accounts (355,323 ) (366,301 ) $ 2,771,347 $ 2,996,638 Allowance for doubtful accounts Beginning balance: (366,301 ) (1,662,516 ) Additions to allowance 10,978 (64,899 ) Bad debt written-off - 1,361,114 Ending balance $ (355,323 ) $ (366,301 ) |
Advances and Prepayments to S_2
Advances and Prepayments to Suppliers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Advances and Prepayments to Suppliers [Abstract] | |
Schedule of Advance Payment to Suppliers and Vendors to Procure Raw Materials | Prepayments include advance payment to suppliers and vendors to procure raw materials. Prepayments consist of the following: 09/30/2023 12/31/2022 Payment to suppliers and vendors $ 8,314,422 5,417,449 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of September 30, 2023 and December 31, 2022 09/30/2023 12/31/2022 Raw materials $ 1,799,788 $ 1,965,389 Inventory of supplies - - Work in progress 1,376,908 1,455,229 Finished goods 2,093,208 932,261 Allowance for inventory reserve (193,229 ) (199,199 ) Total $ 5,076,675 $ 4,153,680 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Plant and Equipment [Abstract] | |
Schedule of Plant and Equipment | Plant and equipment consisted of the following as of September 30, 2023 and December 31, 2022: 09/30/2023 12/31/2022 At Cost: Buildings $ 19,339,471 $ 19,924,811 Machinery and equipment 11,024,151 11,322,085 Office equipment 747,349 765,413 Motor vehicles 1,421,308 1,465,225 32,532,279 33,477,534 Less : Impairment (736,446 ) (759,201 ) Less : Accumulated depreciation (11,341,936 ) (10,149,207 ) 20,453,897 22,569,125 Construction in progress 43,622 33,260 $ 20,497,519 $ 22,602,385 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | 9. Intangible Assets 09/30/2023 12/31/2022 At Cost: Land use rights 2,960,275 3,051,744 Software licenses 67,534 67,464 Trademark 889,478 916,963 $ 3,917,287 $ 4,036,171 Less: Accumulated amortization (1,076,641 ) (966,000 ) Net intangible assets $ 2,840,646 $ 3,070,171 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by entities are as follows : Ansheng Baokuan JLCY SDYC Balance as of December 31, 2021 $ 1,026,337 $ - $ 3,191,897 $ 4,724,698 Goodwill acquired - 7,193,965 - - Goodwill impairment - (7,193,965 ) (3,191,897 ) - Disposal of subsidiaries (1,026,337 ) - - - Balance as of December 31, 2022 $ - $ - $ - $ 4,724,698 Goodwill acquired - - - - Goodwill impairment - - - - Balance as of September 30, 2023 $ - $ - $ - $ 4,724,698 |
Bank Loans (Tables)
Bank Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Bank Loans [Abstract] | |
Schedule of Short-Term Bank Loans | The outstanding balances on bank loans consisted of the following: Weighted average Lender Maturities interest rate 09/30/2023 12/31/2022 Rural Credit Cooperatives of Jilin Province, Jilin Branch Due in November 2023 7.83 % 3,481,991 3,589,582 Tonghua Dongchang Yuyin Village Bank Co., LTD Due in June 2025 8.00 % 278,559 287,167 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Reconciliation Differences Between Statutory and Effective Tax Expenses | The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the nine months ended September 30, 2023 and 2022: 09/30/2023 09/30/2022 Loss attributed to PRC operations $ (3,203,789 ) $ (3,006,160 ) Loss attributed to U.S. operations (11,483,446 ) (1,162,736 ) Loss attributed to Canada operations 35,235 (277,383 ) Income attributed to BVI & Hong Kong operations - (431,108 ) Loss before tax $ (14,652,000 ) $ (4,877,387 ) PRC Statutory Tax at 25% Rate (800,947 ) (751,540 ) Effect of tax exemption granted - - Valuation allowance 913,092 926,641 Income tax $ 112,145 $ 175,101 Per Share Effect of Tax Exemption Effect of tax exemption granted $ - $ - Weighted-Average Shares Outstanding Basic 72,081,930 55,335,606 Per share effect $ - $ - |
Schedule of U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate | The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows as of September 30, 2023 and 2022: 09/30/2023 09/30/2022 U.S. federal statutory income tax rate 21 % 21 % Higher (lower) rates in PRC, net 4 % 4 % Non-recognized deferred tax benefits in the PRC (25.77 )% (21.40 )% The Company’s effective tax rate (0.77 )% (0.04 )% |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings/(Loss) Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Components of basic and diluted earnings per share were as follows: For the nine months ended September 30, 2023 2022 Loss from operations attributable to common stockholders $ (14,764,145 ) $ (4,870,760 ) Basic and diluted (loss) earnings per share denominator: Original Shares at the beginning: 72,081,930 35,581,930 Additions from Actual Events – issuance of common stock for cash - 11,680,147 Additions from Actual Events – issuance of common stock for acquisition - 4,852,941 Additions from Actual Events – issuance of common stock for investment - 3,220,588 Basic Weighted Average Shares Outstanding 72,081,930 55,335,606 (Loss) income per common shareholders - Basic and diluted $ (0.20 ) $ (0.09 ) Basic and diluted weighted average shares outstanding 72,081,930 55,335,606 |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Concentrations [Abstract] | |
Schedule of Customers Concentrations | The following table sets forth information about each customer that accounted for 10% or more of the Company’s revenues for the nine months ended September 30, 2023 and 2022. For the period ended Customers 30-September-23 30-September-22 Amount $ % Amount $ % A 2,868,854 20 - - B 1,814,561 13 - - C 1,385,955 10 - - |
Schedule of Suppliers Concentrations | The following table sets forth information about each supplier that accounted for 10% or more of the Company’s purchase for the nine months ended September 30, 2023 and 2022. For the period ended Suppliers 30- September -23 30- September -22 Amount $ % Amount $ % A 4,369,675 30 8,857,285 21 B 2,309,332 16 6,281,237 15 C 1,961,289 13 6,161,585 15 D 1,628,062 11 5,752,312 14 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 14, 2022 | Jul. 15, 2021 | Mar. 09, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Apr. 08, 2022 | Dec. 09, 2021 | Sep. 01, 2021 | Aug. 03, 2021 | Aug. 01, 2021 | |
Organization and Principal Activities [Linw Items] | ||||||||||||
Aggregate shares issued (in Shares) | 4,800,000 | 3,300,000 | ||||||||||
Aggregate of common stock shares (in Shares) | 7,500,000 | 5,900,000 | 8,000,000 | |||||||||
Share outstanding percentage | 15% | |||||||||||
Aggregate of share purchased amount (in Dollars) | $ 3,000,000 | |||||||||||
Share issued percentage | 15% | |||||||||||
Duration of the consultation and service agreement | 30 years | |||||||||||
Voting rights proxy agreement | 20 years | |||||||||||
Net loss (in Dollars) | $ (1,279,126) | $ (2,296,031) | $ (14,764,145) | $ (5,052,488) | ||||||||
Accumulated deficit (in Dollars) | 134,246,166 | 134,246,166 | ||||||||||
Cash and cash equivalents (in Dollars) | 313,500 | 313,500 | ||||||||||
Working capital deficit (in Dollars) | 4,769,328 | 4,769,328 | ||||||||||
Net cash used in operating activities (in Dollars) | (4,240,629) | $ (10,208,033) | ||||||||||
Jilin Chuangyuan Chemical Co., Ltd [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 75% | |||||||||||
Jiayi Technologies (Xianning) Co., Ltd. [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 66% | 100% | ||||||||||
Xianning Bozhuang Tea Products Co., Ltd. [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 100% | |||||||||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 85% | 85% | ||||||||||
Allinyson Ltd [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 100% | |||||||||||
Hubei Bryce Technology Co., Ltd. [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Percentage of equity interest | 100% | 100% | ||||||||||
Retained Earnings [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Net loss (in Dollars) | $ (1,279,126) | $ (2,156,136) | $ (14,365,365) | $ (4,870,760) | ||||||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | ||||||||||||
Organization and Principal Activities [Linw Items] | ||||||||||||
Equity interests | 15% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Promising Prospect BVI Limited [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | The British Virgin Islands |
Attributable equity interest % | 100% |
Registered capital | $ 10,000 |
Promising Prospect HK Limited [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | Hong Kong |
Attributable equity interest % | 100% |
Registered capital | $ 1 |
Jiayi Technologies (Xianning) Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 2,000,000 |
Fast Approach Inc. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | Canada |
Attributable equity interest % | 100% |
Registered capital | $ 79 |
Shanghai Shuning Advertising Co., Ltd. (a subsidiary of Fast Approach) [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | |
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 4,710,254 |
Xianning Bozhuang Tea Products Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 6,277,922 |
Jilin Chuangyuan Chemical Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | |
Registered capital | $ 9,280,493 |
Bless Chemical Co., Ltd. (a subsidiary of Shine Chemical) [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | Hong Kong |
Attributable equity interest % | 100% |
Registered capital | $ 10,000 |
Hubei Bryce Technology Co., Ltd. (a subsidiary of Bless Chemical) [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 30,000,000 |
Shandong Yunchu Supply Chain Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 5,000,000 |
Allinyson Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | The United States |
Attributable equity interest % | 100% |
Registered capital | $ 100,000 |
Shine Chemical Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | The British Virgin Islands |
Attributable equity interest % | 100% |
Registered capital | $ 8,000 |
Guangzhou Haishi Technology Co., Ltd. [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 156,250 |
Baokuan Technology (Hongkong) Limited [Member] | |
Schedule of Investments [Line Items] | |
Place of incorporation | Hong Kong |
Attributable equity interest % | 100% |
Registered capital | $ 1,250 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents (in Dollars) | $ 313,500 | $ 93,487 |
Minimum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property plant and equipment salvage | 0% | |
Statutory reserve, percentage | 10% | |
Maximum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property plant and equipment salvage | 10% | |
Statutory reserve, percentage | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Live | Sep. 30, 2023 |
Buildings [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 20 years |
Buildings [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 40 years |
Landscaping, plant, and tree [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 30 years |
Machinery and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 1 year |
Machinery and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 10 years |
Motor vehicles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 5 years |
Motor vehicles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 10 years |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 5 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Plant and equipment, useful life | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Land use rights [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful lives of the intangible assets | 50 years |
Software licenses [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful lives of the intangible assets | 2 years |
Trademarks [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful lives of the intangible assets | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Average Exchange Rates | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Average Exchange Rates [Abstract] | |||
Period-end US$: CAD$ exchange rate | 1.3406 | 1.3554 | 1.3631 |
Period-end US$: RMB exchange rate | 7.1798 | 6.9646 | 7.0998 |
Period-end US$: HK exchange rate | 7.8243 | 7.7967 | 7.8499 |
Period average US$: CAD$ exchange rate | 1.3415 | 1.3012 | 1.2831 |
Period average US$: RMB exchange rate | 7.0148 | 6.7261 | 6.6068 |
Period average US$: HK exchange rate | 7.8335 | 7.831 | 7.8347 |
Variable Interest Entity (_VI_3
Variable Interest Entity (“VIE”) (Details) - Schedule of Carrying Amount of VIE's Consolidated Assets and Liabilities - VIE’s [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 16,558 | $ 39,815 |
Accounts receivable, net | 306,023 | 730,341 |
Inventories | 734,503 | 947,466 |
Advances to suppliers | 411,086 | 187,708 |
Other receivables | 63,752 | 65,531 |
Inter-company receivable | 1,532,076 | 1,579,416 |
Prepaid expenses | 8,120 | |
Total current assets | 3,072,118 | 3,550,277 |
Non-current assets | ||
Plant and equipment, net | 8,109,038 | 9,115,598 |
Intangible assets, net | 1,840,385 | 1,932,386 |
Construction in progress, net | 20,335 | 20,963 |
Total non-current assets | 9,969,758 | 11,068,947 |
Total assets | 13,041,876 | 14,619,224 |
Current liabilities | ||
Short-term bank loans | 3,481,991 | 3,589,582 |
Accounts payable | 590,899 | 540,371 |
Advance from customers | 126,156 | 14,395 |
Taxes payable | (2,050) | 18,005 |
Other payables and accrued liabilities | 3,096,230 | 2,590,572 |
Intercompany Payable | 2,990,418 | 3,082,819 |
Other payables-related parties | 1,409,981 | 1,535,974 |
Long term payable-current portion | 179,280 | 287,167 |
Deferred income | 24,722 | 37,332 |
Total current liabilities | 11,897,627 | 11,696,217 |
Non-current liabilities | ||
Long-term payables | 278,559 | 244,245 |
Total non-current liabilities | 278,559 | 244,245 |
Total Liabilities | 12,176,186 | 11,940,462 |
Paid-in capital | 9,280,493 | 9,280,493 |
Statutory Reserve | 29,006 | 29,006 |
Accumulated deficit | (7,549,428) | (5,775,895) |
Accumulated other comprehensive income | (894,381) | (854,842) |
Total stockholders’ equity | 8,656,690 | 2,678,762 |
Total liabilities and stockholders’ equity | $ 13,041,876 | $ 14,619,224 |
Variable Interest Entity (_VI_4
Variable Interest Entity (“VIE”) (Details) - Schedule of Summarized Operating Results of the VIE’s - VIE’s [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Variable Interest Entity (“VIE”) (Details) - Schedule of Summarized Operating Results of the VIE’s [Line Items] | ||
Operating revenues | $ 6,230,097 | $ 12,579,725 |
Gross profit | (77,816) | 1,931,426 |
Income (loss) from operations | (1,773,533) | (1,053,978) |
Net income (loss) | $ (1,773,533) | $ (1,399,778) |
Business Combination (Details)
Business Combination (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Apr. 08, 2022 | Dec. 09, 2021 | Jul. 15, 2021 | Mar. 09, 2021 | Jan. 04, 2021 |
Business Combination (Details) [Line Items] | ||||||
Aggregate shares of common stock | 7,500,000 | |||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest | 85% | |||||
Jilin Chuangyuan Chemical Co., Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest | 75% | |||||
Shandong Yunchu Supply Chain Co., Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest | 100% | |||||
Anhui Ansheng Petrochemical Equipment Co Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest | 66% | |||||
Allinyson Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Equity interest | 100% | |||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Goodwill | $ 920 | |||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | NEVADA | ||||||
Business Combination (Details) [Line Items] | ||||||
Aggregate shares of common stock | 2,200,000 | |||||
Jilin Chuangyuan Chemical Co., Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Goodwill | 3,190 | |||||
Jilin Chuangyuan Chemical Co., Ltd [Member] | Common Stock [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Aggregate shares of common stock | 3,300,000 | |||||
Shandong Yunchu Trading Co Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Aggregate shares of common stock | 5,900,000 | |||||
Goodwill | 4,720 | |||||
Anhui Ansheng Petrochemical Equipment Co Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Aggregate shares of common stock | 4,800,000 | |||||
Goodwill | 10,260 | |||||
Allinyson Ltd [Member] | ||||||
Business Combination (Details) [Line Items] | ||||||
Goodwill | $ 7,190 |
Business Combination (Details)
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd | Sep. 30, 2023 USD ($) |
Business Combination [Line Items] | |
Cash | $ 114,162 |
Accounts receivable, net | |
Inventories, net | 584,119 |
Advances to suppliers | 1,104,705 |
Other receivables | 536,090 |
Right-of-use assets | 1,044,933 |
Plant and equipment, net | 3,867,906 |
Deferred tax assets | 281,243 |
Goodwill | 923,313 |
Total assets | 8,456,471 |
Short-term loan – bank | (440,522) |
Lease payable-current portion | (406,376) |
Accounts payable | (715,019) |
Advance from customers | (627,128) |
Other payables and accrued liabilities | (50,085) |
Lease payable-non current portion | (818,446) |
Income taxes payable | (217) |
Total liabilities | (3,057,793) |
Noncontrolling interest | (668,678) |
Net assets acquired | $ 4,730,000 |
Business Combination (Details_2
Business Combination (Details) - Schedule of Fair Value of Identifiable Assets Acquired and Liabilities Assumed Acquisition of Jilin Chuangyuan Chemical Co., Ltd - Business Combination [Member] - Jilin Chuangyuan Chemical Co., Ltd [Member] | Sep. 30, 2023 USD ($) |
Business Combination [Line Items] | |
Cash | $ 95,237 |
Accounts receivable, net | 868,874 |
Inventories, net | 581,569 |
Advances to suppliers | 388,349 |
Other receivables | 123,969 |
Other receivables-RP | 212,594 |
Plant and equipment, net | 11,109,220 |
Intangible assets, net | 2,149,910 |
Deferred tax assets | 415,154 |
Goodwill | 3,191,897 |
Total assets | 19,136,773 |
Short-term loan – bank | (3,826,934) |
Long term payable | (1,162,355) |
Accounts payable | (575,495) |
Advance from customers | (291,655) |
Other payables and accrued liabilities | (2,815,356) |
Other payables-RP | (765,387) |
Income taxes payable | (1,073) |
Total liabilities | (9,438,255) |
Non controlling interest | (1,613,518) |
Net assets acquired | $ 8,085,000 |
Business Combination (Details_3
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition of Shandong Yunchu Trading Co Ltd - Business Combination [Member] - Shandong Yunchu Supply Chain Co., Ltd [Member] | Dec. 31, 2021 USD ($) |
Business Combination [Line Items] | |
Cash and cash equivalents, and Restricted Cash | $ 77,427 |
Trade receivable and Note receivable | 780,556 |
Inventories | |
Related party receivable | 86,448 |
Other current assets | 4,899,559 |
Plant and equipment, net | |
Intangible assets, net | |
Goodwill | 4,724,698 |
Total assets | 10,568,688 |
Short-term loan-bank | |
Related party payable | |
Accounts payable | (992,424) |
Other current liabilities | (4,155,344) |
Total liabilities | (5,147,768) |
Non-controlling interest | |
Net assets acquired | $ 5,420,920 |
Business Combination (Details_4
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Anhui Ansheng Petrochemical Equipment Co., Ltd - Business Combination [Member] - Anhui Ansheng Petrochemical Equipment Co Ltd [Member] | Sep. 30, 2023 USD ($) |
Business Combination [Line Items] | |
Cash and cash equivalents, and Restricted Cash | $ 288,122 |
Trade receivable and Note receivable | 944,704 |
Inventories | 3,236,008 |
Related party receivable | 2,500,117 |
Other current assets | 1,393,817 |
Plant and equipment, net | 4,036,649 |
Intangible assets, net | 635,738 |
Goodwill | 10,263,937 |
Total assets | 23,299,092 |
Short-term loan-bank | (3,735,614) |
Related party payable | (2,639,938) |
Accounts payable | (1,966,099) |
Other current liabilities | (3,902,896) |
Total liabilities | (12,244,547) |
Non controlling interest | (3,758,545) |
Net assets acquired | $ 7,296,000 |
Business Combination (Details_5
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Acquisition of Allinyson Ltd - Business Combination [Member] - Allinyson Ltd [Member] | Sep. 30, 2023 USD ($) |
Business Combination [Line Items] | |
Cash and cash equivalents, and Restricted Cash | $ 246,322 |
Trade receivable and Note receivable | 372,538 |
Goodwill | 7,193,965 |
Total assets | 7,812,825 |
Related party payable | (73,623) |
Accounts payable | (273,000) |
Other current liabilities | (36,702) |
Total liabilities | (383,325) |
Net assets acquired | $ 7,429,500 |
Account Receivable, Net (Detail
Account Receivable, Net (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Account Receivable, Net [Abstract] | |
Trade account receivable net, description | The Company extends credit terms of 15 to 60 days to the majority of its domestic customers, which include third-party distributors, supermarkets, and wholesalers |
Account Receivable, Net (Deta_2
Account Receivable, Net (Details) - Schedule of Trade Accounts Receivable - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Trade Accounts Receivable [Abstract] | ||
Trade accounts receivable | $ 3,126,670 | $ 3,362,939 |
Less: Allowance for doubtful accounts | (355,323) | (366,301) |
Trade receivables, net | 2,771,347 | 2,996,638 |
Beginning balance: | (366,301) | (1,662,516) |
Additions to allowance | 10,978 | (64,899) |
Bad debt written-off | 1,361,114 | |
Ending balance | $ (355,323) | $ (366,301) |
Advances and Prepayments to S_3
Advances and Prepayments to Suppliers (Details) - Schedule of Advance Payment to Suppliers and Vendors to Procure Raw Materials - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Advance Payment to Suppliers and Vendors to Procure Raw Materials [Abstract] | ||
Payment to suppliers and vendors | $ 8,314,422 | $ 5,417,449 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 1,799,788 | $ 1,965,389 |
Inventory of supplies | ||
Work in progress | 1,376,908 | 1,455,229 |
Finished goods | 2,093,208 | 932,261 |
Allowance for inventory reserve | (193,229) | (199,199) |
Total | $ 5,076,675 | $ 4,153,680 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,531,932 | $ 716,964 |
Plant and Equipment (Details) -
Plant and Equipment (Details) - Schedule of Plant and Equipment - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
At Cost: | ||
Plant and equipment, At Cost | $ 32,532,279 | $ 33,477,534 |
Less: Impairment | (736,446) | (759,201) |
Less: Accumulated depreciation | (11,341,936) | (10,149,207) |
Plant and equipment, gross | 20,453,897 | 22,569,125 |
Construction in progress | 43,622 | 33,260 |
Total plant and equipment, net | 20,497,519 | 22,602,385 |
Building [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 19,339,471 | 19,924,811 |
Machinery and Equipment [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 11,024,151 | 11,322,085 |
Office Equipment [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 747,349 | 765,413 |
Vehicles [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | $ 1,421,308 | $ 1,465,225 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 140,790 | $ 56,931 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,917,287 | $ 4,036,171 |
Less: Accumulated amortization | (1,076,641) | (966,000) |
Net intangible assets | 2,840,646 | 3,070,171 |
Land use rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,960,275 | 3,051,744 |
Software licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 67,534 | 67,464 |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 889,478 | $ 916,963 |
Long-Term Investment (Details)
Long-Term Investment (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jun. 27, 2023 | Sep. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Long-term Investment [Abstract] | |||||
Equity interest percentage | 40% | ||||
Total consideration | $ 2,770,000 | $ 13,620,000 | |||
Investment | 13,620,000 | $ 2,785,593 | $ 16,488,157 | ||
Loss on investments | $ 10,850,000 | ||||
Initial investment | $ 2,910,000 |
Other Payable (Details)
Other Payable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Other Payable [Abstract] | ||
Other payable | $ 4,545,063 | $ 4,412,833 |
Advance From Customer (Details)
Advance From Customer (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Advance From Customer [Abstract] | ||
Advance from customers | $ 4,677,016 | $ 2,624,070 |
Related Parties Transaction (De
Related Parties Transaction (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due from related party | $ 361,872 | $ 413,315 |
Ms. Yan Yan [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due to related party | 1,082,203 | |
Subsidiaries [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due to related party | 1,143,507 | |
Significant Related Parties [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due from related party | 769,427 | 180,578 |
Outstanding balance due to related party | 6,357,043 | $ 4,412,833 |
Mr.Chen Xing [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due from related party | 293,087 | |
Mr. Bin Zhou [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due from related party | 455,117 | |
Outstanding balance due to related party | 959,839 | |
Ms.Xiong Haiyan [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due from related party | 21,223 | |
Anhui Ansheng Petrochemical Equipment Co Ltd [Member] | ||
Related Parties Transaction (Details) [Line Items] | ||
Outstanding balance due to related party | $ 1,177,765 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of Goodwill - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Ansheng [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | $ 1,026,337 | |
Ending balance | ||
Goodwill acquired | ||
Goodwill impairment | ||
Disposal of subsidiaries | (1,026,337) | |
Baokuan [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | ||
Ending balance | ||
Goodwill acquired | 7,193,965 | |
Goodwill impairment | (7,193,965) | |
Disposal of subsidiaries | ||
JLCY [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 3,191,897 | |
Ending balance | ||
Goodwill acquired | ||
Goodwill impairment | (3,191,897) | |
Disposal of subsidiaries | ||
SDYC [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 4,724,698 | 4,724,698 |
Ending balance | 4,724,698 | 4,724,698 |
Goodwill acquired | ||
Goodwill impairment | ||
Disposal of subsidiaries |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 15, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Bank Loans [Line Items] | |||||
Buildings and land used as collateral | $ 10,178,520 | $ 10,178,520 | |||
Stock shares (in Shares) | 28,465,000 | ||||
Approximately total share percentage | 71.43% | ||||
Interest expense | $ 123,216 | $ 160,636 | $ 368,950 | $ 488,331 | |
Jilin Branch [Member] | |||||
Bank Loans [Line Items] | |||||
Interest expense | $ 221,193 | $ 488,331 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of Short-Term Bank Loans - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Rural Credit Cooperatives of Jilin Province, Jilin Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Maturities | Due in November 2023 | |
Weighted average interest rate | 7.83% | |
Short-term bank loans | $ 3,481,991 | $ 3,589,582 |
Tonghua Dongchang Yuyin Village Bank Co., LTD [Member] | ||
Short-Term Debt [Line Items] | ||
Maturities | Due in June 2025 | |
Weighted average interest rate | 8% | |
Short-term bank loans | $ 278,559 | $ 287,167 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Jul. 20, 2022 | May 19, 2022 | Apr. 08, 2022 | Jan. 13, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||||
Common stock, shares outstanding | 72,081,930 | 72,081,930 | 35,581,930 | ||||||
Aggregate shares of common stock | 7,500,000 | ||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Aggregate purchase price (in Dollars) | $ 4,100,000 | $ 9,600,000 | $ 9,600,000 | ||||||
Purchase price per share (in Dollars per share) | $ 0.41 | ||||||||
Securities Purchase Agreement [Member] | |||||||||
Equity [Abstract] | |||||||||
Aggregate shares of common stock | 10,000,000 | ||||||||
People’s Republic of China [Member] | Securities Purchase Agreement [Member] | |||||||||
Equity [Abstract] | |||||||||
Aggregate shares of common stock | 7,000,000 | ||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||
Aggregate purchase price (in Dollars) | $ 7,000,000 | ||||||||
Purchase price per share (in Dollars per share) | $ 1 | ||||||||
Planet Green Holdings Corporation [Member] | |||||||||
Equity [Abstract] | |||||||||
Aggregate shares of common stock | 7,500,000 | ||||||||
Equity interest percentage | 100% | ||||||||
Xianning Xiangtian Energy Holdings Group Co., Ltd. [Member] | |||||||||
Equity [Abstract] | |||||||||
Equity interest percentage | 30% | ||||||||
Issuance of common stock | 12,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes (Details) [Line Items] | ||||
Valuation allowance on deferred tax | 100% | |||
U.S [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Statutory federal rate | 21% | 21% | ||
Cooperated tax rate percentage | 21% | |||
Hong Kong [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Applicable tax rate | 16.50% | |||
PRC [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Income tax rate | 25% | |||
Corporate income tax rate | 25% | |||
Maximum [Member] | U.S [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
U.S. corporate tax rate | 34% | |||
Minimum [Member] | U.S [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
U.S. corporate tax rate | 21% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Reconciliation Differences Between Statutory and Effective Tax Expenses - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Reconciliation Differences Between Statutory and Effective Tax Expenses [Abstract] | ||
Loss attributed to PRC operations | $ (3,203,789) | $ (3,006,160) |
Loss attributed to U.S. operations | (11,483,446) | (1,162,736) |
Loss attributed to Canada operations | 35,235 | (277,383) |
Income attributed to BVI & Hong Kong operations | (431,108) | |
Loss before tax | (14,652,000) | (4,877,387) |
PRC Statutory Tax at 25% Rate | (800,947) | (751,540) |
Effect of tax exemption granted | ||
Valuation allowance | 913,092 | 926,641 |
Income tax | 112,145 | 175,101 |
Per Share Effect of Tax Exemption | ||
Effect of tax exemption granted | ||
Weighted-Average Shares Outstanding Basic | 72,081,930 | 55,335,606 |
Per share effect |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation Differences Between Statutory and Effective Tax Expenses (Parentheticals) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Reconciliation Differences Between Statutory and Effective Tax Expenses [Abstract] | ||
PRC Statutory Tax Rate | 25% | 25% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate [Abstract] | ||
U.S. federal statutory income tax rate | 21% | 21% |
Higher (lower) rates in PRC, net | 4% | 4% |
Non-recognized deferred tax benefits in the PRC | (25.77%) | (21.40%) |
The Company’s effective tax rate | (0.77%) | (0.04%) |
Earnings_(Loss) Per Share (Deta
Earnings/(Loss) Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule Of Basic And Diluted Earnings Per Share Abstract | ||||
Loss from operations attributable to common stockholders (in Dollars) | $ (14,764,145) | $ (4,870,760) | ||
Basic and diluted (loss) earnings per share denominator: | ||||
Original Shares at the beginning: | 72,081,930 | 35,581,930 | 72,081,930 | 35,581,930 |
Additions from Actual Events – issuance of common stock for cash | 11,680,147 | |||
Additions from Actual Events – issuance of common stock for acquisition | 4,852,941 | |||
Additions from Actual Events – issuance of common stock for investment | 3,220,588 | |||
Basic Weighted Average Shares Outstanding | 72,081,930 | 55,335,606 | ||
(Loss) income per common shareholders - Basic and diluted (in Dollars per share) | $ (0.02) | $ (0.03) | $ (0.2) | $ (0.09) |
Basic and diluted weighted average shares outstanding | 72,081,930 | 55,335,606 |
Earnings_(Loss) Per Share (De_2
Earnings/(Loss) Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule Of Basic And Diluted Earnings Per Share Abstract | ||||
(Loss) income per common shareholders diluted | $ (0.02) | $ (0.03) | $ (0.20) | $ (0.09) |
Diluted weighted average shares outstanding | 72,081,930 | 69,708,304 | 72,081,930 | 55,335,606 |
Concentrations (Details)
Concentrations (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Customers Concentrations [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentrations risk, percentage | 10% | 10% |
Suppliers Concentrations [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentrations risk, percentage | 10% | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of Customers Concentrations - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Customers A [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 2,868,854 | |
Customers B [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | 1,814,561 | |
Customers C [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 1,385,955 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers A [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of customers revenue | 20% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of customers revenue | 13% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers C [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of customers revenue | 10% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of Suppliers Concentrations - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Suppliers A [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Suppliers revenue, amount | $ 4,369,675 | $ 8,857,285 |
Suppliers A [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of suppliers revenue | 30% | 21% |
Suppliers B [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Suppliers revenue, amount | $ 2,309,332 | $ 6,281,237 |
Suppliers B [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of suppliers revenue | 16% | 15% |
Suppliers C [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Suppliers revenue, amount | $ 1,961,289 | $ 6,161,585 |
Suppliers C [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of suppliers revenue | 13% | 15% |
Suppliers D [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Suppliers revenue, amount | $ 1,628,062 | $ 5,752,312 |
Suppliers D [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of suppliers revenue | 11% | 14% |