Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Information [Line Items] | ||
Entity Registrant Name | PLANET GREEN HOLDINGS CORP. | |
Entity Central Index Key | 0001117057 | |
Entity File Number | 001-34449 | |
Entity Tax Identification Number | 87-0430320 | |
Entity Incorporation, State or Country Code | NV | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
Entity Address, Address Line One | 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 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | (718) | |
Local Phone Number | 799-0380 | |
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | PLAG | |
Security Exchange Name | NYSEAMER | |
Entity Common Stock, Shares Outstanding | 7,282,714 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
Current assets | |||
Cash and cash equivalents | $ 539,744 | $ 436,383 | |
Restricted cash | 19,189 | ||
Accounts receivable, net | 3,798,197 | 3,160,325 | |
Inventories | 2,177,664 | 1,953,063 | |
Advances to suppliers | 3,211,442 | 5,316,195 | |
Other receivables | 350,913 | 349,984 | |
Other receivables-related parties | 1,968,784 | 315,724 | |
Prepaid expenses | 1,262,360 | 978,803 | |
Total current assets | 13,328,293 | 12,510,477 | |
Non-current assets | |||
Plant and equipment, net | 19,184,650 | 20,271,844 | |
Intangible assets, net | 2,726,154 | 2,834,102 | |
Construction in progress, net | 30,756 | 30,948 | |
Long-term investments | 2,243,954 | 2,257,926 | |
Goodwill | 4,724,699 | 4,724,699 | |
Total non-current assets | 28,910,213 | 30,119,519 | |
Total assets | 42,238,506 | 42,629,996 | |
Current liabilities | |||
Loans-current | 1,443,425 | ||
Accounts payable | 3,787,019 | 3,598,247 | |
Advance from customers | 2,465,754 | 2,464,319 | |
Taxes payable | 1,254,898 | 1,243,060 | |
Other payables and accrued liabilities | 4,534,229 | 4,510,192 | |
Deferred income | 13,330 | 36,334 | |
Total current liabilities | 21,420,765 | 19,185,697 | |
Non-current liabilities | |||
Other long-term liabilities | 119,908 | 191,981 | |
Loans-noncurrent | 4,167,369 | 3,812,106 | |
Total non-current liabilities | 4,287,277 | 4,004,087 | |
Total liabilities | 25,708,042 | 23,189,784 | |
Commitments and contingencies | |||
Stockholders’ equity | |||
Preferred stock: $0.001 par value, 10,000,000 shares authorized; none issued and outstanding as of June 30, 2024 and December 31, 2023 | |||
Common stock: $0.001 par value, 100,000,000 shares authorized; 7,282,714 and 7,282,714 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.* | [1] | 7,283 | 7,283 |
Additional paid-in capital | 148,345,774 | 155,767,774 | |
Accumulated deficit | (136,118,828) | (140,724,597) | |
Accumulated other comprehensive income | 4,296,235 | 4,389,752 | |
Total stockholders’ equity | 16,530,464 | 19,440,212 | |
Total liabilities and stockholders’ equity | 42,238,506 | 42,629,996 | |
Related Party | |||
Current liabilities | |||
Other payables-related parties | $ 7,922,110 | $ 7,333,545 | |
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | |||
Preferred stock, shares outstanding | |||
Common stock, par value (in Dollars per share) | [1] | $ 0.001 | $ 0.001 |
Common stock, shares authorized | [1] | 100,000,000 | 100,000,000 |
Common stock, shares issued | [1] | 7,282,714 | 72,081,930 |
Common stock, shares outstanding | [1] | 7,282,714 | 72,081,930 |
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Income Statement [Abstract] | |||||
Net revenues | $ 1,945,211 | $ 4,573,443 | $ 3,475,978 | $ 13,107,735 | |
Cost of revenues | 1,877,906 | 4,530,789 | 3,045,868 | 12,818,655 | |
Gross profit | 67,305 | 42,654 | 430,110 | 289,080 | |
Operating expenses: | |||||
Selling and marketing expenses | 33,998 | 242,718 | 74,528 | 487,437 | |
General and administrative expenses | 1,222,598 | 984,933 | 2,426,299 | 2,077,835 | |
Research & developing expenses | 32,287 | 65,188 | 77,985 | 133,907 | |
Total operating expenses | 1,288,883 | 1,292,839 | 2,578,812 | 2,699,179 | |
Operating loss | (1,221,578) | (1,250,185) | (2,148,702) | (2,410,099) | |
Other (expenses) income | |||||
Interest income | 72 | 261 | 307 | 365 | |
Interest expenses | (191,491) | (129,521) | (314,538) | (245,734) | |
Other income | 50,541 | 62,483 | 54,991 | 101,198 | |
Other expenses | (747,193) | (2,980) | (748,666) | (3,419) | |
Loss on disposal of equity investments | (10,848,632) | (10,848,632) | |||
Total other expenses | (888,071) | (10,918,389) | (1,007,906) | (10,996,222) | |
Loss before income taxes | (2,109,649) | (12,168,574) | (3,156,608) | (13,406,321) | |
Income tax expenses | (31,074) | (78,698) | |||
Loss from continuing operations | (2,109,649) | (12,199,648) | (3,156,608) | (13,485,019) | |
Discontinued operations: | |||||
Income from discontinued operations | 7,796,322 | 7,762,377 | |||
Net income (loss) | 5,686,673 | (12,199,648) | 4,605,769 | (13,485,019) | |
Less: Net loss attributable to non-controlling interest | |||||
Net loss attributable to common shareholders | 5,686,673 | (12,199,648) | 4,605,769 | (13,485,019) | |
Net income (loss) | 5,686,673 | (12,199,648) | 4,605,769 | (13,485,019) | |
Foreign currency translation adjustment | (66,386) | (1,116,356) | (93,517) | (784,746) | |
Total comprehensive income (loss) | $ 5,620,287 | $ (13,316,004) | $ 4,512,252 | $ (14,269,765) | |
Earnings (loss) per common share of common stock - basic and diluted* | |||||
Continuing operations (in Dollars per share) | [1] | $ (0.29) | $ (1.68) | $ (0.43) | $ (1.85) |
Discontinued operations - basic (in Dollars per share) | [1] | $ 1.07 | $ 1.07 | ||
Basic weighted average shares outstanding (in Shares) | 7,282,714 | 7,282,714 | 7,282,714 | 7,282,714 | |
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Income Statement [Abstract] | |||||
Continuing operations - diluted | [1] | $ (0.29) | $ (1.68) | $ (0.43) | $ (1.85) |
Discontinued operations - diluted | [1] | $ 1.07 | $ 1.07 | ||
Diluted weighted average shares outstanding (in Shares) | 7,282,714 | 7,282,714 | 7,282,714 | 7,282,714 | |
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization |
Unaudited Condensed Consolida_3
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, 2022 | $ 7,283 | $ 155,767,774 | $ (119,880,801) | $ 4,692,242 | $ 40,586,498 | ||
Balance (in Shares) at Dec. 31, 2022 | [1] | 7,282,714 | |||||
Net (loss) income | (13,485,019) | (13,485,019) | |||||
Foreign currency translation adjustment | (784,746) | (784,746) | |||||
Balance at Jun. 30, 2023 | $ 7,283 | 155,767,774 | (133,365,820) | 3,907,496 | 26,316,733 | ||
Balance (in Shares) at Jun. 30, 2023 | [1] | 7,282,714 | |||||
Balance at Mar. 31, 2023 | $ 7,283 | 155,767,774 | (121,166,172) | 5,023,852 | 39,632,737 | ||
Balance (in Shares) at Mar. 31, 2023 | [1] | 7,282,714 | |||||
Net (loss) income | (12,199,648) | (12,199,648) | |||||
Foreign currency translation adjustment | (1,116,356) | (1,116,356) | |||||
Balance at Jun. 30, 2023 | $ 7,283 | 155,767,774 | (133,365,820) | 3,907,496 | 26,316,733 | ||
Balance (in Shares) at Jun. 30, 2023 | [1] | 7,282,714 | |||||
Balance at Dec. 31, 2023 | $ 7,283 | 155,767,774 | (140,724,597) | 4,389,752 | 19,440,212 | ||
Balance (in Shares) at Dec. 31, 2023 | [1] | 7,282,714 | |||||
Net (loss) income | 4,605,769 | 4,605,769 | |||||
Deconsolidation of discontinued operations | (7,422,000) | (7,422,000) | |||||
Foreign currency translation adjustment | (93,517) | (93,517) | |||||
Balance at Jun. 30, 2024 | $ 7,283 | 148,345,774 | (136,118,828) | 4,296,235 | 16,530,464 | ||
Balance (in Shares) at Jun. 30, 2024 | [1] | 7,282,714 | |||||
Balance at Mar. 31, 2024 | $ 7,283 | 155,767,774 | (141,805,501) | 4,362,621 | 18,332,177 | ||
Balance (in Shares) at Mar. 31, 2024 | [1] | 7,282,714 | |||||
Net (loss) income | 5,686,673 | 5,686,673 | |||||
Deconsolidation of discontinued operations | (7,422,000) | (7,422,000) | |||||
Foreign currency translation adjustment | (66,386) | (66,386) | |||||
Balance at Jun. 30, 2024 | $ 7,283 | $ 148,345,774 | $ (136,118,828) | $ 4,296,235 | $ 16,530,464 | ||
Balance (in Shares) at Jun. 30, 2024 | [1] | 7,282,714 | |||||
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPFRATING ACTIVITIFS: | ||
Net income (loss) | $ 4,605,769 | $ (13,485,019) |
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities: | ||
Depreciation | 958,969 | 1,038,757 |
Amortization | 90,688 | 60,314 |
Loss on disposal of equity investments | 10,848,632 | |
gain on disposal of subsidiary | (7,596,311) | |
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: | ||
Accounts receivables, net | (690,160) | 48,800 |
Inventories | (237,407) | 362,305 |
Prepayments and deposit | 1,815,371 | (3,248,171) |
Other receivables | (19,865) | (41,407) |
Accounts payable | 506,753 | |
Advance from customer | (117,075) | 1,357,209 |
Other payables and accrued liabilities | 53,928 | 576,796 |
Taxes payable | (8,988) | 249,706 |
Deferred income | (22,539) | (8,032) |
Net cash provided used in operating activities | (660,867) | (2,240,110) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | 5,683 | (20,857) |
Proceeds from disposal of equity method investments | 2,770,000 | |
Net decrease in cash from disposal of subsidiaries | (166,066) | |
Net cash (used in) provided by investing activities | (160,383) | 2,749,143 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term loans | 1,757,361 | (39,521) |
Changes in related party balances, net | (816,191) | 73,426 |
Net cash provided by financing activities | 941,170 | 33,905 |
Net increase (decrease) in cash and cash equivalents | 119,920 | 542,938 |
EFFECT OF EXCHANGE RATE ON CASH | 2,630 | 76,771 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 436,383 | 93,487 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 558,933 | 713,196 |
SUPPLEMENTARY OF CASH FLOW INFORMATION | ||
Interest received | 307 | 365 |
Interest paid | $ 314,538 | $ 245,734 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2024 | |
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. We are engaged in various businesses through our subsidiaries and VIE entities in China. On May 18, 2018, the Company incorporated Promising Prospect BVI Limited (“Planet Green BVI”), a limited company incorporated in the British Virgin Islands. On September 28, 2018, Planet Green BVI acquired Lucky Sky HK through the Company’s restructuring plans. On May 9, 2019, the Company issued an aggregate of 1,080,000 shares of Planet Green Holdings Corporation’s common stock to the BoZhuang Shareholders, in exchange for BoZhuang Shareholders’ agreement to enter into VIE Agreements (the “BoZhuang VIE Agreements”). On August 1, 2021, the VIE agreements with Xianning Bozhuang Tea Products Co., Ltd was terminated and the company acquired 100% equity of Xianning Bozhuang Tea Products Co., Ltd. On August 12, 2019, through Lucky Sky HK, the Company established Lucky Sky Petrochemical, a wholly foreign-owned enterprise incorporated in Xianning City, Hubei Province, China. On December 9, 2020, Lucky Sky Petrochemical Technology (Xianning) Co., Ltd. changed its name to Jiayi Technologies (Xianning) Co., Ltd. (“Jiayi Technologies” or “WFOE”) 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 June 16, 2020, Lucky Sky Holdings Corporations (H.K.) transferred its 100% equity interest in Lucky Sky Petrochemical to Lucky Sky Planet Green Holdings Co., Limited (H.K.). On August 10, 2020, Promising Prospect BVI Limited disposed of its 100% equity interest in Lucky Sky Holdings Corporations (H.K.). On January 6, 2021, 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. 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 December 12, 2022, Anhui Ansheng Petrochemical Equipment Co., Ltd. was disposed. 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 1, 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., including its wholly-owned subsidiary Baokuan Technology (Hongkong) Limited. On April 1, 2024, Allinyson Ltd. has completely been disposed. 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 its shareholders, which gave the Company the ability to substantially influence those companies’ daily operations and financial affairs and appointment of its senior executives. The Company is considered the primary beneficiary of these operating companies, and it consolidates their accounts as VIEs. The VIE Agreement 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 number of service fees and payment terms can be amended by the WFOE and operating companies’ consultation and implementation. The duration of the Consultation and Service Agreement is 20 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. 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 $3,156,608 from continuing operations for the six months ended June 30, 2024. As of June 30, 2024 the Company had an accumulated deficit of $136,118,828, a working capital deficit of $8,092,472, its net cash used in operating activities for the six months ended June 30, 2024 was $660,867 These factors raise substantial doubt on the Company’s ability to continue as a going concern. The accompanying 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 | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Management has prepared the accompanying financial statements and these notes according to generally accepted accounting principles in the United States (“GAAP”). The Company maintains its general ledger and journals with the accrual method accounting. Principles of Consolidation Details of the Subsidiaries of the Company as of June 30, 2024 are set below: Name of Company Place of incorporation Attributable equity interest % Registered 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 Inc.) 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 Shine Chemical Co., Ltd. Cayman 100 8,000 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. Noncontrolling Interests The noncontrolling interests of the Company represent the ownership stakes held by minority shareholders in the Company’s subsidiaries, and are presented separately from the equity attributable to the Company’s shareholders on the consolidated balance sheets. Noncontrolling interests in the Company’s results are disclosed on the consolidated statement of operations and comprehensive loss as allocations of total income or loss for the year between noncontrolling interest holders and the Company’s shareholders. Use of Estimates The 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 evaluates estimates, including the allowance for credit losses of accounts receivable, amounts due from related parties and equity investments, the useful lives of our property and equipment, impairment of long-lived assets, long-term investments and goodwill, etc. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. 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 June 30, 2024, the Company had cash and cash equivalents of $558,933 compared to $436,383 as of December 31, 2023. Accounts Receivable, Net 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 amount is not expected to be collected. Delinquent amount balances are written off against the allowance for doubtful amounts after the management has determined that the likelihood of collection is not probable. 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. An annual impairment test will be performed on inventory, and any excess of the recoverable amount over the carrying amount will be recognized as impairment losses in the current period. 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. At the end of each fiscal year, we undertake a thorough examination of prepaid expenses and contractual terms, analyze the causes of delayed receipt of corresponding valuable goods, calculate recoverable amounts using a probability-weighted average method for unrecoverable amounts, and make provisions for impairment as deemed necessary. 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 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. 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. 06/30/2024 12/31/2023 06/30/2023 Period-end US$: CDN exchange rate 1.3634 1.3196 1.3205 Period-end US$: RMB exchange rate 7.1268 7.0827 7.2258 Period-end US$: HK exchange rate 7.8087 7.8157 7.8373 Period average US$: CDN exchange rate 1.3515 1.3452 1.3480 Period average US$: RMB exchange rate 7.1051 7.0467 6.9291 Period average US$: HK exchange rate 7.8187 7.8282 7.8387 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 we 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 recognizes product revenue at a point in time when the control of the products has been transferred to customers. 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. Income Taxes The Company 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. Earnings Per Share 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 Measurements of Financial Instruments 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. Lease Effective December 31, 2018, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and it includes the associated operating lease payments in the undiscounted future pre-tax cash flows. As of June 30, 2024, the lease agreement with JSSH has lapsed and the company does not have any current lease agreements exceeding 12 months. Equity Investments In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. ASU 2016-01 also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. ASU 2016-01, which the Company adopted on January 1, 2018, did not have a material impact on the consolidated financial statements. 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 consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the Company’s 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. When the Company’s share of losses in an entity in which the Company has recorded an equity investment equals or exceeds its interest in the entity, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the equity investee. 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 has implemented the new standard, and as of June 30, 2024, there was no material effect of this current standard on its consolidated financial statements and related disclosures. 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”) | 6 Months Ended |
Jun. 30, 2024 | |
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 as of June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 18,378 $ 33,103 Trade accounts receivable, net 2,556 132,013 Inventories 563,190 528,624 Advances to suppliers 124,688 106,971 Other receivables 19,983 25,280 Intercompany receivable 1,543,470 1,553,080 Prepaid expenses 3,908 - Total current assets 2,276,173 2,379,071 Non-current assets Plant and equipment, net 7,433,054 7,991,576 Intangible assets, net 1,819,736 1,854,099 Construction in progress, net 7,296 7,342 Total non-current assets 9,260,086 9,853,017 Total assets $ 11,536,259 $ 12,232,088 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 531,620 $ 565,582 Advance from customers 144,538 7,723 Taxes payable 49 16,363 Other payables and accrued liabilities 3,167,600 3,115,764 Intercompany payable 3,012,656 3,031,415 Other payables-related parties 1,530,826 1,307,260 Long term payable-current portion 119,908 161,669 Deferred income 13,330 21,178 Total current liabilities 8,520,527 8,226,954 Non-current liabilities Long-term payables 3,788,517 3,812,106 Total non-current liabilities 3,788,517 3,812,106 Total Liabilities $ 12,309,044 $ 12,039,060 Stockholders’ equity Paid-in capital 9,280,493 9,280,493 Statutory Reserve 29,006 29,006 Accumulated deficit (9,196,984 ) (8,229,416 ) Accumulated other comprehensive income (885,300 ) (887,055 ) Total stockholders’ equity (772,785 ) 193,028 Total liabilities and stockholders’ equity $ 11,536,259 $ 12,232,088 The summarized operating results of the VIE’s for the six months ended June 30, 2024 and 2023 are as follows: 6/30/2024 6/30/2023 Operating revenues $ 62,705 $ 4,286,828 Gross profit (37,895 ) (142,868 ) Loss from operations (967,568 ) (1,179,913 ) Net loss (967,568 ) (1,179,913 ) |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination [Abstract] | |
Business Combination | 4. Business Combination 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.: Total consideration at fair value $ 8,085,000 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 and the figure was completely impaired during 2022. 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.: 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.: Total consideration at fair value $ 5,420,920 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. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2024 | |
Trade Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | 5. Accounts 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 June 30, December 31, 2024 2023 Trade accounts receivable $ 5,870,607 $ 5,262,452 Less: Allowance for credit losses (2,072,410 ) (2,102,127 ) $ 3,798,197 $ 3,160,325 Allowance for credit losses Beginning balance: (2,102,127 ) (366,301 ) Additions to allowance - (1,735,826 ) Bad debt written-off 29,717 - Ending balance $ (2,072,410 ) $ (2,102,127 ) |
Advances and Prepayments to Sup
Advances and Prepayments to Suppliers | 6 Months Ended |
Jun. 30, 2024 | |
Advances and Prepayments to Suppliers [Abstract] | |
Advances and Prepayments to Suppliers | 6. Advances and Prepayments to Suppliers Prepayments include investment deposits to guarantee investment contracts and advance payment to suppliers and vendors to procure raw materials. Prepayments consist of the following: June 30, December 31, 2024 2023 Payment to suppliers and vendors 3,342,753 5,448,324 Allowance for credit losses (131,311 ) (132,129 ) Total $ 3,211,442 $ 5,316,195 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventories [Abstract] | |
Inventories | 7. Inventories Inventories consisted of the following as of June 30, 2024 and December 31, 2023 : June 30, December 31, 2024 2023 Raw materials $ 2,291,883 $ 1,957,942 Work in progress 1,365,375 1,394,569 Finished goods 604,609 697,733 Allowance for inventory reserve (2,084,203 ) (2,097,181 ) Total $ 2,177,664 $ 1,953,063 |
Plant and Equipment, Net
Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
Plant and Equipment [Abstract] | |
Plant and Equipment | 8. Plant and Equipment, Net Plant and equipment consisted of the following as of June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 At Cost: Buildings $ 19,483,292 $ 19,604,604 Machinery and equipment 11,117,907 11,181,032 Office equipment 750,432 767,094 Motor vehicles 1,456,592 1,465,662 32,808,223 33,018,392 Less: Impairment (745,674 ) (750,317 ) Less: Accumulated depreciation (12,877,899 ) (11,996,231 ) 19,184,650 20,271,844 Construction in progress 30,756 30,948 $ 19,215,406 $ 20,302,792 Depreciation expense for the six months ended June 30, 2024 and June 30, 2023 was $881,669 and $630,258, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets [Abstract] | |
Intangible Assets | 9. Intangible Assets June 30, December 31, 2024 2023 At Cost: Land use rights 2,982,288 3,000,857 Software licenses 66,792 68,573 Trademark 896,094 901,674 $ 3,945,174 $ 3,971,104 Less: Accumulated amortization (1,219,020 ) (1,137,002 ) $ 2,726,154 $ 2,834,102 Amortization expense for the three months ended June 30, 2024 and June30, 2023 was $82,018 and $60,314, respectively. |
Long Term Investment
Long Term Investment | 6 Months Ended |
Jun. 30, 2024 | |
Long Term Investment [Abstract] | |
Long-term Investment | 10. Long-term Investment In 2020, the Company made an initial investment of $2.87 million in exchange for a 19% limited partner interest in Shandong Ningwei New Energy Technology Co., Ltd. The investment was accounted for using the cost method due to the lack of readily determinable fair value in 2024. As of June 30, 2024 and December 31, 2023, the balance of long-term investments stood at $2,243,954 and $2,257,926 respectively. The variance can be attributed to the impact of foreign exchange fluctuations. |
Other Payable
Other Payable | 6 Months Ended |
Jun. 30, 2024 | |
Other Payable [Abstract] | |
Other Payable | 11. Other Payable As of June 30, 2024 and December 31, 2023, the balance of other payable was $4,534,229 |
Advance From Customer
Advance From Customer | 6 Months Ended |
Jun. 30, 2024 | |
Advance From Customer [Abstract] | |
Advance From Customer | 12. Advance From Customer For our operation, the proceeds received from sales are initially recorded as advance from customers, which was usually related to unsatisfied performance obligations at the end of an applicable reporting period. As of June 30, 2024 and December 31, 2023, the outstanding balance of the Advance from customers was $2,465,754 and $2,464,319 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 | 6 Months Ended |
Jun. 30, 2024 | |
Related Parties Transaction [Abstract] | |
Related Parties Transaction | 13. Related Parties Transaction As of June 30, 2024 and December 31, 2023, the outstanding balance due from related parties was $1,968,784 and $315,724, respectively. Significant related parties comprised much of the total outstanding balance are stated below: As of As of Amounts due from related parties: 2024 2023 Mr. Chen Xing the management of the Shandong Yunchu $ 292,390 $ 294,210 Mr. Lu Jun the management of the Jingshan Sanhe $ - $ 21,514 Mr. Xiong Hai Yan the management of the Jingshan Sanhe $ 1,640,675 $ - Mr. Yang Yong the management of the Fast $ 35,719 $ - 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 June 30, 2024 and December 31, 2023, the outstanding balance due to related parties was $7,922,110 and $7,333,545, respectively. The balance was advanced for working capital of the Company, non-interest bearing, and unsecured unless further disclosed. Significant parties comprised much of the total outstanding balance are stated below: As of As of Amounts due to related parties: 2024 2023 Ms. Yan Yan the spouse of the legal representative of Jilin Chuangyuan $ 1,156,199 $ 899,241 Mr. Bin Zhou Chief Executive Officer and Chairman of the Company $ 1,494,181 $ 1,393,529 Hubei Shuang New Energy Technology Co., Ltd. significant impact $ 974,015 $ 442,216 Shandong Ningwei New Energy Technology Co., Ltd. significant impact $ 1,486,782 $ 1,496,040 Anhui Ansheng equipment Co., Ltd. Previous subsidiary $ 1,177,804 $ 1,177,836 Senior managements significant impact $ 1,633,129 $ 1,815,624 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill [Abstract] | |
Goodwill | 14. Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows : JLCY SDYC Balance as of December 31, 2022 $ - $ 4,724,699 Goodwill acquired - - Goodwill impairment - - Disposal of subsidiaries - - Balance as of December 31, 2023 $ - $ 4,724,699 Goodwill acquired - - Goodwill impairment - - Balance as of June 30, 2024 $ - $ 4,724,699 As of June 30, 2024 and December 31, 2023, the carrying amount of the Company’s goodwill was $4,724,699. |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2024 | |
Bank Loans [Abstract] | |
Bank Loans | 15. Bank Loans The outstanding balances on short-term and long-term bank loans consisted of the following: Lender Maturities Weighted 06/30/2024 12/31/2023 Rural Credit Cooperatives of Jilin Province, Jilin Branch Due in November 2026 7.83 % $ 3,507,886 $ 3,529,727 Tonghua Dongchang Yuyin Village Bank Co., Ltd. Due in June 2025 8 % $ 280,631 $ 282,378 Jingshan City branch of Postal Saving Bank of China Due in January 2025 3.85 % $ 1,401,330 $ - Hubei Jingshan Rural Commercial Bank Co. Ltd. Due in June 2026 4 % $ 420,946 $ - Buildings and land use rights in the amount of $11,043,343 are used as collateral for Jilin Branch. The long-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 years 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. The loan from the Jingshan City branch of Postal Savings Bank of China was obtained to support general working capital, with a comprehensive guarantee provided by Mr. Zhou Bin, the Company’s COO, and Hubei Bryce Technology Co., Ltd., which is under the company’s control. Interest expense for six months ended June 30, 2024 and 2023 was $176,236 and $135,452 respectively. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | 16. Equity 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. On May 31, 2024, every ten shares of the Common Stock issued and outstanding or held as treasury stock will be automatically converted into one new share of Common Stock. The total number of shares of Common Stock authorized for issuance will then be reduced by a corresponding proportion The par value per share of the Common Stock will remain unchanged at $0.001 per share. As of June 30, 2024 and 2023, the number of common stock issued was 7,282,714 and 7,282,714 respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024. 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 March 31, 2024 which the Company has foreign cumulative losses at June 30, 2024. 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 June 30, 2024 and 2023: 6/30/2024 6/30/2023 Loss attributed to PRC operations $ (2,756,026 ) $ (1,888,363 ) Loss attributed to U.S. operations (628,100 ) (11,560,992 ) Income attributed to Canada operations 227,518 43,034 Loss before tax $ (3,156,608 ) $ (13,406,321 ) PRC Statutory Tax at 25% Rate (689,007 ) (472,091 ) Valuation allowance 689,007 550,789 Income tax $ - $ 78,698 Per Share Effect of Tax Exemption Weighted-Average Shares Outstanding Basic 7,282,714 7,282,714 Per share effect $ - $ - The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. Reconciliation of effective income tax rate from continuing operations is as follows for the six months ended June 30, 2024 and 2023: 6/30/2024 6/30/2023 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 (25.00 )% (25.59 )% The Company’s effective tax rate - % 0.59 % |
Earnings (Loss) Per Share of Co
Earnings (Loss) Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2024 | |
Loss Per Share of Common Stock [Abstract] | |
Earnings (Loss) Per Share of Common Stock | 18. Earnings (Loss) Per Share of Common Stock For the Six Months Ended June 30, 2024 2023 Net income (loss) from operations attributable to common stockholders $ 4,605,769 $ (13,485,019 ) Basic and diluted (loss) earnings per share denominator: Original Shares at the beginning: 7,282,094 7,282,094 Basic Weighted Average Shares Outstanding 7,282,094 7,282,094 (Loss) income per share from continuing operations - Basic and diluted $ (0.43 ) $ (1.85 ) (Loss) income per share from discontinued operations - $ 1.07 $ - Basic and diluted weighted average shares outstanding 7,282,094 7,282,094 |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30 For the six months ended Customers June 30, 2024 June 30, 2023 Amount $ % Amount $ % A 1,054,847 31 - - B - - 2,536,866 19 C 656,699 20 - - D - - 1,342,227 10 E 376,997 11 - - Suppliers Concentrations The following table sets forth information about each supplier that accounted for 10% or more of the Company’s purchase for the six months ended June 30, 2024 and 2023. For the six months ended Suppliers June 30, 2024 June 30, 2023 Amount $ % Amount $ % A - - 2,738,879 22 B - - 2,225,440 18 C - - 1,664,699 14 D - - 1,200,986 10 E 912,116 27 - - F 825,925 24 - - G 572,169 17 - - H 366,357 11 - - |
Risks
Risks | 6 Months Ended |
Jun. 30, 2024 | |
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. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Contingencies [Abstract] | |
Contingencies | 21. Contingencies The Group records accruals for certain of its outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Group evaluates, on a quarterly basis, developments in legal proceedings or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Group discloses the amount of the accrual if it is material. When a loss contingency is not both probable and estimable, the Group does not record an accrued liability but discloses the nature and the amount of the claim, if material. However, if the loss (or an additional loss in excess of the accrual) is at least reasonably possible, then the Group discloses an estimate of the loss or range of loss, unless it is immaterial or an estimate cannot be made. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often unable to estimate the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages, or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including eventual loss, fine, penalty or business impact, if any. The Company has analyzed its operations subsequent to June 30, 2024 to the date these consolidated financial statements were issued, and has determined that it does not have any material contingency events to disclose. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the dates of the balance sheets, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. The Company has analyzed its operations subsequent to June 30, 2024 to the date these financial statements were issued, and has determined that it does not have any material events to disclose. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 5,686,673 | $ (12,199,648) | $ 4,605,769 | $ (13,485,019) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Management has prepared the accompanying financial statements and these notes according to generally accepted accounting principles in the United States (“GAAP”). The Company maintains its general ledger and journals with the accrual method accounting. |
Principles of Consolidation | Principles of Consolidation Details of the Subsidiaries of the Company as of June 30, 2024 are set below: Name of Company Place of incorporation Attributable equity interest % Registered 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 Inc.) 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 Shine Chemical Co., Ltd. Cayman 100 8,000 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. |
Noncontrolling Interests | Noncontrolling Interests The noncontrolling interests of the Company represent the ownership stakes held by minority shareholders in the Company’s subsidiaries, and are presented separately from the equity attributable to the Company’s shareholders on the consolidated balance sheets. Noncontrolling interests in the Company’s results are disclosed on the consolidated statement of operations and comprehensive loss as allocations of total income or loss for the year between noncontrolling interest holders and the Company’s shareholders. |
Use of Estimates | Use of Estimates The 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 evaluates estimates, including the allowance for credit losses of accounts receivable, amounts due from related parties and equity investments, the useful lives of our property and equipment, impairment of long-lived assets, long-term investments and goodwill, etc. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
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 June 30, 2024, the Company had cash and cash equivalents of $558,933 compared to $436,383 as of December 31, 2023. |
Accounts Receivable, Net | Accounts Receivable, Net 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 amount is not expected to be collected. Delinquent amount balances are written off against the allowance for doubtful amounts after the management has determined that the likelihood of collection is not probable. |
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. An annual impairment test will be performed on inventory, and any excess of the recoverable amount over the carrying amount will be recognized as impairment losses in the current period. |
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. At the end of each fiscal year, we undertake a thorough examination of prepaid expenses and contractual terms, analyze the causes of delayed receipt of corresponding valuable goods, calculate recoverable amounts using a probability-weighted average method for unrecoverable amounts, and make provisions for impairment as deemed necessary. |
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 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. |
Impairment of Long-lived Assets | 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. 06/30/2024 12/31/2023 06/30/2023 Period-end US$: CDN exchange rate 1.3634 1.3196 1.3205 Period-end US$: RMB exchange rate 7.1268 7.0827 7.2258 Period-end US$: HK exchange rate 7.8087 7.8157 7.8373 Period average US$: CDN exchange rate 1.3515 1.3452 1.3480 Period average US$: RMB exchange rate 7.1051 7.0467 6.9291 Period average US$: HK exchange rate 7.8187 7.8282 7.8387 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 we 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 recognizes product revenue at a point in time when the control of the products has been transferred to customers. 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. |
Income Taxes | Income Taxes The Company 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. |
Earnings Per Share | Earnings Per Share 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 Measurements of Financial Instruments | Fair Value Measurements of Financial Instruments 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. |
Lease | Lease Effective December 31, 2018, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and it includes the associated operating lease payments in the undiscounted future pre-tax cash flows. As of June 30, 2024, the lease agreement with JSSH has lapsed and the company does not have any current lease agreements exceeding 12 months. |
Equity Investments | Equity Investments In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. ASU 2016-01 also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. ASU 2016-01, which the Company adopted on January 1, 2018, did not have a material impact on the consolidated financial statements. 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 consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the Company’s 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. When the Company’s share of losses in an entity in which the Company has recorded an equity investment equals or exceeds its interest in the entity, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the equity investee. |
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 has implemented the new standard, and as of June 30, 2024, there was no material effect of this current standard on its consolidated financial statements and related disclosures. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Consolidated Financial Statements | Details of the Subsidiaries of the Company as of June 30, 2024 are set below: Name of Company Place of incorporation Attributable equity interest % Registered 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 Inc.) 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 Shine Chemical Co., Ltd. Cayman 100 8,000 |
Schedule of Estimated Useful Lives of the Plant and Equipment | The estimated useful lives of the plant and equipment are as follows: Buildings 20-40 years Machinery and equipment 1-10 years Motor vehicles 5-10 years Office equipment 5-20 years |
Schedule of Estimated Useful Lives of the 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 Rate | Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 06/30/2024 12/31/2023 06/30/2023 Period-end US$: CDN exchange rate 1.3634 1.3196 1.3205 Period-end US$: RMB exchange rate 7.1268 7.0827 7.2258 Period-end US$: HK exchange rate 7.8087 7.8157 7.8373 Period average US$: CDN exchange rate 1.3515 1.3452 1.3480 Period average US$: RMB exchange rate 7.1051 7.0467 6.9291 Period average US$: HK exchange rate 7.8187 7.8282 7.8387 |
Variable Interest Entity (_VI_2
Variable Interest Entity (“VIE”) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entity (“VIE”) [Abstract] | |
Schedule of Consolidated Assets and Liabilities | The carrying amount of VIE’s consolidated assets and liabilities as of June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 18,378 $ 33,103 Trade accounts receivable, net 2,556 132,013 Inventories 563,190 528,624 Advances to suppliers 124,688 106,971 Other receivables 19,983 25,280 Intercompany receivable 1,543,470 1,553,080 Prepaid expenses 3,908 - Total current assets 2,276,173 2,379,071 Non-current assets Plant and equipment, net 7,433,054 7,991,576 Intangible assets, net 1,819,736 1,854,099 Construction in progress, net 7,296 7,342 Total non-current assets 9,260,086 9,853,017 Total assets $ 11,536,259 $ 12,232,088 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 531,620 $ 565,582 Advance from customers 144,538 7,723 Taxes payable 49 16,363 Other payables and accrued liabilities 3,167,600 3,115,764 Intercompany payable 3,012,656 3,031,415 Other payables-related parties 1,530,826 1,307,260 Long term payable-current portion 119,908 161,669 Deferred income 13,330 21,178 Total current liabilities 8,520,527 8,226,954 Non-current liabilities Long-term payables 3,788,517 3,812,106 Total non-current liabilities 3,788,517 3,812,106 Total Liabilities $ 12,309,044 $ 12,039,060 Stockholders’ equity Paid-in capital 9,280,493 9,280,493 Statutory Reserve 29,006 29,006 Accumulated deficit (9,196,984 ) (8,229,416 ) Accumulated other comprehensive income (885,300 ) (887,055 ) Total stockholders’ equity (772,785 ) 193,028 Total liabilities and stockholders’ equity $ 11,536,259 $ 12,232,088 |
Schedule of Summarized Operating Results of the VIE’s | The summarized operating results of the VIE’s for the six months ended June 30, 2024 and 2023 are as follows: 6/30/2024 6/30/2023 Operating revenues $ 62,705 $ 4,286,828 Gross profit (37,895 ) (142,868 ) Loss from operations (967,568 ) (1,179,913 ) Net loss (967,568 ) (1,179,913 ) |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination [Line Items] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition | 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.: Total consideration at fair value $ 8,085,000 Total consideration at fair value $ 5,420,920 |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition | 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 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 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Trade Accounts 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 June 30, December 31, 2024 2023 Trade accounts receivable $ 5,870,607 $ 5,262,452 Less: Allowance for credit losses (2,072,410 ) (2,102,127 ) $ 3,798,197 $ 3,160,325 Allowance for credit losses Beginning balance: (2,102,127 ) (366,301 ) Additions to allowance - (1,735,826 ) Bad debt written-off 29,717 - Ending balance $ (2,072,410 ) $ (2,102,127 ) |
Advances and Prepayments to S_2
Advances and Prepayments to Suppliers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Advances and Prepayments to Suppliers [Abstract] | |
Schedule of Advance Payment to Suppliers and Vendors to Procure Raw Materials | Prepayments include investment deposits to guarantee investment contracts and advance payment to suppliers and vendors to procure raw materials. Prepayments consist of the following: June 30, December 31, 2024 2023 Payment to suppliers and vendors 3,342,753 5,448,324 Allowance for credit losses (131,311 ) (132,129 ) Total $ 3,211,442 $ 5,316,195 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of June 30, 2024 and December 31, 2023 : June 30, December 31, 2024 2023 Raw materials $ 2,291,883 $ 1,957,942 Work in progress 1,365,375 1,394,569 Finished goods 604,609 697,733 Allowance for inventory reserve (2,084,203 ) (2,097,181 ) Total $ 2,177,664 $ 1,953,063 |
Plant and Equipment, Net (Table
Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Plant and Equipment [Abstract] | |
Schedule of Plant and Equipment | Plant and equipment consisted of the following as of June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 At Cost: Buildings $ 19,483,292 $ 19,604,604 Machinery and equipment 11,117,907 11,181,032 Office equipment 750,432 767,094 Motor vehicles 1,456,592 1,465,662 32,808,223 33,018,392 Less: Impairment (745,674 ) (750,317 ) Less: Accumulated depreciation (12,877,899 ) (11,996,231 ) 19,184,650 20,271,844 Construction in progress 30,756 30,948 $ 19,215,406 $ 20,302,792 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | June 30, December 31, 2024 2023 At Cost: Land use rights 2,982,288 3,000,857 Software licenses 66,792 68,573 Trademark 896,094 901,674 $ 3,945,174 $ 3,971,104 Less: Accumulated amortization (1,219,020 ) (1,137,002 ) $ 2,726,154 $ 2,834,102 |
Related Parties Transaction (Ta
Related Parties Transaction (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Parties Transaction [Abstract] | |
Schedule of Amounts Due from Related Parties | Significant related parties comprised much of the total outstanding balance are stated below: As of As of Amounts due from related parties: 2024 2023 Mr. Chen Xing the management of the Shandong Yunchu $ 292,390 $ 294,210 Mr. Lu Jun the management of the Jingshan Sanhe $ - $ 21,514 Mr. Xiong Hai Yan the management of the Jingshan Sanhe $ 1,640,675 $ - Mr. Yang Yong the management of the Fast $ 35,719 $ - |
Schedule of Amounts Due to Related Parties | Significant parties comprised much of the total outstanding balance are stated below: As of As of Amounts due to related parties: 2024 2023 Ms. Yan Yan the spouse of the legal representative of Jilin Chuangyuan $ 1,156,199 $ 899,241 Mr. Bin Zhou Chief Executive Officer and Chairman of the Company $ 1,494,181 $ 1,393,529 Hubei Shuang New Energy Technology Co., Ltd. significant impact $ 974,015 $ 442,216 Shandong Ningwei New Energy Technology Co., Ltd. significant impact $ 1,486,782 $ 1,496,040 Anhui Ansheng equipment Co., Ltd. Previous subsidiary $ 1,177,804 $ 1,177,836 Senior managements significant impact $ 1,633,129 $ 1,815,624 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill [Abstract] | |
Schedule of the Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by reportable segment are as follows: JLCY SDYC Balance as of December 31, 2022 $ - $ 4,724,699 Goodwill acquired - - Goodwill impairment - - Disposal of subsidiaries - - Balance as of December 31, 2023 $ - $ 4,724,699 Goodwill acquired - - Goodwill impairment - - Balance as of June 30, 2024 $ - $ 4,724,699 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Bank Loans [Abstract] | |
Schedule of Short-Term Bank Loans | The outstanding balances on short-term and long-term bank loans consisted of the following: Lender Maturities Weighted 06/30/2024 12/31/2023 Rural Credit Cooperatives of Jilin Province, Jilin Branch Due in November 2026 7.83 % $ 3,507,886 $ 3,529,727 Tonghua Dongchang Yuyin Village Bank Co., Ltd. Due in June 2025 8 % $ 280,631 $ 282,378 Jingshan City branch of Postal Saving Bank of China Due in January 2025 3.85 % $ 1,401,330 $ - Hubei Jingshan Rural Commercial Bank Co. Ltd. Due in June 2026 4 % $ 420,946 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Expense | Significant components of the income tax expense consisted of the following for the three months ended June 30, 2024 and 2023: 6/30/2024 6/30/2023 Loss attributed to PRC operations $ (2,756,026 ) $ (1,888,363 ) Loss attributed to U.S. operations (628,100 ) (11,560,992 ) Income attributed to Canada operations 227,518 43,034 Loss before tax $ (3,156,608 ) $ (13,406,321 ) PRC Statutory Tax at 25% Rate (689,007 ) (472,091 ) Valuation allowance 689,007 550,789 Income tax $ - $ 78,698 Per Share Effect of Tax Exemption Weighted-Average Shares Outstanding Basic 7,282,714 7,282,714 Per share effect $ - $ - |
Schedule of Effective Income Tax Rate From Continuing Operations | Reconciliation of effective income tax rate from continuing operations is as follows for the six months ended June 30, 2024 and 2023: 6/30/2024 6/30/2023 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 (25.00 )% (25.59 )% The Company’s effective tax rate - % 0.59 % |
Earnings (Loss) Per Share of _2
Earnings (Loss) Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loss Per Share of Common Stock [Abstract] | |
Schedule of Loss Per Share of Common Stock | For the Six Months Ended June 30, 2024 2023 Net income (loss) from operations attributable to common stockholders $ 4,605,769 $ (13,485,019 ) Basic and diluted (loss) earnings per share denominator: Original Shares at the beginning: 7,282,094 7,282,094 Basic Weighted Average Shares Outstanding 7,282,094 7,282,094 (Loss) income per share from continuing operations - Basic and diluted $ (0.43 ) $ (1.85 ) (Loss) income per share from discontinued operations - $ 1.07 $ - Basic and diluted weighted average shares outstanding 7,282,094 7,282,094 |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30 For the six months ended Customers June 30, 2024 June 30, 2023 Amount $ % Amount $ % A 1,054,847 31 - - B - - 2,536,866 19 C 656,699 20 - - D - - 1,342,227 10 E 376,997 11 - - |
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 six months ended June 30, 2024 and 2023. For the six months ended Suppliers June 30, 2024 June 30, 2023 Amount $ % Amount $ % A - - 2,738,879 22 B - - 2,225,440 18 C - - 1,664,699 14 D - - 1,200,986 10 E 912,116 27 - - F 825,925 24 - - G 572,169 17 - - H 366,357 11 - - |
Organization and Principal Ac_2
Organization and Principal Activities (Details) | 3 Months Ended | 6 Months Ended | |||||||||||||||||
Sep. 14, 2022 USD ($) | Apr. 08, 2022 shares | May 09, 2019 shares | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2022 | Aug. 08, 2022 | Dec. 09, 2021 shares | Sep. 01, 2021 | Aug. 03, 2021 shares | Aug. 01, 2021 | Jul. 15, 2021 shares | Mar. 09, 2021 shares | Jan. 06, 2021 shares | Aug. 10, 2020 | Jun. 16, 2020 | |
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Aggregate share amount (in Shares) | shares | 1,080,000 | ||||||||||||||||||
Aggregate shares of common stock (in Shares) | shares | 5,900,000 | 8,000,000 | 4,800,000 | 3,300,000 | 2,200,000 | ||||||||||||||
Issued and outstanding percentage | 15% | ||||||||||||||||||
Share purchase percentage | 85% | ||||||||||||||||||
Duration of the consultation and service agreement | 20 years | ||||||||||||||||||
Voting rights proxy agreement | 20 years | ||||||||||||||||||
Number of reportable segment | 1 | ||||||||||||||||||
Net loss continuing operations (in Dollars) | $ (2,109,649) | $ (12,199,648) | $ (3,156,608) | $ (13,485,019) | |||||||||||||||
Accumulated deficit (in Dollars) | (136,118,828) | (136,118,828) | $ (140,724,597) | ||||||||||||||||
Working capital deficit (in Dollars) | $ 8,092,472 | 8,092,472 | |||||||||||||||||
Net cash used in operating activities (in Dollars) | $ (660,867) | $ (2,240,110) | |||||||||||||||||
Xianning Bozhuang Tea Products Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Lucky Sky Petrochemical to Lucky Sky Planet Green Holdings Co., Limited (H.K.) [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Rui Tang [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Shandong Yunchu Supply Chain Co., Ltd [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Allinyson Ltd [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Jingshan [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 15% | ||||||||||||||||||
Hubei Bryce Technology Co., Ltd [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 100% | ||||||||||||||||||
Hubei Bryce Technology Co., Ltd [Member] | Jingshan [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Aggregate amount (in Dollars) | $ 3,000,000 | ||||||||||||||||||
Jiayi Technologies (Xianning) Co., Ltd. [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 66% | 75% | 85% | ||||||||||||||||
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Equity interest, ownership percentage | 85% | ||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||
Organization and Principal Activities [Line Items] | |||||||||||||||||||
Issuance of shares for acquisition (in Shares) | shares | 7,500,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents (in Dollars) | $ 558,933 | $ 436,383 |
Lease term | 12 months | |
Minimum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property plant and equipment salvage rate | 0% | |
Statutory reserve, percentage | 10% | |
Maximum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property plant and equipment salvage rate | 10% | |
Statutory reserve, percentage | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Promising Prospect BVI Limited [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | The British Virgin Islands |
Attributable equity interest % | 100% |
Registered capital | $ 10,000 |
Promising Prospect HK Limited [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | Hong Kong |
Attributable equity interest % | 100% |
Registered capital | $ 1 |
Jiayi Technologies (Xianning) Co., Ltd. [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 2,000,000 |
Fast Approach Inc. [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | Canada |
Attributable equity interest % | 100% |
Registered capital | $ 79 |
Shanghai Shuning Advertising Co., Ltd. (a subsidiary of Fast Approach Inc.) [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | |
Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 4,710,254 |
Xianning Bozhuang Tea Products Co., Ltd. [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 6,277,922 |
Jilin Chuangyuan Chemical Co., Ltd. [Member] | |
Schedule of Consolidated Financial Statements [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 Consolidated Financial Statements [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 Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 30,000,000 |
Shandong Yunchu Supply Chain Co., Ltd [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | PRC |
Attributable equity interest % | 100% |
Registered capital | $ 5,000,000 |
Shine Chemical Co., Ltd. [Member] | |
Schedule of Consolidated Financial Statements [Line Items] | |
Place of incorporation | Cayman |
Attributable equity interest % | 100% |
Registered capital | $ 8,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Plant and Equipment | Jun. 30, 2024 |
Minimum [Member] | Buildings [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 20 years |
Minimum [Member] | Machinery and equipment [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 1 year |
Minimum [Member] | Motor vehicles [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 5 years |
Minimum [Member] | Office equipment [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 5 years |
Maximum [Member] | Buildings [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 40 years |
Maximum [Member] | Machinery and equipment [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 10 years |
Maximum [Member] | Motor vehicles [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 10 years |
Maximum [Member] | Office equipment [Member] | |
Schedule of Estimated Useful Lives of Plant and Equipment [Line Items] | |
Estimated useful lives of the plant and equipment | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of the Intangible Assets | Jun. 30, 2024 |
Land use rights [Member] | |
Schedule of Estimated Useful Lives Intangible Assets [Line Items] | |
Estimated useful lives of the intangible assets | 50 years |
Software licenses [Member] | |
Schedule of Estimated Useful Lives Intangible Assets [Line Items] | |
Estimated useful lives of the intangible assets | 2 years |
Trademarks [Member] | |
Schedule of Estimated Useful Lives Intangible Assets [Line Items] | |
Estimated useful lives of the intangible assets | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Average Exchange Rate | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
CDN$ exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 1.3634 | 1.3196 | 1.3205 |
RMB exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 7.1268 | 7.0827 | 7.2258 |
HK exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 7.8087 | 7.8157 | 7.8373 |
CDN$ exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 1.3515 | 1.3452 | 1.348 |
RMB exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 7.1051 | 7.0467 | 6.9291 |
HK exchange rate [Member] | |||
Schedule of Average Exchange Rates [Line Items] | |||
Period end average exchange rate | 7.8187 | 7.8282 | 7.8387 |
Variable Interest Entity (_VI_3
Variable Interest Entity (“VIE”) (Details) - Schedule of Consolidated Assets and Liabilities - VIE’s [Member] - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 18,378 | $ 33,103 |
Trade accounts receivable, net | 2,556 | 132,013 |
Inventories | 563,190 | 528,624 |
Advances to suppliers | 124,688 | 106,971 |
Other receivables | 19,983 | 25,280 |
Intercompany receivable | 1,543,470 | 1,553,080 |
Prepaid expenses | 3,908 | |
Total current assets | 2,276,173 | 2,379,071 |
Non-current assets | ||
Plant and equipment, net | 7,433,054 | 7,991,576 |
Intangible assets, net | 1,819,736 | 1,854,099 |
Construction in progress, net | 7,296 | 7,342 |
Total non-current assets | 9,260,086 | 9,853,017 |
Total assets | 11,536,259 | 12,232,088 |
Current liabilities | ||
Accounts payable | 531,620 | 565,582 |
Advance from customers | 144,538 | 7,723 |
Taxes payable | 49 | 16,363 |
Other payables and accrued liabilities | 3,167,600 | 3,115,764 |
Intercompany payable | 3,012,656 | 3,031,415 |
Long term payable-current portion | 119,908 | 161,669 |
Deferred income | 13,330 | 21,178 |
Total current liabilities | 8,520,527 | 8,226,954 |
Non-current liabilities | ||
Long-term payables | 3,788,517 | 3,812,106 |
Total non-current liabilities | 3,788,517 | 3,812,106 |
Total Liabilities | 12,309,044 | 12,039,060 |
Stockholders’ equity | ||
Paid-in capital | 9,280,493 | 9,280,493 |
Statutory Reserve | 29,006 | 29,006 |
Accumulated deficit | (9,196,984) | (8,229,416) |
Accumulated other comprehensive income | (885,300) | (887,055) |
Total stockholders’ equity | (772,785) | 193,028 |
Total liabilities and stockholders’ equity | 11,536,259 | 12,232,088 |
Related Party [Member] | ||
Current liabilities | ||
Other payables-related parties | $ 1,530,826 | $ 1,307,260 |
Variable Interest Entity (_VI_4
Variable Interest Entity (“VIE”) (Details) - Schedule of Summarized Operating Results of the VIE’s - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Summarized Operating Results of the VIE’s [Line Items] | ||
Operating revenues | $ 62,705 | $ 4,286,828 |
Gross profit | (37,895) | (142,868) |
Loss from operations | (967,568) | (1,179,913) |
Net loss | $ (967,568) | $ (1,179,913) |
Business Combination (Details)
Business Combination (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 09, 2021 | Mar. 09, 2021 |
Business Combination [Member] | |||
Business Combination [Line Items] | |||
Equity interest rate | 75% | ||
Shandong Yunchu Supply Chain Co., Ltd [Member] | |||
Business Combination [Line Items] | |||
Equity interest rate | 100% | ||
Jilin Chuangyuan Chemical Co., Ltd | |||
Business Combination [Line Items] | |||
Goodwill | $ 3,190 | ||
Shandong Yunchu Supply Chain Co., Ltd [Member] | |||
Business Combination [Line Items] | |||
Aggregate shares of common stock | 5,900,000 | ||
Goodwill | $ 4,720 | ||
Common Stock [Member] | Jilin Chuangyuan Chemical Co., Ltd | |||
Business Combination [Line Items] | |||
Aggregate shares of common stock | 3,300,000 |
Business Combination (Details)
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Jilin Chuangyuan Chemical Co., Ltd [Member] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition [Line Items] | |
Total consideration at fair value | $ 8,085,000 |
Shandong Yunchu Supply Chain Co., Ltd [Member] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition [Line Items] | |
Total consideration at fair value | $ 5,420,920 |
Business Combination (Details_2
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition - Business Combination [Member] | Jun. 30, 2024 USD ($) |
Jilin Chuangyuan Chemical Co., Ltd [Member] | |
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition [Line Items] | |
Cash and cash equivalents, and Restricted Cash | $ 95,237 |
Trade receivable and Note receivable | 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) |
Noncontrolling interest | (1,613,518) |
Net assets acquired | 8,085,000 |
Shandong Yunchu Trading Co Ltd [Member] | |
Business Combination (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities Assumed at the Acquisition [Line Items] | |
Cash and cash equivalents, and Restricted Cash | 77,427 |
Trade receivable and Note receivable | 780,556 |
Inventories, net | |
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) |
Noncontrolling interest | |
Net assets acquired | $ 5,420,920 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Trade Accounts Receivable, Net [Abstract] | |
Credit terms, 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 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Trade Accounts Receivable - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Trade Accounts Receivable [Abstract] | ||
Trade accounts receivable | $ 5,870,607 | $ 5,262,452 |
Less: Allowance for credit losses | (2,072,410) | (2,102,127) |
Trade receivables, net | 3,798,197 | 3,160,325 |
Allowance for credit losses | ||
Beginning balance: | (2,102,127) | (366,301) |
Additions to allowance | (1,735,826) | |
Bad debt written-off | 29,717 | |
Ending balance | $ (2,072,410) | $ (2,102,127) |
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 ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Advance Payment to Suppliers and Vendors to Procure Raw Materials [Abstract] | ||
Payment to suppliers and vendors | $ 3,342,753 | $ 5,448,324 |
Allowance for credit losses | (131,311) | (132,129) |
Total | $ 3,211,442 | $ 5,316,195 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 2,291,883 | $ 1,957,942 |
Work in progress | 1,365,375 | 1,394,569 |
Finished goods | 604,609 | 697,733 |
Allowance for inventory reserve | (2,084,203) | (2,097,181) |
Total | $ 2,177,664 | $ 1,953,063 |
Plant and Equipment, Net (Detai
Plant and Equipment, Net (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Plant and Equipment [Abstract] | ||
Depreciation expense | $ 881,669 | $ 630,258 |
Plant and Equipment, Net (Det_2
Plant and Equipment, Net (Details) - Schedule of Plant and Equipment - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
At Cost: | ||
Plant and equipment, At Cost | $ 32,808,223 | $ 33,018,392 |
Less: Impairment | (745,674) | (750,317) |
Less: Accumulated depreciation | (12,877,899) | (11,996,231) |
Plant and equipment, othe net | 19,184,650 | 20,271,844 |
Construction in progress | 30,756 | 30,948 |
Plant and equipment, net | 19,215,406 | 20,302,792 |
Buildings [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 19,483,292 | 19,604,604 |
Machinery and equipment [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 11,117,907 | 11,181,032 |
Office equipment [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | 750,432 | 767,094 |
Motor vehicles [Member] | ||
At Cost: | ||
Plant and equipment, At Cost | $ 1,456,592 | $ 1,465,662 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 82,018 | $ 60,314 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross intangible assets | $ 3,945,174 | $ 3,971,104 |
Less: Accumulated amortization | (1,219,020) | (1,137,002) |
Net intangible assets | 2,726,154 | 2,834,102 |
Land use rights [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross intangible assets | 2,982,288 | 3,000,857 |
Software licenses [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross intangible assets | 66,792 | 68,573 |
Trademark [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Gross intangible assets | $ 896,094 | $ 901,674 |
Long Term Investment (Details)
Long Term Investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2024 | Dec. 31, 2023 | |
Long Term Investment [Line Items] | |||
Partnership interest percentage | 19% | ||
Long term investment | $ 2,243,954 | $ 2,257,926 | |
Shandong Ningwei New Energy Technology Co., Ltd. [Member] | |||
Long Term Investment [Line Items] | |||
Investment return | $ 2,870,000 |
Other Payable (Details)
Other Payable (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Other Payable [Abstract] | ||
Balance of other payable | $ 4,534,229 | $ 4,510,192 |
Advance From Customer (Details)
Advance From Customer (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Advance From Customer [Abstract] | ||
Advance from customers | $ 2,465,754 | $ 2,464,319 |
Related Parties Transaction (De
Related Parties Transaction (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Significant Related Parties [Member] | ||
Related Parties Transaction [Line Items] | ||
Outstanding balance due from related parties | $ 1,968,784 | $ 315,724 |
Related Party [Member] | ||
Related Parties Transaction [Line Items] | ||
Outstanding balance due to related party | $ 7,922,110 | $ 7,333,545 |
Related Parties Transaction (_2
Related Parties Transaction (Details) - Schedule of Amounts Due from Related Parties - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Mr.Chen Xing [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Description of related parties | the management of the Shandong Yunchu | |
Amounts due from related parties | $ 292,390 | $ 294,210 |
Mr.Lu Jun [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Description of related parties | the management of the Jingshan Sanhe | |
Amounts due from related parties | 21,514 | |
Mr.Xiong Hai Yan [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Description of related parties | the management of the Jingshan Sanhe | |
Amounts due from related parties | $ 1,640,675 | |
Mr.Yang Yong [Member] | ||
Schedule of Amounts Due from Related Parties [Line Items] | ||
Description of related parties | the management of the Fast | |
Amounts due from related parties | $ 35,719 |
Related Parties Transaction (_3
Related Parties Transaction (Details) - Schedule of Amounts Due to Related Parties - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Ms. Yan Yan [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | the spouse of the legal representative of Jilin Chuangyuan | |
Amounts due to related parties | $ 1,156,199 | $ 899,241 |
Mr. Bin Zhou [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | Chief Executive Officer and Chairman of the Company | |
Amounts due to related parties | $ 1,494,181 | 1,393,529 |
Hubei Shuang New Energy Technology Co., Ltd. [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | significant impact | |
Amounts due to related parties | $ 974,015 | 442,216 |
Shandong Ningwei New Energy Technology Co., Ltd. [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | significant impact | |
Amounts due to related parties | $ 1,486,782 | 1,496,040 |
Anhui Ansheng equipment Co., Ltd. [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | Previous subsidiary | |
Amounts due to related parties | $ 1,177,804 | 1,177,836 |
Senior managements [Member] | ||
Schedule of Amounts Due to Related Parties [Line Items] | ||
Amounts due to related parties, description | significant impact | |
Amounts due to related parties | $ 1,633,129 | $ 1,815,624 |
Goodwill (Details)
Goodwill (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 4,724,699 | $ 4,724,699 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of the Changes in the Carrying Amount of Goodwill - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
JLCY [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | ||
Goodwill acquired | ||
Goodwill impairment | ||
Disposal of subsidiaries | ||
Balance ending | ||
SDYC [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 4,724,699 | 4,724,699 |
Goodwill acquired | ||
Goodwill impairment | ||
Disposal of subsidiaries | ||
Balance ending | $ 4,724,699 | $ 4,724,699 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 6 Months Ended | ||
Jun. 15, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Bank Loans [Line Items] | |||
Buildings and land used as collateral | $ 11,043,343 | ||
Stock shares (in Shares) | 28,465,000 | ||
Approximately total share percentage | 71.43% | ||
Jilin Branch [Member] | |||
Bank Loans [Line Items] | |||
Interest expense | $ 176,236 | $ 135,452 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of Short-Term Bank Loans - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Rural Credit Cooperatives of Jilin Province, Jilin Branch [Member] | ||
Schedule of Short-Term Bank Loans [Line Items] | ||
Maturities | Due in November 2026 | |
Weighted average interest rate | 7.83% | |
Short-term bank loans | $ 3,507,886 | $ 3,529,727 |
Tonghua Dongchang Yuyin Village Bank Co., LTD [Member] | ||
Schedule of Short-Term Bank Loans [Line Items] | ||
Maturities | Due in June 2025 | |
Weighted average interest rate | 8% | |
Short-term bank loans | $ 280,631 | 282,378 |
Jingshan City branch of Postal Saving Bank of China [Member] | ||
Schedule of Short-Term Bank Loans [Line Items] | ||
Maturities | Due in January 2025 | |
Weighted average interest rate | 3.85% | |
Short-term bank loans | $ 1,401,330 | |
Hubei Jingshan Rural Commercial Bank Co. Ltd. [Member] | ||
Schedule of Short-Term Bank Loans [Line Items] | ||
Maturities | Due in June 2026 | |
Weighted average interest rate | 4% | |
Short-term bank loans | $ 420,946 |
Equity (Details)
Equity (Details) - USD ($) | May 19, 2022 | Jan. 13, 2022 | Jun. 30, 2024 | May 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Jul. 20, 2022 | Apr. 08, 2022 | |||
Equity [Line Items] | |||||||||||
Common stock shares issued | 7,282,714 | [1] | 10 | 72,081,930 | [1] | 7,282,714 | |||||
Common stock, par value (in Dollars per share) | $ 0.001 | [1] | $ 0.001 | [1] | $ 0.001 | ||||||
Common stock shares outstanding | [1] | 7,282,714 | 72,081,930 | ||||||||
Allinyson Ltd [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Equity interest rate | 100% | ||||||||||
Xianning Xiangtian Energy Holdings Group Co., Ltd. [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Equity interest rate | 30% | ||||||||||
Planet Green Holdings Corporation [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Common stock shares outstanding | 10 | ||||||||||
Treasury stock common shares | 1 | ||||||||||
Securities Purchase Agreement [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Common stock shares issued | 10,000,000 | ||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||||
Aggregate purchase price (in Dollars) | $ 4,100,000 | ||||||||||
Purchase price per share (in Dollars per share) | $ 0.41 | ||||||||||
Securities Purchase Agreement [Member] | People’s Republic of China [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Common stock shares issued | 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 | ||||||||||
Nevada [Member] | Planet Green Holdings Corporation [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Common stock shares issued | 7,500,000 | ||||||||||
Common Stock [Member] | Xianning Xiangtian Energy Holdings Group Co., Ltd. [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Issuance of common stock | 12,000,000 | ||||||||||
[1]The shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Income Taxes (Details)
Income Taxes (Details) | 1 Months Ended | 6 Months Ended | |
Dec. 22, 2017 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Taxes [Line Items] | |||
Statutory federal rate | 21% | 21% | |
Valuation allowance on deferred tax | 100% | ||
U.S [Member] | |||
Income Taxes [Line Items] | |||
Statutory federal rate | 21% | ||
Cooperated tax rate percentage | 21% | ||
Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Statutory federal rate | 16.50% | ||
PRC [Member] | |||
Income Taxes [Line Items] | |||
Income tax rate | 25% | ||
Maximum [Member] | U.S [Member] | |||
Income Taxes [Line Items] | |||
U.S. corporate tax rate percentage | 34% | ||
Minimum [Member] | U.S [Member] | |||
Income Taxes [Line Items] | |||
U.S. corporate tax rate percentage | 21% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Tax Expense - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Income Tax Expense [Line Items] | ||||
Loss before tax | $ (2,109,649) | $ (12,168,574) | $ (3,156,608) | $ (13,406,321) |
PRC Statutory Tax at 25% Rate | (689,007) | (472,091) | ||
Valuation allowance | 689,007 | 550,789 | ||
Income tax | 78,698 | |||
Per Share Effect of Tax Exemption | ||||
Weighted-Average Shares Outstanding Basic (in Shares) | 7,282,714 | 7,282,714 | 7,282,714 | 7,282,714 |
Per share effect | ||||
PRC operations [Member] | ||||
Schedule of Income Tax Expense [Line Items] | ||||
Loss attributed to operations | (2,756,026) | (1,888,363) | ||
U.S. operations [Member] | ||||
Schedule of Income Tax Expense [Line Items] | ||||
Loss attributed to operations | (628,100) | (11,560,992) | ||
Canada operations [Member] | ||||
Schedule of Income Tax Expense [Line Items] | ||||
Loss attributed to operations | $ 227,518 | $ 43,034 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Effective Income Tax Rate From Continuing Operations | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Effective Income Tax Rate From Continuing Operations [Line Items] | ||
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 | (25.00%) | (25.59%) |
The Company's effective tax rate | 0.59% |
Earnings (Loss) Per Share of _3
Earnings (Loss) Per Share of Common Stock (Details) - Schedule of Loss Per Share of Common Stock - Common Stock [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings (Loss) Per Share of Common Stock (Details) - Schedule of Loss Per Share of Common Stock [Line Items] | ||
Net income (loss) from operations attributable to common stockholders (in Dollars) | $ 4,605,769 | $ (13,485,019) |
Original Shares at the beginning: | 7,282,094 | 7,282,094 |
Basic Weighted Average Shares Outstanding | 7,282,094 | 7,282,094 |
(Loss) income per share from continuing operations - Basic (in Dollars per share) | $ (0.43) | $ (1.85) |
(Loss) income per common shareholders - Basic (in Dollars per share) | $ 1.07 | |
Basic weighted average shares outstanding | 7,282,094 | 7,282,094 |
Earnings (Loss) Per Share of _4
Earnings (Loss) Per Share of Common Stock (Details) - Schedule of Loss Per Share of Common Stock (Parentheticals) - Common Stock [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings (Loss) Per Share of Common Stock (Details) - Schedule of Loss Per Share of Common Stock (Parentheticals) [Line Items] | ||
(Loss) income per share from continuing operations diluted | $ (0.43) | $ (1.85) |
(Loss) income per common shareholders diluted | $ 1.07 | |
Diluted weighted average shares outstanding (in Shares) | 7,282,094 | 7,282,094 |
Concentrations (Details)
Concentrations (Details) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Customer Concentration Risk [Member] | Customer [Member] | Revenue Benchmark [Member] | ||
Concentrations [Line Items] | ||
Concentrations percentage | 10% | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 10% | |
Supplier Concentration Risk [Member] | Purchase Benchmark [Member] | Supplier [Member] | ||
Concentrations [Line Items] | ||
Concentrations percentage | 10% | |
Supplier Concentration Risk [Member] | Customer [Member] | Purchase Benchmark [Member] | Supplier [Member] | ||
Concentrations [Line Items] | ||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of Customers Concentrations - Customer Concentration Risk [Member] - Revenue Benchmark [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Customers A [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 1,054,847 | |
Percentage of customers revenue | 31% | |
Customers B [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 2,536,866 | |
Percentage of customers revenue | 19% | |
Customers C [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 656,699 | |
Percentage of customers revenue | 20% | |
Customers D [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 1,342,227 | |
Percentage of customers revenue | 10% | |
Customers E [Member] | ||
Concentration Risk [Line Items] | ||
Customers revenue, amount | $ 376,997 | |
Percentage of customers revenue | 11% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of Suppliers Concentrations - Supplier Concentration Risk [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Purchase Benchmark [Member] | Suppliers A [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | $ 2,738,879 | |
Purchase Benchmark [Member] | Suppliers B [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 2,225,440 | |
Purchase Benchmark [Member] | Suppliers C [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 1,664,699 | |
Purchase Benchmark [Member] | Suppliers D [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 1,200,986 | |
Purchase Benchmark [Member] | Suppliers E [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 912,116 | |
Purchase Benchmark [Member] | Suppliers F [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 825,925 | |
Purchase Benchmark [Member] | Suppliers G [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | 572,169 | |
Purchase Benchmark [Member] | Suppliers H [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Suppliers revenue, amount | $ 366,357 | |
Cost of Goods and Service Benchmark [Member] | Suppliers A [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 22% | |
Cost of Goods and Service Benchmark [Member] | Suppliers B [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 18% | |
Cost of Goods and Service Benchmark [Member] | Suppliers C [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 14% | |
Cost of Goods and Service Benchmark [Member] | Suppliers D [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 10% | |
Cost of Goods and Service Benchmark [Member] | Suppliers E [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 27% | |
Cost of Goods and Service Benchmark [Member] | Suppliers F [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 24% | |
Cost of Goods and Service Benchmark [Member] | Suppliers G [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 17% | |
Cost of Goods and Service Benchmark [Member] | Suppliers H [Member] | ||
Schedule of Suppliers Concentrations [Line Items] | ||
Percentage of suppliers revenue | 11% |