Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 28, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | China Carbon Graphite Group, Inc. | ||
Entity Central Index Key | 0001284450 | ||
Amendment Flag | false | ||
Trading Symbol | CHGI | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 1,013,593 | ||
Entity Common Stock, Shares Outstanding | 27,502,346 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 9,137 | $ 8,106 |
Account Receivable | 5,587 | 3,640 |
Inventories | 1,834 | 4,662 |
Advance to suppliers | 7,517 | 169,459 |
Other receivables, net | 29,954 | 17,383 |
Total current assets | 54,029 | 203,250 |
Property And Equipment, Net | 38,473 | 45,540 |
Total Assets | 92,502 | 248,790 |
Current Liabilities | ||
Accounts payable and accrued expenses | 91,189 | 70,724 |
Accrued payroll - related party | 626,662 | 623,190 |
Advance from customers | 27,995 | 198,301 |
Other payables | 1,539,606 | 1,089,573 |
Due to related parties | 146,439 | |
Dividends payable | 55,015 | 55,015 |
Total current liabilities | 2,340,467 | 2,183,242 |
Total Liabilities | 2,340,467 | 2,183,242 |
Stockholders’ Deficit | ||
Common stock, $0.001 par value; 100,000,000 shares authorized 27,262,346 and 27,010,346 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 27,262 | 27,010 |
Additional paid-in capital | 48,753,751 | 48,738,883 |
Accumulated other comprehensive income | 93,271 | 75,804 |
Accumulated loss | (51,122,249) | (50,776,149) |
Total stockholders’ deficit | (2,247,965) | (1,934,452) |
Total Liabilities and Stockholders’ Deficit | $ 92,502 | $ 248,790 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 27,262,346 | 27,010,346 |
Common stock, shares outstanding | 27,262,346 | 27,010,346 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Sales | $ 1,478,115 | $ 993,276 |
Cost of Goods Sold | 1,367,084 | 877,861 |
Gross Profit | 111,031 | 115,415 |
Operating Expenses | ||
Selling expenses | 28,973 | 20,442 |
General and administrative | 420,775 | 366,196 |
Total operating expenses | 449,748 | 386,638 |
Loss before other income (expense) and income taxes | (338,717) | (271,223) |
Other Income (Expense) | ||
Interest expense | (7,397) | (3,613) |
Other income (expense), net | 14 | 20,544 |
Total other expense (income), net | (7,383) | 16,931 |
Loss before income taxes | (346,100) | (254,292) |
Income Tax Expense | ||
Net loss | (346,100) | (254,292) |
Other Comprehensive Income | ||
Foreign currency translation gain (loss) | 17,467 | (13,966) |
Total Comprehensive Loss | $ (328,633) | $ (268,258) |
Basic and diluted loss per share | ||
Net loss per share – basic and diluted | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding, basic and diluted | 27,231,968 | 28,974,137 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Comprehensive Income | Total |
Beginning balance at Dec. 31, 2016 | $ 37,398 | $ 48,728,495 | $ (50,521,857) | $ 89,770 | $ (1,666,194) |
Beginning balance, shares at Dec. 31, 2016 | 37,398,518 | ||||
Stock cancellation | $ (10,388) | 10,388 | 0 | ||
Stock cancellation, shares | (10,388,172) | ||||
Net loss | (254,292) | (254,292) | |||
Foreign currency translation adjustment | (13,966) | (13,966) | |||
Ending balance at Dec. 31, 2017 | $ 27,010 | 48,738,883 | (50,776,149) | 75,804 | (1,934,452) |
Ending balance, shares at Dec. 31, 2017 | 27,010,346 | ||||
Issuance of common stock for directors and employees | $ 252 | 14,868 | 15,120 | ||
Issuance of common stock for directors and employees, shares | 252,000 | ||||
Net loss | (346,100) | (346,100) | |||
Foreign currency translation adjustment | 17,467 | 17,467 | |||
Ending balance at Dec. 31, 2018 | $ 27,262 | $ 48,753,751 | $ (51,122,249) | $ 93,271 | $ (2,247,965) |
Ending balance, shares at Dec. 31, 2018 | 27,262,346 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net Loss available to common shareholders | $ (346,100) | $ (254,292) |
Adjustments to reconcile net cash provided by operating activities | ||
Depreciation | 15,111 | 9,334 |
Stock compensation | 15,120 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,228) | 48,032 |
Other receivables | (13,731) | 26,611 |
Advance to suppliers | 158,979 | (809) |
Inventory | 2,682 | 20,351 |
Accounts payable and accrued liabilities | 24,559 | (16,965) |
Advance from customers | (166,068) | 162,653 |
Taxes payable | (1,405) | 11,922 |
Other payables | 468,898 | (19,036) |
Net cash provided by (used in) operating activities | 155,817 | (12,199) |
Cash flows from investing activities | ||
Acquisition of equipment | (10,304) | (31,129) |
Net cash used in investing activities | (10,304) | (31,129) |
Cash flows from financing activities | ||
Payments to loan from related parties | (144,139) | (120) |
Net cash used in financing activities | (144,139) | (120) |
Effect of exchange rate fluctuation on cash and cash equivalents | (343) | 1,254 |
Net increase (decrease) in cash | 1,031 | (42,194) |
Cash and cash equivalents at beginning of period | 8,106 | 50,300 |
Cash and cash equivalents at ending of period | 9,137 | 8,106 |
Supplemental disclosure of cash flow information | ||
Interest paid | (656) | |
Income taxes paid |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | (1) Organization and Business China Carbon Graphite Group, Inc. (the "Company"), through its subsidiaries, is engaged in the research and development, rework and sales of graphene and graphene oxide and graphite bipolar plates in the People's Republic of China ("China" or the "PRC"). The Company has developed its own graphene prototype and reworks the products by orders only. The Company outsource the production of large orders to third parties as it has not commercialized its product prototype. We also operate a business-to-business and business-to-consumers Internet portal (www.roycarbon.com) for graphite related products. Vendors can sell raw materials, industrial commodities and consumer (household) commodities to both business and consumers through the website by paying a fee for each transaction conducted through the website. The Company was incorporated on February 13, 2003 in Nevada under the name Achievers Magazine Inc. In connection with the reverse merger transaction described below, the Company's corporate name was changed to China Carbon Graphite Group, Inc. on January 30, 2008. On December 17, 2007, the Company completed a share exchange pursuant to a share exchange agreement with Sincere Investment (PTC), Ltd. ("Sincere"), a British Virgin Islands corporation. Sincere was the sole stockholder of Talent International Investment Limited ("Talent"), a British Virgin Islands corporation., which is the sole stockholder of XingheYongle Carbon Co., Ltd. ("Yongle"), a wholly foreign-owned enterprise company organized under the laws of the PRC. Pursuant to the share exchange agreement, the Company issued 9,388,172 shares of common stock to Sincere in exchange for all of the outstanding on stock of Talent, and Talent became a wholly-owned subsidiary of the Company. Upon completion of the reverse merger, the Company's business became the business of Talent, its subsidiaries and its affiliated variable interest entities. Talent owns 100% of the stock of Yongle, which is a wholly foreign-owned enterprise organized under the laws of the PRC. Acquisition in December 2013 On December 23, 2013, the Company acquired Golden Ivy Limited, a British Virgin Island company ("BVI Co.,"). Pursuant to the terms of the acquisition, we issued an aggregate of 5,000,000 shares of common stock, par value $0.001 per share, to the former shareholders of BVI Co. in exchange for 100% of the issued and outstanding equity of BVI Co. The shares were issued on January 16, 2014. BVI Co. then became a wholly owned subsidiary of the Company. The Business and the facilities related thereto are all located in the People's Republic of China ("China"). The Business is conducted by Royal Elite New Energy Science and Technology (Shanghai) Co., Ltd. ("Royal Shanghai"), a wholly foreign owned enterprise under laws of China. Royal Shanghai is wholly owned by Royal Elite International Limited, a Hong Kong company, ("Royal HK"), which is wholly owned by BVI Co. Royal Shanghai was set up in Shanghai on June 9, 2010. Royal HK was set up in Hong Kong on January 8, 2010. The consolidated financial statements presented herein consolidate the financial statements of China Carbon Graphite, Inc. with the financial statements of its subsidiaries in the following structure chart. Organizational Structure Chart The following chart sets forth our organizational structure: Liquidity and Working Capital Deficit As of December 31, 2018 and as of December 31, 2017, the Company managed to operate its business with a negative working capital. The Company Law of the PRC applicable to Chinese companies provides that net after tax income should be allocated by the following rules: 1. 10% of after tax income to be allocated to a statutory surplus reserve until the reserve amounts to 50% of the company's registered capital. 2. If the cumulative balance of statutory surplus reserve is not enough to make up the Company's cumulative prior years' losses, the current year's after tax income should be first used to make up the losses before the statutory surplus reverse is drawn. 3. Allocation can be made to the discretionary surplus reserve, if such a reserve is approved at the meeting of the equity owners. Therefore, the Company is required to maintain a statutory reserve in China that limits any equity distributions to its shareholders. The maximum amount of the shareholders has not been reached. The Company has never distributed earnings to shareholders and has no intentions to do so. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2018 | |
Going Concern [Abstract] | |
Going Concern | (2) Going Concern The Company's consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of and for the period ended December 31, 2018, the Company has incurred operating losses and working capital deficit. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management's Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. |
Basis for Preparation of the Co
Basis for Preparation of the Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Basis for Preparation of the Consolidated Financial Statements [Abstract] | |
Basis for Preparation of the Consolidated Financial Statements | (3) Basis for Preparation of the Consolidated Financial Statements The Company maintains its books and accounting records in Renminbi ("RMB"), but its reporting currency is U.S. dollars. The consolidated financial statements have been prepared in order to present the financial position and results of operations of the Company, its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (4) Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Use of estimates The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the reporting period. Some of the significant estimates include values and lives assigned to acquired property and equipment, reserves for customer returns and allowances, uncollectible accounts receivable, slow moving, obsolete and/or damaged inventory. Actual results may differ from these estimates. Cash and cash equivalents The Company considers all highly liquid debt instruments purchased with maturity periods of six months or less to be cash equivalents. The carrying amounts reported in the accompanying balance sheet for cash and cash equivalents approximate their fair value. Substantially all of the Company's cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance. The Company's bank account in the United States is protected by FDIC insurance. Accounts receivable Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer's financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Inventory Inventory is stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchases, and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using the weighted average method. Net realizable value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to complete the sale. The Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and also evaluates the impact of any anticipated changes in future demand. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. Impairment of inventories is recorded in cost of goods sold. For the years ended December 31, 2018 and 2017, the Company has not made provision for inventory in regards to slow moving or obsolete items. Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Machinery and equipment 5 years Motor vehicle 5 years Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the years ended December 31, 2018 and 2017. Stock-based compensation Stock-based compensation includes (i) common stock awards granted to employees and directors for services which are accounted for under FASB ASC 718, Compensation–Stock Compensation" and (ii) common stock awards granted to consultants which are accounted for under FASB ASC 505-50, Equity–Equity-Based Payments to Non-Employees. All grants of common stock awards and stock options to employees and directors are recognized in the financial statements based on their grant date fair values. The Company has elected to recognize compensation expense using the straight-line method for all common stock awards and stock options granted with service conditions that have a graded vesting schedule, with a corresponding charge to additional paid-in capital. Common stock awards are granted to directors for services provided. The vested portions of common stock awards granted but not yet issued are recorded in common stock to be issued. Common stock awards issued to consultants represent common stock granted to non-employees in exchange for services at fair value. The measurement dates for such awards are set at the dates that the contracts are entered into as the awards are non-forfeitable and vest immediately. The measurement date fair value is then recognized over the service period as if the Company has paid cash for such service. The Company estimates fair value of common stock awards based on the number of shares granted and the quoted price of the Company's common stock on the date of grant. Foreign currency translation The reporting currency of the Company is U.S. dollars. The Company uses RMB as its functional currency. The results of operations and cash flows are translated at average exchange rates during the period, and assets and liabilities are translated at the unified exchange rates at the balance sheet dates, and equity is translated at the historical exchange rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding accounts on the balance sheets. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statements of stockholders' equity. Translation adjustments for the years ended December 31, 2018 and 2017 were $17,467 and $(13,966), respectively. The cumulative translation adjustment and effect of exchange rate changes on cash for the years ended December 31, 2018 and 2017 were $(343) and $1,254, respectively. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Assets and liabilities were translated at 6.88 RMB and 6.51 RMB to $1.00 at December 31, 2018 and December 31, 2017, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to income statements for the years ended December 31, 2018 and 2017 were 6.61 RMB and 6.76 RMB to $1.00, respectively. Cash flows are also translated at average translation rates for the period; therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Revenue recognition The Company derives revenues from distribution of graphite-based products. We recognize revenue in accordance with ASC 606, Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products. We enter into contracts that can include products, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Sales represent the invoiced value of goods, net of value added tax ("VAT"), if any, and are recognized upon delivery of goods and passage of title according to shipping terms. The Company is subject to VAT, which is levied on a majority of the products, at a rate ranging from 13% to 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. The Company recognizes revenue upon transfer of control of promised products to customers according to shipping terms. The Company does not provide chargeback or price protection rights to the customers. The customer only places purchase orders with the Company once it has confirmed the sale with a third party because this is a specialized business, which dictates that the Company will not sell the products until the purchase order is received. The Company allows its customers to return products only if its products are later determined by the Company to be defective. Based on the Company's historical experience, product returns have been insignificant throughout all of its product lines. Therefore, the Company does not record an allowance for sales returns. If sales returns occur, they are taken against revenue when products are returned from customers. Sales are presented net of any discounts given to customers. Interest income is recognized when earned. The Company experienced no returns for the years ended December 31, 2018 and 2017. In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) There is no impact of applying this ASU. Cost of goods sold Cost of goods sold consists primarily of the purchase costs of products. Shipping and handling costs The Company follows ASC 606, as amended and clarified by ASU 2016-10, to record shipping and handling cost. The Company classifies shipping and handling costs paid on behalf of its customers in selling expenses. For the years ended December 31, 2018 and 2017, shipping and handling costs were $12,592 and $12,564, respectively. Taxation Taxation on profits earned in the PRC has been calculated based on the estimated assessable profits for the year at the rates of taxation prevailing in the PRC after taking into account the benefits from any special tax credits or "tax holidays" allowed in the county of operations. The Company does not accrue U.S. income tax since it has no operations in the United States. Its operating subsidiaries are organized and located in the PRC and do not conduct any business in the United States. In 2006, the Financial Accounting Standards Board ("FASB") issued ASC, 740 Income Tax, formerly known as FIN 48, which clarifies the application of SFAS 109 by defining a criterion that an individual income tax position must meet for any part of the benefit of that position to be recognized in an enterprise's financial statements and provides guidance on measurement, recognition, classification, accounting for interest and penalties, accounting in interim periods, disclosure and transition. In accordance with the transition provisions, the Company adopted FIN 48 effective January 1, 2007. The Company recognizes that virtually all tax positions in the PRC are not free from some degree of uncertainty due to tax law and policy changes by the state. The Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current government officials. Based on all known facts and circumstances and current tax law, the Company believes that the total amount of unrecognized tax benefits as of December 31, 2018 is not material to its results of operations, financial condition or cash flows. The Company also believes that the total amount of unrecognized tax benefits as of December 31, 2018, if recognized, would not have a material effect on its effective tax rate. The Company further believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax law and policy, that the unrecognized tax benefits will significantly increase or decrease over the next twelve months producing, individually or in the aggregate, a material effect on the Company's results of operations, financial condition or cash flows. Enterprise income tax The enterprise income tax is calculated on the basis of the statutory profit as defined in the PRC tax laws. This statutory profit is computed differently than the Company's net income under U.S. GAAP. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Value added tax The Provisional Regulations of the PRC Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax ("VAT") is imposed on goods sold in or imported into the PRC and on processing, repair and replacement services provided within the PRC. VAT payable in the PRC is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of VAT included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year. Contingent liabilities and contingent assets A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. It can also be a present obligation arising from past events that is not recognized because it is not probable that the Company will incur a liability or obligations as a result. A contingent liability, which might occur but is not probable, is not recorded but is disclosed in the notes to the financial statements. The Company will recognize a liability or obligation when it is probable that the Company will incur such liability or obligation. A contingent asset is an asset, which could possibly arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the Company. Contingent assets are not recorded but are disclosed in the notes to the financial statements when it is likely that the Company will recognize an economic benefit. When the benefit is virtually certain, the asset is recognized. Fair value of financial instruments The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) 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 inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The carrying amount of other receivables, advance to vendors, advances from customers, other payables, accrued liabilities are reasonable estimates of their fair value because of the short-term nature of these items. Loss per share Basic loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive shares of common stock consist of the common stock issuable upon the conversion of convertible debt, preferred stock and warrants. The Company uses if-converted method to calculate the dilutive preferred stock and treasury stock method to calculate the dilutive shares issuable upon exercise of warrants. The following table sets forth the computation of the number of net loss per share for the years ended December 31, 2018 and 2017: December 31, December 31, Weighted average shares of common stock outstanding (basic) 27,231,968 28,974,137 Shares issuable upon conversion of Series B Preferred Stock - Weighted average shares of common stock outstanding (diluted) 27,231,968 28,974,137 Net loss available to common shareholders $ (346,100 ) $ (254,292 ) Net loss per shares of common stock (basic) $ (0.01 ) $ (0.01 ) Net loss per shares of common stock (diluted) $ (0.01 ) $ (0.01 ) Accumulated other comprehensive income The Company follows ASC 220, Comprehensive Income, formerly known as SFAS No. 130, Reporting Comprehensive Income, to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the years ended December 31, 2018 and 2017 included net income and foreign currency translation adjustments. Related parties Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Transactions with related parties are disclosed in the financial statements. Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory", which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for the Company in its first quarter of 2019. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Concentration of Business and C
Concentration of Business and Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Business and Credit Risk | (5) Concentration of Business and Credit Risk Most of the Company's bank accounts are in banks located in the PRC and are not covered by any type of protection similar to that provided by the Federal Deposit Insurance Corporation ("FDIC") on funds held in U.S. banks. The Company's bank account in the United States is covered by FDIC insurance. Because the Company's operations are located in the PRC, this may give rise to significant foreign currency risks due to fluctuations in and the volatility of foreign exchange rates between U.S. dollars and RMB. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, trade accounts receivables and inventories, the balances of which are stated on the balance sheet. The Company places its cash in banks located in China. Concentration of credit risk with respect to trade accounts receivables is limited due to the diversity of the Company's customers who are located in different regions of China. The Company does not require collateral or other security to support financial instruments subject to credit risk. Sales to certain customers generated over 10% of the Company's total net sales. Sales to one Company for the year ended December 31, 2018 were approximately 91% of the Company's net sales. Sales to certain customers generated over 10% of the Company's total net sales. Sales to one Company for the year ended December 31, 2017 were approximately 68% of the Company's net sales. Sales to another Company for the year ended December 31, 2017 were approximately 20% of the Company's net sales. For the year ended December 31, 2018, one supplier accounted for approximately 93% of total purchases. For the year ended December 31, 2017, three suppliers accounted for approximately 93% of total purchases. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (6) Income Taxes United States The Company is incorporated in United States, and is subject to corporate income tax rate of 21%. The People's Republic of China (PRC) Under the Provisional Regulations of The People's Republic of China Concerning Income Tax on Enterprises promulgated by the PRC, which took effect on January 1, 2008, domestic and foreign companies pay a unified corporate income tax of 25%, except for a 15% corporate income tax rate for qualified high technology and science enterprises. The new EIT Law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company's jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous income tax regulations. Loss before income taxes consists of: For the years ended 2018 2017 Non-PRC $ (235,426 ) $ (198,722 ) PRC (110,674 ) (55,570 ) $ (346,100 ) $ (254,292 ) The income tax expense in the consolidated statements of operations consisted of: For the years ended 2018 2017 Unites States Enterprise Income Tax $ - $ - PRC Enterprise Income Tax - - Income taxes, net $ - $ - The components of deferred taxes are as follows at December 31, 2018 and 2017: December 31, December 31, Deferred tax assets, current portion Amortization of fair value of stock for services $ - $ - Total deferred tax assets, current portion - - Valuation allowance - - Deferred tax assets, current portion, net $ - $ - Deferred tax assets, non-current portion Fixed assets $ - $ - Net operating losses 10,735,672 9,489,385 Total deferred tax assets, non-current portion 10,735,672 9,489,385 Valuation allowance (10,735,672 ) (9,489,385 ) Deferred tax assets, non-current portion, net $ - $ - As of December 31, 2018, Royal Shanghai had a net operating loss of $828,303 that can be carried forward to offset future net profit for income tax purposes under the PR China tax law. The net operating loss carry forwards as of December 31, 2018 will expire in years 2018 to 2022 if not utilized. China Carbon is subject to United States of America tax law. As of December 31, 2018, the operations in the United States of America incurred approximately $12.9M of cumulative net operating losses that can be carried forward to offset future taxable income. The net operating loss carry forwards as of December 31, 2018 will expire in the year of 2034 to 2036 if not utilized. The Company has provided full valuation allowance for the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future. A reconciliation between the income tax computed at the U.S. statutory rate and the Company's provision for income tax in the PRC is as follows: December 31, December 31, Tax expense at statutory rate - US 21 % 34 % Foreign income not recognized in the U.S. (21 )% (34 )% PRC enterprise income tax rate 25 % 25 % Loss not subject to income tax (25 )% (25 )% Effective income tax rates - % - % |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | (7) Accounts Receivable The Company establishes an individualized credit and collection policy based on each individual customer's credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers if based on the following factors: (a) whether or not the Company views a real need, from the customer's perspective, for the extension and (b) how critical the Company's relationship with the customer and is the customer the Company's long-term business. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. This meets the criteria of revenue recognition under U.S. GAAP, which requires that collection of the resulting receivable be reasonably assured. As of December 31, 2018 and December 31, 2017, accounts receivable consisted of the following: December 31, December 31, Amount outstanding $ 5,587 $ 3,640 Less: Allowance for doubtful accounts - - Net amount $ 5,587 $ 3,640 |
Advances to Suppliers
Advances to Suppliers | 12 Months Ended |
Dec. 31, 2018 | |
Advances to Suppliers [Abstract] | |
Advances to Suppliers | (8) Advances to Suppliers As of December 31, 2018 and December 31, 2017, advances to suppliers are advances for finished goods and amounted to $7,517 and $169,459, respectively. Advances to suppliers represent interest-free cash paid in advance to suppliers for purchases of inventory. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (9) Inventories As of December 31, 2018 and December 31, 2017, inventories consisted of the following: December 31, December 31, Inventory in transit $ 1,834 $ 4,662 Reserve for slow moving and obsolete inventory - - Inventory, net $ 1,834 $ 4,662 For the years ended December 31, 2018 and 2017, the Company has not made provision for inventory in regards to slow moving or obsolete items. As of December 31, 2018 and December 31, 2017, the Company did not record any provision for inventory in regards to slow moving or obsolete items. |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Other Receivables [Abstract] | |
Other Receivables | (10) Other Receivables Other receivables amounted $29,954 and $17,383 as of December 31, 2018 and December 31, 2017, respectively. Other receivables are mainly export tax rebates. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | (11) Property and Equipment, net As of December 31, 2018 and December 31, 2017, property, plant and equipment consisted of the following: December 31, December 31, Machinery and equipment $ 35,705 $ 28,020 Office equipment 11,100 10,973 Motor vehicles 40,630 42,936 Total 87,435 81,929 Less: accumulated depreciation (48,962 ) (36,389 ) Plant and Equipment, net $ 38,473 $ 45,540 For the years ended December 31, 2018 and 2017, depreciation expenses amounted to $15,111 and $9,334, respectively. The Company purchased approximately $9,906 and $31,000 property and equipment during the years ended December 31, 2018 and 2017, respectively. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the years ended December 31, 2018 and 2017. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' deficit | (12) Stockholders’ deficit Restated Articles of Incorporation On January 22, 2008, the Company changed its authorized capital stock to 120,000,000 shares of capital stock, of which 20,000,000 shares are shares of preferred stock, par value $0.001 per share, and 100,000,000 shares are shares of common stock, par value $0.001 per share. The restated articles of incorporation authorizes the board of directors of the Company to issue one or more series of preferred stock and to designate the rights, preferences, privileges and limitation of the holders of such preferred stock. The board of directors has authorized the issuance of two series of preferred stock, Series A Convertible Preferred Stock (“Series A Preferred Stock”) and Series B Convertible Preferred Stock (“Series B Preferred Stock”). Issuance of Common Stock (a) Stock Issuances For Compensation On February 13, 2018, the Company issued an aggregate of 200,000 shares of common stock to four directors as compensation for services provided in 2017. The issuance of these shares was recorded at grant date fair market value at $0.06 per share. On February 13, 2018, the Company issued 40,000 shares of common stock to the CFO and issued 12,000 shares of common stock to the VP of Finance. The issuance of these shares was recorded at grant date fair market value of $0.06. (b) Shares Held in Escrow In a private placement that closed on December 22, 2009 and January 13, 2010, the Company sold an aggregate of 2,480,500 shares of Series B Preferred Stock and five-year warrants to purchase 992,000 shares of common stock at an exercise price of $1.30 per share, for an aggregate purchase price of $2,976,600. The Company also paid the private placement agent an aggregate of $298,000 and issued five-year warrants to purchase 124,025 shares of common stock at an exercise price of $1.32 per share. In connection with the private placement and pursuant to the transaction agreements, the Company deposited into escrow an aggregate of 1,240,250 shares of common stock, which are to be held in escrow to be returned to the Company or delivered to the investors, depending on whether the Company meets certain financial performance targets for the years ending December 31, 2010 and 2011. The Company did not meet the financial targets. The number of Escrow Shares payable to each Investor shall be equal to a fraction of the total number of Escrow Shares potentially issuable pursuant to the terms hereof, the numerator of which shall be the amount by which (i) the number of Conversion Shares issued or issuable upon Preferred Shares which was initially issued to the Investor exceeds (ii) the sum of (x) the number of Conversion Shares sold or otherwise transferred by the Investor plus (y) the number of shares of Conversion Shares issued or issuable sold or otherwise transferred by the Investor, and the denominator of which is the number of Conversion Shares issued or issuable by the Company in the Offering. Any Escrow Shares for either Fiscal Year 2011 or Fiscal Year 2010 which are not transferred to the Investors pursuant to this paragraph shall be returned to the Company for cancellation. As of December 31, 2018, no Escrow Shares have been transferred to investors or returned to the Company. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | (13) Related Parties As of December 31, 2018 and December 31, 2017, $0 and $146,439 are due to Mr. Donghai Yu, who is CEO of the Company. These amounts are advances made to the Company by unrelated parties through Mr. Donghai Yu for business operating purposes. The advances are interest free and were paid in full to Mr. Donghai Yu as of December 31, 2018. As of December 31, 2018 and December 31, 2017, $581,662 and $578,123 are the salary owed to Mr. Donghai Yu, who is CEO of the Company. As of December 31, 2018 and December 31, 2017, $45,000 and $45,000 are the salary owed to Ms. Grace King, who is VP finance of the Company. Ms. Grace King has resigned from the Company in 2018. |
Other Payable
Other Payable | 12 Months Ended |
Dec. 31, 2018 | |
Other Payable [Abstract] | |
Other Payable | ( 14) Other Payable Other payable amounted $1,539,606 and $1,089,573 as of December 31, 2018 and December 31, 2017, respectively. Other payables are mainly money borrowed from unrelated parties for operating purpose. These payable are without collateral, interest free, and due on demand. |
Lease Commitment
Lease Commitment | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitment | (15) Lease Commitment Our principal executive office is located in US. The Company leased its corporate address month to month for a monthly fee of $365. The lease is month to month. Royal Shanghai leases an office in Shanghai China. The lease term of the office space is from March 16, 2017 to March 15, 2019. The current monthly rent including monthly management fee is approximately $1,038 (RMB 7,063). Royal Shanghai leases another office in Shanghai China. The lease term of the office space is from April 1, 2017 to August 27, 2018. The current monthly rent including monthly management fee is approximately $2,081 (RMB 14,158). Future minimum lease payments under non-cancelable operating leases are as follows: Twelve months ended December 31, 2019 $ 3,114 Total $ 3,114 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the reporting period. Some of the significant estimates include values and lives assigned to acquired property and equipment, reserves for customer returns and allowances, uncollectible accounts receivable, slow moving, obsolete and/or damaged inventory. Actual results may differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid debt instruments purchased with maturity periods of six months or less to be cash equivalents. The carrying amounts reported in the accompanying balance sheet for cash and cash equivalents approximate their fair value. Substantially all of the Company's cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance. The Company's bank account in the United States is protected by FDIC insurance. |
Accounts receivable | Accounts receivable Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer's financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchases, and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using the weighted average method. Net realizable value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to complete the sale. The Company periodically reviews historical sales activity to determine excess, slow moving items and potentially obsolete items and also evaluates the impact of any anticipated changes in future demand. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. Impairment of inventories is recorded in cost of goods sold. For the years ended December 31, 2018 and 2017, the Company has not made provision for inventory in regards to slow moving or obsolete items. |
Property and equipment | Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Machinery and equipment 5 years Motor vehicle 5 years Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the years ended December 31, 2018 and 2017. |
Stock-based compensation | Stock-based compensation Stock-based compensation includes (i) common stock awards granted to employees and directors for services which are accounted for under FASB ASC 718, Compensation–Stock Compensation" and (ii) common stock awards granted to consultants which are accounted for under FASB ASC 505-50, Equity–Equity-Based Payments to Non-Employees. All grants of common stock awards and stock options to employees and directors are recognized in the financial statements based on their grant date fair values. The Company has elected to recognize compensation expense using the straight-line method for all common stock awards and stock options granted with service conditions that have a graded vesting schedule, with a corresponding charge to additional paid-in capital. Common stock awards are granted to directors for services provided. The vested portions of common stock awards granted but not yet issued are recorded in common stock to be issued. Common stock awards issued to consultants represent common stock granted to non-employees in exchange for services at fair value. The measurement dates for such awards are set at the dates that the contracts are entered into as the awards are non-forfeitable and vest immediately. The measurement date fair value is then recognized over the service period as if the Company has paid cash for such service. The Company estimates fair value of common stock awards based on the number of shares granted and the quoted price of the Company's common stock on the date of grant. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is U.S. dollars. The Company uses RMB as its functional currency. The results of operations and cash flows are translated at average exchange rates during the period, and assets and liabilities are translated at the unified exchange rates at the balance sheet dates, and equity is translated at the historical exchange rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding accounts on the balance sheets. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statements of stockholders' equity. Translation adjustments for the years ended December 31, 2018 and 2017 were $17,467 and $(13,966), respectively. The cumulative translation adjustment and effect of exchange rate changes on cash for the years ended December 31, 2018 and 2017 were $(343) and $1,254, respectively. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Assets and liabilities were translated at 6.88 RMB and 6.51 RMB to $1.00 at December 31, 2018 and December 31, 2017, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to income statements for the years ended December 31, 2018 and 2017 were 6.61 RMB and 6.76 RMB to $1.00, respectively. Cash flows are also translated at average translation rates for the period; therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. |
Revenue recognition | Revenue recognition The Company derives revenues from distribution of graphite-based products. We recognize revenue in accordance with ASC 606, Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration we expect to receive in exchange for those products. We enter into contracts that can include products, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Sales represent the invoiced value of goods, net of value added tax ("VAT"), if any, and are recognized upon delivery of goods and passage of title according to shipping terms. The Company is subject to VAT, which is levied on a majority of the products, at a rate ranging from 13% to 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. The Company recognizes revenue upon transfer of control of promised products to customers according to shipping terms. The Company does not provide chargeback or price protection rights to the customers. The customer only places purchase orders with the Company once it has confirmed the sale with a third party because this is a specialized business, which dictates that the Company will not sell the products until the purchase order is received. The Company allows its customers to return products only if its products are later determined by the Company to be defective. Based on the Company's historical experience, product returns have been insignificant throughout all of its product lines. Therefore, the Company does not record an allowance for sales returns. If sales returns occur, they are taken against revenue when products are returned from customers. Sales are presented net of any discounts given to customers. Interest income is recognized when earned. The Company experienced no returns for the years ended December 31, 2018 and 2017. In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) There is no impact of applying this ASU. |
Cost of goods sold | Cost of goods sold Cost of goods sold consists primarily of the purchase costs of products. |
Shipping and handling costs | Shipping and handling costs The Company follows ASC 606, as amended and clarified by ASU 2016-10, to record shipping and handling cost. The Company classifies shipping and handling costs paid on behalf of its customers in selling expenses. For the years ended December 31, 2018 and 2017, shipping and handling costs were $12,592 and $12,564, respectively. |
Taxation | Taxation Taxation on profits earned in the PRC has been calculated based on the estimated assessable profits for the year at the rates of taxation prevailing in the PRC after taking into account the benefits from any special tax credits or "tax holidays" allowed in the county of operations. The Company does not accrue U.S. income tax since it has no operations in the United States. Its operating subsidiaries are organized and located in the PRC and do not conduct any business in the United States. In 2006, the Financial Accounting Standards Board ("FASB") issued ASC, 740 Income Tax, formerly known as FIN 48, which clarifies the application of SFAS 109 by defining a criterion that an individual income tax position must meet for any part of the benefit of that position to be recognized in an enterprise's financial statements and provides guidance on measurement, recognition, classification, accounting for interest and penalties, accounting in interim periods, disclosure and transition. In accordance with the transition provisions, the Company adopted FIN 48 effective January 1, 2007. The Company recognizes that virtually all tax positions in the PRC are not free from some degree of uncertainty due to tax law and policy changes by the state. The Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current government officials. Based on all known facts and circumstances and current tax law, the Company believes that the total amount of unrecognized tax benefits as of December 31, 2018 is not material to its results of operations, financial condition or cash flows. The Company also believes that the total amount of unrecognized tax benefits as of December 31, 2018, if recognized, would not have a material effect on its effective tax rate. The Company further believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax law and policy, that the unrecognized tax benefits will significantly increase or decrease over the next twelve months producing, individually or in the aggregate, a material effect on the Company's results of operations, financial condition or cash flows. |
Enterprise income tax | Enterprise income tax The enterprise income tax is calculated on the basis of the statutory profit as defined in the PRC tax laws. This statutory profit is computed differently than the Company's net income under U.S. GAAP. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Value added tax | Value added tax The Provisional Regulations of the PRC Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax ("VAT") is imposed on goods sold in or imported into the PRC and on processing, repair and replacement services provided within the PRC. VAT payable in the PRC is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of VAT included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year. |
Contingent liabilities and contingent assets | Contingent liabilities and contingent assets A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. It can also be a present obligation arising from past events that is not recognized because it is not probable that the Company will incur a liability or obligations as a result. A contingent liability, which might occur but is not probable, is not recorded but is disclosed in the notes to the financial statements. The Company will recognize a liability or obligation when it is probable that the Company will incur such liability or obligation. A contingent asset is an asset, which could possibly arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the Company. Contingent assets are not recorded but are disclosed in the notes to the financial statements when it is likely that the Company will recognize an economic benefit. When the benefit is virtually certain, the asset is recognized. |
Fair value of financial instruments | Fair value of financial instruments The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) 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 inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The carrying amount of other receivables, advance to vendors, advances from customers, other payables, accrued liabilities are reasonable estimates of their fair value because of the short-term nature of these items. |
Loss per share | Loss per share Basic loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive shares of common stock consist of the common stock issuable upon the conversion of convertible debt, preferred stock and warrants. The Company uses if-converted method to calculate the dilutive preferred stock and treasury stock method to calculate the dilutive shares issuable upon exercise of warrants. The following table sets forth the computation of the number of net loss per share for the years ended December 31, 2018 and 2017: December 31, December 31, Weighted average shares of common stock outstanding (basic) 27,231,968 28,974,137 Shares issuable upon conversion of Series B Preferred Stock - Weighted average shares of common stock outstanding (diluted) 27,231,968 28,974,137 Net loss available to common shareholders $ (346,100 ) $ (254,292 ) Net loss per shares of common stock (basic) $ (0.01 ) $ (0.01 ) Net loss per shares of common stock (diluted) $ (0.01 ) $ (0.01 ) |
Accumulated other comprehensive income | Accumulated other comprehensive income The Company follows ASC 220, Comprehensive Income, formerly known as SFAS No. 130, Reporting Comprehensive Income, to recognize the elements of comprehensive income. Comprehensive income is comprised of net income and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the years ended December 31, 2018 and 2017 included net income and foreign currency translation adjustments. |
Related parties | Related parties Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Transactions with related parties are disclosed in the financial statements. |
Recent accounting pronouncements | Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory", which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for the Company in its first quarter of 2019. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment estimated useful lives | Machinery and equipment 5 years Motor vehicle 5 years |
Schedule of computation of the number of net loss per share | December 31, December 31, Weighted average shares of common stock outstanding (basic) 27,231,968 28,974,137 Shares issuable upon conversion of Series B Preferred Stock - Weighted average shares of common stock outstanding (diluted) 27,231,968 28,974,137 Net loss available to common shareholders $ (346,100 ) $ (254,292 ) Net loss per shares of common stock (basic) $ (0.01 ) $ (0.01 ) Net loss per shares of common stock (diluted) $ (0.01 ) $ (0.01 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss before income taxes | For the years ended 2018 2017 Non-PRC $ (235,426 ) $ (198,722 ) PRC (110,674 ) (55,570 ) $ (346,100 ) $ (254,292 ) |
Schedule of income tax expense | For the years ended 2018 2017 Unites States Enterprise Income Tax $ - $ - PRC Enterprise Income Tax - - Income taxes, net $ - $ - |
Schedule of components of deferred taxes | December 31, December 31, Deferred tax assets, current portion Amortization of fair value of stock for services $ - $ - Total deferred tax assets, current portion - - Valuation allowance - - Deferred tax assets, current portion, net $ - $ - Deferred tax assets, non-current portion Fixed assets $ - $ - Net operating losses 10,735,672 9,489,385 Total deferred tax assets, non-current portion 10,735,672 9,489,385 Valuation allowance (10,735,672 ) (9,489,385 ) Deferred tax assets, non-current portion, net $ - $ - |
Schedule of reconciliation between income tax computed at U.S. statutory rate and Company's provision for income tax | December 31, December 31, Tax expense at statutory rate - US 21 % 34 % Foreign income not recognized in the U.S. (21 )% (34 )% PRC enterprise income tax rate 25 % 25 % Loss not subject to income tax (25 )% (25 )% Effective income tax rates - % - % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Amount outstanding $ 5,587 $ 3,640 Less: Allowance for doubtful accounts - - Net amount $ 5,587 $ 3,640 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, Inventory in transit $ 1,834 $ 4,662 Reserve for slow moving and obsolete inventory - - Inventory, net $ 1,834 $ 4,662 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | December 31, December 31, Machinery and equipment $ 35,705 $ 28,020 Office equipment 11,100 10,973 Motor vehicles 40,630 42,936 Total 87,435 81,929 Less: accumulated depreciation (48,962 ) (36,389 ) Plant and Equipment, net $ 38,473 $ 45,540 |
Lease Commitment (Tables)
Lease Commitment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancellable operating leases | Twelve months ended December 31, 2019 $ 3,114 Total $ 3,114 |
Organization and Business (Deta
Organization and Business (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||
Dec. 23, 2013 | Dec. 17, 2007 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 22, 2008 | |
Organization and Business (Textual) | |||||
Entity Incorporation, Date of Incorporation | Feb. 13, 2003 | ||||
Entity Incorporation, State Country Name | Nevada | ||||
Description of allocation of after tax income by the company law of the PRC applicable to Chinese companies | 10% of after tax income to be allocated to a statutory surplus reserve until the reserve amounts to 50% of the company's registered capital. | ||||
Percentage of stock of talent owned by the parent | 100.00% | ||||
Common stock, shares issued | 27,262,346 | 27,010,346 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Sincere Investment (PTC), Ltd.[Member] | |||||
Organization and Business (Textual) | |||||
Shares issued by Achievers Magazine, Inc. pursuant to share exchange agreement | 9,388,172 | ||||
BVI Co. [Member] | |||||
Organization and Business (Textual) | |||||
Common stock, shares issued | 5,000,000 | ||||
Common stock, par value | $ 0.001 | ||||
Aggregate percentage of issued and outstanding shares | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Machinery and equipment [Member] | |
Summary of property and equipment estimated useful lives | |
Property and equipment estimated useful lives | 5 years |
Motor vehicle [Member] | |
Summary of property and equipment estimated useful lives | |
Property and equipment estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of computation of number of net income per share | ||
Weighted average shares of common stock outstanding (basic) | 27,231,968 | 28,974,137 |
Shares issuable upon conversion of Series B Preferred Stock | ||
Weighted average shares of common stock outstanding (diluted) | 27,231,968 | 28,974,137 |
Net loss available to common shareholders | $ (346,100) | $ (254,292) |
Net loss per shares of common stock (basic) | $ (0.01) | $ (0.01) |
Net loss per shares of common stock (diluted) | $ (0.01) | $ (0.01) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies (Textual) | ||
Provision for inventory | ||
Impairment expenses for property, plant, and equipment | ||
Translation adjustments | 17,467 | (13,966) |
Cumulative translation adjustment and effect of exchange rate changes on cash | $ (343) | $ 1,254 |
Assets and liabilities translated (RMB to USD) | 1 | 1 |
Average translation rates applied to income statements (RMB to USD) | 1 | 1 |
VAT payable rate, minimum | 13.00% | |
VAT payable rate, maximum | 17.00% | |
Shipping and handling costs | $ 12,592 | $ 12,564 |
VAT charges aggregated basis description | VAT payable in the PRC is charged on an aggregated basis at a rate of 13% or 17% (depending on the type of goods involved) on the full price collected for the goods sold or, in the case of taxable services provided, at a rate of 17% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of VAT included in the price or charges, and less any deductible value added tax already paid by the taxpayer on purchases of goods and services in the same financial year. | |
RMB [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Assets and liabilities translated (RMB to USD) | 6.88 | 6.51 |
Average translation rates applied to income statements (RMB to USD) | 6.61 | 6.76 |
Concentration of Business and_2
Concentration of Business and Credit Risk (Details) - Supplier | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 93.00% | 93.00% |
Number of suppliers | 1 | 3 |
Net sales [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 10.00% | 10.00% |
Net sales [Member] | Honglang Carbon Industry Co., Ltd [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 91.00% | 68.00% |
Net sales [Member] | Nurol Teknoloji Sanayi Ve Madenci [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 20.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Non-PRC | $ (235,426) | $ (198,722) |
PRC | (110,674) | (55,570) |
Loss before income taxes | $ (346,100) | $ (254,292) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Unites States Enterprise Income Tax | ||
PRC Enterprise Income Tax | ||
Income taxes, net |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets, current portion | ||
Amortization of fair value of stock for services | ||
Total deferred tax assets, current portion | ||
Valuation allowance | ||
Deferred tax assets, current portion, net | ||
Deferred tax assets, non-current portion | ||
Fixed assets | ||
Net operating losses | 10,735,672 | 9,489,385 |
Total deferred tax assets, non-current portion | 10,735,672 | 9,489,385 |
Valuation allowance | (10,735,672) | (9,489,385) |
Deferred tax assets, non-current portion, net |
Income Taxes (Details 3)
Income Taxes (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax expense at statutory rate - US | 21.00% | 34.00% |
Foreign income not recognized in the U.S. | (21.00%) | (34.00%) |
PRC enterprise income tax rate | 25.00% | 25.00% |
Loss not subject to income tax | (25.00%) | (25.00%) |
Effective income tax rates |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | Jan. 01, 2008 | Dec. 31, 2018 |
Income Taxes (Textual) | ||
Unified corporate income tax for domestic and foreign company | 25.00% | |
Corporate income tax rate | 15.00% | 21.00% |
EIT income tax dividends percent | 10.00% | |
United States of America [Member] | ||
Income Taxes (Textual) | ||
Net operating losses carried forward | $ 12,900,000 | |
Net operating losses carryforwards expire | Will expire in the year of 2034 to 2036 if not utilized. | |
Royal Shanghai [Member] | ||
Income Taxes (Textual) | ||
Net operating losses carried forward | $ 828,303 | |
Net operating losses carryforwards expire | Will expire in years 2018 to 2022 if not utilized. |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of accounts receivable | ||
Amount outstanding | $ 5,587 | $ 3,640 |
Less: Allowance for doubtful accounts | ||
Net amount | $ 5,587 | $ 3,640 |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Advances to Suppliers (Textual) | ||
Advances to suppliers for finished goods | $ 7,517 | $ 169,459 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of inventories | ||
Inventory in transit | $ 1,834 | $ 4,662 |
Reserve for slow moving and obsolete inventory | ||
Inventory, net | $ 1,834 | $ 4,662 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories (Textual) | ||
Reserve for slow moving and obsolete inventory |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Receivables (Textual) | ||
Other receivables | $ 29,954 | $ 17,383 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 87,435 | $ 81,929 |
Less: accumulated depreciation | (48,962) | (36,389) |
Plant and Equipment, net | 38,473 | 45,540 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 35,705 | 28,020 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 11,100 | 10,973 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 40,630 | $ 42,936 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment, Net (Textual) | ||
Depreciation expenses | $ 15,111 | $ 9,334 |
Acquisition of property and equipment | $ 10,304 | $ 31,129 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) | Jan. 13, 2010USD ($)$ / sharesshares | Feb. 13, 2018Director$ / sharesshares | Dec. 22, 2009USD ($)$ / sharesshares | Dec. 31, 2011shares | Dec. 31, 2010shares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Jan. 22, 2008$ / sharesshares |
Stockholders' Deficit (Textual) | ||||||||
Authorized capital stock | 120,000,000 | |||||||
Preferred stock, shares authorized | 20,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
VP [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Shares price per share | $ / shares | $ 0.06 | |||||||
Issued shares of common stock | 12,000 | |||||||
CFO [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Shares price per share | $ / shares | $ 0.06 | |||||||
Issued shares of common stock | 40,000 | |||||||
Directors [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Shares price per share | $ / shares | $ 0.06 | |||||||
Issued shares of common stock | 200,000 | |||||||
Number of individuals | Director | 4 | |||||||
Private placement [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Shares price per share | $ / shares | $ 1.32 | $ 1.32 | ||||||
Number of shares sold in private placement, shares | 124,025 | 124,025 | ||||||
Number of shares deposited in escrow | 1,240,250 | 1,240,250 | ||||||
Private placement expense | $ | $ 298,000 | $ 298,000 | ||||||
Term of warrants | 5 years | 5 years | ||||||
Series B Preferred Stock [Member] | Private placement [Member] | ||||||||
Stockholders' Deficit (Textual) | ||||||||
Shares price per share | $ / shares | $ 1.30 | $ 1.30 | ||||||
Number of shares sold in private placement, shares | 2,480,500 | 2,480,500 | ||||||
Aggregate purchase price of shares | $ | $ 2,976,600 | $ 2,976,600 | ||||||
Term of warrants | 5 years | 5 years | ||||||
Warrants issued to purchase of common stock | 992,000 | 992,000 |
Related Parties (Details)
Related Parties (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Mr. Donghai Yu [Member] | ||
Related Parties (Textual) | ||
Due to related parties | $ 0 | $ 146,439 |
Salary owed | 581,662 | 578,123 |
Mr. Grace King [Member] | ||
Related Parties (Textual) | ||
Salary owed | $ 45,000 | $ 45,000 |
Other Payable (Details)
Other Payable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Payable (Textual) | ||
Other payable | $ 1,539,606 | $ 1,089,573 |
Lease Commitment (Details)
Lease Commitment (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 3,114 |
Total | $ 3,114 |
Lease Commitment (Details Textu
Lease Commitment (Details Textual) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Lease Commitment (Textual) | ||
Annual fee | $ 365 | |
Lease [Member] | Royal Shanghai [Member] | ||
Lease Commitment (Textual) | ||
Lease term, description | The lease term of the office space is from March 16, 2017 to March 15, 2019. | The lease term of the office space is from March 16, 2017 to March 15, 2019. |
Monthly rent | $ 1,038 | |
Lease [Member] | Royal Shanghai [Member] | RMB [Member] | ||
Lease Commitment (Textual) | ||
Monthly rent | ¥ | ¥ 7,063 | |
Lease one [Member] | Royal Shanghai [Member] | ||
Lease Commitment (Textual) | ||
Lease term, description | The lease term of the office space is from April 1, 2017 to August 27, 2018. | The lease term of the office space is from April 1, 2017 to August 27, 2018. |
Monthly rent | $ 2,081 | |
Lease one [Member] | Royal Shanghai [Member] | RMB [Member] | ||
Lease Commitment (Textual) | ||
Monthly rent | ¥ | ¥ 14,158 |