Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-32522 | |
Entity Registrant Name | China Foods Holdings Ltd. | |
Entity Central Index Key | 0001310630 | |
Entity Tax Identification Number | 84-1735478 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | Room 2301A | |
Entity Address, Address Line Two | China Resources Building | |
Entity Address, Address Line Three | 26 Harbour Road | |
Entity Address, City or Town | Wanchai | |
Entity Address, Country | HK | |
Entity Address, Postal Zip Code | 0000 | |
City Area Code | (852) | |
Local Phone Number | 3618-8608 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,252,309 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 477,214 | $ 609,434 |
Prepayments and other receivables | 123,956 | 139,254 |
Inventories | 300,521 | 327,551 |
Tax recoverable | 70 | 8,910 |
Right-of-use assets | 278,235 | 350,563 |
Total Current Assets | 1,179,996 | 1,435,712 |
Non-Current Assets | ||
Plant and equipment | 92,866 | 132,604 |
Intangible assets | 3,493 | 3,947 |
Total Non-Current Assets | 96,359 | 136,551 |
TOTAL ASSETS | 1,276,355 | 1,572,263 |
Current Liabilities | ||
Accrued liabilities and other payables | 58,339 | 51,200 |
Customer deposits | 246,951 | 340,783 |
Lease liabilities | 106,888 | 114,132 |
Amount due to a director | 214,665 | 219,461 |
Amount due to a related company | 199,964 | 199,964 |
Total Current Liabilities | 826,807 | 925,540 |
Non-Current Liabilities | ||
Lease liabilities | 183,050 | 246,022 |
Total Non-Current Liabilities | 183,050 | 246,022 |
Stockholders’ Equity | ||
Common stock $0.0001 par value, 100,000,000 shares authorized, 20,252,309 and 20,252,309 shares issued and outstanding as of June 30, 2022 and December 31, 2021 respectively | 2,025 | 2,025 |
Additional paid-in capital | 1,290,355 | 1,290,355 |
Accumulated other comprehensive income | 6,860 | 26,516 |
Accumulated deficit | (1,032,742) | (918,195) |
Total Shareholders’ Equity | 266,498 | 400,701 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,276,355 | $ 1,572,263 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 20,252,309 | 20,252,309 |
Common stock, shares, outstanding | 20,252,309 | 20,252,309 |
Condensed Consolidated Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Revenue, net | $ 94,835 | $ 266,926 | $ 163,634 | $ 434,569 | |
Cost of revenue | (28,474) | (59,284) | (47,311) | (212,968) | |
Gross profit | 66,361 | 207,642 | 116,323 | 221,601 | |
Operating expenses | |||||
Selling and distribution expenses | 2,642 | 2,563 | 2,650 | 14,212 | |
General and administrative expenses | 107,762 | 170,800 | 232,691 | 384,976 | |
Total operating expenses | 110,404 | 173,363 | 235,341 | 399,188 | |
(Loss) income from operation | (44,043) | 34,279 | (119,018) | (177,587) | |
Other Income | |||||
Interest income | 36 | 361 | 113 | 871 | |
Sundry income | 10,589 | 30 | 10,931 | 6,319 | |
Total other income | 10,625 | 391 | 11,044 | 7,190 | |
(Loss) income before income tax | (33,418) | 34,670 | (107,974) | (170,397) | |
Income tax expenses | (4,305) | (6,573) | |||
Net (loss) income | (37,723) | 34,670 | (114,547) | (170,397) | |
Other comprehensive (loss) income | |||||
Foreign currency adjustment gain (loss) | (19,054) | 12,037 | (19,656) | 13,893 | |
Comprehensive (loss) income | $ (56,777) | $ 46,707 | $ (134,203) | $ (156,504) | |
Net (loss) income per common share | |||||
Basic and diluted | [1] | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average number of common share | |||||
Basic and diluted | 20,252,309 | 20,252,309 | 20,252,309 | 20,252,309 | |
[1]denotes net loss per common share of less than $0.01 per share. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes In Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 2,025 | $ 1,290,355 | $ (462,786) | $ 5,244 | $ 834,838 |
Beginning balance, shares at Dec. 31, 2020 | 20,252,309 | ||||
Net income (loss) | (205,067) | (205,067) | |||
Foreign currency translation adjustment | 1,856 | 1,856 | |||
Ending balance, value at Mar. 31, 2021 | $ 2,025 | 1,290,355 | (667,853) | 7,100 | 631,627 |
Ending balance, shares at Mar. 31, 2021 | 20,252,309 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 2,025 | 1,290,355 | (462,786) | 5,244 | 834,838 |
Beginning balance, shares at Dec. 31, 2020 | 20,252,309 | ||||
Net income (loss) | (170,397) | ||||
Foreign currency translation adjustment | 13,893 | ||||
Ending balance, value at Jun. 30, 2021 | $ 2,025 | 1,290,355 | (633,183) | 19,137 | 678,334 |
Ending balance, shares at Jun. 30, 2021 | 20,252,309 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 2,025 | 1,290,355 | (667,853) | 7,100 | 631,627 |
Beginning balance, shares at Mar. 31, 2021 | 20,252,309 | ||||
Net income (loss) | 34,670 | 34,670 | |||
Foreign currency translation adjustment | 12,037 | 12,037 | |||
Ending balance, value at Jun. 30, 2021 | $ 2,025 | 1,290,355 | (633,183) | 19,137 | 678,334 |
Ending balance, shares at Jun. 30, 2021 | 20,252,309 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 2,025 | 1,290,355 | (918,195) | 26,516 | 400,701 |
Beginning balance, shares at Dec. 31, 2021 | 20,252,309 | ||||
Net income (loss) | (76,824) | (76,824) | |||
Foreign currency translation adjustment | (602) | (602) | |||
Ending balance, value at Mar. 31, 2022 | $ 2,025 | 1,290,355 | (995,019) | 25,914 | 323,275 |
Ending balance, shares at Mar. 31, 2022 | 20,252,309 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 2,025 | 1,290,355 | (918,195) | 26,516 | 400,701 |
Beginning balance, shares at Dec. 31, 2021 | 20,252,309 | ||||
Net income (loss) | (114,547) | ||||
Foreign currency translation adjustment | (19,656) | ||||
Ending balance, value at Jun. 30, 2022 | $ 2,025 | 1,290,355 | (1,032,742) | 6,860 | 266,498 |
Ending balance, shares at Jun. 30, 2022 | 20,252,309 | ||||
Beginning balance, value at Mar. 31, 2022 | $ 2,025 | 1,290,355 | (995,019) | 25,914 | 323,275 |
Beginning balance, shares at Mar. 31, 2022 | 20,252,309 | ||||
Net income (loss) | (37,723) | (37,723) | |||
Foreign currency translation adjustment | (19,054) | (19,054) | |||
Ending balance, value at Jun. 30, 2022 | $ 2,025 | $ 1,290,355 | $ (1,032,742) | $ 6,860 | $ 266,498 |
Ending balance, shares at Jun. 30, 2022 | 20,252,309 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (114,547) | $ (170,397) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 36,191 | 42,671 |
Amortization | 259 | 260 |
Non-cash lease expense | 35,814 | 7,485 |
Change in operating assets and liabilities: | ||
Accounts receivables | (167,223) | |
Prepayments and other receivables | 15,298 | (9,185) |
Inventories | 27,030 | 65,411 |
Accrued liabilities and other payables | 7,139 | 46,084 |
Accounts payable | (7,827) | |
Tax payable | 8,840 | 7,305 |
Customer deposits | (93,832) | (128,499) |
Lease liabilities | (49,104) | 36,135 |
Net cash used in operating activities | (126,912) | (277,780) |
Repayment of lease liabilities | (31,721) | |
(Repayment to) advances from a director | (4,796) | 81,899 |
Net cash (used in) provided by financing activities | (4,796) | 50,178 |
Foreign currency translation adjustment | (512) | 4,979 |
Net change in cash and cash equivalents | (132,220) | (222,623) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 609,434 | 1,006,394 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 477,214 | 783,771 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | ||
Cash paid for income taxes |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS China Foods Holdings Ltd. (the “Company”) was incorporated in Delaware on January 10, 2019. On July 9, 2020, the Company consummated the Share Exchange Agreement (“the “Share Exchange Agreement”) with Elite Creation Group Limited, a private limited company organized under the laws of British Virgin Islands (“ECGL”). As a result of the acquisition of ECGL, the Company entered into the healthcare product distributing and marketing industry, pursuing a new strategy of developing and distributing health related products, including supplements, across the globe with a focus on mainland China, Europe and Australia. We are a health and wellness company that develops, markets, promotes and distributes a variety of customized health and wellness care products and services, including supplements, healthy snacks, meal replacements, skincare products, and nutritional consultation services to consumers in China. We work with certain licensed healthcare food factories to develop and manufacture products and services that are distributed conventionally through sales agents and also through a network of e-commerce and social media platforms. In addition to products, we are committed to providing customized science based wellness consultation and service programs to customers. Our diverse products and services target health conscious customers and differentiate based upon age and gender and seek to manage different conditions. We reach out to customers fitting certain health and lifestyle profiles through our offline and online consultation services, and track eating habits and health indicators to provide customized products such as supplements. We believe this will facilitate the ability of customers to monitor, understand and adjust their health practices and lifestyle anytime and anywhere for increased customer engagement and retention. We conduct our business through our wholly owned subsidiary Guangzhou Xiao Xiang Health Industry Company Limited, a limited liability company organized under the laws of China on March 8, 2017 and Alpha Wellness (HK) Limited, a limited liability company organized under the laws of Hong Kong on April 24, 2019. Elite Creation Group, a limited liability company formed under the laws of the British Virgin Islands formed on September 5, 2018, is holding companies without operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting, and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited condensed consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The unaudited condensed consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The following table depicts the description of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES INFORMATION Name Place of incorporation Principal Particulars of Effective interest Elite Creation Group Limited BVI, a limited liability company Investment holding 50,000 1 100 % Alpha Wellness (HK) Limited Hong Kong, a limited liability company Investment holding 300,000 300,000 100 % Guangzhou Xiao Xiang Health Industry Company Limited The PRC, a limited liability company Sales of healthcare products RMB 8,300,000 100 % Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. Inventories Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Costs include material and manufacturing overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of June 30, 2022 and December 31, 2021, the Company did not record an allowance for obsolete inventories, nor have there been any write-offs. Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: SCHEDULE OF ESTIMATED USEFUL LIVES Expected useful lives Residual value Furniture, fixture and equipment 3 years 5 % Motor vehicle 3.33 4 years 5 % Leasehold improvement 2 years 5 % Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three and six months ended June 30, 2022 were $ 16,573 36,191 21,241 42,671 Intangible assets Intangible assets represented trademarks of their products and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of their registrations on a straight-line basis, which is 10 Amortization expense for the three and six months ended June 30, 2022 were $ 127 259 Amortization expense for the three and six months ended June 30, 2021 were $ 130 260 Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets Revenue recognition The Company adopted Accounting Standards Codification (“ASC ”) Topic 606 – Revenue from Contracts with Customers ● 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. Currently, the Company operates two business segments, the Healthcare Business and the Wine Business. The Healthcare Business mainly provides health consulting advisory services and healthcare and wellness products to the customers. Revenue is earned from the rendering of health consulting advisory services to the customers. The Company recognizes services revenue over the period in which such services are performed. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current portion of deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue, net of current portion. The sale and distribution of the healthcare products, such as (i) Nutrition Catering (ii) Special Health Food (iii) Health Supplement and (iv) Skincare, is the only performance obligation under the fixed-fee arrangements. Revenue is recognized from the sale of their healthcare products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”) on the majority of the products at the rate of 17% The Wine Business mainly provides the wine products to the customers. Revenue is recognized from the sale of wine products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”) on the majority of the products at the rate of 17% no Disaggregation of Revenue The following table provides information about disaggregated revenue from customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021 Consultancy service income $ 71,394 $ 165,640 Sales of healthcare 23,441 101,286 TOTAL $ 94,835 $ 266,926 For the Six Months Ended June 30, 2022 For the Six Months Ended June 30, 2021 Consultancy service income $ 135,452 $ 165,640 Sales of healthcare 28,182 268,929 TOTAL $ 163,634 $ 434,569 Income taxes The Company adopted the ASC Topic 740, “ Income Taxes greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC Topic 740 provisions of Section 740-10-25 for the three and six months ended June 30, 2022 and 2021, respectively. Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong SAR and the People’s Republic of China and maintain its books and record in its local currency, Hong Kong Dollars (“HK$”) and Renminbi (“RMB”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HK$ and RMB into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES 2022 2021 Period-end HK$:US$ exchange rate 0.12744 0.12878 Period average HK$:US$ exchange rate 0.12779 0.12884 Period-end RMB:US$ exchange rate 0.14930 0.15484 Period average RMB:US$ exchange rate 0.15438 0.15461 Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260, “ Earnings per Share.” Comprehensive income ASC Topic 220, “ Comprehensive Income Leases The Company adopted ASC Topic 842, “ Leases Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (“ROU”) assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC Topic 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term. The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less. Related parties The Company follows the ASC Topic 850-10, “ Related Party Disclosures Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) 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; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and contingencies The Company follows the ASC Topic 450-20, “ Contingencies If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Fair value of financial instruments The Company follows ASC Topic 825 “ Financial Instruments Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments. Segment Reporting ASC Topic 280, “ Segment Reporting Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 3 - SEGMENT REPORTING Currently, the Company has two reportable business segments: (i) Healthcare Segment, mainly provides health consulting advisory services and healthcare and wellness products to the customers; and (ii) Wine Segment, mainly provides the wine products to the customers. SUMMARY OF REPORTABLE SEGMENTS Three months ended 30 June, 2022 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 71,394 $ – $ 71,394 Sale of healthcare products – 23,441 23,441 Total revenue 71,394 23,441 94,835 Cost of sales: Consulting service income (14,025 ) - (14,025 ) Sale of healthcare products - (14,449 ) (14,449 ) Total cost of revenue (14,025 ) (14,449 ) (28,474 ) Gross profit 57,369 8,992 66,361 Operating Expenses Selling and distribution - (2,642 ) (2,642 ) General and administrative (33,055 ) (74,707 ) (107,762 ) Total operating expenses (33,055 ) (77,349 ) (110,404 ) Segment income (loss) $ 24,314 $ (68,357 ) $ (44,043 ) Three months ended 30 June, 2021 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 165,640 $ – $ 165,640 Sale of healthcare products – 101,286 101,286 Total revenue 165,640 101,286 266,926 Cost of sales: Consulting service income (10,803 ) - (10,803 ) Sale of healthcare products - (48,481 ) (48,481 ) Total cost of revenue (10,803 ) (48,481 ) (59,284 ) Gross profit 154,837 52,805 207,642 Operating Expenses Selling and distribution - (2,563 ) (2,563 ) General and administrative (32,381 ) (138,419 ) (170,800 ) Total operating expenses (32,381 ) (140,982 ) (173,363 ) Segment income (loss) $ 122,456 $ (88,177 ) $ 34,279 Six months ended June 30, 2022 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 135,452 $ – $ 135,452 Sale of healthcare products – 28,182 28,182 Total revenue 135,452 28,182 163,634 Cost of sales: Consulting service income (28,268 ) - (28,268 ) Sale of healthcare products - (19,043 ) (19,043 ) Total cost of revenue (28,268 ) (19,043 ) (47,311 ) Gross profit 107,184 9,139 116,323 Operating Expenses Selling and distribution - (2,650 ) (2,650 ) General and administrative (64,534 ) (168,157 ) (232,691 ) Total operating expenses (64,534 ) (170,807 ) (235,341 ) Segment income (loss) $ 42,650 $ (161,668 ) $ (119,018 ) Six months ended June 30, 2021 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 165,640 $ – $ 165,640 Sale of healthcare products – 268,929 268,929 Total revenue 165,640 268,929 434,569 Cost of sales: Consulting service income (10,803 ) - (10,803 ) Sale of healthcare products - (202,165 ) (202,165 ) Total cost of revenue (10,803 ) (202,165 ) (212,968 ) Gross profit 154,837 66,764 221,601 Operating Expenses Selling and distribution - (14,212 ) (14,212 ) General and administrative (67,220 ) (317,756 ) (384,976 ) Total operating expenses (67,220 ) (331,968 ) (399,188 ) Segment income (loss) $ 87,617 $ (265,204 ) $ (177,587 ) |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAYMENTS AND OTHER RECEIVABLES | NOTE 4 - PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consisted of the following: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLE June 30, 2022 December 31, 2021 Prepayments $ - $ 3,077 Other deposits 33,777 33,961 Other receivables 90,179 102,216 Prepayments and other receivable $ 123,956 $ 139,254 Other receivables represented deposit payments made to suppliers for daily operation, procurement, which are interest-free, unsecured and received by the Company when co operation |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 - INVENTORIES Inventories consisted of the following: SCHEDULE OF INVENTORIES June 30, 2022 December 31, 2021 Finished goods $ 300,521 $ 327,551 For the three and six months ended June 30, 2022 and 2021, no |
LEASE
LEASE | 6 Months Ended |
Jun. 30, 2022 | |
Lease | |
LEASE | NOTE 6 - LEASE The Company leased office and warehouse facilities under various non-cancelable operating leases expiring at the term of 2 4 years December 31, 2025 Right of use assets and lease liability – right of use are as follows: SCHEDULE OF RIGHT OF USE ASSETS AND LIABILITY June 30, 2022 December 31, 2021 Right-of-use assets $ 278,235 $ 350,563 The lease liability – right of use is as follows: June 30, 2022 December 31, 2021 Current portion 106,888 114,132 Non-current portion 183,050 246,022 Total $ 289,938 $ 360,154 As of June 30, 2022, the operating lease payment of $ 106,888 |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | NOTE 7 - PLANT AND EQUIPMENT SCHEDULE OF PLANT AND EQUIPMENT June 30, 2022 December 31, 2021 Motor vehicle $ 311,343 $ 311,343 Furniture, fixture and equipment 15,465 15,465 Leasehold improvement 27,358 27,358 Foreign translation adjustment 2,841 17,603 Plant and equipment, gross 357,007 371,769 Less: accumulated depreciation (264,698 ) (228,507 ) Foreign translation adjustment 557 (10,658 ) Plant and equipment, net $ 92,866 $ 132,604 Depreciation expense for the three and six months ended June 30, 2022 were $ 16,573 36,191 Depreciation expense for the three and six months ended June 30, 2021 were $ 21,241 42,671 |
AMOUNTS DUE TO A DIRECTOR AND A
AMOUNTS DUE TO A DIRECTOR AND A RELATED COMPANY | 6 Months Ended |
Jun. 30, 2022 | |
Amounts Due To Director And Related Company | |
AMOUNTS DUE TO A DIRECTOR AND A RELATED COMPANY | NOTE - 8 AMOUNTS DUE TO A DIRECTOR AND A RELATED COMPANY As of June 30, 2022 and December 31, 2021, the amounts represented temporary advances to the Company by its director and its related company which were unsecured, interest-free and have no fixed terms of repayments. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 9 – SHAREHOLDERS’ EQUITY Preferred Stock The Company is not currently authorized to issue shares of preferred stock. The Certificate of Incorporation however, allows the board of directors to authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock in the event that shares of preferred stock are authorized in the future. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and may adversely affect the market price of our common stock and the voting and other rights of the holders of common stock. The Company has no current plans to issue any shares of preferred stock. Common Stock The Company is authorized, subject to limitations prescribed by Delaware law, to issue up to 100,000,000 0.0001 Dividend Rights Subject to preferences that may apply to shares of preferred stock outstanding at the time, the holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and only then at the times and in the amounts that our board of directors may determine. Voting Rights Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Under our Certificate of Incorporation, stockholders do not have the right to cumulate votes for the election of directors. No Preemptive or Similar Rights Our common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Right to Receive Liquidation Distributions Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. As of June 30, 2022, and December 31, 2021, a total of 20,252,309 20,252,309 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES The provision for income taxes consisted of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE Six months ended June 30, 2022 2021 Current tax $ 6,573 $ - Deferred tax - - Income tax expense $ 6,573 $ - The Company mainly operates in the PRC that is subject to taxes in the governing jurisdictions in which it operates. The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate, as follows: BVI Under the current BVI law, the Company is not subject to tax on income. The PRC The Company’s subsidiary operating in the PRC is subject to the Corporate Income Tax Law of the People’s Republic of China at a unified income tax rate of 25%. SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE Six months ended June 30, 2022 2021 Loss before income taxes $ (152,669 ) $ (257,606 ) Statutory income tax rate 25 % 25 % Income tax expense at statutory rate (38,167 ) (64,402 ) Net operating loss 38,167 64,402 Income tax expense $ - $ - Hong Kong The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE Six months ended June 30, 2022 2021 Profit before income taxes $ 55,876 $ 103,283 Profit (loss) before income taxes $ 55,876 $ 103,283 Statutory income tax rate 8.25 % 8.25 % Income tax expense at statutory rate 4,610 8,521 Tax adjustments 1,963 - One-off tax reduction - (8,521 ) Income tax expense $ 6,573 $ - The following table sets forth the significant components of the deferred tax assets of the Company as of June 30, 2022 and December 31, 2021: SCHEDULE OF DEFERRED TAX ASSETS June 30, 2022 December 31, 2021 Deferred tax assets: Net operating loss carryforwards - United States $ 43,086 54,747 - PRC 315,729 246,903 Net operating loss carryforwards 358,815 301,650 Less: valuation allowance (358,815 ) (301,650 ) Deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 - RELATED PARTY TRANSACTIONS From time to time, the Company’s director advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand. The Company has been provided free office space by its stockholder. The management determined that such cost is nominal and did not recognize the rent expense in its condensed consolidated financial statements. Apart from the transactions and balances detailed elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE 12 - CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the three and six months ended June 30, 2022 and 2021, the customers who account for 10% or more of the Company’s revenues and its outstanding receivables balance as at period-end dates, are presented as follows: SCHEDULE OF CONCENTRATIONS OF RISK Three Months ended June 30, 2022 Customer Revenues Percentage of revenues Customer C $ 71,394 75 % Customer D 14,084 15 % Total: $ 85,478 90 % Six months ended June 30, 2022 June 30, 2022 Customer Revenues Percentage of revenues Accounts receivable Percentage of Accounts Receivable Customer C 135,452 83 % - - Total: $ 135,452 83 % Total - - Three Months ended June 30, 2021 Customer Revenues Percentage of revenues Customer A $ 84,877 32 % Customer B 165,640 62 % Total: $ 250,517 94 % Six Months ended June 30, 2021 June 30,2021 Customer Revenues Percentage of revenues Accounts receivable Percentage of Accounts Receivable Customer A $ 252,520 58 % 164,682 98 % Customer B 165,640 40 % - - Total: $ 418,160 98 % 164,682 98 % The Company’s customers are located in the People’s Republic of China and Hong Kong. (a) Major vendors For the three and six months ended June 30, 2022, a single vendor represented more than 10% of the Company’s purchases. This vendor accounted for 100% 0 0 7,981 0 For the three and six months ended June 30, 2021, a single vendor represented more than 10% of the Company’s purchases. This vendor accounted for 100% 69,444 0 193,186 0 All of the Company’s vendors are located in the People’s Republic of China. (c) Credit risk Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. (d) Economic and political risk The Company’s major operations are conducted in the People’s Republic of China. Accordingly, the political, economic, and legal environments in PRC, as well as the general state of PRC’s economy may influence the Company’s business, financial condition, and results of operations. (e) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RMB converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES As of June 30, 2022, the Company has no material commitments or contingencies. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting, and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited condensed consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The unaudited condensed consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The following table depicts the description of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES INFORMATION Name Place of incorporation Principal Particulars of Effective interest Elite Creation Group Limited BVI, a limited liability company Investment holding 50,000 1 100 % Alpha Wellness (HK) Limited Hong Kong, a limited liability company Investment holding 300,000 300,000 100 % Guangzhou Xiao Xiang Health Industry Company Limited The PRC, a limited liability company Sales of healthcare products RMB 8,300,000 100 % |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Inventories | Inventories Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Costs include material and manufacturing overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of June 30, 2022 and December 31, 2021, the Company did not record an allowance for obsolete inventories, nor have there been any write-offs. |
Plant and equipment | Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: SCHEDULE OF ESTIMATED USEFUL LIVES Expected useful lives Residual value Furniture, fixture and equipment 3 years 5 % Motor vehicle 3.33 4 years 5 % Leasehold improvement 2 years 5 % Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three and six months ended June 30, 2022 were $ 16,573 36,191 21,241 42,671 |
Intangible assets | Intangible assets Intangible assets represented trademarks of their products and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of their registrations on a straight-line basis, which is 10 Amortization expense for the three and six months ended June 30, 2022 were $ 127 259 Amortization expense for the three and six months ended June 30, 2021 were $ 130 260 |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Codification (“ASC ”) Topic 606 – Revenue from Contracts with Customers ● 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. Currently, the Company operates two business segments, the Healthcare Business and the Wine Business. The Healthcare Business mainly provides health consulting advisory services and healthcare and wellness products to the customers. Revenue is earned from the rendering of health consulting advisory services to the customers. The Company recognizes services revenue over the period in which such services are performed. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current portion of deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue, net of current portion. The sale and distribution of the healthcare products, such as (i) Nutrition Catering (ii) Special Health Food (iii) Health Supplement and (iv) Skincare, is the only performance obligation under the fixed-fee arrangements. Revenue is recognized from the sale of their healthcare products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”) on the majority of the products at the rate of 17% The Wine Business mainly provides the wine products to the customers. Revenue is recognized from the sale of wine products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes (“VAT”) on the majority of the products at the rate of 17% no |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue from customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021 Consultancy service income $ 71,394 $ 165,640 Sales of healthcare 23,441 101,286 TOTAL $ 94,835 $ 266,926 For the Six Months Ended June 30, 2022 For the Six Months Ended June 30, 2021 Consultancy service income $ 135,452 $ 165,640 Sales of healthcare 28,182 268,929 TOTAL $ 163,634 $ 434,569 |
Income taxes | Income taxes The Company adopted the ASC Topic 740, “ Income Taxes greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. |
Uncertain tax positions | Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC Topic 740 provisions of Section 740-10-25 for the three and six months ended June 30, 2022 and 2021, respectively. |
Foreign currencies translation | Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong SAR and the People’s Republic of China and maintain its books and record in its local currency, Hong Kong Dollars (“HK$”) and Renminbi (“RMB”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HK$ and RMB into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES 2022 2021 Period-end HK$:US$ exchange rate 0.12744 0.12878 Period average HK$:US$ exchange rate 0.12779 0.12884 Period-end RMB:US$ exchange rate 0.14930 0.15484 Period average RMB:US$ exchange rate 0.15438 0.15461 |
Net loss per share | Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260, “ Earnings per Share.” |
Comprehensive income | Comprehensive income ASC Topic 220, “ Comprehensive Income |
Leases | Leases The Company adopted ASC Topic 842, “ Leases Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (“ROU”) assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC Topic 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term. The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less. |
Related parties | Related parties The Company follows the ASC Topic 850-10, “ Related Party Disclosures Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) 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; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | Commitments and contingencies The Company follows the ASC Topic 450-20, “ Contingencies If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair value of financial instruments | Fair value of financial instruments The Company follows ASC Topic 825 “ Financial Instruments Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments. |
Segment Reporting | Segment Reporting ASC Topic 280, “ Segment Reporting |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF SUBSIDIARIES INFORMATION | The following table depicts the description of the Company’s subsidiaries: SCHEDULE OF SUBSIDIARIES INFORMATION Name Place of incorporation Principal Particulars of Effective interest Elite Creation Group Limited BVI, a limited liability company Investment holding 50,000 1 100 % Alpha Wellness (HK) Limited Hong Kong, a limited liability company Investment holding 300,000 300,000 100 % Guangzhou Xiao Xiang Health Industry Company Limited The PRC, a limited liability company Sales of healthcare products RMB 8,300,000 100 % |
SCHEDULE OF ESTIMATED USEFUL LIVES | SCHEDULE OF ESTIMATED USEFUL LIVES Expected useful lives Residual value Furniture, fixture and equipment 3 years 5 % Motor vehicle 3.33 4 years 5 % Leasehold improvement 2 years 5 % |
SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS | The following table provides information about disaggregated revenue from customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021 Consultancy service income $ 71,394 $ 165,640 Sales of healthcare 23,441 101,286 TOTAL $ 94,835 $ 266,926 For the Six Months Ended June 30, 2022 For the Six Months Ended June 30, 2021 Consultancy service income $ 135,452 $ 165,640 Sales of healthcare 28,182 268,929 TOTAL $ 163,634 $ 434,569 |
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES | Translation of amounts from HK$ and RMB into US$ has been made at the following exchange rates for the six months ended June 30, 2022 and 2021: SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES 2022 2021 Period-end HK$:US$ exchange rate 0.12744 0.12878 Period average HK$:US$ exchange rate 0.12779 0.12884 Period-end RMB:US$ exchange rate 0.14930 0.15484 Period average RMB:US$ exchange rate 0.15438 0.15461 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SUMMARY OF REPORTABLE SEGMENTS | SUMMARY OF REPORTABLE SEGMENTS Three months ended 30 June, 2022 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 71,394 $ – $ 71,394 Sale of healthcare products – 23,441 23,441 Total revenue 71,394 23,441 94,835 Cost of sales: Consulting service income (14,025 ) - (14,025 ) Sale of healthcare products - (14,449 ) (14,449 ) Total cost of revenue (14,025 ) (14,449 ) (28,474 ) Gross profit 57,369 8,992 66,361 Operating Expenses Selling and distribution - (2,642 ) (2,642 ) General and administrative (33,055 ) (74,707 ) (107,762 ) Total operating expenses (33,055 ) (77,349 ) (110,404 ) Segment income (loss) $ 24,314 $ (68,357 ) $ (44,043 ) Three months ended 30 June, 2021 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 165,640 $ – $ 165,640 Sale of healthcare products – 101,286 101,286 Total revenue 165,640 101,286 266,926 Cost of sales: Consulting service income (10,803 ) - (10,803 ) Sale of healthcare products - (48,481 ) (48,481 ) Total cost of revenue (10,803 ) (48,481 ) (59,284 ) Gross profit 154,837 52,805 207,642 Operating Expenses Selling and distribution - (2,563 ) (2,563 ) General and administrative (32,381 ) (138,419 ) (170,800 ) Total operating expenses (32,381 ) (140,982 ) (173,363 ) Segment income (loss) $ 122,456 $ (88,177 ) $ 34,279 Six months ended June 30, 2022 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 135,452 $ – $ 135,452 Sale of healthcare products – 28,182 28,182 Total revenue 135,452 28,182 163,634 Cost of sales: Consulting service income (28,268 ) - (28,268 ) Sale of healthcare products - (19,043 ) (19,043 ) Total cost of revenue (28,268 ) (19,043 ) (47,311 ) Gross profit 107,184 9,139 116,323 Operating Expenses Selling and distribution - (2,650 ) (2,650 ) General and administrative (64,534 ) (168,157 ) (232,691 ) Total operating expenses (64,534 ) (170,807 ) (235,341 ) Segment income (loss) $ 42,650 $ (161,668 ) $ (119,018 ) Six months ended June 30, 2021 Healthcare Segment Wine Segment Total Revenue from external customers: Consulting service income $ 165,640 $ – $ 165,640 Sale of healthcare products – 268,929 268,929 Total revenue 165,640 268,929 434,569 Cost of sales: Consulting service income (10,803 ) - (10,803 ) Sale of healthcare products - (202,165 ) (202,165 ) Total cost of revenue (10,803 ) (202,165 ) (212,968 ) Gross profit 154,837 66,764 221,601 Operating Expenses Selling and distribution - (14,212 ) (14,212 ) General and administrative (67,220 ) (317,756 ) (384,976 ) Total operating expenses (67,220 ) (331,968 ) (399,188 ) Segment income (loss) $ 87,617 $ (265,204 ) $ (177,587 ) |
PREPAYMENTS AND OTHER RECEIVA_2
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLE | Prepayments and other receivables consisted of the following: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLE June 30, 2022 December 31, 2021 Prepayments $ - $ 3,077 Other deposits 33,777 33,961 Other receivables 90,179 102,216 Prepayments and other receivable $ 123,956 $ 139,254 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consisted of the following: SCHEDULE OF INVENTORIES June 30, 2022 December 31, 2021 Finished goods $ 300,521 $ 327,551 |
LEASE (Tables)
LEASE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Lease | |
SCHEDULE OF RIGHT OF USE ASSETS AND LIABILITY | Right of use assets and lease liability – right of use are as follows: SCHEDULE OF RIGHT OF USE ASSETS AND LIABILITY June 30, 2022 December 31, 2021 Right-of-use assets $ 278,235 $ 350,563 The lease liability – right of use is as follows: June 30, 2022 December 31, 2021 Current portion 106,888 114,132 Non-current portion 183,050 246,022 Total $ 289,938 $ 360,154 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PLANT AND EQUIPMENT | SCHEDULE OF PLANT AND EQUIPMENT June 30, 2022 December 31, 2021 Motor vehicle $ 311,343 $ 311,343 Furniture, fixture and equipment 15,465 15,465 Leasehold improvement 27,358 27,358 Foreign translation adjustment 2,841 17,603 Plant and equipment, gross 357,007 371,769 Less: accumulated depreciation (264,698 ) (228,507 ) Foreign translation adjustment 557 (10,658 ) Plant and equipment, net $ 92,866 $ 132,604 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE | The provision for income taxes consisted of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE Six months ended June 30, 2022 2021 Current tax $ 6,573 $ - Deferred tax - - Income tax expense $ 6,573 $ - |
SCHEDULE OF DEFERRED TAX ASSETS | The following table sets forth the significant components of the deferred tax assets of the Company as of June 30, 2022 and December 31, 2021: SCHEDULE OF DEFERRED TAX ASSETS June 30, 2022 December 31, 2021 Deferred tax assets: Net operating loss carryforwards - United States $ 43,086 54,747 - PRC 315,729 246,903 Net operating loss carryforwards 358,815 301,650 Less: valuation allowance (358,815 ) (301,650 ) Deferred tax assets, net $ - $ - |
CHINA | |
SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE | SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE Six months ended June 30, 2022 2021 Loss before income taxes $ (152,669 ) $ (257,606 ) Statutory income tax rate 25 % 25 % Income tax expense at statutory rate (38,167 ) (64,402 ) Net operating loss 38,167 64,402 Income tax expense $ - $ - |
HONG KONG | |
SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE | SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE Six months ended June 30, 2022 2021 Profit before income taxes $ 55,876 $ 103,283 Profit (loss) before income taxes $ 55,876 $ 103,283 Statutory income tax rate 8.25 % 8.25 % Income tax expense at statutory rate 4,610 8,521 Tax adjustments 1,963 - One-off tax reduction - (8,521 ) Income tax expense $ 6,573 $ - |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATIONS OF RISK | For the three and six months ended June 30, 2022 and 2021, the customers who account for 10% or more of the Company’s revenues and its outstanding receivables balance as at period-end dates, are presented as follows: SCHEDULE OF CONCENTRATIONS OF RISK Three Months ended June 30, 2022 Customer Revenues Percentage of revenues Customer C $ 71,394 75 % Customer D 14,084 15 % Total: $ 85,478 90 % Six months ended June 30, 2022 June 30, 2022 Customer Revenues Percentage of revenues Accounts receivable Percentage of Accounts Receivable Customer C 135,452 83 % - - Total: $ 135,452 83 % Total - - Three Months ended June 30, 2021 Customer Revenues Percentage of revenues Customer A $ 84,877 32 % Customer B 165,640 62 % Total: $ 250,517 94 % Six Months ended June 30, 2021 June 30,2021 Customer Revenues Percentage of revenues Accounts receivable Percentage of Accounts Receivable Customer A $ 252,520 58 % 164,682 98 % Customer B 165,640 40 % - - Total: $ 418,160 98 % 164,682 98 % |
SCHEDULE OF SUBSIDIARIES INFORM
SCHEDULE OF SUBSIDIARIES INFORMATION (Details) - 6 months ended Jun. 30, 2022 | USD ($) shares | HKD ($) shares | CNY (¥) shares |
Elite Creation Group Limited [Member] | |||
Entity place of incorporation and kind of legal entity | BVI, a limited liability company | BVI, a limited liability company | BVI, a limited liability company |
Entity principal activities | Investment holding | Investment holding | Investment holding |
Stock issued during period shares new issues | shares | 50,000 | 50,000 | 50,000 |
Stock issued during period value new issues | $ | $ 1 | ||
Effective interest held percentage | 100% | 100% | 100% |
Alpha Wellness (HK) Limited [Member] | |||
Entity place of incorporation and kind of legal entity | Hong Kong, a limited liability company | Hong Kong, a limited liability company | Hong Kong, a limited liability company |
Entity principal activities | Investment holding | Investment holding | Investment holding |
Stock issued during period shares new issues | shares | 300,000 | 300,000 | 300,000 |
Stock issued during period value new issues | $ | $ 300,000 | ||
Effective interest held percentage | 100% | 100% | 100% |
Guangzhou Xiao Xiang Health Industry Company Limited [Member] | |||
Entity place of incorporation and kind of legal entity | The PRC, a limited liability company | The PRC, a limited liability company | The PRC, a limited liability company |
Entity principal activities | Sales of healthcare products | Sales of healthcare products | Sales of healthcare products |
Stock issued during period value new issues | ¥ | ¥ 8,300,000 | ||
Effective interest held percentage | 100% | 100% | 100% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Furniture, Fixture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual value | 5% |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Residual value | 5% |
Motor Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years 3 months 29 days |
Motor Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Residual value | 5% |
SCHEDULE OF DISAGGREGATED REVEN
SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||||
TOTAL | $ 94,835 | $ 266,926 | $ 163,634 | $ 434,569 |
Consultancy Service Fee Income [Member] | ||||
Product Information [Line Items] | ||||
TOTAL | 71,394 | 165,640 | 135,452 | 165,640 |
Sales of Healthcare [Member] | ||||
Product Information [Line Items] | ||||
TOTAL | $ 23,441 | $ 101,286 | $ 28,182 | $ 268,929 |
SCHEDULE OF FOREIGN CURRENCIES
SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Period-end HK$:US$ exchange rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign currency translation exchange rates | 0.12744 | 0.12878 |
Period average HK$:US$ Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign currency translation exchange rates | 0.12779 | 0.12884 |
Period-end RMB:US$ Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign currency translation exchange rates | 0.14930 | 0.15484 |
Period average RMB:US$ Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign currency translation exchange rates | 0.15438 | 0.15461 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Depreciation expense | $ 16,573 | $ 21,241 | $ 36,191 | $ 42,671 |
Intangible assets amortization period | 10 years | |||
Amortization of intangible assets | $ 127 | $ 130 | $ 259 | 260 |
Sales tax percentage | 17% | |||
Product sales returns | $ 0 | $ 0 | ||
Income tax likelihood, description | greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. |
SUMMARY OF REPORTABLE SEGMENTS
SUMMARY OF REPORTABLE SEGMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 94,835 | $ 266,926 | $ 163,634 | $ 434,569 |
Total cost of revenue | (28,474) | (59,284) | (47,311) | (212,968) |
Gross profit | 66,361 | 207,642 | 116,323 | 221,601 |
Selling and distribution | (2,642) | (2,563) | (2,650) | (14,212) |
General and administrative | (107,762) | (170,800) | (232,691) | (384,976) |
Total operating expenses | (110,404) | (173,363) | (235,341) | (399,188) |
(Loss) income from operation | (44,043) | 34,279 | (119,018) | (177,587) |
Consultancy Service Fee Income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 71,394 | 165,640 | 135,452 | 165,640 |
Total cost of revenue | (14,025) | (10,803) | (28,268) | (10,803) |
Salesof Healthcare Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,441 | |||
Sales of Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,441 | 101,286 | 28,182 | 268,929 |
Total cost of revenue | (14,449) | (48,481) | (19,043) | (202,165) |
Healthcare Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 71,394 | 165,640 | 135,452 | 165,640 |
Total cost of revenue | (14,025) | (10,803) | (28,268) | (10,803) |
Gross profit | 57,369 | 154,837 | 107,184 | 154,837 |
Selling and distribution | ||||
General and administrative | (33,055) | (32,381) | (64,534) | (67,220) |
Total operating expenses | (33,055) | (32,381) | (64,534) | (67,220) |
(Loss) income from operation | 24,314 | 122,456 | 42,650 | 87,617 |
Healthcare Segment [Member] | Consultancy Service Fee Income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 71,394 | 165,640 | 135,452 | 165,640 |
Total cost of revenue | (14,025) | (10,803) | (28,268) | (10,803) |
Healthcare Segment [Member] | Salesof Healthcare Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | ||||
Healthcare Segment [Member] | Sales of Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | ||||
Total cost of revenue | ||||
Wine Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,441 | 101,286 | 28,182 | 268,929 |
Total cost of revenue | (14,449) | (48,481) | (19,043) | (202,165) |
Gross profit | 8,992 | 52,805 | 9,139 | 66,764 |
Selling and distribution | (2,642) | (2,563) | (2,650) | (14,212) |
General and administrative | (74,707) | (138,419) | (168,157) | (317,756) |
Total operating expenses | (77,349) | (140,982) | (170,807) | (331,968) |
(Loss) income from operation | (68,357) | (88,177) | (161,668) | (265,204) |
Wine Segment [Member] | Consultancy Service Fee Income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | ||||
Total cost of revenue | ||||
Wine Segment [Member] | Salesof Healthcare Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,441 | |||
Wine Segment [Member] | Sales of Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 101,286 | 28,182 | 268,929 | |
Total cost of revenue | $ (14,449) | $ (48,481) | $ (19,043) | $ (202,165) |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLE (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepayments | $ 3,077 | |
Other deposits | 33,777 | 33,961 |
Other receivables | 90,179 | 102,216 |
Prepayments and other receivable | $ 123,956 | $ 139,254 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 300,521 | $ 327,551 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | ||||
Allowance for obsolete inventories | $ 0 | $ 0 | $ 0 | $ 0 |
SCHEDULE OF RIGHT OF USE ASSETS
SCHEDULE OF RIGHT OF USE ASSETS AND LIABILITY (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Lease | ||
Right-of-use assets | $ 278,235 | $ 350,563 |
Current portion | 106,888 | 114,132 |
Non-current portion | 183,050 | 246,022 |
Total | $ 289,938 | $ 360,154 |
LEASE (Details Narrative)
LEASE (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Operating lease, description | The Company leased office and warehouse facilities under various non-cancelable operating leases expiring at the term of 2 to 4 years, through December 31, 2025. |
Lease expiration date | Dec. 31, 2025 |
Operating lease payment | $ 106,888 |
Minimum [Member] | |
Lease term | 2 years |
Maximum [Member] | |
Lease term | 4 years |
SCHEDULE OF PLANT AND EQUIPMENT
SCHEDULE OF PLANT AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 357,007 | $ 371,769 |
Less: accumulated depreciation | (264,698) | (228,507) |
Foreign translation adjustment | 557 | (10,658) |
Plant and equipment, net | 92,866 | 132,604 |
Motor vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 311,343 | 311,343 |
Furniture, Fixture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 15,465 | 15,465 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 27,358 | 27,358 |
Foreign Translation Difference [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 2,841 | $ 17,603 |
PLANT AND EQUIPMENT (Details Na
PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 16,573 | $ 21,241 | $ 36,191 | $ 42,671 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares, issued | 20,252,309 | 20,252,309 |
Common stock, shares, outstanding | 20,252,309 | 20,252,309 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current tax | $ 6,573 | |||
Deferred tax | ||||
Income tax expense | $ 4,305 | $ 6,573 |
SCHEDULE OF RECONCILIATION TAX
SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit (loss) before income taxes | $ (33,418) | $ 34,670 | $ (107,974) | $ (170,397) |
Income tax expense | $ 4,305 | 6,573 | ||
CHINA | ||||
Profit (loss) before income taxes | $ (152,669) | $ (257,606) | ||
Statutory income tax rate | 25% | 25% | ||
Income tax expense at statutory rate | $ (38,167) | $ (64,402) | ||
Net operating loss | 38,167 | 64,402 | ||
Income tax expense | ||||
HONG KONG | ||||
Profit (loss) before income taxes | $ 55,876 | $ 103,283 | ||
Statutory income tax rate | 8.25% | 8.25% | ||
Income tax expense at statutory rate | $ 4,610 | $ 8,521 | ||
Income tax expense | 6,573 | |||
Tax adjustments | 1,963 | |||
One-off tax reduction | $ (8,521) |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Net operating loss carryforwards | $ 358,815 | $ 301,650 |
Less: valuation allowance | (358,815) | (301,650) |
Deferred tax assets, net | ||
UNITED STATES | ||
Net operating loss carryforwards | 43,086 | 54,747 |
CHINA | ||
Net operating loss carryforwards | $ 315,729 | $ 246,903 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 6 Months Ended |
Jun. 30, 2022 | |
CHINA | |
Income tax description | The Company’s subsidiary operating in the PRC is subject to the Corporate Income Tax Law of the People’s Republic of China at a unified income tax rate of 25%. |
HONG KONG | |
Income tax description | The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. |
SCHEDULE OF CONCENTRATIONS OF R
SCHEDULE OF CONCENTRATIONS OF RISK (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||||
Revenue, net | $ 94,835 | $ 266,926 | $ 163,634 | $ 434,569 |
Customer C [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue, net | $ 71,394 | $ 135,452 | ||
Concentration risk, percentage | 75% | 83% | ||
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | ||||
Accounts receivable | ||||
Customer D [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue, net | $ 14,084 | |||
Concentration risk, percentage | 15% | |||
Customer [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue, net | $ 85,478 | $ 250,517 | $ 135,452 | $ 418,160 |
Concentration risk, percentage | 90% | 94% | 83% | 98% |
Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 98% | |||
Accounts receivable | $ 164,682 | $ 164,682 | ||
Customer A [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue, net | $ 84,877 | $ 252,520 | ||
Concentration risk, percentage | 32% | 58% | ||
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 98% | |||
Accounts receivable | $ 164,682 | $ 164,682 | ||
Customer B [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue, net | $ 165,640 | $ 165,640 | ||
Concentration risk, percentage | 62% | 40% | ||
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | ||||
Accounts receivable |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||||
Expenses | $ 110,404 | $ 173,363 | $ 235,341 | $ 399,188 |
Accounts Payable [Member] | Customer Concentration Risk [Member] | Vendor [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Accounts payable | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Vendor [Member] | ||||
Concentration Risk [Line Items] | ||||
Expenses | $ 0 | $ 69,444 | $ 7,981 | $ 193,186 |