Wonhe High-Tech International (WHHT) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Wonhe High-Tech International, Inc.	'
Entity Central Index Key	'0001434388	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	38,380,130

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$34,637,591	$35,146,245
Inventory	152,257	165,407
Prepaid expenses	29,682	65,616
Total current assets	34,819,530	35,377,268
Fixed assets	486,217	489,810
Less: accumulated depreciation	-248,427	-209,301
Fixed assets, net	237,790	280,509
Other assets:	'	'
Intangible assets, net	12,992	17,451
Other assets - principally security deposits	27,206	27,343
Prepaid income taxes	2,615,795	2,635,124
Total other assets	2,655,993	2,679,918
TOTAL ASSETS	37,713,313	38,337,695
Current liabilities:	'	'
Accounts payable	14,610	14,717
Payroll payable	20,724	21,628
Taxes payable	44,797	33,719
Loan from stockholder	147,317	143,222
Accrued expenses and other payables	206,375	174,483
Total current liabilities	433,823	387,769
Commitments and Contingencies	'	'
Stockholders' equity:	'	'
Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding	'	'
Common stock: $0.001 par value; 90,000,000 shares authorized; 38,380,130 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	38,380	38,380
Additional paid-in capital	17,011,131	17,011,131
Retained earnings	16,251,049	16,634,433
Statutory reserve fund	1,847,057	1,835,144
Other comprehensive income	768,649	1,036,323
Stockholders' equity before noncontrolling interests	35,916,266	36,555,411
Noncontrolling interests	1,363,224	1,394,515
Total stockholders' equity	37,279,490	37,949,926
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$37,713,313	$38,337,695

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares, issued	38,380,130	38,380,130
Common stock, shares outstanding	38,380,130	38,380,130

Consolidated_Statements_of_Inc

Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement	'	'	'	'
Sales	'	$10,145,618	'	$19,763,018
Cost of sales	'	-5,192,768	'	-10,115,181
Gross profit	'	4,952,850	'	9,647,837
Operating expenses:	'	'	'	'
R & D expenses	23,569	36,046	47,280	96,334
Selling and marketing	43,620	108,049	151,835	190,025
General and administrative	121,732	180,025	244,471	413,246
Total operating expenses	188,921	324,120	443,586	699,605
(Loss) income from operations	-188,921	4,628,730	-443,586	8,948,232
Interest income	30,804	16,722	60,900	30,877
(Loss) income before (benefit from) provision for income taxes	-158,117	4,645,452	-382,686	8,979,109
Provision for (benefit from) income taxes	5,044	-2,069,645	9,899	-2,064,827
Net (loss) income	-163,161	6,715,097	-392,585	11,043,936
Noncontrolling interests	8,914	-335,015	21,114	-550,735
Net (loss) income attributable to common stockholders	-154,247	6,380,082	-371,471	10,493,201
(Loss) earnings per common share, basic and diluted	$0	$0.19	($0.01)	$0.37
Weighted average shares outstanding, basic and diluted	38,380,130	33,447,383	38,380,130	28,700,130
Comprehensive income:	'	'	'	'
Net (loss) income	-163,161	6,715,097	-392,585	11,043,936
Foreign currency translation adjustment	45,748	234,257	-277,851	318,577
Comprehensive (loss) income	-117,413	6,949,354	-670,436	11,362,513
Comprehensive loss (income) attributable to noncontrolling interests	7,248	-350,839	31,291	-570,743
Comprehensive (loss) income attributable to common stockholders	($110,165)	$6,598,515	($639,145)	$10,791,770

Consolidated_Statement_of_Chan

Consolidated Statement of Changes in Stockholders' Equity (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Statutory Reserve Fund	Noncontrolling Interest	Other Comprehensive Income
Balance at Dec. 31, 2013	$37,949,926	$38,380	$17,011,131	$16,634,433	$1,835,144	$1,394,515	$1,036,323
Net (loss)	-392,585	'	'	-371,471	'	-21,114	'
Appropriation of statutory reserve	'	'	'	-11,913	11,913	'	'
Other comprehensive income	-277,851	'	'	'	'	-10,177	-267,674
Balance at Jun. 30, 2014	$37,279,490	$38,380	$17,011,131	$16,251,049	$1,847,057	$1,363,224	$768,649

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net (loss) income	($392,585)	$11,043,936
Adjustment to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	45,103	43,489
Change in operating assets and liabilities:	'	'
Decrease in accounts receivable	137	375,757
Decrease in inventory	13,150	73,000
Decrease in advances to suppliers	'	4,606,030
Decrease (increase) in prepaid expenses	35,934	-163,700
Decrease (increase) in prepaid income taxes	19,329	-2,602,910
(Decrease) increase in accounts payable	-107	297
(Decrease) increase in payroll payable	-904	38,282
Increase (decrease) in taxes payable	11,078	-655,804
Increase in accrued expenses and other payable	31,892	27,649
Net cash (used in) provided by operating activities	-236,973	12,786,026
Cash flows from financing activities:	'	'
Stockholder loans	4,095	25,537
Proceeds from issuance of common stock	'	9,912,000
Net cash provided by financing activities	4,095	9,937,537
Effect of exchange rate changes on cash	-275,776	311,403
Net Change in cash	-508,654	23,034,966
Cash, beginning	35,146,245	5,215,738
Cash, ending	34,637,591	28,250,704
Supplemental disclosure of cash flow information:	'	'
Cash paid for income taxes	'	1,161,532
Cash paid for interest	'	'

Organization

Organization	6 Months Ended
	Jun. 30, 2014
Organization [Abstract]	'
ORGANIZATION	'
	1	ORGANIZATION
	Wonhe High-Tech International, Inc. (the “Company” or “Wonhe High-Tech”) was incorporated in the State of Nevada on August 13, 2007. The Company changed its name from Baby Fox International, Inc. to Wonhe High-Tech International, Inc. on April 20, 2012.  On June 27, 2012, the Company acquired all of the outstanding capital stock of World Win International Holding Ltd. or “World Win” in exchange for 19,128,130 shares of the Company’s common stock (the “Share Exchange”).
	As a result of the acquisition, the Company’s consolidated subsidiaries include World Win, the Company’s wholly-owned subsidiary, which is incorporated under the laws of the British Virgin Island (“BVI”), Kuayu International Holdings Group Limited (Hong Kong), or “Kuayu,” a wholly-owned subsidiary of World Win which is incorporated under the laws of Hong Kong,  Shengshihe Management Consulting (Shenzhen) Co., Ltd., or “Shengshihe Consulting,” a wholly-owned subsidiary of Kuayu which is incorporated under the laws of the People’s Republic of China (“PRC”).  The Company also consolidates the financial condition and results of operations of Shenzhen Wonhe Technology Co., Ltd., or “Shenzhen Wonhe,” a limited liability company incorporated under the laws of the PRC which is effectively and substantially controlled by Shengshihe Consulting through a series of captive agreements.  Shenzhen Wonhe is considered a variable interest entity (“VIE”) of Shengshihe Consulting.
	Shenzhen Wonhe is a Chinese entity established on November 16, 2010 with registered capital of $7,495,000. It specializes in the research and development, outsourced-manufacturing and trade of hi-tech products based on x86 (instruction set architecture based on Intel 8086 CPU) and ARM (32-bit reduced instruction set architecture).  Current products still under research and development include a Smart Media Box (SMB), Home Smart Server (HSS), Mini PC (MPC), All in One PC (AIO-PC), Business PAD (B-PAD), and Portable PAD (P-PAD). The Company is located in Shenzhen, Guangdong Province, China.
	On May 30, 2012, Shenzhen Wonhe entered into (i) an Exclusive Technical Service and Business Consulting Agreement, (ii) a Proxy Agreement, (iii) Share Pledge Agreement, and (iv) Call Option Agreement with Shengshihe Consulting.  The foregoing agreements are collectively referred to as the “VIE Agreements.”
	Exclusive Technical Service and Business Consulting Agreement:  Pursuant to the Exclusive Technical Service and Business Consulting Agreement, Shengshihe Consulting provides technical support, consulting, training, marketing and business consulting services to Shenzhen Wonhe as related to its business activities.  In consideration for such services, Shenzhen Wonhe has agreed to pay as an annual service fee to Shengshihe Consulting in an amount equal to 95% of Shenzhen Wonhe’s annual net income with an additional payment of approximately $8,140 (RMB 50,000) each month.  The agreement has an unlimited term and can only be terminated by mutual agreement of the parties.
	Proxy Agreement: Pursuant to the Proxy Agreement, the stockholders of Shenzhen Wonhe agreed to irrevocably entrust Shengshihe Consulting to designate a qualified person, acceptable under PRC law and foreign investment policies, to vote all of the equity interests in Shenzhen Wonhe held by each of the stockholders of Shenzhen Wonhe.  The Agreement has an unlimited term and only can be terminated by mutual agreement of the parties.
	Share Pledge Agreement:  Pursuant to the Share Pledge Agreement, the stockholders of Shenzhen Wonhe pledged their shares to Shengshihe Consulting to secure the obligations of Shenzhen Wonhe under the Exclusive Technical Service and Business Consulting Agreement.  In addition, the stockholders of Shenzhen Wonhe agreed not to transfer, sell, pledge, dispose of or create any encumbrance on their interests in Shenzhen Wonhe that would affect Shengshihe Consulting’s interests.  This Agreement remains effective until the obligations under the Exclusive Technical Service and Business Consulting Agreement, Call Option Agreement and Proxy Agreement have been fulfilled or terminated.
	Call Option Agreement:  Pursuant to the Call Option Agreement, Shengshihe Consulting has an exclusive option to purchase, or to designate a purchaser for, to the extent permitted by PRC law and foreign investment policies, part or all of the equity interests in Shenzhen Wonhe held by each of the stockholders of Shenzhen Wonhe.  To the extent permitted by PRC laws, the purchase price for the entire equity interest is approximately $0.16 (RMB1.00) or the minimum amount required by PRC law or government practice. This Agreement remains effective until all the equity interests under the Agreement have been transferred to Shengshihe Consulting or its designee.
	After the Share Exchange, the Company’s current organization structure is as follows:

Summary_of_Significant_Account

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies [Abstract]

'

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

'

2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting.  The consolidated financial statements as of and for the three and six months ended June 30, 2014 and 2013 include Wonhe High-Tech, World Win, Kuayu, Shengshihe Consulting and its VIE, Shenzhen Wonhe. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited interim consolidated financial statements of the Company as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.

Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K for the fiscal year ended December 31, 2013, previously filed with the SEC. In the opinion of management, the interim information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2014.

Variable Interest Entity

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements, the financial statements of its variable interest entities (“VIEs”).  ASC 810 requires a VIE to be consolidated by a reporting entity if that reporting entity is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns.  VIEs are those entities in which a reporting entity, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the reporting entity is the primary beneficiary of the entity.

Under ASC 810, a reporting entity has a controlling financial interest in a VIE, and must consolidate that VIE, if the reporting entity has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE.  The reporting entity’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de facto agents, have the unilateral ability to exercise those rights.  Shenzhen Wonhe’s actual stockholders do not hold any kick-out rights that affect the consolidation determination.

Through the VIE agreements disclosed in Note 1, the Company is deemed the primary beneficiary of Shenzhen Wonhe and, accordingly, the results of operations of Shenzhen Wonhe have been included in the accompanying consolidated financial statements.  Shenzhen Wonhe has no assets that are collateral for or restricted solely to settle its obligations.  The creditors of Shenzhen Wonhe do not have recourse to the general credit of Shengshihe Consulting or its parent entities.

Principally almost of the assets recorded on the balance sheets of the Company are owned by Shenzhen Wonhe. In addition, all of the unrecognized revenue-producing assets of the Company, such as intellectual property and the assembled workforce, are owned by Shenzhen Wonhe. Likewise, all of the recognized assets of Shenzhen Wonhe are recorded on the Company’s balance sheets, and all of the unrecognized assets of Shenzhen Wonhe are utilized for the benefit of the Company.

The following are financial statement amounts and balances of Shenzhen Wonhe that have been included in the accompanying consolidated financial statements.

ASSETS

June 30,

December 31,

2014

2013

(Unaudited,

(In U.S. $)

In U.S. $)

Current assets:

Cash

$

34,458,943

$

35,007,670

Inventory

152,257

165,407

Prepaid expenses

29,682

65,616

Total current assets

34,640,882

35,238,693

Fixed assets

486,217

489,810

Less: accumulated depreciation

(248,427

)

(209,301

)

Fixed assets, net

237,790

280,509

Other assets:

Intangible assets

12,992

17,451

Other assets – principally security deposits

27,206

27,343

Prepaid income taxes

2,615,795

2,635,124

Total other assets

2,655,993

2,679,918

TOTAL ASSETS

$

37,534,665

$

38,199,120

LIABILITIES

Current liabilities:

Payable to WFOE(1)

$

19,191,267

$

19,191,267

Due to Wonhe High-Tech International, Inc.(2)

9,876,518

9,949,498

Accounts payable

14,610

14,717

Payroll payable

19,230

20,123

Taxes payable

418

561

Accrued expenses and other payables

177,396

178,740

Total current liabilities

29,279,439

29,354,906

TOTAL LIABILITIES

$

29,279,439

$

29,354,906

-1

Payable to WFOE represents amounts due to Shengshihe Consulting under the Exclusive Technical Service and Business Consulting Agreement for consulting services provided to Shenzhen Wonhe in exchange for 95% of Shenzhen Wonhe’s net income and monthly payments of RMB 50,000 (approximately US$8,140). The monthly payments have been paid in full as of June 30, 2014.

-2

Payable for issuance of common stock represents cash received by Shenzhen Wonhe for the sale of 14,480,000 common shares issued by Wonhe High-Tech International, Inc. on May 2, 2013 at $0.68 each (total approximately US$9,800,000).

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(In U.S. $)

(In U.S. $)

(In U.S. $)

(In U.S. $)

Sales

$

-

$

10,145,618

$

-

$

19,763,018

Net (loss) income(3)

$

(162,074

)

$

6,700,328

$

(384,315

)

$

11,014,716

-3

Under the Exclusive Technical Service and Business Consulting Agreement, 95% of the net income is to be remitted to the WFOE.

Six Months Ended

June 30,

2014

2013

(Unaudited)

(Unaudited)

(In U.S. $)

(In U.S. $)

Net cash (used in) provided by operating activities

$

(346,129

)

$

22,576,240

Net cash provided by financing activities

4,189

25,537

Effect of exchange rate changes on cash

(206,787

)

392,698

Net change in cash

$

(548,727

)

$

22,994,475

The Company believes that  Shengshihe Consulting’s contractual agreements with Shenzhen Wonhe are in compliance with PRC law and are legally enforceable.  The stockholders of Shenzhen Wonhe are also the senior management of the Company and therefore the Company believes that they have no current interest in seeking to act contrary to the contractual arrangements.  However, Shenzhen Wonhe and its stockholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so.  Furthermore, if Shenzhen Wonhe or its stockholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arrangements through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system.  All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC.  Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures.  As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shenzhen Wonhe, and its ability to conduct business may be adversely affected.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.

Foreign Currency Translation

Almost all of the Company’s assets are located in the PRC. The functional currency for the majority of the operations is the Renminbi (“RMB”). For Kuayu, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). The Company uses the US Dollar for financial reporting purposes. The unaudited consolidated financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters.”

All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of operations and other comprehensive income amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (loss).

The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:

June 30,

December 31,

June 30,

2014

2013

2013

Balance sheet items, except for stockholders’ equity, as of period end

0.1624

0.1636

N/A

Amounts included in the statements of operations, statements of changes in stockholders’ equity and statements of cash flows

0.1628

N/A

0.1601

For the three months ended June 30, 2014 and 2013, foreign currency translation adjustments of $45,748 and $234,257, respectively; for the six months ended June 30, 2014 and 2013, foreign currency translation adjustments of $(277,851) and $318,577, respectively, have been reported as other comprehensive income (loss). Other comprehensive income of the Company consists entirely of foreign currency translation adjustments. Pursuant to ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” the Company does not recognize deferred U.S. taxes related to the undistributed earnings of its foreign subsidiaries and, accordingly, recognizes no income tax expense or benefit from foreign currency translation adjustments.

Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.

The value of the RMB against the US dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting.

Revenue and Cost Recognition

The Company receives revenue from sales of electronic products. The Company’s revenue recognition policies are in compliance with SEC Staff Accounting Bulletin (“SAB”) 104 (codified in FASB ASC Topic 605).  Sales revenue is recognized when the products are delivered and when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured.  Finished goods are delivered from outsourced manufacturers to the Company.  Revenue is recognized when the title to the products has been passed to customers, which is the date the products are picked up by the customers at the Company’s location or delivered to the designated locations by Company employees and accepted by the customers and the previously discussed requirements are met.  The customers’ acceptance occurs upon inspection at the time of pickup or delivery by signing an acceptance form.  The Company does not provide the customers with the right of return. A 36-month warranty is offered to customers for exchange or repair of defective products, the cost of which is substantially covered by the outsourced manufacturers’ warranty policies as specified in the contract between the Company and outsourced manufacturers.  As a result, the Company does not recognize a warranty liability.  Payments received before all of the relevant criteria for revenue recognition are met are recorded as advances from customers.

The Company follows the guidance set forth by FASB ASC 605-45-45 to assess whether the Company acts as the principal or agent in the transaction.  The determination involves judgment and is based on an evaluation of whether the Company has the substantial risks and rewards of ownership under the terms of arrangement.  Based on the assessment, the Company determined it acts as principal in the transaction and reports revenues on the gross basis.

FASB ASC 605-45-45 sets forth eight criteria that support reporting recognition of gross revenue (i.e. principal sales) and three that support reporting net revenue (i.e. agent sales).  As applied to the relationship between the Company and its manufacturers, seven of the criteria that support reporting gross revenue are satisfied:

·

Shenzhen Wonhe is the primary obligor in each sale, as it is responsible for fulfillment of customer orders, including the acceptability of the products purchased by the customer.

·

Shenzhen Wonhe has general inventory risk, as it takes title to a product before that product is ordered by or delivered to a customer.

·

Shenzhen Wonhe establishes its own pricing for its products.

·

Shenzhen Wonhe has discretion in supplier selection.

·

Shenzhen Wonhe designed the Home Media Center Model 660 (the “HMC660”) and is responsible for all of its specifications.

·

Shenzhen Wonhe has physical inventory loss risk until the product is delivered to the customer.

·

Shenzhen Wonhe has full credit risk for amounts billed to its customers.

The only criterion supporting recognition of gross revenue that is not satisfied by the relationship between the Company and its manufacturers is:  entity changes the product or performs part of the service.  Moreover, none of the three criteria supporting recognition of net revenue is present in the Company’s sales transactions.  For this reason, the Company records gross revenue with respect to sales by Shenzhen Wonhe.

During the last quarter of 2013, the Company discontinued the production of HMC660 pending the introduction of a second generation HMC660, which is being developed in order to meet government purchasing standards in additional provinces, and thus allow the expansion of the market for the second generation HMC660. There were no sales during the three and six months ended June 30, 2014.

Fair Value of Financial Instruments

FASB ASC 820, “Fair Value Measurement,” defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

Advertising Costs

Advertising costs are paid to an advertising agency for market analysis and strategic planning and are charged to operations when incurred. Advertising costs were $32,200 and $96,473 for the three months ended June 30, 2014 and 2013, respectively; and $130,240 and $162,109 for the six months ended June 30, 2014 and 2013, respectively.

Research and Development Costs

The Company develops software to be marketed as part of its products, and that is not for internal use.  The software is essential to the functionality of the Company’s tangible products.  Therefore, the Company accounts for research and development costs incurred in development of its software in accordance with FASB ASC 985-20.

Research and development costs are charged to operations when incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally most software development costs have been expensed as incurred. Research and development costs were $23,569 and $36,046 for the three months ended June 30, 2014 and 2013, respectively; $47,280 and $96,334 for the six months ended June 30, 2014 and 2013, respectively.

Cash and Cash Equivalents

The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Inventory

Inventory, comprised principally of computer components, is valued at the lower of cost or market value. The value of inventories is determined using the first-in, first-out method.

The Company estimates an inventory allowance for estimated unmarketable inventories.  Inventory amounts are reported net of such allowances.  The allowance for slow-moving and obsolete inventory was $181,195 and $182,534 for computer components as of June 30, 2014 and December 31, 2013.

Prepaid Expenses

Prepaid expenses primarily consist of the advanced payments for advertising and software development. As of June 30, 2014 and December 31, 2013, prepaid expenses were $13,735 and $65,616, respectively.

Fixed Assets and Depreciation

Fixed assets are recorded at cost, less accumulated depreciation.  Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset.  Leasehold improvements are amortized over the lesser of the term of the related lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred.

The estimated useful lives for fixed asset categories are as follows:

Office equipment

5 years

Motor vehicles

5 years

Leasehold improvements

Shorter of the length of lease or life of the improvements

Impairment of Long-lived Assets

The Company applies FASB ASC 360, “Property, Plant and Equipment,” which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets.  In accordance with ASC 360, long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The Company may recognize the impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to those assets.  No impairment of long-lived assets was recognized for the periods presented.

Statutory Reserve Fund

Pursuant to corporate law of the PRC, Shengshihe Consulting and VIE are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital.  The statutory reserve fund is non-distributable other than during liquidation and can be used to fund prior years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital.   As of June 30, 2014, $1,839,547 had been transferred from retained earnings to the statutory reserve fund.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes.  Deferred tax assets and liabilities represent the future tax consequences for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.  Deferred taxes are also recognized for operating losses that are available to offset future taxable income.  As of June 30, 2014, the deferred tax asset was $52,677, recognized for net operating loss carryforwards of Shenzhen Wonhe. A full valuation allowance against this deferred tax asset was established due to the uncertainty in realizing its benefits.

ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of June 30, 2014 and December 31, 2013, the Company did not record any liabilities for unrecognized tax benefits.

The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows:

United States

The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income tax in the United States has been made as the Company had no U.S. taxable income for the three and six months ended June 30, 2014 and 2013.

PRC

Shenzhen Wonhe and Shengshihe Consulting are subject to an Enterprise Income Tax at 25% and file their own tax returns.  Consolidated tax returns are not permitted in China.  On July 23, 2012, the National Tax Bureau, Shenzhen Nanshan Branch declared that Shenzhen Wonhe is qualified for the preferential tax treatment afforded by the PRC to enterprises engaged in the development of software or integrated circuits.  As a result, starting from its first profitable year, Shenzhen Wonhe is entitled to a two-year exemption from the Enterprise Income Tax followed by a 50% exemption in the third year commencing January 1, 2014.  The tax regulations require that the enterprise pay income tax until its eligibility for the exemption is determined - i.e. until the local tax bureau determines that the enterprise has recorded its first profitable year.  Payments were made of approximately $2,600,000 (RMB 16,107,000) based upon 2012 income while the local tax bureau reviewed the Company’s financial results. The National Tax Bureau determined that the Company had realized a profit in 2012.  Since the Company has now been declared exempt from tax with respect to 2012, the payments will be applied to future income taxes due.  The payments have been reflected as prepaid income taxes on the balance sheet as of June 30, 2014 and December 31, 2013.

BVI

World Win is incorporated in the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%.

Hong Kong

Kuayu International is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non Hong Kong source income.

Noncontrolling Interests

The Company evaluated and determined that under the VIE agreements as disclosed in Note 1, it is deemed to be the primary beneficiary of Shenzhen Wonhe. The noncontrolling interest, representing 5% of the net assets in Shenzhen Wonhe not attributable, directly or indirectly to the Company, is measured at its carrying value in the equity section of the consolidated balance sheets.

Reclassifications

Certain amounts in the prior periods financial statements have been reclassified for comparative purposes to conform to the presentation in the current periods financial statements. These reclassifications had no effect on previously reported earnings.

Recently_Issued_Accounting_Sta

Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2014
Recently Issued Accounting Standards [Abstract]	'
RECENTLY ISSUED ACCOUNTING STANDARDS	'
	3	RECENTLY ISSUED ACCOUNTING STANDARDS
	In June 2014, FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Companies are permitted to adopt this new rule utilizing either a full or modified retrospective approach. Early adoption is not permitted. The Company has not yet determined the potential impacts of this updated authoritative guidance on its consolidated financial statements
	In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the requirements for reporting discontinued operations. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. In addition, this ASU requires additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.
	In July 2013, FASB issued ASU No. 2013-11, Presentation of an Unrecognized Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. An exception exists to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax of the applicable jurisdiction does not require the entity to use, and entity does not intend to use, the deferred tax asset for such a purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years and interim periods beginning after December 15, 2013 and did not have a material impact on the Company's consolidated financial statements.

Fixed_Assets

Fixed Assets	6 Months Ended
	Jun. 30, 2014
Fixed Assets [Abstract]	'
FIXED ASSETS	'
	4	FIXED ASSETS
	Fixed assets at June 30, 2014 and December 31, 2013 are summarized as follows:
			June 30,			December 31,
			2014			2013
		Office equipment	$	157,654		$	158,819
		Motor vehicles		219,284			220,905
		Leasehold improvements		109,279			110,086
				486,217			489,810
		Less: Accumulated depreciation		(248,427	)		(209,301	)
		Fixed assets, net	$	237,790		$	280,509
	Depreciation expense charged to operations for the three months ended June 30, 2014 and 2013 was $20,293 and $19,732, respectively; Depreciation expense charged to operations for the six months ended June 30, 2014 and 2013 was $40,761 and $39,220, respectively.

Intangible_Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2014
Intangible Assets [Abstract]	'
INTANGIBLE ASSETS	'
	5	INTANGIBLE ASSETS
	Intangible assets at June 30, 2014 and December 31, 2013 are summarized as follows:
			June 30,			December 31,
			2014			2013
		Software	$	25,984		$	26,176
		Less: Accumulated amortization		(12,992	)		(8,725	)
		Intangible assets, net	$	12,992		$	17,451
	Software was purchased in December 2012, and is being amortized over three years, beginning in January 2013. Amortization expense charged to operations for the three months ended June 30, 2014 and 2013 was $2,161 and $2,148, respectively; Amortization expense charged to operations for the six months ended June 30, 2014 and 2013 was $4,342 and $4,269, respectively.

Lease_Obligations

Lease Obligations	6 Months Ended
	Jun. 30, 2014
Lease Obligations [Abstract]	'
LEASE OBLIGATIONS	'
	6	LEASE OBLIGATIONS
	The Company leased its prior offices in Shenzhen from an unrelated third party at a monthly rental of $15,800 under an operating lease expiring on February 28, 2019.  The Company terminated the lease on September 30, 2013 without incurring any penalties.  On September 30, 2013, the Company entered into another lease agreement with an unrelated third party at a monthly rental of $9,621 per month.  The new lease expires on August 31, 2014.
	Rent expense for the three months ended June 30, 2014 and 2013 was $31,979 and $45,059, respectively; rent expense for the six months ended June 30, 2014 and 2013 was $64,195 and $89,559, respectively.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	7	RELATED PARTY TRANSACTIONS
	From time to time, a stockholder has loaned money to the Company, primarily to meet the non-RMB cash requirements of the parent and subsidiaries. The loans are non-interest bearing, and the balance due was $147,317 and $143,222 at June 30, 2014 and December 31, 2013, respectively. Approximately $110,000 of the loan represents professional and legal fees incurred in the U.S. paid by the stockholde and approximately $36,000 represents operating expenses of Wonhe High-Tech and Shengshihe Consulting since their inception. The balance is reflected as loan from the stockholder.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2014
Fair Value Measurements [Abstract]	'
FAIR VALUE MEASUREMENTS	'
	8	Fair value measurements
	FASB ASC 820 specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs).  In accordance with ASC 820, the following summarizes the fair value hierarchy:
		Level 1 Inputs –	Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
		Level 2 Inputs –	Inputs other than the quoted prices in active markets that are observable either directly or indirectly.
		Level 3 Inputs –	Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.
	ASC 820 requires the use of observable market data, when available, in making fair value measurements.  When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements.  Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.  As of June 30, 2014 and December 31, 2013, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis.  Carrying values of non-derivative financial instruments, including cash, receivables and various payables, approximate their fair values due to the short term nature of these financial instruments.  There were no changes in methods or assumptions during the periods presented.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]	'
INCOME TAXES	'
	9	Income taxes
	The Company is required to file income tax returns in both the United States and the PRC.  Its operations in the United States have been insignificant and income taxes have not been accrued.  In the PRC, the Company files tax returns for Shenzhen Wonhe and Shengshihe Consulting.
	The provision for (benefit from) income taxes consisted of the following for the three and six months ended June 30, 2014 and 2013:
			Three months ended						Six months ended
			June 30,						June 30,
			2014			2013			2014			2013
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
		Current	$	5,044		$	(2,069,645	)	$	9,899		$	(2,064,827	)
		Deferred		(22,178	)		-			(52,677	)		-
		Change in valuation allowance		22,178			-			52,677			-
			$	5,044		$	(2,069,645	)	$	9,899		$	(2,064,827	)
	The following is a reconciliation of the statutory rate with the effective income tax rate for the three and six months ended June 30, 2014 and 2013.
			Three Months Ended						Six Months Ended
			30-Jun-14						30-Jun-14
			Tax Provision			Rate of Tax			Tax Provision			Rate of Tax
		Tax at statutory rate	$	(19,656	)		12.5	%	$	(42,727	)		12.5	%
		VIE tax holiday		-			-			-			-
		Valuation allowance		22,178			(14.10	)%		52,677			(13.80	)%
		Foreign tax rate differential		2,522			(1.60	)%		4,949			(1.30	)%
		Tax at effective tax rate	$	5,044			(3.21	)%	$	9,899			(2.59	)%
			Three Months Ended						Six Months Ended
			30-Jun-13						30-Jun-13
			Tax Provision			Rate of Tax			Tax Provision			Rate of Tax
		Tax at statutory rate	$	1,161,363			25	%	$	2,244,778			25	%
		VIE tax holiday		(3,231,008	)		(70.00	)%		(4,309,605	)		(48.00	)%
		Tax at effective tax rate	$	(2,069,645	)		(45.00	)%	$	(2,064,827	)		(23.00	)%
	The following presents the aggregate dollar and per share effects of the Company’s VIE tax holidays:
			Three Months Ended						Six Months Ended
			June 30,						30-Jun-13
			2014			2013			2014			2013
		Aggregate dollar effect of tax holiday	$	-		$	(3,231,008	)	$	-		$	(4,309,605	)
		Per share effect, basic and diluted	$	-		$	(0.10	)	$	-		$	(0.15	)
	The Company’s PRC tax filings for the tax year ended December 31, 2013 was examined by the tax authorities in May, 2014.  The examinations were completed and resulted in no adjustments.
	The Company did not file its U.S. federal income tax returns, including, without limitation, information returns on Internal Revenue Service (“IRS”) Form 5471, “Information Return of U.S. Persons with Respect to Certain Foreign Corporations” for the fiscal year ended June 30, 2012 and for the six months period ended December 31, 2012, a short year income tax return required to be filed as a result of the change in the fiscal year, and for the year ended December 31, 2013.  Failure to furnish any income tax returns and information returns with respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to certain civil penalties.  Management is of the opinion that penalties, if any, that may be assessed would not be material to the consolidated financial statements.
	Because the Company did not generate any income in the United States or otherwise have any U.S. taxable income, the Company does not believe that it has any U.S. federal income tax liabilities with respect to any transactions that the Company or any of its subsidiaries may have engaged in through June 30, 2014.  However, there can be no assurance that the IRS will agree with this position, and therefore the Company ultimately could be liable for U.S. federal income taxes, interest and penalties.
	All of the Company’s operations are conducted in the PRC.  At June 30, 2014, the Company’s unremitted foreign earnings of its PRC subsidiaries totaled approximately $16.2 million and the Company held approximately $34.6 million of cash and cash equivalents in the PRC.  These unremitted earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC.  While repatriation of some cash held in the PRC may be restricted by local PRC laws, most of the Company’s foreign cash balances could be repatriated to the United States but, under current U.S. income tax laws, would be subject to U.S. federal income taxes less applicable foreign tax credits.  Determination of the amount of unrecognized deferred U.S. income tax liability on the unremitted earnings is not practicable because of the complexities associated with this hypothetical calculation, and as the Company does not plan to repatriate any cash in the PRC to the United States during the foreseeable future, no deferred tax liability has been accrued.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2014
Contingencies [Abstract]	'
CONTINGENCIES	'
	10	CONTINGENCIES
	As disclosed in Note 9, the Company was delinquent in filing certain tax returns with the U.S. Internal Revenue Services. The Company is unable to determine the amount of penalties, if any, that may be assessed at this time. Management is of the opinion that penalties, if any, that may be assessed would not be material to the consolidated financial statements.
	The Company did not file the information report for the year ended December 31, 2013 and 2012, concerning its interest in foreign bank accounts on form TDF 90-22.1, “Report of Foreign Bank and Financial Accounts” (“FBAR”). Not complying with the FBAR reporting and recordkeeping requirements will subject the Company to civil penalties up to $10,000 for each of its foreign bank accounts. The Company has not determined the amount of any penalties that may be assessed at this time and believes that penalties, if any, that may be assessed would not be material to the consolidated financial statements.

Concentration_of_Credit_Risk

Concentration of Credit Risk	6 Months Ended
	Jun. 30, 2014
Concentration of Credit and Business Risk [Abstract]	'
CONCENTRATION OF CREDIT RISK	'
	11	CONCENTRATION OF CREDIT RISK
	Cash and cash equivalents
	Substantially all of the Company’s bank accounts are in banks located in the People’s Republic of China and are not covered by protection similar to that provided by the FDIC on funds held in United States banks.
	Major customers
	During the three and six months ended June 30, 2014, the Company had no sales.
	Two customers accounted for 33% and 25% of total sales during the three months and six months ended June 30, 2013, respectively. As of June 30, 2013, five major customers accounted for 92% of accounts receivable.

Contributions_to_MultiEmployer

Contributions to Multi-Employer Welfare Programs	6 Months Ended
	Jun. 30, 2014
Contributions to Multi-Employer Welfare Programs [Abstract]	'
CONTRIBUTIONS TO MULTI-EMPLOYER WELFARE PROGRAMS	'
	12	CONTRIBUTIONS TO MULTI-EMPLOYER WELFARE PROGRAMS
	Shenzhen Wonhe is required to make contributions to multi-employer welfare programs by government regulation sometimes identified as the Mainland China Contribution Plan.  Specifically, the following regulations require that the Company pay a percentage of employee salaries into the specified plans:
		Regulation		Plan		% of Salary
		Shenzhen Special Economic Zone Social Retirement Insurance Regulations		Pension		13%
		Shenzhen Work-Related Injury Insurance Regulations		Workers Comp.		0.40%
		Guangdong Unemployment Insurance Regulations		Unemployment		2%
		Housing Provident Fund Management Regulations		Housing		5%
		Shenzhen Social Medical Insurance Measures		Medical		6.5% or 0.6%*
		Guangdong Employees Maternity Insurance		Maternity		0.5% or 0.2%*
		*	Depending on their position in the company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium.
	Total contributions to employee welfare programs for the three and six months ended June 30, 2014 and 2013 were as follow:
				For the Three Months ended
				June 30,
				2014			2013
		Total contributions		$	4,846		$	5,739
				For the Six Months ended
				June 30,
				2014			2013
		Total contributions		$	9,631		$	11,874

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Basis of Accounting and Presentation	'
	Basis of Accounting and Presentation
	The accompanying consolidated financial statements have been prepared on the accrual basis of accounting.  The consolidated financial statements as of and for the three and six months ended June 30, 2014 and 2013 include Wonhe High-Tech, World Win, Kuayu, Shengshihe Consulting and its VIE, Shenzhen Wonhe. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The unaudited interim consolidated financial statements of the Company as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.
	Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K for the fiscal year ended December 31, 2013, previously filed with the SEC. In the opinion of management, the interim information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2014.
Variable Interest Entity	'
		ASSETS		June 30,			December 31,
				2014			2013
				(Unaudited,			(In U.S. $)
				In U.S. $)
		Current assets:
		Cash		$	34,458,943		$	35,007,670
		Inventory			152,257			165,407
		Prepaid expenses			29,682			65,616
		Total current assets			34,640,882			35,238,693
		Fixed assets			486,217			489,810
		Less: accumulated depreciation			(248,427	)		(209,301	)
		Fixed assets, net			237,790			280,509
		Other assets:
		Intangible assets			12,992			17,451
		Other assets – principally security deposits			27,206			27,343
		Prepaid income taxes			2,615,795			2,635,124
		Total other assets			2,655,993			2,679,918
		TOTAL ASSETS		$	37,534,665		$	38,199,120
		LIABILITIES
		Current liabilities:
		Payable to WFOE(1)		$	19,191,267		$	19,191,267
		Due to Wonhe High-Tech International, Inc.(2)			9,876,518			9,949,498
		Accounts payable			14,610			14,717
		Payroll payable			19,230			20,123
		Taxes payable			418			561
		Accrued expenses and other payables			177,396			178,740
		Total current liabilities			29,279,439			29,354,906
		TOTAL LIABILITIES		$	29,279,439		$	29,354,906
		-1	Payable to WFOE represents amounts due to Shengshihe Consulting under the Exclusive Technical Service and Business Consulting Agreement for consulting services provided to Shenzhen Wonhe in exchange for 95% of Shenzhen Wonhe’s net income and monthly payments of RMB 50,000 (approximately US$8,140). The monthly payments have been paid in full as of June 30, 2014.
		-2	Payable for issuance of common stock represents cash received by Shenzhen Wonhe for the sale of 14,480,000 common shares issued by Wonhe High-Tech International, Inc. on May 2, 2013 at $0.68 each (total approximately US$9,800,000).
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.
Foreign Currency Translations	'
	Foreign Currency Translation
	Almost all of the Company’s assets are located in the PRC. The functional currency for the majority of the operations is the Renminbi (“RMB”). For Kuayu, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). The Company uses the US Dollar for financial reporting purposes. The unaudited consolidated financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters.”
	All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of operations and other comprehensive income amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (loss).
	The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:
				June 30,			December 31,			June 30,
				2014			2013			2013
		Balance sheet items, except for stockholders’ equity, as of period end			0.1624			0.1636			N/A
		Amounts included in the statements of operations, statements of changes in stockholders’ equity and statements of cash flows			0.1628			N/A			0.1601
	For the three months ended June 30, 2014 and 2013, foreign currency translation adjustments of $45,748 and $234,257, respectively; for the six months ended June 30, 2014 and 2013, foreign currency translation adjustments of $(277,851) and $318,577, respectively, have been reported as other comprehensive income (loss). Other comprehensive income of the Company consists entirely of foreign currency translation adjustments. Pursuant to ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” the Company does not recognize deferred U.S. taxes related to the undistributed earnings of its foreign subsidiaries and, accordingly, recognizes no income tax expense or benefit from foreign currency translation adjustments.
	Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.
	The value of the RMB against the US dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting.
Revenue and Cost Recognition	'
	Revenue and Cost Recognition
	The Company receives revenue from sales of electronic products. The Company’s revenue recognition policies are in compliance with SEC Staff Accounting Bulletin (“SAB”) 104 (codified in FASB ASC Topic 605).  Sales revenue is recognized when the products are delivered and when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured.  Finished goods are delivered from outsourced manufacturers to the Company.  Revenue is recognized when the title to the products has been passed to customers, which is the date the products are picked up by the customers at the Company’s location or delivered to the designated locations by Company employees and accepted by the customers and the previously discussed requirements are met.  The customers’ acceptance occurs upon inspection at the time of pickup or delivery by signing an acceptance form.  The Company does not provide the customers with the right of return. A 36-month warranty is offered to customers for exchange or repair of defective products, the cost of which is substantially covered by the outsourced manufacturers’ warranty policies as specified in the contract between the Company and outsourced manufacturers.  As a result, the Company does not recognize a warranty liability.  Payments received before all of the relevant criteria for revenue recognition are met are recorded as advances from customers.
	The Company follows the guidance set forth by FASB ASC 605-45-45 to assess whether the Company acts as the principal or agent in the transaction.  The determination involves judgment and is based on an evaluation of whether the Company has the substantial risks and rewards of ownership under the terms of arrangement.  Based on the assessment, the Company determined it acts as principal in the transaction and reports revenues on the gross basis.
	FASB ASC 605-45-45 sets forth eight criteria that support reporting recognition of gross revenue (i.e. principal sales) and three that support reporting net revenue (i.e. agent sales).  As applied to the relationship between the Company and its manufacturers, seven of the criteria that support reporting gross revenue are satisfied:
		·	Shenzhen Wonhe is the primary obligor in each sale, as it is responsible for fulfillment of customer orders, including the acceptability of the products purchased by the customer.
		·	Shenzhen Wonhe has general inventory risk, as it takes title to a product before that product is ordered by or delivered to a customer.
		·	Shenzhen Wonhe establishes its own pricing for its products.
		·	Shenzhen Wonhe has discretion in supplier selection.
		·	Shenzhen Wonhe designed the Home Media Center Model 660 (the “HMC660”) and is responsible for all of its specifications.
		·	Shenzhen Wonhe has physical inventory loss risk until the product is delivered to the customer.
		·	Shenzhen Wonhe has full credit risk for amounts billed to its customers.
	The only criterion supporting recognition of gross revenue that is not satisfied by the relationship between the Company and its manufacturers is:  entity changes the product or performs part of the service.  Moreover, none of the three criteria supporting recognition of net revenue is present in the Company’s sales transactions.  For this reason, the Company records gross revenue with respect to sales by Shenzhen Wonhe.
	During the last quarter of 2013, the Company discontinued the production of HMC660 pending the introduction of a second generation HMC660, which is being developed in order to meet government purchasing standards in additional provinces, and thus allow the expansion of the market for the second generation HMC660. There were no sales during the three and six months ended June 30, 2014.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	FASB ASC 820, “Fair Value Measurement,” defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
Advertising Costs	'
	Advertising Costs
	Advertising costs are paid to an advertising agency for market analysis and strategic planning and are charged to operations when incurred. Advertising costs were $32,200 and $96,473 for the three months ended June 30, 2014 and 2013, respectively; and $130,240 and $162,109 for the six months ended June 30, 2014 and 2013, respectively.
Research and Development Costs	'
	Research and Development Costs
	The Company develops software to be marketed as part of its products, and that is not for internal use.  The software is essential to the functionality of the Company’s tangible products.  Therefore, the Company accounts for research and development costs incurred in development of its software in accordance with FASB ASC 985-20.
	Research and development costs are charged to operations when incurred. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company’s products are released soon after technological feasibility has been established. Therefore, costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally most software development costs have been expensed as incurred. Research and development costs were $23,569 and $36,046 for the three months ended June 30, 2014 and 2013, respectively; $47,280 and $96,334 for the six months ended June 30, 2014 and 2013, respectively.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Inventory	'
	Inventory
	Inventory, comprised principally of computer components, is valued at the lower of cost or market value. The value of inventories is determined using the first-in, first-out method.
	The Company estimates an inventory allowance for estimated unmarketable inventories.  Inventory amounts are reported net of such allowances.  The allowance for slow-moving and obsolete inventory was $181,195 and $182,534 for computer components as of June 30, 2014 and December 31, 2013.
Prepaid Expenses	'
	Prepaid Expenses
	Prepaid expenses primarily consist of the advanced payments for advertising and software development. As of June 30, 2014 and December 31, 2013, prepaid expenses were $13,735 and $65,616, respectively.
Fixed Assets and Depreciation	'
	Fixed Assets and Depreciation
	Fixed assets are recorded at cost, less accumulated depreciation.  Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset.  Leasehold improvements are amortized over the lesser of the term of the related lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred.
	The estimated useful lives for fixed asset categories are as follows:
		Office equipment		5 years
		Motor vehicles		5 years
		Leasehold improvements		Shorter of the length of lease or life of the improvements
Impairment of Long-lived Assets	'
	Impairment of Long-lived Assets
	The Company applies FASB ASC 360, “Property, Plant and Equipment,” which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets.  In accordance with ASC 360, long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The Company may recognize the impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to those assets.  No impairment of long-lived assets was recognized for the periods presented.
Statutory Reserve Fund	'
	Statutory Reserve Fund
	Pursuant to corporate law of the PRC, Shengshihe Consulting and VIE are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital.  The statutory reserve fund is non-distributable other than during liquidation and can be used to fund prior years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital.   As of June 30, 2014, $1,839,547 had been transferred from retained earnings to the statutory reserve fund.
Income Taxes	'
	Income Taxes
	The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes.  Deferred tax assets and liabilities represent the future tax consequences for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.  Deferred taxes are also recognized for operating losses that are available to offset future taxable income.  As of June 30, 2014, the deferred tax asset was $52,677, recognized for net operating loss carryforwards of Shenzhen Wonhe. A full valuation allowance against this deferred tax asset was established due to the uncertainty in realizing its benefits.
	ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of June 30, 2014 and December 31, 2013, the Company did not record any liabilities for unrecognized tax benefits.
	The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows:
	United States
	The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income tax in the United States has been made as the Company had no U.S. taxable income for the three and six months ended June 30, 2014 and 2013.
	PRC
	Shenzhen Wonhe and Shengshihe Consulting are subject to an Enterprise Income Tax at 25% and file their own tax returns.  Consolidated tax returns are not permitted in China.  On July 23, 2012, the National Tax Bureau, Shenzhen Nanshan Branch declared that Shenzhen Wonhe is qualified for the preferential tax treatment afforded by the PRC to enterprises engaged in the development of software or integrated circuits.  As a result, starting from its first profitable year, Shenzhen Wonhe is entitled to a two-year exemption from the Enterprise Income Tax followed by a 50% exemption in the third year commencing January 1, 2014.  The tax regulations require that the enterprise pay income tax until its eligibility for the exemption is determined - i.e. until the local tax bureau determines that the enterprise has recorded its first profitable year.  Payments were made of approximately $2,600,000 (RMB 16,107,000) based upon 2012 income while the local tax bureau reviewed the Company’s financial results. The National Tax Bureau determined that the Company had realized a profit in 2012.  Since the Company has now been declared exempt from tax with respect to 2012, the payments will be applied to future income taxes due.  The payments have been reflected as prepaid income taxes on the balance sheet as of June 30, 2014 and December 31, 2013.
	BVI
	World Win is incorporated in the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%.
	Hong Kong
	Kuayu International is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non Hong Kong source income.
Noncontrolling interests	'
	Noncontrolling Interests
	The Company evaluated and determined that under the VIE agreements as disclosed in Note 1, it is deemed to be the primary beneficiary of Shenzhen Wonhe. The noncontrolling interest, representing 5% of the net assets in Shenzhen Wonhe not attributable, directly or indirectly to the Company, is measured at its carrying value in the equity section of the consolidated balance sheets.
Reclassifications	'
	Reclassifications
	Certain amounts in the prior periods financial statements have been reclassified for comparative purposes to conform to the presentation in the current periods financial statements. These reclassifications had no effect on previously reported earnings.
Recently Issued Accounting Standards	'
		RECENTLY ISSUED ACCOUNTING STANDARDS
	In June 2014, FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. ASU 2014-12 requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Companies are permitted to adopt this new rule utilizing either a full or modified retrospective approach. Early adoption is not permitted. The Company has not yet determined the potential impacts of this updated authoritative guidance on its consolidated financial statements
	In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the requirements for reporting discontinued operations. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. In addition, this ASU requires additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.
	In July 2013, FASB issued ASU No. 2013-11, Presentation of an Unrecognized Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. An exception exists to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax of the applicable jurisdiction does not require the entity to use, and entity does not intend to use, the deferred tax asset for such a purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years and interim periods beginning after December 15, 2013 and did not have a material impact on the Company's consolidated financial statements.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Schedule of variable interest entities, consolidated financial statements	'
		ASSETS		June 30,			December 31,
				2014			2013
				(Unaudited,			(In U.S. $)
				In U.S. $)
		Current assets:
		Cash		$	34,458,943		$	35,007,670
		Inventory			152,257			165,407
		Prepaid expenses			29,682			65,616
		Total current assets			34,640,882			35,238,693
		Fixed assets			486,217			489,810
		Less: accumulated depreciation			(248,427	)		(209,301	)
		Fixed assets, net			237,790			280,509
		Other assets:
		Intangible assets			12,992			17,451
		Other assets – principally security deposits			27,206			27,343
		Prepaid income taxes			2,615,795			2,635,124
		Total other assets			2,655,993			2,679,918
		TOTAL ASSETS		$	37,534,665		$	38,199,120
		LIABILITIES
		Current liabilities:
		Payable to WFOE(1)		$	19,191,267		$	19,191,267
		Due to Wonhe High-Tech International, Inc.(2)			9,876,518			9,949,498
		Accounts payable			14,610			14,717
		Payroll payable			19,230			20,123
		Taxes payable			418			561
		Accrued expenses and other payables			177,396			178,740
		Total current liabilities			29,279,439			29,354,906
		TOTAL LIABILITIES		$	29,279,439		$	29,354,906
		-1	Payable to WFOE represents amounts due to Shengshihe Consulting under the Exclusive Technical Service and Business Consulting Agreement for consulting services provided to Shenzhen Wonhe in exchange for 95% of Shenzhen Wonhe’s net income and monthly payments of RMB 50,000 (approximately US$8,140). The monthly payments have been paid in full as of June 30, 2014.
		-2	Payable for issuance of common stock represents cash received by Shenzhen Wonhe for the sale of 14,480,000 common shares issued by Wonhe High-Tech International, Inc. on May 2, 2013 at $0.68 each (total approximately US$9,800,000).
Schedule of operating and non operating income expense	'
				Three Months Ended						Six Months Ended
				June 30,						June 30,
				2014			2013			2014			2013
				(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
				(In U.S. $)			(In U.S. $)			(In U.S. $)			(In U.S. $)
		Sales		$	-		$	10,145,618		$	-		$	19,763,018
		Net (loss) income(3)		$	(162,074	)	$	6,700,328		$	(384,315	)	$	11,014,716
		-3	Under the Exclusive Technical Service and Business Consulting Agreement, 95% of the net income is to be remitted to the WFOE.
Schedule of activities resulted in cash increment	'
				Six Months Ended
				June 30,
				2014			2013
				(Unaudited)			(Unaudited)
				(In U.S. $)			(In U.S. $)
		Net cash (used in) provided by operating activities		$	(346,129	)	$	22,576,240
		Net cash provided by financing activities			4,189			25,537
		Effect of exchange rate changes on cash			(206,787	)		392,698
		Net change in cash		$	(548,727	)	$	22,994,475
Summary of Exchange rates used to translate amounts in RMB into US dollars	'
				June 30,			December 31,			June 30,
				2014			2013			2013
		Balance sheet items, except for stockholders’ equity, as of period end			0.1624			0.1636			N/A
		Amounts included in the statements of operations, statements of changes in stockholders’ equity and statements of cash flows			0.1628			N/A			0.1601
Summary of Estimated useful lives for fixed assets	'
		Office equipment		5 years
		Motor vehicles		5 years
		Leasehold improvements		Shorter of the length of lease or life of the improvements

Fixed_Assets_Tables

Fixed Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Fixed Assets [Abstract]	'
Summary of components of fixed assets	'
			June 30,			December 31,
			2014			2013
		Office equipment	$	157,654		$	158,819
		Motor vehicles		219,284			220,905
		Leasehold improvements		109,279			110,086
				486,217			489,810
		Less: Accumulated depreciation		(248,427	)		(209,301	)
		Fixed assets, net	$	237,790		$	280,509

Intangible_Assets_Tables

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Intangible Assets [Abstract]	'
Summary of intangible assets	'
			June 30,			December 31,
			2014			2013
		Software	$	25,984		$	26,176
		Less: Accumulated amortization		(12,992	)		(8,725	)
		Intangible assets, net	$	12,992		$	17,451

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]	'
Summary of provision for (benefit from) income taxes	'
			Three months ended						Six months ended
			June 30,						June 30,
			2014			2013			2014			2013
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
		Current	$	5,044		$	(2,069,645	)	$	9,899		$	(2,064,827	)
		Deferred		(22,178	)		-			(52,677	)		-
		Change in valuation allowance		22,178			-			52,677			-
			$	5,044		$	(2,069,645	)	$	9,899		$	(2,064,827	)
Summary of reconciliation of the statutory rate with the effective income tax rate	'
			Three Months Ended						Six Months Ended
			30-Jun-14						30-Jun-14
			Tax			Rate of			Tax			Rate of
			Provision			Tax			Provision			Tax
		Tax at statutory rate	$	(19,656	)		12.5	%	$	(42,727	)		12.5	%
		VIE tax holiday		-			-			-			-
		Valuation allowance		22,178			(14.10	)%		52,677			(13.80	)%
		Foreign tax rate differential		2,522			(1.60	)%		4,949			(1.30	)%
		Tax at effective tax rate	$	5,044			(3.21	)%	$	9,899			(2.59	)%
			Three Months Ended						Six Months Ended
			30-Jun-13						30-Jun-13
			Tax			Rate of			Tax			Rate of
			Provision			Tax			Provision			Tax
		Tax at statutory rate	$	1,161,363			25	%	$	2,244,778			25	%
		VIE tax holiday		(3,231,008	)		(70.00	)%		(4,309,605	)		(48.00	)%
		Tax at effective tax rate	$	(2,069,645	)		(45.00	)%	$	(2,064,827	)		(23.00	)%
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays	'
			Three Months Ended						Six Months Ended
			June 30,						30-Jun-13
			2014			2013			2014			2013
		Aggregate dollar effect of tax holiday	$	-		$	(3,231,008	)	$	-		$	(4,309,605	)
		Per share effect, basic and diluted	$	-		$	(0.10	)	$	-		$	(0.15	)

Contributions_to_MultiEmployer1

Contributions to Multi-Employer Welfare Programs (Tables)	6 Months Ended
	Jun. 30, 2014
Contributions to Multi-Employer Welfare Programs [Abstract]	'
Schedule of percentage of employee salaries required to pay into plans	'
		Regulation		Plan		% of Salary
		Shenzhen Special Economic Zone Social Retirement Insurance Regulations		Pension		13%
		Shenzhen Work-Related Injury Insurance Regulations		Workers Comp.		0.40%
		Guangdong Unemployment Insurance Regulations		Unemployment		2%
		Housing Provident Fund Management Regulations		Housing		5%
		Shenzhen Social Medical Insurance Measures		Medical		6.5% or 0.6%*
		Guangdong Employees Maternity Insurance		Maternity		0.5% or 0.2%*
		*	Depending on their position in the company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium.
Schedule of employee salaries required to pay into plans	'
				For the Three Months ended
				June 30,
				2014			2013
		Total contributions		$	4,846		$	5,739
				For the Six Months ended
				June 30,
				2014			2013
		Total contributions		$	9,631		$	11,874

Organization_Details

Organization (Details)	0 Months Ended	6 Months Ended
	Jun. 27, 2012	Jun. 30, 2014	Jun. 30, 2014	2-May-13	30-May-12	30-May-12	Nov. 16, 2010
		USD ($)	CNY	USD ($)	USD ($)	CNY	USD ($)
Organization (Textual)	'	'	'	'	'	'	'
Number of common stock issued in exchange for acquisition	19,128,130	'	'	'	'	'	'
Registered capital of Shenzhen Wonhe Technology Co., Ltd.	'	'	'	'	'	'	$7,495,000
Service fee paid to Shengshihe Consulting, description	'	'95% of Shenzhen Wonhe's annual net income with an additional payment of approximately $8,140 (RMB 50,000) each month. The agreement has an unlimited term and can only be terminated by mutual agreement of the parties.	'95% of Shenzhen Wonhe's annual net income with an additional payment of approximately $8,140 (RMB 50,000) each month. The agreement has an unlimited term and can only be terminated by mutual agreement of the parties.	'	'	'	'
Additional payment paid for consideration of consulting services	'	$8,140	50,000	'	'	'	'
Purchase price per share paid for equity interest acquired	'	'	'	$0.68	$0.16	1	'

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013		Jun. 30, 2013	Dec. 31, 2012
Current assets:	'		'		'	'
Cash	$34,637,591		$35,146,245		$28,250,704	$5,215,738
Inventory	152,257		165,407		'	'
Prepaid expenses	29,682		65,616		'	'
Total current assets	34,819,530		35,377,268		'	'
Fixed assets	486,217		489,810		'	'
Less: accumulated depreciation	-248,427		-209,301		'	'
Fixed assets, net	237,790		280,509		'	'
Other assets:	'		'		'	'
Intangible assets	12,992		17,451		'	'
Other assets - principally security deposits	27,206		27,343		'	'
Prepaid income taxes	2,615,795		2,635,124		'	'
Total other assets	2,655,993		2,679,918		'	'
TOTAL ASSETS	37,713,313		38,337,695		'	'
Current liabilities:	'		'		'	'
Due to Wonhe High-Tech International, Inc.	'		143,222		'	'
Accounts payable	14,610		14,717		'	'
Payroll payable	20,724		21,628		'	'
Taxes payable	44,797		33,719		'	'
Accrued expenses and other payables	206,375		174,483		'	'
Total current liabilities	433,823		387,769		'	'
Variable Interest Entity [Member]	'		'		'	'
Current assets:	'		'		'	'
Cash	35,007,670		35,007,670		'	'
Inventory	152,257		165,407		'	'
Prepaid expenses	29,682		65,616		'	'
Total current assets	34,640,882		35,238,693		'	'
Fixed assets	486,217		489,810		'	'
Less: accumulated depreciation	-248,427		-209,301		'	'
Fixed assets, net	237,790		280,509		'	'
Other assets:	'		'		'	'
Intangible assets	12,992		17,451		'	'
Other assets - principally security deposits	27,206		27,343		'	'
Prepaid income taxes	2,615,795		2,635,124		'	'
Total other assets	2,655,993		2,679,918		'	'
TOTAL ASSETS	37,534,665		38,199,120		'	'
Current liabilities:	'		'		'	'
Payable to WFOE	19,191,267	[1]	19,191,267	[1]	'	'
Due to Wonhe High-Tech International, Inc.	9,876,518	[2]	9,949,498	[2]	'	'
Accounts payable	14,610		14,717		'	'
Payroll payable	19,230		20,123		'	'
Taxes payable	418		561		'	'
Accrued expenses and other payables	177,396		178,740		'	'
Total current liabilities	29,279,439		29,354,906		'	'
TOTAL LIABILITIES	$29,279,439		$29,354,906		'	'
[1]	Payable to WFOE represents amounts due to Shengshihe Consulting under the Exclusive Technical Service and Business Consulting Agreement for consulting services provided to Shenzhen Wonhe in exchange for 95% of Shenzhen Wonhe's net income and monthly payments of RMB 50,000 (approximately US$8,140). The monthly payments have been paid in full as of June 30, 2014.
[2]	Payable for issuance of common stock represents cash received by Shenzhen Wonhe for the sale of 14,480,000 common shares issued by Wonhe High-Tech International, Inc. on May 2, 2013 at $0.68 each (total approximately US$9,800,000).

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 1) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Summary of variable interest entity, consolidated, income	'		'		'		'
Sales	'		$10,145,618		'		$19,763,018
Net income (loss)	-154,247		6,380,082		-371,471		10,493,201
WFOE [Member]	'		'		'		'
Summary of variable interest entity, consolidated, income	'		'		'		'
Sales	'		10,145,618		'		19,763,018
Net income (loss)	($162,074)	[1]	$6,700,328	[1]	($384,315)	[1]	$11,014,716	[1]
[1]	Under the Exclusive Technical Service and Business Consulting Agreement, 95% of the net income is to be remitted to the WFOE.

Summary_of_Significant_Account5

Summary of Significant Accounting Policies (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Summary of variable interest entity, consolidated, cash flows	'	'
Net cash (used in) provided by operating activities	($236,973)	$12,786,026
Net cash provided by financing activities	4,095	9,937,537
Effect of exchange rate changes on cash	-275,776	311,403
Net increase in cash	-508,654	23,034,966
WFOE [Member]	'	'
Summary of variable interest entity, consolidated, cash flows	'	'
Net cash (used in) provided by operating activities	-346,129	22,576,240
Net cash provided by financing activities	4,189	25,537
Effect of exchange rate changes on cash	-206,787	392,698
Net increase in cash	($548,727)	$22,994,475

Summary_of_Significant_Account6

Summary of Significant Accounting Policies (Details 3)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Summary of Exchange rates used to translate amounts in RMB into US dollars	'	'	'
Balance sheet items, except for stockholders' equity, as of year end	0.1624	'	0.1636
Amounts included in the statements of income, statements of changes in stockholders' equity and statements cash flows	0.1628	0.1601	'

Summary_of_Significant_Account7

Summary of Significant Accounting Policies (Details 4)	6 Months Ended
	Jun. 30, 2014
Office equipment [Member]	'
Schedule of estimated useful lives for fixed assets	'
Estimated useful lives for fixed assets	'5 years
Motor vehicles [Member]	'
Schedule of estimated useful lives for fixed assets	'
Estimated useful lives for fixed assets	'5 years
Leasehold improvements [Member]	'
Schedule of estimated useful lives for fixed assets	'
Estimated useful lives for fixed assets	'Shorter of the length of lease or life of the improvements

Summary_of_Significant_Account8

Summary of Significant Accounting Policies (Details Textual)	0 Months Ended	3 Months Ended		6 Months Ended			12 Months Ended
	2-May-13	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	30-May-12	30-May-12
	USD ($)	USD ($)	USD ($)	USD ($)	CNY	USD ($)	USD ($)	USD ($)	CNY
Accounting Policies (Textual)	'	'	'	'	'	'	'	'	'
Consulting service fees as percentage of Shenzhen Wonhe's net income	'	'	'	95.00%	95.00%	'	'	'	'
Consulting expenses monthly payments	'	'	'	$8,140	50,000	'	'	'	'
Payable for issuance of common stock	14,480,000	'	'	'	'	'	'	'	'
Common stock purchase price	$0.68	'	'	'	'	'	'	$0.16	1
Issuance of common stock	9,800,000	'	'	'	'	'	'	'	'
Percentage of net income remitted to WFOE	'	'	'	95.00%	95.00%	'	'	'	'
Foreign currency translation adjustments	'	45,748	234,257	-277,851	'	318,577	'	'	'
Advertising costs	'	32,200	96,473	130,240	'	162,109	'	'	'
R & D expenses	'	23,569	36,046	47,280	'	96,334	'	'	'
Allowance for slow-moving and obsolete inventory for computer components	'	'	'	181,195	'	'	182,534	'	'
Prepaid Expenses	'	13,735	'	13,735	'	'	65,616	'	'
Deferred tax asset	'	52,677	'	52,677	'	'	'	'	'
Percentage of net income transfer to statutory reserve fund	'	'	'	10.00%	10.00%	'	'	'	'
Statutory reserve fund transfer limitation, description	'	'	'	'10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital.	'10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of their registered capital.	'	'	'	'
Percentage of minimum remaining reserve balance of Registered Capital, description	'	'	'	'Not less than 25% of the registered capital.	'Not less than 25% of the registered capital.	'	'	'	'
Amount transfer from retained earnings to statuary reserve	'	1,839,547	'	1,839,547	'	'	'	'	'
Federal tax at graduated rates, minimum (percentage)	'	'	'	15.00%	15.00%	'	'	'	'
Federal tax at graduated rates, maximum (percentage)	'	'	'	35.00%	35.00%	'	'	'	'
Applicable income tax rate by income tax laws of BVI	'	'	'	0.00%	0.00%	'	'	'	'
Enterprise income tax rate by income tax laws of PRC	'	'	'	25.00%	25.00%	'	'	'	'
Noncontrolling interest, Percentage of net assets in Shenzhen Wonhe	'	5.00%	'	5.00%	5.00%	'	'	'	'
Prepaid income taxes	'	$2,600,000	'	$2,600,000	16,107,000	'	'	'	'
Enterprise Income Tax Exemption	'	'	'	50.00%	50.00%	'	'	'	'

Fixed_Assets_Details

Fixed Assets (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Summary of Components of fixed assets	'	'
Fixed assets	$486,217	$489,810
Less: accumulated depreciation	-248,427	-209,301
Fixed assets, net	237,790	280,509
Office equipment [Member]	'	'
Summary of Components of fixed assets	'	'
Fixed assets	157,654	158,819
Motor vehicles [Member]	'	'
Summary of Components of fixed assets	'	'
Fixed assets	219,284	220,905
Leasehold improvements [Member]	'	'
Summary of Components of fixed assets	'	'
Fixed assets	$109,279	$110,086

Fixed_Assets_Details_Textual

Fixed Assets (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fixed Assets (Textual)	'	'	'	'
Depreciation	$20,293	$19,732	$40,761	$39,220

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Summary of intangible assets	'	'
Software	$25,984	$26,176
Less: Accumulated amortization	-12,992	-8,725
Intangible assets, net	$12,992	$17,451

Intangible_Assets_Details_Text

Intangible Assets (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Intangible Assets (Textual)	'	'	'	'
Amortization period of intangible assets	'	'	'3 years	'
Amortization expense	$2,161	$2,148	$4,342	$4,269

Lease_Obligations_Details_Text

Lease Obligations (Details Textual) (USD $)	0 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Lease Obligations (Textual)	'	'	'	'	'
Monthly rental from unrelated third parties	$9,621	'	'	'	'
Lease expiration date	31-Aug-14	'	'	'	'
Rent expense	'	31,979	45,059	64,195	89,559
Shenzhen [Member]	'	'	'	'	'
Lease Obligations (Textual)	'	'	'	'	'
Monthly rental from unrelated third parties	'	'	'	$15,800	'
Lease expiration date	'	'	'	28-Feb-19	'
Termination of lease, Date	'	'	'	30-Sep-13	'

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Related Party Transaction (Textual)	'	'
Loan from stockholder	$147,317	$143,222
Operating expenses of Wonhe High-Tech and Shengshihe Consulting	36,000	'
Professional And Legal Fees [Member]	'	'
Related Party Transaction (Textual)	'	'
Expenses paid by stockholders	$110,000	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Provision for (benefit from) income taxes	'	'	'	'
Current	$5,044	($2,069,645)	$9,899	($2,064,827)
Deferred	-22,178	'	-52,677	'
Change in valuation allowance	22,178	'	52,677	'
Total	$5,044	($2,069,645)	$9,899	($2,064,827)

Income_Taxes_Details_1

Income Taxes (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary of reconciliation of the statutory rate with the effective income tax rate	'	'	'	'
Tax at statutory rate	($19,656)	$1,161,363	($42,727)	$2,244,778
VIE tax holiday	'	-3,231,008	'	-4,309,605
Change in valuation allowance	22,178	'	52,677	'
Foreign tax rate differential	2,522	'	4,949	'
Provision for (benefit from) income taxes	$5,044	($2,069,645)	$9,899	($2,064,827)
Rate of Tax, Tax at statutory rate	12.50%	25.00%	12.50%	25.00%
VIE tax holiday	'	-70.00%	'	-48.00%
Valuation allowance	-14.10%	'	-13.80%	'
Foreign tax rate differential	-1.60%	'	-1.30%	'
Tax at effective tax rate	-3.21%	-45.00%	-2.59%	-23.00%

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary of aggregate dollar and per share effects of the Company's VIE tax holidays [Abstract]	'	'	'	'
Aggregate dollar effect of tax holiday	'	($3,231,008)	'	($4,309,605)
Per share effect, basic and diluted	'	($0.10)	'	($0.15)

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Income Tax (Textual)	'	'	'	'
Unremitted foreign earnings of PRC subsidiaries	$16,251,049	$16,634,433	'	'
Cash and cash equivalents in PRC	$34,637,591	$35,146,245	$28,250,704	$5,215,738

Contingencies_Details

Contingencies (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Contingencies (Textual)	'
Civil penalties of each foreign bank account	$10,000

Concentration_of_Credit_Risk_D

Concentration of Credit Risk (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
		Customer	Customer
Major Customers (Textual) [Abstract]	'	'	'
Number of major customer accounted for revenue	'	2	'
Number of major customer accounted for accounts receivable	'	'	5
Major customer accounts receivable, percentage	92.00%	'	92.00%
Concentration Risk, Percentage	33.00%	'	25.00%

Contributions_to_MultiEmployer2

Contributions to Multi-Employer Welfare Programs (Details)	6 Months Ended
	Jun. 30, 2014
Pension [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Shenzhen Special Economic Zone Social Retirement Insurance Regulations
% of Salary	'13
Workers Comp. [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Shenzhen Work-Related Injury Insurance Regulations
% of Salary	'0.4
Unemployment [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Guangdong Unemployment Insurance Regulations
% of Salary	'2
Housing [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Housing Provident Fund Management Regulations
% of Salary	'5
Medical [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Shenzhen Social Medical Insurance Measures
% of Salary	'6.5% or 0.6	[1]
Maternity [Member]	'
Multiemployer Plans [Line Items]	'
Regulation	'Guangdong Employees Maternity Insurance
% of Salary	'0.5% or 0.2	[1]
[1]	Depending on their position in the company, employees receive either hospitalization, medical and maternity insurance or comprehensive medical and maternity insurance, which is a lower premium.

Contributions_to_MultiEmployer3

Contributions to Multi-Employer Welfare Programs (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Contributions to Multi-Employer Welfare Programs [Abstract]	'	'	'	'
Total contributions	$5,739	$4,846	$9,631	$11,874