Dongxing International (DNXG) 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
Document And Entity Information
Entity Registrant Name	Dongxing International Inc.
Entity Central Index Key	1,500,861
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		30,000,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 2,872	$ 12,924
Accounts receivable, net of allowance of $29,968 and $29,265, respectively	3,596	3,512
Inventories	2,697	2,640
Lease payment receivable-current	15,057	23,353
Prepaid rent	28,400	9,715
Project in progress	56,824	55,492
Other current assets	3,095	19,579
Total Current Assets	112,541	127,215
Other Assets
Office equipment, net of accumulated depreciation of $7,928 and $7,587, respectively	883	1,018
Lease payment receivable		3,892
Total Other Assets	883	4,910
Total Assets	113,424	132,125
Current Liabilities
Unearned revenue	317	923
Due to related parties	270,103	199,473
Advance from customers	56,824	55,492
Accrued expenses and other payables	34,175	59,502
Total Current Liabilities	361,419	315,390
Total Liabilities	361,419	315,390
Stockholders' Deficiency
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
Common stock, $0.0001 par value, 250,000,000 shares authorized, 30,000,000 shares issued and outstanding	3,000	3,000
Additional paid-in capital	849,551	828,343
Stock subscription receivable	250,000	250,000
Accumulated deficit	(803,161)	(725,165)
Accumulated other comprehensive loss	(5,050)	(1,389)
Total Stockholders' Deficiency of Dongxing International Inc.	(205,660)	(145,211)
Non-controlling interest	(42,335)	(38,054)
Total Stockholders' Deficiency	(247,995)	(183,265)
Total Liabilities and Stockholders' Deficiency	$ 113,424	$ 132,125

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value per share	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	30,000,000	30,000,000
Common stock, shares outstanding	30,000,000	30,000,000
Allowance for doubtful accounts receivable	$ 29,968	$ 29,265
Net of accumulated depreciation	$ 7,928	$ 7,587

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 409	$ 5,160	$ 762	$ 5,897
Cost of revenue	93	308	521	308
Gross profit	316	4,852	241	5,589
Operating expenses
Selling, general and administrative expense	51,713	36,422	96,245	84,471
Total operating expenses	51,713	36,422	96,245	84,471
Loss from operations	(51,397)	(31,570)	(96,004)	(78,882)
Other income (expense):
Interest income (expense), net	3	(142)	10	(566)
Subsidy income	13,847		13,847
Other income	34	249	62	283
Total other income (expense)	13,884	107	13,919	(283)
Loss before income taxes	(37,513)	(31,463)	(82,085)	(79,165)
Income tax provision
Net loss	(37,513)	(31,463)	(82,085)	(79,165)
Less: Loss attributable to non-controlling interest	(1,869)	(1,573)	(4,089)	(3,958)
Net loss attributable to Dongxing International Inc.	(35,644)	(29,890)	(77,996)	(75,207)
Other comprehensive income (loss)
Foreign currency translation adjustment	(3,253)	1,225	(3,853)	826
Comprehensive loss	(40,766)	(30,238)	(85,938)	(78,339)
Less: Comprehensive loss attributable to non-controlling interest	(2,031)	(1,512)	(4,281)	(3,917)
Comprehensive loss attributable to Dongxing International Inc.	$ (38,735)	$ (28,726)	$ (81,657)	$ (74,422)
Loss per share - Basic and Diluted	$ 0	$ 0	$ 0	$ 0
Weighted average shares outstanding - Basic and Diluted	30,000,000	30,000,000	30,000,000	30,000,000

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	$ (82,085)	$ (79,165)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	157
Change in operating assets and liabilities:
Accounts receivable		(3,009)
Inventory	(7)	1,514
Lease payment receivable	(12,681)	(13,584)
Prepaid rent	18,219	21,812
Other current assets	(16,741)	7,457
Unearned revenue	(621)	(1,384)
Advance from customers		3,926
Accrued expenses and other payables	(26,418)	(11,082)
Net cash used in operating activities	(97,757)	(101,895)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of office equipment		275
Net cash used in investing activities		(275)
CASH FLOW FROM FINANCING ACTIVITIES
Capital contribution	21,208	15,313
Repayment of short-term bank loans		30,626
Proceeds from related party loan	66,328	60,135
Net cash provided by financing activities	87,536	44,822
Effect of exchange rate changes on cash	169	(297)
DECREASE IN CASH	(10,052)	(57,645)
Cash - beginning of period	12,924	58,914
Cash - ending of period	2,872	1,269
Supplement disclosure information
Cash paid for interest		582
Cash paid for income taxes

Corporate Information

Corporate Information	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate Information	NOTE 1 - CORPORATE INFORMATION Dongxing International Inc. (the “Company” or “Dongxing”) was incorporated in June 2010 in accordance with the laws of the State of Delaware under the name Apex 1, Inc. On November 19, 2015 the Company's corporate name was changed to “Dongxing International Inc.” On September 30, 2016, the Company entered into and closed a share exchange agreement with Central Dynamic Holdings Limited (“Central Dynamic”) and its shareholders. Pursuant to the terms of the exchange agreement, the shareholders, who together owned 100% of the ownership rights in Central Dynamic, agreed to transfer all of the issued and outstanding shares of common stock into the Company in exchange for the issuance of an aggregate of 25,000,000 shares of the Company’s common stock, par value $0.0001 per share. As a result of the share exchange, the Central Dynamic shareholders become the majority shareholders and have control of the Company. The acquisition of Central Dynamic was accounted for as a reverse merger effected by a share exchange agreement. Dongxing is considered the legal acquirer and Central Dynamic and its subsidiaries is considered the accounting acquirer. Accordingly, the historical financial statements presented are those of Central Dynamic and its subsidiaries. Central Dynamic Holdings Limited is incorporated under the laws of the British Virgin Islands. Dongxing Holdings Limited (“Dongxing BVI”), which is a wholly owned subsidiary of Central Dynamic, is also incorporated under the laws of the British Virgin Islands. Dongxing Holdings Limited (“Dongxing HK”), a wholly owned subsidiary of Dongxing BVI, is incorporated under the laws of Hong Kong. Harbin Donghui Technology Co., Ltd. (“Harbin Donghui”), a wholly-owned subsidiary of Dongxing HK, is incorporated under the laws of the People's Republic of China ("PRC"). Harbin Dongxing Energy Saving Technical Service Co., Ltd. (“Harbin Dongxing”), a limited liability company incorporated under the laws of the PRC, is effectively and substantially controlled by Harbin Donghui through a series of agreements known as variable interest agreements (the “VIE agreements”) dated March 30, 2016 pursuant to which Harbin Dongxing became Harbin Donghui’s contractually controlled affiliate. The VIE Agreements provide that Harbin Donghui will receive 95% of the net profit or loss derived from the operations of Harbin Dongxing and its subsidiaries. Central Dynamic and its wholly owned subsidiaries, Dongxing BVI, Dongxing HK and Harbin Donghui, are holding companies with no business operation. Harbin Dongxing provides Energy Diagnosis, Project Design, Project Auditing, Equipment Procurement Services, Construction Engineering, Personnel Training, and Technology Consulting to customers. Harbin Dongxing Online Technology Co., Ltd (“Dongxing Online”), which is 100% owned by Harbin Dongxing, engages in Software Development, Website Production, Systems Integration, Web Merchandise Sales, and Import and Export of Goods. Until November 4, 2016, Harbin Dongrong Business Management Consulting Co., Ltd (“Harbin Dongrong”), which is 100% owed by Harbin Dongxing, engaged in lighting design and construction for urban roads and landscapes. Since that date, the scope of Harbin Dongrong's business has entailed business consulting, marketing planning, and advertising.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 – GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a working capital deficit of $248,878 and an accumulated deficit of $803,161 as of June 30, 2017, at which time the Company's stockholders’ deficiency was $205,660. The Company has not generated cash or income from its operation since inception. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company plans to rely on the proceeds from loans from both unrelated and related parties to provide the resources necessary to fund the development of our business plan and operations. The Company also plans to raise funds from domestic and foreign banks and/or financial institutions to increase working capital in order to meet capital demands. However, no assurance can be given that the Company will be successful in raising additional capital.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation and Consolidation The accompanying unaudited interim consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited interim financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present fairly the financial position of the Company as of June 30, 2017 and the results of operations and cash flows for the periods ended June 30, 2017 and 2016. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the operating results for the full fiscal year or any future period. The balance sheet as of December 31, 2016 has been derived from the audited financial statements at that date. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on April 17, 2017. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and entities controlled through the VIE agreements. All significant inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with US GAAP. This requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. Impairment of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss recognized on long-lived assets. Fair Value of Financial Instruments • Level one — Quoted market prices in active markets for identical assets or liabilities; • Level two — Inputs other than level one inputs that are either directly or indirectly observable; and • Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. There are no financial instruments measured at fair value on a recurring basis. Accounts receivable, net of allowance Accounts receivable is stated at cost, net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses, if any, resulting from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. Inventories Property and equipment Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets, generally 3 years for office equipment. Depreciation expense for the six months ended June 30, 2017 and 2016 were $157 and nil respectively. Revenue Recognition The Company recognizes revenue in accordance with ASC 605, Revenue Recognition Revenue from LED lights installation projects is recognized per ASC 605-35 Construction-Type and Production-Type Contracts. All projects were less than one year. Contract price is recorded as revenue once the project is completed. Deposits received from customers before the project is completed are recorded as advance from customers. The costs of the projects, including materials used and other labor costs incurred are recorded as Project in Progress and recognized as cost of project once the project is complete. Revenue from LED lights installation projects with profit sharing terms is recognized per ASC 840-30 Capital Leases. On the profit sharing installation projects, the Company transfers ownership of the LED lights to customers by the end of the contract period with no charge. The Company accounts for this type of transaction as a sales-type lease and records as revenue the present value of the total profit sharing receipts from customers at the inception of the profit sharing period and records a lease payment receivable. The difference between total amount of profit sharing receipts and the present value of the profit sharing receipts is recorded as unearned revenue to be amortized over the term of profit sharing period. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by shareholders and distributions to shareholders. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax. Foreign currency The Company and its subsidiaries maintain their books and records in their functional currency, RMB or HKD. The consolidated financial statements of the Company are translated from Renminbi (“RMB”) or Hong Kong Dollars (“HKD”) into United States dollars (U.S. Dollars or “US$” or “$”). Accordingly, assets and liabilities of the Company and its subsidiaries are translated from RMB or HKD to U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statement of comprehensive income and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as accumulated other comprehensive income. The exchange rates used to translate amounts in RMB or HKD into U.S. Dollars for the purposes of preparing the consolidated financial statements are based on the rates as published on the website of People’s Bank of China and are as follows: June 30, 2017 December 31, 2016 Balance sheet items, except for equity accounts US$1=RMB6.7744 US$1=RMB6.9370 US$1=HKD7.8055 US$1=HKD7.7552 Six Months Ended June 30, 2017 2016 Items in the statements of comprehensive loss and cash flows US$1=RMB6.8607 US$1=RMB6.5303 US$1=HKD7.8122 US$1=HKD7.7600 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the above rates. The value of RMB against U.S. dollars and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of U.S. dollar reporting. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issues by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

Other Current Assets

Other Current Assets	6 Months Ended
	Jun. 30, 2017
Other Current Assets
Other Current Assets	NOTE 4 – OTHER CURRENT ASSETS Other current assets consist of the following: June 30, 2017 December 31, 2016 Bid deposit $ 74 $ 17,299 Employee advance 1,723 1,062 Other 1,298 1,218 　 $ 3,095 　 $ 19,579

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 - RELATED PARTY TRANSACTIONS Due to (from) related parties are non-interest bearing and due on demand. The balance of due to (from) related parties consists of the following: Notes June 30, 2017 December 31, 2016 Stockholders Cheng,Zhao (1) $ 178,199 $ 75,711 Other related parties Harbin Dongke Optronics Science and Technology Co., Ltd. ("Dongke") (2) 91,904 123,762 Total due to related parties $ 270,103 $ 199,473 (1) Mr. Cheng Zhao is the Company CEO and a stockholder. During the six months ended June 30, 2017 and 2016, Mr. Cheng advance $100,719 and $84,682 to the Company. (2) Dongke is a company established in China. Mr. Cheng Zhao, stockholder and Chief Executive Officer of the Company, was the president of Dongke until 2015.

Accrued Expenses And Other Paya

Accrued Expenses And Other Payables	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses and Other Payables	NOTE 6 - ACCRUED EXPENSES AND OTHER PAYABLES June 30, December 31, Accrued expenses $ 6,967 $ 34,734 Tax payable 375 1,704 Deposit payable 25,168 23,064 Others 1,665 — 　 $ 34,175 $ 59,502

Stockholder's Deficiency

Stockholder's Deficiency	6 Months Ended
	Jun. 30, 2017
Stockholders Deficiency
Stockholder's Deficiency	NOTE 7 - STOCKHOLDERS’ DEFICIENCY During the six months ended June 30, 2017 and 2016, Mr. Cheng Zhao, the Company CEO and a stockholder, made capital contribution to the Company of $21,208 and $15,313, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Income Taxes	NOTE 8 - INCOME TAXES The Company was incorporated in the United States and has operations in four tax jurisdictions - the United States, the Hong Kong Special Administrative Region (“HK SAR”), the PRC, and the British Virgin Islands ("BVI"). The Company’s BVI operations are not subject to any taxes according to BVI tax law. The Company’s HK SAR subsidiary is subject to a 16.5% profit tax based on its taxable net profit. The Company’s U.S. operations are subject to income tax according to U.S. tax law. The Company’s three operating subsidiaries, Harbin Dongxing, Dongxing Online and Harbin Dongrong, are generally subject to PRC enterprise income tax (“EIT”). These three companies are subject to an EIT rate of 25% under China’s Unified Enterprise Income Tax Law (“New Tax Law”). A reconciliation of the provision for income taxes determined at the local income tax rate to the Company’s effective income tax rate is as follows: Six Months Ended 2017 2016 Pre-tax loss $ (82,085 ) $ (79,165 ) U.S. federal corporate income tax rate 35 % 35 % Expected U.S. income tax credit (28,729 ) (27,708 ) Tax rate difference between U.S. and foreign operations 8,221 7,917 Change of valuation allowance 20,508 19,791 Effective tax expense $ — $ — The Company had deferred tax assets as follows: June 30, December 31, 2017 2016 Net operating losses carried forward $ 192,069 $ 183,324 Less: Valuation allowance (192,069 ) (183,324 ) Net deferred tax assets $ — $ — As of June 30, 2017, the Company has approximately $769,000 net operating loss carryforwards available in China to reduce future taxable income. The net operating loss of Chinese subsidiaries could be carried forward for a period of not more than five years from the year of the initial loss pursuant to relevant PRC tax laws and regulations. It is more likely than not that the deferred tax assets cannot be utilized in the future because there will not be significant future earnings from the entity which generated the net operating loss. Therefore, the Company recorded a full valuation allowance on its deferred tax assets. As of June 30, 2017 and December 31, 2016, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the six months ended June 30, 2017 and 2016, and no provision for interest and penalties is deemed necessary as of June 30, 2017 and December 31, 2016. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	NOTE 9 - SUBSEQUENT EVENT The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements.

Summary Of Significant Accoun15

Summary Of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Preparation and Consolidation	Basis of Preparation and Consolidation The accompanying unaudited interim consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited interim financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present fairly the financial position of the Company as of June 30, 2017 and the results of operations and cash flows for the periods ended June 30, 2017 and 2016. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the operating results for the full fiscal year or any future period. The balance sheet as of December 31, 2016 has been derived from the audited financial statements at that date. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on April 17, 2017. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and entities controlled through the VIE agreements. All significant inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with US GAAP. This requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss recognized on long-lived assets.
Fair Value of Financial Instruments	Fair Value of Financial Instruments • Level one — Quoted market prices in active markets for identical assets or liabilities; • Level two — Inputs other than level one inputs that are either directly or indirectly observable; and • Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. There are no financial instruments measured at fair value on a recurring basis.
Accounts Receivable, Net of Allowance	Accounts receivable, net of allowance
Inventories	Inventories
Property and Equipment	Property and equipment Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets, generally 3 years for office equipment. Depreciation expense for the six months ended June 30, 2017 and 2016 were $157 and nil respectively.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with ASC 605, Revenue Recognition Revenue from LED lights installation projects is recognized per ASC 605-35 Construction-Type and Production-Type Contracts. All projects were less than one year. Contract price is recorded as revenue once the project is completed. Deposits received from customers before the project is completed are recorded as advance from customers. The costs of the projects, including materials used and other labor costs incurred are recorded as Project in Progress and recognized as cost of project once the project is complete. Revenue from LED lights installation projects with profit sharing terms is recognized per ASC 840-30 Capital Leases. On the profit sharing installation projects, the Company transfers ownership of the LED lights to customers by the end of the contract period with no charge. The Company accounts for this type of transaction as a sales-type lease and records as revenue the present value of the total profit sharing receipts from customers at the inception of the profit sharing period and records a lease payment receivable. The difference between total amount of profit sharing receipts and the present value of the profit sharing receipts is recorded as unearned revenue to be amortized over the term of profit sharing period.
Income Taxes	Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.
Comprehensive Income	Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by shareholders and distributions to shareholders. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.
Foreign Currency	Foreign currency The exchange rates used to translate amounts in RMB or HKD into U.S. Dollars for the purposes of preparing the consolidated financial statements are based on the rates as published on the website of People’s Bank of China and are as follows: June 30, 2017 December 31, 2016 Balance sheet items, except for equity accounts US$1=RMB6.7744 US$1=RMB6.9370 US$1=HKD7.8055 US$1=HKD7.7552 Six Months Ended June 30, 2017 2016 Items in the statements of comprehensive loss and cash flows US$1=RMB6.8607 US$1=RMB6.5303 US$1=HKD7.8122 US$1=HKD7.7600 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the above rates. The value of RMB against U.S. dollars and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of U.S. dollar reporting.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issues by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

Summary Of Significant Accoun16

Summary Of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Summary Of Significant Accounting Policies Tables
Schedule of Exchange Rates of Foreign Currency	The exchange rates used to translate amounts in RMB or HKD into U.S. Dollars for the purposes of preparing the consolidated financial statements are based on the rates as published on the website of People’s Bank of China and are as follows: June 30, 2017 December 31, 2016 Balance sheet items, except for equity accounts US$1=RMB6.7744 US$1=RMB6.9370 US$1=HKD7.8055 US$1=HKD7.7552 Six Months Ended June 30, 2017 2016 Items in the statements of comprehensive loss and cash flows US$1=RMB6.8607 US$1=RMB6.5303 US$1=HKD7.8122 US$1=HKD7.7600

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Other Current Assets Tables
Schedule of Other Current Assets	Other current assets consist of the following: June 30, 2017 December 31, 2016 Bid deposit $ 74 $ 17,299 Employee advance 1,723 1,062 Other 1,298 1,218 　 $ 3,095 　 $ 19,579

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2017
Related Party Transactions Tables
Schedule of Balances of Due to (from) Related Parties	The balance of due to (from) related parties consists of the following: Notes June 30, 2017 December 31, 2016 Stockholders Cheng,Zhao (1) $ 178,199 $ 75,711 Other related parties Harbin Dongke Optronics Science and Technology Co., Ltd. ("Dongke") (2) 91,904 123,762 Total due to related parties $ 270,103 $ 199,473 (1) Mr. Cheng Zhao is the Company CEO and a stockholder. During the six months ended June 30, 2017 and 2016, Mr. Cheng advance $100,719 and $84,682 to the Company. (2) Dongke is a company established in China. Mr. Cheng Zhao, stockholder and Chief Executive Officer of the Company, was the president of Dongke until 2015.

Accrued Expenses And Other Pa19

Accrued Expenses And Other Payables (Tables)	6 Months Ended
	Jun. 30, 2017
Accrued Expenses And Other Payables Tables
Schedule of Accrued Expenses and Other Payables	June 30, December 31, Accrued expenses $ 6,967 $ 34,734 Tax payable 375 1,704 Deposit payable 25,168 23,064 Others 1,665 — 　 $ 34,175 $ 59,502

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Income Taxes Tables
Schedule of Reconcilation of Provision for Income Taxes	A reconciliation of the provision for income taxes determined at the local income tax rate to the Company’s effective income tax rate is as follows: Six Months Ended 2017 2016 Pre-tax loss $ (82,085 ) $ (79,165 ) U.S. federal corporate income tax rate 35 % 35 % Expected U.S. income tax credit (28,729 ) (27,708 ) Tax rate difference between U.S. and foreign operations 8,221 7,917 Change of valuation allowance 20,508 19,791 Effective tax expense $ — $ —
Schedule of Deferred Tax Assets	The Company had deferred tax assets as follows: June 30, December 31, 2017 2016 Net operating losses carried forward $ 192,069 $ 183,324 Less: Valuation allowance (192,069 ) (183,324 ) Net deferred tax assets $ — $ —

Summary Of Significant Accoun21

Summary Of Significant Accounting Policies (Details)	Jun. 30, 2017¥ / $HKD / $		Dec. 31, 2016¥ / $HKD / $
RMB [Member] | Items In The Statements Of Comprehensive Loss And Cash Flows [Member]
Foreign Currency Exchange Rate Translation | ¥ / $	6.8607	[1]	6.5303	[2]
HKD [Member] | Items In The Statements Of Comprehensive Loss And Cash Flows [Member]
Foreign Currency Exchange Rate Translation | HKD / $	7.8122	[3]	7.7600	[4]
Balance Sheet Items, Except For Equity Accounts [Member] | RMB [Member]
Foreign Currency Exchange Rate Translation | ¥ / $	6.7744	[5]	6.9370	[6]
Balance Sheet Items, Except For Equity Accounts [Member] | HKD [Member]
Foreign Currency Exchange Rate Translation | HKD / $	7.8055	[7]	7.7552	[8]
[1]	US$1=RMB6.8607
[2]	US$1=RMB6.5303
[3]	US$1=HKD7.8122
[4]	US$1=HKD7.7600
[5]	US$1=RMB6.7744
[6]	US$1=RMB6.9370
[7]	US$1=HKD7.8055
[8]	US$1=HKD7.7552

Other Current Assets (Details)

Other Current Assets (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Other Current Assets Details
Bid deposit	$ 74	$ 17,299
Employee advance	1,723	1,062
Other	1,298	1,218
Other current assets	$ 3,095	$ 19,579

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)		Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to shareholders		$ 178,199	$ 75,711
Due to other related parties		91,904	123,762
Total due to related parties		270,103	199,473
Shareholders - Cheng, Zhao [Member]
Related Party Transaction [Line Items]
Due to shareholders	[1]	178,199	75,711
Other Related Parties - Harbin Dongke Optronics Science And Technology Co., Ltd. ("Dongke") [Member]
Related Party Transaction [Line Items]
Due to other related parties	[2]	$ 91,904	$ 123,762
[1]	Mr. Cheng Zhao is the Company CEO and a stockholder. During the six months ended June 30, 2017 and 2016, Mr. Cheng advance $100,719 and $84,682 to the Company.
[2]	Dongke is a company established in China. Mr. Cheng Zhao, stockholder and Chief Executive Officer of the Company, was the president of Dongke until 2015.

Accrued Expenses And Other Pa24

Accrued Expenses And Other Payables (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued Expenses And Other Payables Details
Accrued expenses	$ 6,967	$ 34,734
Tax payable	375	1,704
Deposit payable	25,168	23,064
Others	1,665
Total Accrued expenses and other payables	$ 34,175	$ 59,502

Income Taxes (Schedule of Recon

Income Taxes (Schedule of Reconcilation of Provision for Income Taxes) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Taxes Schedule Of Reconcilation Of Provision For Income Taxes Details
Pre-tax loss	$ (37,513)	$ (31,463)	$ (82,085)	$ (79,165)
U.S. federal corporate income tax rate			35.00%	35.00%
Expected U.S. income tax credit			$ 28,729	$ 27,708
Tax rate difference between U.S. and foreign operations			8,221	7,917
Change of valuation allowance			20,508	19,791
Effective tax expense

Income Taxes (Schedule Of Defer

Income Taxes (Schedule Of Deferred Tax Assets) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Income Taxes Schedule Of Deferred Tax Assets Details
Net operating losses carried forward	$ 192,069	$ 183,324
Less: Valuation allowance	192,069	183,324
Net deferred tax assets

Corporate Information (Narrativ

Corporate Information (Narrative) (Details)	Sep. 30, 2016	Jun. 30, 2017
Harbin Donghui percentage of share received from Harbin Dongxing and its subsidiaries		95.00%
Dongxing Online percentage own by Harbin Dongxing		100.00%
Harbin Dongrong percentage own by Harbin Dongxing		100.00%
Share Exchange Agreement With Central Dynamic Holdings Ltd And Its Shareholders [Member]
Ownership interest acquired under share exchange agreement	100.00%
Share exchange agreement description	On September 30, 2016, the Company entered into and closed a share exchange agreement with Central Dynamic Holdings Limited (“Central Dynamic”) and its shareholders. Pursuant to the terms of the exchange agreement, the shareholders, who together owned 100% of the ownership rights in Central Dynamic, agreed to transfer all of the issued and outstanding shares of common stock into the Company in exchange for the issuance of an aggregate of 25,000,000 shares of the Company’s common stock, par value $0.0001 per share.

Going Concern (Narrative) (Deta

Going Concern (Narrative) (Details)	Jun. 30, 2017USD ($)
Going Concern Narrative Details
Working capital deficit	$ 248,878

Summary Of Significant Accoun29

Summary Of Significant Accounting Policies (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the asset	3 years

Stockholder's Deficiency (Narra

Stockholder's Deficiency (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Capital contribution	$ 21,208	$ 15,313
Shareholders - Cheng, Zhao [Member]
Capital contribution	$ 21,208	$ 15,313

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017USD ($)
Hong Kong Special Administrative Region [Member] | Inland Revenue, Hong Kong [Member]
Income tax rate	16.50%
Three China Operating Subsidiaries - Harbin Dongxing, Dongxing Online And Harbin Dongrong [Member]
Net operating loss carryforward	$ 769,000
Net operating loss carryforward limitations on use	The net operating loss of Chinese subsidiaries could be carried forward for a period of not more than five years from the year of the initial loss pursuant to relevant PRC tax laws and regulations.
Three China Operating Subsidiaries - Harbin Dongxing, Dongxing Online And Harbin Dongrong [Member] | China's Unified Enterprise Income Tax Law [Member]
Income tax rate	25.00%