Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Pingtan Marine Enterprise Ltd. | |
Entity Central Index Key | 0001517130 | |
Trading Symbol | PME | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Accelerated Filer | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 79,055,053 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash | $ 76,893,321 | $ 1,966,855 |
Accounts receivable, net of allowance for doubtful accounts | 7,245,164 | 6,307,492 |
Inventories, net of reserve for inventories | 10,246,664 | 5,840,207 |
Prepaid expenses | 452,875 | 644,824 |
Other receivables | 4,483,481 | 698,450 |
Total Current Assets | 99,321,505 | 15,457,828 |
OTHER ASSETS: | ||
Cost method investment | 3,118,735 | 3,059,797 |
Equity method investment | 29,317,825 | 28,872,521 |
Right-of-use asset | 690,793 | |
Property, plant and equipment, net | 200,950,673 | 199,571,425 |
Total Other Assets | 234,078,026 | 231,503,743 |
Total Assets | 333,399,531 | 246,961,571 |
CURRENT LIABILITIES: | ||
Accounts payable | 20,895,978 | 30,642,125 |
Accounts payable - related parties | 2,988,073 | 3,244,843 |
Short-term bank loans | 5,169,335 | 5,085,139 |
Long-term bank loans - current portion | 21,088,587 | 8,487,295 |
Accrued liabilities and other payables | 7,224,298 | 6,058,548 |
Lease liability | 690,750 | |
Due to related parties | 30,292,800 | 19,555,277 |
Total Current Liabilities | 88,349,821 | 73,073,227 |
OTHER LIABILITIES: | ||
Long-term bank loans - non-current portion | 92,559,590 | 22,329,234 |
Total Liabilities | 180,909,411 | 95,402,461 |
COMMITMENTS AND CONTINGENCIES | ||
Equity attributable to owners of the company: | ||
Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,055,053 shares issued and outstanding at March 31, 2019 and December 31, 2018) | 79,055 | 79,055 |
Additional paid-in capital | 81,682,599 | 81,682,599 |
Retained earnings | 47,705,830 | 49,593,069 |
Statutory reserve | 14,760,112 | 14,760,112 |
Accumulated other comprehensive loss | (10,754,775) | (13,448,047) |
Total equity attributable to owners of the company | 133,472,821 | 132,666,788 |
Non-controlling interest | 19,017,299 | 18,892,322 |
Total Shareholders' Equity | 152,490,120 | 151,559,110 |
Total Liabilities and Shareholders' Equity | $ 333,399,531 | $ 246,961,571 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 225,000,000 | 225,000,000 |
Ordinary shares, shares issued | 79,055,053 | 79,055,053 |
Ordinary shares, shares outstanding | 79,055,053 | 79,055,053 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
REVENUE | $ 18,424,209 | $ 10,884,268 |
COST OF REVENUE | 14,343,558 | 5,283,716 |
GROSS PROFIT (LOSS) | 4,080,651 | 5,600,552 |
OPERATING EXPENSES: | ||
Selling | 709,929 | 481,451 |
General and administrative | 3,595,390 | 1,559,597 |
General and administrative - depreciation | 1,222,161 | 1,566,019 |
Grant income | (1,052,112) | |
Loss on fixed assets disposal | 2,181,455 | |
Total Operating Expenses | 5,527,480 | 4,736,410 |
(LOSS) PROFIT FROM OPERATIONS | (1,446,829) | 864,142 |
OTHER INCOME (EXPENSE): | ||
Interest income | 2,516 | 19,764 |
Interest expense | (529,165) | (462,259) |
Foreign currency transaction gain | 90,084 | 573,992 |
Loss on equity method investment | (110,616) | (10,951) |
Other Income | 25,671 | |
Total Other (Expense) Income, net | (521,510) | 120,546 |
(LOSS) INCOME BEFORE INCOME TAXES | (1,968,339) | 984,688 |
INCOME TAXES | ||
NET (LOSS) INCOME | (1,968,339) | 984,688 |
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST | (81,100) | 112,395 |
NET (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY | (1,887,239) | 872,293 |
COMPREHENSIVE (LOSS) INCOME: | ||
NET (LOSS) INCOME | (1,968,339) | 984,688 |
OTHER COMPREHENSIVE GAIN | ||
Unrealized foreign currency translation gain | 2,899,349 | 5,603,908 |
COMPREHENSIVE INCOME | 931,010 | 6,588,596 |
LESS: COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST | 124,977 | 560,609 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY | $ 806,033 | $ 6,027,987 |
NET (LOSS) INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | ||
Basic and diluted | $ (0.02) | $ 0.01 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||
Basic and diluted | 79,055,053 | 79,055,053 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Loss | Non-controlling Interest | Total |
Balance at Dec. 31, 2017 | $ 79,055 | $ 81,682,599 | $ 40,349,189 | $ 12,978,343 | $ (5,731,889) | $ 18,147,859 | $ 147,505,156 |
Balance, Shares at Dec. 31, 2017 | 79,055,053 | ||||||
Net loss | 872,293 | 112,395 | 984,688 | ||||
Dividend declared | (790,551) | (790,551) | |||||
Foreign currency translation adjustment | 5,155,694 | 448,214 | 5,603,908 | ||||
Balance at Mar. 31, 2018 | $ 79,055 | 81,682,599 | 40,430,931 | 12,978,343 | (576,195) | 18,708,468 | 153,303,201 |
Balance, Shares at Mar. 31, 2018 | 79,055,053 | ||||||
Balance at Dec. 31, 2018 | $ 79,055 | 81,682,599 | 49,593,069 | 14,760,112 | (13,448,047) | 18,892,322 | 151,559,110 |
Balance, Shares at Dec. 31, 2018 | 79,055,053 | ||||||
Net loss | (1,887,239) | (81,100) | (1,968,339) | ||||
Dividend declared | |||||||
Foreign currency translation adjustment | 2,693,272 | (206,077) | 2,899,349 | ||||
Balance at Mar. 31, 2019 | $ 79,055 | $ 81,682,599 | $ 47,705,830 | $ 14,760,112 | $ (10,754,775) | $ 19,017,299 | $ 152,490,120 |
Balance, Shares at Mar. 31, 2019 | 79,055,053 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (1,968,339) | $ 984,688 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Depreciation | 2,740,118 | 2,433,126 |
Increase in allowance for doubtful accounts | 168,945 | |
Decrease in reserve for inventories | 213,454 | 64,468 |
Loss on equity method investment | 110,616 | 10,951 |
Loss on disposal of fixed assets | 2,181,455 | |
Impairment loss of fishing vessels | 2,229,502 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (814,569) | 206,838 |
Inventories | (4,498,954) | (1,795,329) |
Prepaid expenses | 391,018 | 113,507 |
Other receivables | 592,037 | (125,770) |
Accounts payable | 5,444,714 | 3,008,880 |
Accounts payable - related parties | (318,642) | (595,916) |
Advance from customers | 96,342 | |
Accrued liabilities and other payables | 950,819 | (1,200,760) |
Accrued liabilities and other payables - related party | (1,290) | (38,208) |
Due to related parties | 5,223,359 | (497,164) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 10,390,185 | 4,919,711 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (21,353,232) | |
Payments made for acquisition of fishing vessels from related party | 2,159,246 | |
Deposite for purchase of land use right | (4,357,621) | |
NET CASH USED IN INVESTING ACTIVITIES | (23,551,607) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of short-term bank loans | (5,000,000) | |
Proceeds from long-term bank loans | 83,002,312 | |
Repayments of long-term bank loans | (926,365) | |
Advances from related parties | 5,534,231 | 1,847,136 |
Payments made for dividend | (790,551) | |
NET CASH PROVIDED (USED IN) BY FINANCING ACTIVITIES | 87,610,178 | (3,943,415) |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 477,710 | (204,936) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 74,926,466 | 771,360 |
CASH AND CASH EQUIVALENTS - beginning of period | 1,966,855 | 3,826,727 |
CASH AND CASH EQUIVALENTS - end of period | 76,893,321 | 4,598,087 |
Cash paid for: | ||
Interest | 1,286,302 | 424,054 |
Income taxes | ||
RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS: | ||
Cash and cash equivalents | 76,893,321 | 3,818,837 |
Restricted cash | 779,250 | |
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 76,893,321 | 4,598,087 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment acquired on credit as payable | $ 10,111,168 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 1 – DESCRIPTION OF BUSINESS AND ORGANIZATION Pingtan Marine Enterprise Ltd. (the “Company” or “PME”), formerly China Growth Equity Investment Limited (“CGEI”), incorporated in the Cayman Islands as an exempted limited liability company, was incorporated as a blank check company on January 18, 2010 with the purpose of directly or indirectly acquiring, through a merger, share exchange, asset acquisition, plan of arrangement, recapitalization, reorganization or similar business combination, an operating business, or control of such operating business through contractual arrangements, that has its principal business and/or material operations located in the People’s Republic of China (“PRC”). In connection with its initial business combination, in February 2013, CGEI changed its name to Pingtan Marine Enterprise Ltd. On October 24, 2012, CGEI and China Dredging Group Co., Ltd (“CDGC” or “China Dredging”) entered into a Merger Agreement providing for the combination of CGEI and CDGC and on October 24, 2012, CGEI also acquired all of the outstanding capital shares and other equity interests of Merchant Supreme Co., Ltd. (“Merchant Supreme”), a company incorporated on June 25, 2012, in British Virgin Islands (“BVI”), as per a Share Purchase Agreement. On February 25, 2013, the merger between the Company, CDGC and Merchant Supreme became effective and has been accounted for as a “reverse merger” and recapitalization since the common shareholders of CDGC and Merchant Supreme (i) owned a majority of the outstanding ordinary shares of the Company immediately following the completion of the transaction, and (ii) have significant influence and the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity. In accordance with the provision of Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 805-40, CDGC and Merchant Supreme are deemed the accounting acquirers and the Company is the legal acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of the Company. Accordingly, the assets and liabilities and the historical operations that are reflected in the consolidated financial statements are those of CDGC, Merchant Supreme and their subsidiaries and are recorded at the historical cost basis. The Company’s assets, liabilities and results of operations were consolidated with the assets, liabilities and results of operations of CDGC, Merchant Supreme and their subsidiaries subsequent to the acquisition date of February 25, 2013. Following the completion of the business combination which became effective on February 25, 2013, CDGC and Merchant Supreme became the wholly-owned subsidiaries of the Company. The ordinary shares, par value $0.001 per share are listed on The NASDAQ Capital Market under the symbol “PME”. In order to place increased focus on fishing business and pursue more effective growth opportunities, the Company decided to exit and sell the specialized dredging services operated by China Dredging; the Company completed the sale of CDGC and its subsidiaries on December 4, 2013. On February 9, 2015, the Company terminated its existing Variable Interest Entity (“VIE”) agreements, pursuant to an Agreement of Termination dated February 9, 2015, entered into by and among Ms. Honghong Zhuo, Mr. Zhiyan Lin (each a shareholder of Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd (“Pingtan Fishing”), together the “Pingtan Fishing’s Shareholders”), Pingtan Fishing and Pingtan Guansheng Ocean Fishing Co., Ltd. (“Pingtan Guansheng”). On February 9, 2015, the Pingtan Fishing’s Shareholders transferred 100% of their equity interest in Pingtan Fishing to Fujian Heyue Marine Fishing Development Co., Ltd. (“Fujian Heyue”), pursuant to an Equity Transfer Agreement dated February 9, 2015, entered into by and among the Pingtan Fishing’s Shareholders, Pingtan Fishing and Fujian Heyue. On February 15, 2015, China Agriculture Industry Development Fund Co., Ltd. (“China Agriculture”) invested RMB 400 million (approximately $65 million) into Pingtan Fishing for an 8% equity interest in Pingtan Fishing. After the restructuring transactions described above, Pingtan Fishing and its entities became the 92% equity-owned subsidiaries of the Company and was no longer a VIE. Details of the Company’s subsidiaries which are included in these consolidated financial statements as of March 31, 2019 are as follows: Name of subsidiaries Place and Percentage of Principal activities Merchant Supreme Co., Ltd. BVI, 100% held by PME Intermediate holding company Prime Cheer Corporation Ltd. Hong Kong, 100% held by Merchant Supreme Intermediate holding company Pingtan Guansheng Ocean Fishing Co., Ltd. (“Pingtan Guansheng”) PRC, 100% held by Prime Cheer Intermediate holding company Fujian Heyue Marine Fishing Development Co., Ltd. PRC, 100% held by Pingtan Guansheng Intermediate holding company Fujian Provincial Pingtan County Fishing Group Co., Ltd. PRC, 92% held by Fujian Heyue Oceanic fishing Pingtan Dingxin Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Duoying Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Ruiying Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Yikang Global Fishery Co.,Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Shinsilkroad Fishery Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Fuzhou Howcious Investment Co., Ltd PRC, 100% held by Pingtan Fishing Dormant Fuzhou Howcious Restaurant Management Co., Ltd PRC, 100% held by Pingtan Fishing Dormant Pingtan Ocean Fishery Co., Ltd PRC, 100% held by Pingtan Fishing Dormant Fujian Heyue, through its PRC subsidiary, Pingtan Fishing, engages in ocean fishing with its owned and controlled vessels within the Indian Exclusive Economic Zone, the international waters and Arafura Sea of Indonesia. The Company meets its day-to-day working capital requirements through cash flow provided by operations, bank loans and related parties’ advances. The Indonesian government’s moratorium on fishing licenses renewals creates uncertainty over fishing operations in Indonesian waters. The Company’s forecasts and projections, taking into account operations in Indian waters and international waters and consideration of opportunities in new fishing territories, shows that the Company has adequate resources to continue in operational existence for the foreseeable future. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These interim consolidated financial statements of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures necessary for a fair presentation of these interim consolidated financial statements have been included. The results reported in the unaudited consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all information and footnotes necessary for a complete presentation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company’s unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 15, 2019. Use of estimates The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the three months ended March 31, 2019 and 2018 include allowance for doubtful accounts, reserve for inventories, the useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in the PRC and Hong Kong and none of these deposits are covered by insurance. At March 31, 2019 and December 31, 2018, cash balances in the PRC are $76,461,429 and $1,957,605, respectively, and cash balances in Hong Kong are $431,892 and $9,250, respectively, and are uninsured. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. Fair value of financial instruments The Company adopted the guidance of ASC Topic 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, inventories, advances to suppliers, prepaid expenses, prepaid expenses – related party, other receivables, other receivables – related party, accounts payable, accounts payable – related parties, bank loans, accrued liabilities and other payables, accrued liabilities and other payables – related party, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. As of March 31, 2019, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. The Company’s short-term bank borrowings that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of March 31, 2019. As of March 31, 2019, the Company does not have any Level 3 financial instruments. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 180 days after customers received the purchased goods. At March 31, 2019 and December 31, 2018, the Company has determined not to establish an allowance for doubtful accounts based on a review of its outstanding balances. Inventories Inventories, consisting of frozen fish and marine catches, are stated at the lower of cost or market utilizing the weighted average method. The cost of inventories is primarily comprised of fuel, freight, depreciation, direct labor, consumables, government levied charges and taxes. Consumables include fishing nets and metal containers used by fishing vessels. The Company’s fishing fleets in Indian waters and the international waters operate throughout the year, although the May to July period demonstrates lower catch quantities compared to the October to January period, which is the peak season. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. At March 31, 2019 and December 31, 2018, the Company recorded a reserve for inventories in the amount of $635,742 and $413,893, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales, estimated current and future market value. Fishing licenses Each of the Company’s fishing vessels requires an approval from the Ministry of Agriculture and Rural Affairs of the People’s Republic of China to carry out ocean fishing projects in international waters and foreign territories, and to the extent required, a fishing license in local fishing territory where the vessel operates. These approvals are valid for a period from 3 to 12 months, and are awarded to the Company at no cost. The Company applies for the renewal of the approval prior to expiration to avoid interruptions of fishing vessels’ operations. Each of our fishing vessels operating in Indonesian waters requires a fishing license granted by the authority in Indonesia. Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that recorded value may not be recoverable. If the Company considers any decline to be other than temporary (based on various factors, including historical financial results and the overall health of the investee), then a write-down would be recorded to estimated fair value. See Note 7 for discussion of equity method investment. Property, plant and equipment Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives of the assets are as follows: Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Capitalized interest Interest associated with the construction of fishing vessels is capitalized and included in the cost of the fishing vessels. When no debt is incurred specifically for the construction of a fishing vessel, interest is capitalized on amounts expended on the construction using weighted-average cost of the Company’s outstanding borrowings. Capitalization of interest ceases when the construction is substantially complete or the construction activity is suspended for more than a brief period. The Company capitalized interest of $21,819 and nil for the three months ended March 31, 2019 and 2018, respectively, in the fishing vessels under construction. Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recognized impairment loss of $2,229,502 and nil for the three months ended March 31, 2019 and 2018, respectively. Revenue recognition Pursuant to the guidance of ASC Topic 606, the Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement. The Company’s sales arrangements have standard payment terms that do not exceed a year. The majority of Company revenue originates from contracts with a single performance obligation to deliver products. The Company’s performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of March 31, 2019 and December 31, 2018. With respect to the sale of frozen fish and other marine catches to third party customers, most of which are sole proprietor regional wholesalers in China, the Company recognizes revenue when customers pick up purchased goods at the Company’s cold storage warehouse, after payment is received by the Company or credit sale is approved by the Company for recurring customers who have a history of financial responsibility. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. The Company does not accept returns from customers. Government grant Government grants are recognized when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, it is credited to the cost of the asset and is released to the income statement over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Income taxes Under the current laws of the Cayman Islands and British Virgin Islands, the Company and Merchant Supreme are not subject to any income or capital gains tax, and dividend payments that the Company may make are not subject to any withholding tax in the Cayman Islands or British Virgin Islands. Under the current laws of Hong Kong, Prime Cheer is not subject to any capital gains tax and dividend payments are not subject to any withholding tax in Hong Kong. The Company is not incorporated nor does it engage in any trade or business in the United States and is not subject to United States federal income taxes. The Company did not derive any significant amount of income subject to such taxes after completion of the Share Exchange and accordingly, no relevant tax provision is made in the accompanying unaudited consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the Ministry of Agriculture of the PRC. The qualification is renewed on April 1 each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it processes a valid Ocean Fishing Enterprise Qualification Certificate issued by the Ministry of Agriculture of the PRC. The new China’s Enterprise Income Tax Law (“EIT Law”) also provides that an enterprise established under the laws of foreign countries or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the new EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled “Notice Regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their Place of Effective Management.” Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company seals, minutes and files of board meetings and shareholders’ meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the new EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to May 3, 2012. In addition, Pingtan Fishing is not subject to foreign income taxes for its operations in either India and Indonesia Exclusive Economic Zones or the Western and Central Pacific Fisheries Commission areas. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be effective when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the assets will not be realized. 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 consolidated statements of operations and comprehensive income (loss) in the period that includes the enactment date. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken in the tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. As of March 31, 2019 and December 31, 2018, there were no amounts that had been accrued with respect to uncertain tax positions. Shipping and handling costs Shipping and handling costs are included in selling expense and totaled $120,993 and $89,178 for the three months ended March 31, 2019 and 2018, respectively. Employee benefits The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $604,882 and $86,504 for the three months ended March 31, 2019 and 2018, respectively. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company and subsidiaries of Merchant Supreme and Prime Cheer is the U.S. dollar and the functional currency of the Company’s subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing is the Chinese Renminbi (“RMB”). For the subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The cumulative translation adjustment and effect of exchange rate changes on cash for the three months ended March 31, 2019 and 2018 was $477,710 and $(204,936), respectively. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company’s revenue transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Asset and liability accounts at March 31, 2019 and December 31, 2018 were translated at 6.7335 RMB to $1.00 and at 6.8632 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2019 and 2018 were 6.7468 RMB and 6.3632 RMB to $1.00, respectively. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. Earnings per share ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net income per share are computed by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of ordinary shares, ordinary share equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive ordinary shares consist of the ordinary shares issuable upon the exercise of ordinary share warrants (using the treasury stock method). Ordinary share equivalents are not included in the calculation of diluted earnings per share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net income per share: Three Months Ended 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary share $ (1,887,239 ) $ 872,293 Weighted average ordinary shares outstanding - basic and diluted 79,055,053 79,055,053 Net income per ordinary share attributable to owners of the Company - basic and diluted $ (0.02 ) $ 0.01 Non-controlling interest On February 15, 2015, China Agriculture invested RMB 400 million (approximately $65 million) into Pingtan Fishing and acquired an 8% equity interest in Pingtan Fishing. As of March 31, 2019, China Agriculture owned 8% of the equity interest of Pingtan Fishing, which was not under the Company’s control. Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Comprehensive income Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the three months ended March 31, 2019 and 2018 included net income and unrealized gain from foreign currency translation adjustments. Segment information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. All of the Company’s customers are in the PRC and all income is derived from ocean fishery. Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of March 31, 2019 and December 31, 2018. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, liquidity or results of operations. Concentrations of credit, economic and political risks The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operation in the PRC is subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances aboard, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. According to the sale agreement signed on December 4, 2013, the Company does not own 20 fishing vessels but has the leased operating rights to operate these vessels which are owned by a related company, Fuzhou Honglong Ocean Fishery Co., Ltd (“Hong Long”), and the Company is entitled to 100% of net profit (loss) of the vessels. The Company has latitude in establishing price and discretion in supplier selection. There were no economic risks associated with the leased operating rights but the Company may need to bear the operation risks and credit risks as aforementioned. As the Company has historically derived the majority of its revenue from Indonesian waters, the suspension of fishing operations in this area has had and will continue to have a significant negative impact on the Company. Recent Adopted Accounting Standards Codification Improvements to Topic 842, Leases (“ASU 2018-10”) and ASU 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”). The amendments in ASU 2018-10 affect only narrow aspects of the guidance issued in the amendments in ASU 2016-02, including but not limited to lease residual value guarantee, rate implicit in the lease and lease term and purchase option. The amendments in ASU 2018-11 provide an optional transition method for adoption of the new standard, which will allow entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Effective January 1, 2019, we have adopted the new standard using the modified retrospective approach and implemented internal controls to enable the preparation of financial information upon adoption. We elected to adopt both the transition relief provided in ASU 2018-11 and the package of practical expedients which allowed us, among other things, to retain historical lease classifications and accounting for any leases that existed prior to adoption of the standard. Additionally, we elected the practical expedients allowing us not to separate lease and non-lease components and not record leases with an initial term of twelve months or less (“short-term leases”) on the balance sheet across all existing asset classes. Adoption of the new standard resulted in the recording of right use asset and lease liability of $0.77 million as of January 1, 2019, which primarily relates to our corporate office leases. The standard did not materially impact our condensed consolidated statements of operations or cash flows. Adopting the new standard did not have a material impact on the accounting for leases under which we are the lessee. Recent accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We do not expect the adoption of ASU 2018-02 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): simplifying the test for goodwill impairment”, the guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE At March 31, 2019 and December 31, 2018, accounts receivable consisted of the following: March 31, December 31, Accounts receivable $ 7,245,164 $ 6,307,492 Less: allowance for doubtful accounts - - $ 7,245,164 $ 6,307,492 The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balance. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES At March 31, 2019 and December 31, 2018, inventories consisted of the following: March 31, December 31, 2018 Frozen fish and marine catches in warehouse $ 5,979,598 $ 5,910,381 Frozen fish and marine catches in transit 4,902,808 343,719 10,882,406 6,254,100 Less: reserve for inventories (635,742 ) (413,893 ) $ 10,246,664 $ 5,840,207 An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. |
Other Receivables
Other Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 5 – OTHER RECEIVABLES At March 31, 2019 and December 31, 2018, other receivables consisted of the following: March 31, December 31, 2018 Security deposit $ 4,441,343 $ 75,000 Other 42,138 623,450 $ 4,483,481 $ 698,450 |
Cost Method Investment
Cost Method Investment | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
COST METHOD INVESTMENT | NOTE 6 – COST METHOD INVESTMENT At March 31, 2019 and December 31, 2018, cost method investment amounted to $3,118,735 and $3,059,797, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s minority interest in Fujian Pingtan Rural-Commercial Bank Joint-Stock Co., Ltd. (“Pingtan Rural-Commercial Bank’’), a private financial institution. Pingtan Fishing completed its registration as a shareholder on October 17, 2012 and paid RMB 21 million (approximately $3.1 million) to subscribe 5% of the common stock of Pingtan Rural-Commercial Bank. Pingtan Fishing held 15,113,250 shares and accounted for 4.8% investment in the total equity investment of the bank as of March 31, 2019 and December 31, 2018. In according to ASC 325, the Company uses the cost method of accounting to record its investment since Pingtan Fishing does not have the ability to exercise significant influence over the operating and financing activities of Pingtan Rural-Commercial Bank. Long-term investment for which there are no quoted market prices, a reasonable estimate of fair value could not be made without incurring excessive costs. The Company monitors its investment in the non-marketable security and will recognize, if ever existing, a loss in value which is deemed to be other than temporary. The Company determined that there was no impairment on this investment as of March 31, 2019 and December 31, 2018. |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | NOTE 7 – EQUITY METHOD INVESTMENT At March 31, 2019 and December 31, 2018, equity method investment amounted to $29,317,825 and $28,872,521, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s interest in Global Deep Ocean. On June 12, 2014, Pingtan Fishing incorporated Global Deep Ocean with other two unrelated companies in PRC. In April 2017, these two companies sold their shares to another unrelated party, Zhen Lin. As of March 31, 2019, Pingtan Fishing and Zhen Lin accounted for 20% and 80% of the total ownership, respectively. Global Deep Ocean will process, cold storage, and transport Deep Ocean fishing products. Total registered capital of Global Deep Ocean is RMB 1 billion (approximately $149.0 million) and as of March 31, 2019, Pingtan Fishing had contributed its share of registered capital of RMB 200 million (approximately $29.7 million). The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. For the three months ended March 31, 2019 and 2018, the Company’s share of Global Deep Ocean’s net loss was $110,616 and $10,951, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT At March 31, 2019 and December 31, 2018, property, plant and equipment consisted of the following: Useful life March 31, December 31, Fishing vessels 10 - 20 Years $ 231,031,932 $ 203,057,291 Vehicles 5 Years 22,613 22,186 Office and other equipment 3 – 5 Years 442,550 423,259 Construction-in-progress - 8,264,417 31,044,006 239,761,512 234,546,742 Less: accumulated depreciation (38,810,839 ) (34,975,317 ) $ 200,950,673 $ 199,571,425 For the three months ended March 31, 2019 and 2018, depreciation expense amounted to $2,740,118 and $2,433,126, respectively, of which $1,517,957 and $813,806, respectively, was included in cost of revenue, and the remainder was included in general and administrative expense, respectively. At March 31, 2019 and December 31, 2018, the Company had 39 and 19 fishing vessels with net carrying amount of approximately $116.3 million and $35.3 million, respectively, pledged as collateral for its bank loans. Included in construction-in-progress are fishing vessels under construction which includes the costs of construction and any interest charges arising from borrowings used to finance these assets during the period of construction of the assets. No provision for depreciation is made on fishing vessels under construction until such time as the relevant assets are completed and ready for their intended use. |
Related Parties Transactions
Related Parties Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 9 – RELATED PARTIES TRANSACTIONS Accounts payable - related parties At March 31, 2019 and December 31, 2018, accounts payable - related parties consisted of the following: Name of related party March 31, December 31, Hong Long (1) $ 2,881,999 $ 2,007,768 Huna Lin 106,074 - Hong Fa Shipping Limited (2) - 1,231,692 Zhiyan Lin - 4,363 Ping Lin - 1,020 $ 2,988,073 $ 3,244,843 (1) Hong Long is an affiliate company majority owned by an immediate family member of the Company’s CEO. (2) An entity controlled by the Company’s CEO. These accounts payable – related parties’ amounts are short-term in nature, non-interest bearing, unsecured and payable on demand. Due to related parties At March 31, 2019 and December 31, 2018, the due to related parties amount consisted of the following: March 31, December 31, Accrued compensation for Roy Yu, Chief Financial Officer $ 20,000 $ 20,000 Accrued compensation for Xinrong Zhuo 3,314 3,320 Advance from Xinrong Zhuo, Chief Executive Officer 10,001,332 9,432,987 Due to related party-Honglong 20,268,154 10,098,970 $ 30,292,800 $ 19,555,277 The advance from Xinrong Zhuo, the Company’s Chief Executive Officer, is for working capital purposes and short-term in nature, non-interest bearing, unsecured and payable on demand. Due to related party - Hong Long is short-term in nature, non-interest bearing, unsecured and payable on demand. Operating lease On July 31, 2012, the Company entered into a lease for office space with Ping Lin, spouse of the Company’s CEO (the “Office Lease”). Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately $12,700) and the renewed Office Lease expires on July 31, 2019. For the three months ended March 31, 2019 and 2018, rent expense related to the Office Lease amounted to $3,113 and $3,300, respectively. Future minimum rental payment required under the Office Lease is as follows: Twelve-month period Ending March 31: Amount 2020 $ 4,150 Rental and related administrative service agreement On July 1, 2013, the Company entered into a service agreement with Hai Yi Shipping Limited that provided the Company a portion of use of premises located in Hong Kong as office and provided related administrative services (the “Service Agreement”). Pursuant to the Service Agreement, the monthly payments are HK$298,500 (approximately $38,000) and the Service Agreement expired on December 31, 2017. On January 1, 2018, the Service Agreement was renewed to February 28, 2018 under the same conditions. On March 1, 2018, the Company entered into a lease agreement directly with the landlord under the same conditions expires on February 28, 2021. For the three months ended March 31, 2019 and 2018, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $114,167 and $114,326, respectively. As of March 31, 2019, future minimum lease payments on operating leases were as follows March 31, Operating Lease Maturity of lease liabilities 2019 $ 288,768 2020 385,024 2021 64,171 Total minimum lease payments $ 737,963 Imputed interest (47,213 ) Present value of minimum lease payments $ 690,750 The remaining lease terms (in years) and discount rates consisted of the following: March 31, 2019 Lease term and discount rate Remaining operating lease term 1.92 Discount rate 7.75 % Purchases from related parties During the three months ended March 31, 2019 and 2018, purchases from related parties were as follows: Three Months Ended 2019 2018 Purchase of fuel, fishing nets and other on-board consumables from Fuzhou Honglong Ocean Fishery Co., Ltd $ 682,581 $ 596,988 From Zhiyan Lin 354 - 682,935 596,988 Purchase of leasing From Ping Lin 3,113 - 3,113 - Purchase of vessel maintenance service From Huna Lin 398,982 - 398,982 - |
Bank Loans
Bank Loans | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 10 – BANK LOANS Short-term bank loans Short-term bank loans represent the amounts due to various banks that are due within one year. These loans can be renewed with the banks upon maturities. At March 31, 2019 and December 31, 2018, short-term bank loans consisted of the following: March 31, December 31, Loan from Fujian Haixia Bank, due on November 14, 2019 with annual interest rate of 4.2870% at March 31, 2019, collateralized by Hong Long's 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu $ 714,000 $ 714,000 Loan from Fujian Haixia Bank, due on November 4, 2019 with annual interest rate of 6.9600% at March 31, 2019, collateralized by Hong Long's 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu, the debt ratio of borrower should not be higher than or equal to 100% 4,455,335 4,371,139 $ 5,169,335 $ 5,085,139 Long-term bank loans Long-term bank loans represent the amounts due to various banks lasting over one year. Usually, the long-term bank loans cannot be renewed with these banks upon maturities. At March 31, 2019 and December 31, 2018, long-term bank loans consisted of the following: March 31, December 31, Loan from The Export-Import Bank of China, due on various dates until August 28, 2020 with annual interest rate of 4.750% at March 31, 2019, guaranteed by guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. $ 8,910,67 0 $ - Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at March 31, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels and collateralized by two related parties' investments in equity interest of one PRC local banks. 9,653,226 9,470,801 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at March 31, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 17 fishing vessels, the debt ratio of borrower should not be higher than 80% 7,054,281 6,920,970 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.949% at March 31, 2019 and December 31, 2018, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 74,255,588 - Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at March 31, 2019, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Honglong's fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50㎡, the debt ratio of borrower should not be higher than 80% 13,774,412 14,424,758 Total long-term bank loans $ 113,648,177 $ 30,816,529 Less: current portion (21,088,587 ) (8,487,295 ) Long-term bank loans, non-current portion $ 92,559,590 $ 22,329,234 The future maturities of long-term bank loans are as follows: Due in twelve-month periods ending March 31, Principal 2020 $ 21,088,587 2021 25,618,17 7 2022 15,296,651 2023 17,672,830 2024 16,113,463 Thereafter 17,858,469 $ 113,648,177 Less: current portion (21,088,587 ) Long-term liability $ 92,559,590 The weighted average interest rate for short-term bank loans was approximately 6.7% and 5.1% for the three months ended March 31, 2019 and 2018, respectively. The weighted average interest rate for long-term bank loans was approximately 5.2% and 5.1% for the three months ended March 31, 2019 and 2018, respectively. For the three months ended March 31, 2019 and 2018, interest expense related to bank loans amounted to $550,985 and $462,259, respectively, of which, $21,819 and nil was capitalized to construction-in-progress, respectively. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | NOTE 11 – ACCRUED LIABILITIES AND OTHER PAYABLES At March 31, 2019 and December 31, 2018, accrued liabilities and other payables consisted of the following: March 31, December 31, Accrued salaries and related benefits $ 6,824,453 $ 5,734,177 Accrued interest due 113,146 62,243 Other 286,699 262,128 $ 7,224,298 $ 6,058,548 |
Certain Risks and Concentration
Certain Risks and Concentrations | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CERTAIN RISKS AND CONCENTRATIONS | NOTE 12 – CERTAIN RISKS AND CONCENTRATIONS Credit risk At March 31, 2019 and December 31, 2018, the Company’s cash included bank deposits in accounts maintained within the PRC and Hong Kong where there are currently no rules or regulations in place for obligatory insurance to cover bank deposits in event of bank failure. However, the Company does not experience any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Major customers The following table sets forth information as to each customer that accounted for 10% or more of the Company’s sales for the three months ended March 31, 2019 and 2018. Three Months Ended Customer 2019 2018 A 22 % 24 % B 16 % * C 16 % * D 12 % 13 % E 10 % 11 % * less than 10% Three customers accounted for 10% or more of the Company’s total outstanding accounts receivable at March 31, 2019 and December 31, 2018. Major suppliers The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended March 31, 2019 and 2018. Three Months Ended Supplier 2019 2018 A 67 % * B 19 % 33 % C * 21 % D * 18 % * less than 10% Two suppliers, whose outstanding accounts payable accounted for 10% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2019, accounted for 75.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2019. One supplier, whose outstanding accounts payable accounted for 10% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2018, accounted for 76.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 – COMMITMENTS AND CONTINGENCIES Severance payments The Company has employment agreements with certain employees that provided severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. The Company has estimated its possible severance payments of approximately $10,000 as of March 31, 2019 and December 31, 2018, which have not been reflected in its consolidated financial statements. Operating lease See note 9 for related party operating lease commitment. Rental payment and related administrative service charge See note 9 for related party rental and related administrative service agreement commitment. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS On April 11, 2019, the Company received a loan of $17.82 million from The Export-Import Bank of China. The loan is due on September 30, 2020 with annual interest rate of 4.75%. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These interim consolidated financial statements of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures necessary for a fair presentation of these interim consolidated financial statements have been included. The results reported in the unaudited consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all information and footnotes necessary for a complete presentation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company’s unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 15, 2019. |
Use of estimates | Use of estimates The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the three months ended March 31, 2019 and 2018 include allowance for doubtful accounts, reserve for inventories, the useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. |
Cash | Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in the PRC and Hong Kong and none of these deposits are covered by insurance. At March 31, 2019 and December 31, 2018, cash balances in the PRC are $76,461,429 and $1,957,605, respectively, and cash balances in Hong Kong are $431,892 and $9,250, respectively, and are uninsured. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. |
Fair value of financial instruments | Fair value of financial instruments The Company adopted the guidance of ASC Topic 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, inventories, advances to suppliers, prepaid expenses, prepaid expenses – related party, other receivables, other receivables – related party, accounts payable, accounts payable – related parties, bank loans, accrued liabilities and other payables, accrued liabilities and other payables – related party, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. As of March 31, 2019, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. The Company’s short-term bank borrowings that are considered Level 2 financial instruments measured at fair value on a non-recurring basis as of March 31, 2019. As of March 31, 2019, the Company does not have any Level 3 financial instruments. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. |
Accounts receivable | Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 180 days after customers received the purchased goods. At March 31, 2019 and December 31, 2018, the Company has determined not to establish an allowance for doubtful accounts based on a review of its outstanding balances. |
Inventories | Inventories Inventories, consisting of frozen fish and marine catches, are stated at the lower of cost or market utilizing the weighted average method. The cost of inventories is primarily comprised of fuel, freight, depreciation, direct labor, consumables, government levied charges and taxes. Consumables include fishing nets and metal containers used by fishing vessels. The Company’s fishing fleets in Indian waters and the international waters operate throughout the year, although the May to July period demonstrates lower catch quantities compared to the October to January period, which is the peak season. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. At March 31, 2019 and December 31, 2018, the Company recorded a reserve for inventories in the amount of $635,742 and $413,893, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales, estimated current and future market value. |
Fishing licenses | Fishing licenses Each of the Company’s fishing vessels requires an approval from the Ministry of Agriculture and Rural Affairs of the People’s Republic of China to carry out ocean fishing projects in international waters and foreign territories, and to the extent required, a fishing license in local fishing territory where the vessel operates. These approvals are valid for a period from 3 to 12 months, and are awarded to the Company at no cost. The Company applies for the renewal of the approval prior to expiration to avoid interruptions of fishing vessels’ operations. Each of our fishing vessels operating in Indonesian waters requires a fishing license granted by the authority in Indonesia. |
Investment in unconsolidated company - Global Deep Ocean | Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that recorded value may not be recoverable. If the Company considers any decline to be other than temporary (based on various factors, including historical financial results and the overall health of the investee), then a write-down would be recorded to estimated fair value. See Note 7 for discussion of equity method investment. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives of the assets are as follows: Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. |
Capitalized interest | Capitalized interest Interest associated with the construction of fishing vessels is capitalized and included in the cost of the fishing vessels. When no debt is incurred specifically for the construction of a fishing vessel, interest is capitalized on amounts expended on the construction using weighted-average cost of the Company’s outstanding borrowings. Capitalization of interest ceases when the construction is substantially complete or the construction activity is suspended for more than a brief period. The Company capitalized interest of $21,819 and nil for the three months ended March 31, 2019 and 2018, respectively, in the fishing vessels under construction. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The company recognized impairment loss of $2,229,502 and nil for the three months ended March 31, 2019 and 2018, respectively. |
Revenue recognition | Revenue recognition Pursuant to the guidance of ASC Topic 606, the Company recognizes revenue when a sales arrangement with a customer exists (e.g., contract, purchase orders, others), transaction price is fixed or determinable and the Company has satisfied its performance obligation per the sales arrangement. The Company's sales arrangements have standard payment terms that do not exceed a year. The majority of Company revenue originates from contracts with a single performance obligation to deliver products. The Company's performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms. The Company records a contract asset when it has a right to payment from a customer that is conditioned on events other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of March 31, 2019 and December 31, 2018. With respect to the sale of frozen fish and other marine catches to third party customers, most of which are sole proprietor regional wholesalers in China, the Company recognizes revenue when customers pick up purchased goods at the Company's cold storage warehouse, after payment is received by the Company or credit sale is approved by the Company for recurring customers who have a history of financial responsibility. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. The Company does not accept returns from customers. |
Government grant | Government grant Government grants are recognized when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, it is credited to the cost of the asset and is released to the income statement over the expected useful life in a consistent manner with the depreciation method for the relevant asset. |
Income taxes | Income taxes Under the current laws of the Cayman Islands and British Virgin Islands, the Company and Merchant Supreme are not subject to any income or capital gains tax, and dividend payments that the Company may make are not subject to any withholding tax in the Cayman Islands or British Virgin Islands. Under the current laws of Hong Kong, Prime Cheer is not subject to any capital gains tax and dividend payments are not subject to any withholding tax in Hong Kong. The Company is not incorporated nor does it engage in any trade or business in the United States and is not subject to United States federal income taxes. The Company did not derive any significant amount of income subject to such taxes after completion of the Share Exchange and accordingly, no relevant tax provision is made in the accompanying unaudited consolidated statements of operations and comprehensive income (loss). The Company's subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the Ministry of Agriculture of the PRC. The qualification is renewed on April 1 each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it processes a valid Ocean Fishing Enterprise Qualification Certificate issued by the Ministry of Agriculture of the PRC. The new China's Enterprise Income Tax Law ("EIT Law") also provides that an enterprise established under the laws of foreign countries or regions but whose "de facto management body" is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the new EIT Law merely defines the location of the "de facto management body" as "the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located." On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled "Notice Regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their Place of Effective Management." Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company seals, minutes and files of board meetings and shareholders' meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the new EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to May 3, 2012. In addition, Pingtan Fishing is not subject to foreign income taxes for its operations in either India and Indonesia Exclusive Economic Zones or the Western and Central Pacific Fisheries Commission areas. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be effective when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the assets will not be realized. 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 consolidated statements of operations and comprehensive income (loss) in the period that includes the enactment date. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken in the tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. As of March 31, 2019, and December 31, 2018, there were no amounts that had been accrued with respect to uncertain tax positions. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are included in selling expense and totaled $120,993 and $89,178 for the three months ended March 31, 2019 and 2018, respectively. |
Employee benefits | Employee benefits The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $604,882 and $86,504 for the three months ended March 31, 2019 and 2018, respectively. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company and subsidiaries of Merchant Supreme and Prime Cheer is the U.S. dollar and the functional currency of the Company's subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing is the Chinese Renminbi ("RMB"). For the subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The cumulative translation adjustment and effect of exchange rate changes on cash for the three months ended March 31, 2019 and 2018 was $477,710 and $(204,936), respectively. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company's revenue transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Asset and liability accounts at March 31, 2019 and December 31, 2018 were translated at 6.7335 RMB to $1.00 and at 6.8632 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2019 and 2018 were 6.7468 RMB and 6.3632 RMB to $1.00, respectively. Cash flows from the Company's operations are calculated based upon the local currencies using the average translation rate. |
Earnings per share | Earnings per share ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net income per share are computed by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of ordinary shares, ordinary share equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive ordinary shares consist of the ordinary shares issuable upon the exercise of ordinary share warrants (using the treasury stock method). Ordinary share equivalents are not included in the calculation of diluted earnings per share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net income per share: Three Months Ended 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary share $ (1,887,239 ) $ 872,293 Weighted average ordinary shares outstanding - basic and diluted 79,055,053 79,055,053 Net income per ordinary share attributable to owners of the Company - basic and diluted $ (0.02 ) $ 0.01 |
Non-controlling interest | Non-controlling interest On February 15, 2015, China Agriculture invested RMB 400 million (approximately $65 million) into Pingtan Fishing and acquired an 8% equity interest in Pingtan Fishing. As of March 31, 2019, China Agriculture owned 8% of the equity interest of Pingtan Fishing, which was not under the Company’s control. |
Related parties | Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. |
Comprehensive income | Comprehensive income Comprehensive income is comprised of net income and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the three months ended March 31, 2019 and 2018 included net income and unrealized gain from foreign currency translation adjustments. |
Segment information | Segment information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. All of the Company’s customers are in the PRC and all income is derived from ocean fishery. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of March 31, 2019 and December 31, 2018. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Concentrations of credit, economic and political risks | Concentrations of credit, economic and political risks The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operation in the PRC is subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances aboard, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. According to the sale agreement signed on December 4, 2013, the Company does not own 20 fishing vessels but has the leased operating rights to operate these vessels which are owned by a related company, Fuzhou Honglong Ocean Fishery Co., Ltd (“Hong Long”), and the Company is entitled to 100% of net profit (loss) of the vessels. The Company has latitude in establishing price and discretion in supplier selection. There were no economic risks associated with the leased operating rights but the Company may need to bear the operation risks and credit risks as aforementioned. As the Company has historically derived the majority of its revenue from Indonesian waters, the suspension of fishing operations in this area has had and will continue to have a significant negative impact on the Company. |
Recent Adopted Accounting Standards | Recent Adopted Accounting Standards Codification Improvements to Topic 842, Leases (“ASU 2018-10”) and ASU 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”). The amendments in ASU 2018-10 affect only narrow aspects of the guidance issued in the amendments in ASU 2016-02, including but not limited to lease residual value guarantee, rate implicit in the lease and lease term and purchase option. The amendments in ASU 2018-11 provide an optional transition method for adoption of the new standard, which will allow entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Effective January 1, 2019, we have adopted the new standard using the modified retrospective approach and implemented internal controls to enable the preparation of financial information upon adoption. We elected to adopt both the transition relief provided in ASU 2018-11 and the package of practical expedients which allowed us, among other things, to retain historical lease classifications and accounting for any leases that existed prior to adoption of the standard. Additionally, we elected the practical expedients allowing us not to separate lease and non-lease components and not record leases with an initial term of twelve months or less (“short-term leases”) on the balance sheet across all existing asset classes. Adoption of the new standard resulted in the recording of right use asset and lease liability of $0.77 million as of January 1, 2019, which primarily relates to our corporate office leases. The standard did not materially impact our condensed consolidated statements of operations or cash flows. Adopting the new standard did not have a material impact on the accounting for leases under which we are the lessee. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of ASU 2018-02 is permitted, including adoption in any interim period for the public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We do not expect the adoption of ASU 2018-02 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): simplifying the test for goodwill impairment”, the guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not the difference between the fair value and carrying amount of good will which was the Step 2 test before. The ASU should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
Description of Business and O_2
Description of Business and Organization (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiary and variable interest entity | Name of subsidiaries Place and Percentage of Principal activities Merchant Supreme Co., Ltd. BVI, 100% held by PME Intermediate holding company Prime Cheer Corporation Ltd. Hong Kong, 100% held by Merchant Supreme Intermediate holding company Pingtan Guansheng Ocean Fishing Co., Ltd. (“Pingtan Guansheng”) PRC, 100% held by Prime Cheer Intermediate holding company Fujian Heyue Marine Fishing Development Co., Ltd. PRC, 100% held by Pingtan Guansheng Intermediate holding company Fujian Provincial Pingtan County Fishing Group Co., Ltd. PRC, 92% held by Fujian Heyue Oceanic fishing Pingtan Dingxin Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Duoying Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Ruiying Fishing Information Consulting Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Yikang Global Fishery Co.,Ltd. PRC, 100% held by Pingtan Fishing Dormant Pingtan Shinsilkroad Fishery Co., Ltd. PRC, 100% held by Pingtan Fishing Dormant Fuzhou Howcious Investment Co., Ltd PRC, 100% held by Pingtan Fishing Dormant Fuzhou Howcious Restaurant Management Co., Ltd PRC, 100% held by Pingtan Fishing Dormant Pingtan Ocean Fishery Co., Ltd PRC, 100% held by Pingtan Fishing Dormant |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years |
Schedule of reconciliation of basic and diluted net income per share | Three Months Ended 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary share $ (1,887,240 ) $ 872,293 Weighted average ordinary shares outstanding - basic and diluted 79,055,053 79,055,053 Net income per ordinary share attributable to owners of the Company - basic and diluted $ (0.02 ) $ 0.01 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | March 31, December 31, Accounts receivable $ 7,245,164 $ 6,307,492 Less: allowance for doubtful accounts - - $ 7,245,164 $ 6,307,492 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, 2018 Frozen fish and marine catches in warehouse $ 5,979,598 $ 5,910,381 Frozen fish and marine catches in transit 4,902,808 343,719 10,882,406 6,254,100 Less: reserve for inventories (635,742 ) (413,893 ) $ 10,246,664 $ 5,840,207 |
Other Receivables (Tables)
Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Receivables [Abstract] | |
Schedule of other receivables | March 31, December 31, 2018 Security deposit $ 4,441,343 $ 75,000 Other 42,138 623,450 $ 4,483,481 $ 698,450 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Useful life March 31, December 31, Fishing vessels 10 - 20 Years $ 231,031,932 $ 203,057,291 Vehicles 5 Years 22,613 22,186 Office and other equipment 3 – 5 Years 442,550 423,259 Construction-in-progress - 8,264,417 31,044,006 239,761,512 234,546,742 Less: accumulated depreciation (38,810,839 ) (34,975,317 ) $ 200,950,673 $ 199,571,425 |
Related Parties Transactions (T
Related Parties Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transaction [Line Items] | |
Schedule of accounts payable - related parties | Name of related party March 31, December 31, Hong Long (1) $ 2,881,999 $ 2,007,768 Huna Lin 106,074 - Hong Fa Shipping Limited (2) - 1,231,692 Zhiyan Lin - 4,363 Ping Lin - 1,020 $ 2,988,073 $ 3,244,843 (1) Hong Long is an affiliate company majority owned by an immediate family member of the Company’s CEO. (2) An entity controlled by the Company’s CEO. |
Schedule of due to related parties | March 31, December 31, Accrued compensation for Roy Yu, Chief Financial Officer $ 20,000 $ 20,000 Accrued compensation for Xinrong Zhuo 3,314 3,320 Advance from Xinrong Zhuo, Chief Executive Officer 10,001,332 9,432,987 Due to related party-Honglong 20,268,154 10,098,970 $ 30,292,800 $ 19,555,277 |
Schedule of remaining lease terms and discount rates | March 31, 2019 Lease term and discount rate Remaining operating lease term 1.92 Discount rate 7.75 % |
Schedule of purchases from related parties | Three Months Ended 2019 2018 Purchase of fuel, fishing nets and other on-board consumables from Fuzhou Honglong Ocean Fishery Co., Ltd $ 682,581 $ 596,988 From Zhiyan Lin 354 - 682,935 596,988 Purchase of leasing From Ping Lin 3,113 - 3,113 - Purchase of vessel maintenance service From Huna Lin 398,982 - 398,982 - |
Operating Lease [Member] | |
Related Party Transaction [Line Items] | |
Schedule of future minimum rental payment required | March 31, Operating Lease Maturity of lease liabilities 2019 $ 288,768 2020 385,024 2021 64,171 Total minimum lease payments $ 737,963 Imputed interest (47,213 ) Present value of minimum lease payments $ 690,750 |
Office Lease [Member] | |
Related Party Transaction [Line Items] | |
Schedule of future minimum rental payment required | Twelve-month period Ending March 31: Amount 2020 $ 4,150 |
Bank Loans (Tables)
Bank Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | March 31, December 31, Loan from Fujian Haixia Bank, due on November 14, 2019 with annual interest rate of 4.2870% at March 31, 2019, collateralized by Hong Long’s 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu $ 714,000 $ 714,000 Loan from Fujian Haixia Bank, due on November 4, 2019 with annual interest rate of 6.9600% at March 31, 2019, collateralized by Hong Long’s 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu, the debt ratio of borrower should not be higher than or equal to 100% 4,455,335 4,371,139 $ 5,169,335 $ 5,085,139 |
Schedule of long-term bank loans | March 31, December 31, Loan from The Export-Import Bank of China, due on various dates until August 28, 2020 with annual interest rate of 4.750% at March 31, 2019, guaranteed by guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. $ 8,910,67 0 $ - Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at March 31, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels and collateralized by two related parties’ investments in equity interest of one PRC local banks. 9,653,226 9,470,801 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at March 31, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 17 fishing vessels, the debt ratio of borrower should not be higher than 80% 7,054,281 6,920,970 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.949% at March 31, 2019 and December 31, 2018, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 74,255,588 - Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at March 31, 2019, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Honglong’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50㎡, the debt ratio of borrower should not be higher than 80% 13,774,412 14,424,758 Total long-term bank loans $ 113,648,177 $ 30,816,529 Less: current portion (21,088,587 ) (8,487,295 ) Long-term bank loans, non-current portion $ 92,559,590 $ 22,329,234 |
Schedule of future maturities of long-term bank loans | Due in twelve-month periods ending March 31, Principal 2020 $ 21,088,587 2021 25,618,17 7 2022 15,296,651 2023 17,672,830 2024 16,113,463 Thereafter 17,858,469 $ 113,648,177 Less: current portion (21,088,587 ) Long-term liability $ 92,559,590 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other payables | March 31, December 31, Accrued salaries and related benefits $ 6,824,453 $ 5,734,177 Accrued interest due 113,146 62,243 Other 286,699 262,128 $ 7,224,298 $ 6,058,548 |
Certain Risks and Concentrati_2
Certain Risks and Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Major Customers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration of risks | Three Months Ended Customer 2019 2018 A 22 % 24 % B 16 % * C 16 % * D 12 % 13 % E 10 % 11 % * less than 10% |
Major Suppliers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration of risks | Three Months Ended Supplier 2019 2018 A 67 % * B 19 % 33 % C * 21 % D * 18 % * less than 10% |
Description of Business and O_3
Description of Business and Organization (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Merchant Supreme Co., Ltd [Member] | |
Place and date of incorporation (place) | BVI |
Place and date of incorporation (date) | Jun. 25, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Intermediate holding company |
Prime Cheer Corporation Ltd [Member] | |
Place and date of incorporation (place) | Hong Kong |
Place and date of incorporation (date) | May 3, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Intermediate holding company |
Pingtan Guansheng Ocean Fishing Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Oct. 12, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Intermediate holding company |
Fujian Heyue Marine Fishing Development Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Jan. 27, 2015 |
Percentage of ownership | 100.00% |
Principal activities | Intermediate holding company |
Fujian Provincial Pingtan County Fishing Group Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Feb. 27, 1998 |
Percentage of ownership | 92.00% |
Principal activities | Oceanic fishing |
Pingtan Dingxin Fishing Information Consulting Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Oct. 23, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Pingtan Duoying Fishing Information Consulting Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Oct. 23, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Pingtan Ruiying Fishing Information Consulting Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Oct. 23, 2012 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Pingtan Yikang Global Fishery Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Sep. 14, 2017 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Pingtan Shinsilkroad Fishery Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Sep. 14, 2017 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Fuzhou Howcious Investment Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Sep. 5, 2017 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Fuzhou Howcious Restaurant Management Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Aug. 16, 2017 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Pingtan Ocean Fishery Co., Ltd [Member] | |
Place and date of incorporation (place) | PRC |
Place and date of incorporation (date) | Jul. 21, 2017 |
Percentage of ownership | 100.00% |
Principal activities | Dormant |
Description of Business and O_4
Description of Business and Organization (Details Textual) | Feb. 15, 2015USD ($) | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Feb. 15, 2015CNY (¥) | Feb. 09, 2015 |
Description of Business and Organization (Textual) | |||||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | |||
Pingtan Fishing [Member] | |||||
Description of Business and Organization (Textual) | |||||
Percentage of ownership | 100.00% | ||||
Percentage of equity-owned subsidiaries | 92.00% | ||||
China Agriculture Industry Development Fund Co., Ltd. [Member] | |||||
Description of Business and Organization (Textual) | |||||
Agriculture investment | $ | $ 65,000,000 | ||||
Percentage of ownership | 8.00% | 8.00% | |||
China Agriculture Industry Development Fund Co., Ltd. [Member] | CNY [Member] | |||||
Description of Business and Organization (Textual) | |||||
Agriculture investment | ¥ | ¥ 400,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, Estimated useful life | 5 years |
Minimum [Member] | Fishing vessels [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, Estimated useful life | 10 years |
Minimum [Member] | Office and other equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, Estimated useful life | 3 years |
Maximum [Member] | Fishing vessels [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, Estimated useful life | 20 years |
Maximum [Member] | Office and other equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, Estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary share | $ (1,887,239) | $ 872,293 |
Weighted average ordinary shares outstanding - basic and diluted | 79,055,053 | 79,055,053 |
Net income per ordinary share attributable to owners of the Company - basic and diluted | $ (0.02) | $ 0.01 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) | Dec. 04, 2013Fishingvessels | May 03, 2012 | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Feb. 15, 2015USD ($) | Feb. 15, 2015CNY (¥) |
Summary of Significant Accounting Policies (Textual) | |||||||
Cash balances | $ 76,893,321 | $ 3,818,837 | |||||
Restricted cash | |||||||
Credit period | Credit periods to customers are within 180 days after customers received the purchased goods. | ||||||
Allowance for doubtful accounts | |||||||
Effective income tax rate on estimated profit | 25.00% | 25.00% | |||||
Shipping and handling costs | $ 120,993 | 89,178 | |||||
Employee benefit costs | 604,936 | 86,504 | |||||
Advertising expenses | |||||||
Cumulative translation adjustment and effect of exchange rate | 477,710 | (204,936) | |||||
Entitlement of net profit loss towards fishing vessels by entity, percentage | 100.00% | ||||||
Reserve for inventories | $ 635,742 | 413,893 | |||||
Description of foreign currency translation | Asset and liability accounts at March 31, 2019 and December 31, 2018 were translated at 6.7335 RMB to $1.00 and at 6.8632 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2019 and 2018 were 6.7468 RMB and 6.3632 RMB to $1.00, respectively. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. | ||||||
Impairment loss | $ 2,229,502 | ||||||
Research and development costs | |||||||
Number of fishing vessels | Fishingvessels | 4 | ||||||
Pingtan Fishing [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Agriculture investment | $ 65,000,000 | ||||||
Percentage of ownership | 8.00% | 8.00% | |||||
Pingtan Fishing [Member] | RMB [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Agriculture investment | ¥ | ¥ 400,000,000 | ||||||
China Agriculture [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Percentage of ownership | 8.00% | ||||||
Fishing vessels under construction [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Interest costs capitalized | $ 21,819 | ||||||
China Development Bank [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Restricted cash | |||||||
Hong Kong [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Cash balances | 431,892 | 9,250 | |||||
PRC [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Cash balances | $ 76,461,429 | $ 1,957,605 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 7,245,164 | $ 6,307,492 |
Less: allowance for doubtful accounts | ||
Accounts receivable, net | $ 7,245,164 | $ 6,307,492 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Frozen fish and marine catches in warehouse | $ 5,979,598 | $ 5,910,381 |
Frozen fish and marine catches in transit | 4,902,808 | 343,719 |
Inventories, gross | 10,882,406 | 6,254,100 |
Less: reserve for inventories | (635,742) | (413,893) |
Total inventories | $ 10,246,664 | $ 5,840,207 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Other Receivables [Abstract] | ||
Security deposit | $ 4,441,343 | $ 75,000 |
Other | 42,138 | 623,450 |
Other receivables | $ 4,483,481 | $ 698,450 |
Cost Method Investment (Details
Cost Method Investment (Details) | Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Oct. 17, 2012USD ($) | Oct. 17, 2012CNY (¥) |
Cost Method Investment (Textual) | ||||
Cost method investment | $ 3,118,735 | $ 3,059,797 | ||
Pingtan Fishing [Member] | ||||
Cost Method Investment (Textual) | ||||
Cost method investment | $ 3,100,000 | |||
Percentage of common stock subscribed | 5.00% | 5.00% | ||
Pingtan Fishing [Member] | RMB [Member] | ||||
Cost Method Investment (Textual) | ||||
Cost method investment | ¥ | ¥ 21,000,000 | |||
Pingtan Fishing [Member] | ||||
Cost Method Investment (Textual) | ||||
Number of shares held as investment | shares | 15,113,250 | 15,113,250 | ||
Cost method investment, ownership percentage | 4.80% | 4.80% |
Equity Method Investment (Detai
Equity Method Investment (Details Textual) | 3 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Feb. 15, 2015 | |
Equity Method Investment (Textual) | |||||
Equity method investment | $ 29,317,825 | $ 28,872,521 | |||
Joint venture registered capital | 149,000,000 | ||||
Loss on equity method investment | $ (110,616) | $ (10,951) | |||
RMB [Member] | |||||
Equity Method Investment (Textual) | |||||
Joint venture registered capital | ¥ | ¥ 1,000,000,000 | ||||
Zhen Lin [Member] | |||||
Equity Method Investment (Textual) | |||||
Percentage of ownership | 80.00% | 80.00% | |||
Pingtan Fishing [Member] | |||||
Equity Method Investment (Textual) | |||||
Percentage of ownership | 8.00% | ||||
Pingtan Fishing [Member] | RMB [Member] | |||||
Equity Method Investment (Textual) | |||||
Joint venture registered capital | ¥ | ¥ 200,000,000 | ||||
Pingtan Fishing [Member] | |||||
Equity Method Investment (Textual) | |||||
Percentage of ownership | 20.00% | 20.00% | |||
Joint venture registered capital | $ 29,700,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 239,761,512 | $ 234,546,742 |
Less: accumulated depreciation | (38,810,839) | (34,975,317) |
Property, plant and equipment, Net | 200,950,673 | 199,571,425 |
Fishing vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 231,031,932 | 203,057,291 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 5 years | |
Property, plant and equipment, Gross | $ 22,613 | 22,186 |
Office and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 442,550 | 423,259 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | ||
Property, plant and equipment, Gross | $ 8,264,417 | $ 31,044,006 |
Minimum [Member] | Fishing vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 10 years | |
Minimum [Member] | Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 3 years | |
Maximum [Member] | Fishing vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 20 years | |
Maximum [Member] | Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 5 years |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) | 3 Months Ended | |||
Mar. 31, 2019USD ($)Fishingvessels | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)Fishingvessels | Dec. 04, 2013Fishingvessels | |
Property, Plant and Equipment (Textual) | ||||
Depreciation expense | $ 2,740,118 | $ 2,433,126 | ||
Number of fishing vessels | Fishingvessels | 4 | |||
Cost of revenue and inventories [Member] | ||||
Property, Plant and Equipment (Textual) | ||||
Depreciation expense | 1,517,957 | $ 813,806 | ||
Collateral bank loan [Member] | ||||
Property, Plant and Equipment (Textual) | ||||
Net carrying amount of fishing vessels | $ 116,300,000 | $ 35,300,000 | ||
Number of fishing vessels | Fishingvessels | 39 | 19 |
Related Parties Transactions (D
Related Parties Transactions (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | $ 2,988,073 | $ 3,244,843 | |
Hong Fa Shipping Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | [1] | 1,231,692 | |
Hong Long [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | [2] | 2,881,999 | 2,007,768 |
Zhiyan Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | 4,363 | ||
Ping Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | 1,020 | ||
Huna Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | $ 106,074 | ||
[1] | An entity controlled by the Company's CEO. | ||
[2] | Hong Long is an affiliate company majority owned by an immediate family member of the Company's CEO. |
Related Parties Transactions _2
Related Parties Transactions (Details 1) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 30,292,800 | $ 19,555,277 |
Roy Yu, Chief Financial Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued compensation | 20,000 | 20,000 |
Xinrong Zhuo [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued compensation | 3,314 | 3,320 |
Xinrong Zhuo, Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Advance | 10,001,332 | |
Due to related parties | 9,432,987 | |
Honglong [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 20,268,154 | $ 10,098,970 |
Related Parties Transactions _3
Related Parties Transactions (Details 2) | Mar. 31, 2019USD ($) |
Related Party Transactions [Abstract] | |
2020 | $ 4,150 |
Related Parties Transactions _4
Related Parties Transactions (Details 3) | Mar. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 4,150 |
Operating Lease [Member] | |
Operating Leased Assets [Line Items] | |
2019 | 288,768 |
2020 | 385,024 |
2021 | 64,171 |
Total minimum lease payments | 737,963 |
Imputed interest | (47,213) |
Present value of minimum lease payments | $ 690,750 |
Related Parties Transactions _5
Related Parties Transactions (Details 4) | Mar. 31, 2019 |
Related Party Transactions [Abstract] | |
Remaining operating lease term | 1 year 11 months |
Discount rate | 7.75% |
Related Parties Transactions _6
Related Parties Transactions (Details 5) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Purchase of fuel, fishing nets and other on-board consumables | $ 682,935 | $ 596,988 |
Purchase of leasing | 3,113 | |
Purchase of vessel maintenance service | 398,982 | |
Fuzhou Honglong Ocean Fishery Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase of fuel, fishing nets and other on-board consumables | 682,581 | 596,988 |
Zhiyan Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase of fuel, fishing nets and other on-board consumables | 354 | |
Ping Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase of leasing | 3,113 | |
Huna Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase of vessel maintenance service | $ 398,982 |
Related Parties Transactions _7
Related Parties Transactions (Details Textual) | Mar. 01, 2018 | Jul. 01, 2013USD ($) | Jul. 01, 2013HKD ($) | Jul. 31, 2012USD ($) | Jul. 31, 2012CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Related Parties Transactions (Textual) | |||||||
Operating office lease, rent expense | $ 3,113 | $ 3,300 | |||||
Lease expiration date | Feb. 28, 2021 | ||||||
Rental and related administrative service charge | $ 114,167 | $ 114,326 | |||||
Hai Yi Shipping Limited [Member] | |||||||
Related Parties Transactions (Textual) | |||||||
Lease expiration date | Dec. 31, 2017 | Dec. 31, 2017 | |||||
Service agreement, monthly payments | $ 38,000 | ||||||
Hai Yi Shipping Limited [Member] | HKD [Member] | |||||||
Related Parties Transactions (Textual) | |||||||
Service agreement, monthly payments | $ 298,500 | ||||||
Ping Lin [Member] | |||||||
Related Parties Transactions (Textual) | |||||||
Operating office lease, rent expense | $ 12,700 | ||||||
Lease expiration date | Jul. 31, 2019 | Jul. 31, 2019 | |||||
Ping Lin [Member] | RMB [Member] | |||||||
Related Parties Transactions (Textual) | |||||||
Operating office lease, rent expense | ¥ | ¥ 84,000 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 5,169,335 | $ 5,085,139 |
Fujian Haixia Bank [Member] | Due on November 14, 2019 [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 714,000 | 714,000 |
Fujian Haixia Bank [Member] | Due on November 4, 2019 [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 4,455,335 | $ 4,371,139 |
Bank Loans (Details 1)
Bank Loans (Details 1) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 113,648,177 | $ 30,816,529 |
Less: current portion | (21,088,587) | (8,487,295) |
Long-term bank loans, non-current portion | 92,559,590 | 22,329,234 |
Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 8,910,670 | |
Export-Import Bank of China One [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 9,653,226 | 9,470,801 |
China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 7,054,281 | 6,920,970 |
Export-Import Bank of China Two [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 74,255,588 | |
China Development Bank One [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 13,774,412 | $ 14,424,758 |
Bank Loans (Details 2)
Bank Loans (Details 2) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Due in twelve-month periods ending December 31, | ||
2020 | $ 21,088,587 | |
2021 | 25,618,177 | |
2022 | 15,296,651 | |
2023 | 17,672,830 | |
2024 | 16,113,463 | |
Thereafter | 17,858,469 | |
Total long-term bank loans | 113,648,177 | $ 30,816,529 |
Less: current portion | (21,088,587) | (8,487,295) |
Long-term liability | $ 92,559,590 | $ 22,329,234 |
Bank Loans (Details Textual)
Bank Loans (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Bank Loans (Textual) | |||
Weighted average interest rate for short-term bank loans | 6.70% | 5.10% | |
Weighted average interest rate for long-term bank loans | 5.20% | 5.10% | |
Interest expense | $ 550,985 | $ 462,259 | |
Capitalized to construction-in-progress | $ 21,819 | ||
Fujian Haixia Bank [Member] | Due on November 14, 2019 [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 4.287% | ||
Debt instrument, maturity date | Nov. 14, 2019 | ||
Short-term debt, Description | Collateralized by Hong Long’s 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu. | ||
Fujian Haixia Bank [Member] | Due on November 4, 2019 [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 6.96% | ||
Debt instrument, maturity date | Nov. 4, 2019 | ||
Short-term debt, Description | Collateralized by Hong Long’s 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu. | ||
Export-Import Bank of China One [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 4.90% | 4.90% | |
Debt instrument, maturity date | Jan. 30, 2023 | Jan. 30, 2023 | |
Long-term debt, Description | Guaranteed by Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels and collateralized by two related parties' investments in equity interest of one PRC local banks. | Guaranteed by Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels and collateralized by two related parties' investments in equity interest of one PRC local banks. | |
China Development Bank [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 5.145% | 5.145% | |
Debt instrument, maturity date | Nov. 27, 2023 | Nov. 27, 2023 | |
Long-term debt, Description | Guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 17 fishing vessels, the debt ratio of borrower should not be higher than 80% | Guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 17 fishing vessels, the debt ratio of borrower should not be higher than 80% | |
Export-Import Bank of China Three [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 4.949% | 4.949% | |
Debt instrument, maturity date | Mar. 28, 2025 | Mar. 28, 2025 | |
Long-term debt, Description | Guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. | Guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. | |
Export-Import Bank of China [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 4.75% | ||
Debt instrument, maturity date | Aug. 28, 2020 | ||
Long-term debt, Description | Guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. | ||
China Development Bank One [Member] | |||
Bank Loans (Textual) | |||
Annual interest rate | 5.39% | ||
Debt instrument, maturity date | Jul. 30, 2026 | ||
Long-term debt, Description | Guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Honglong’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50㎡, the debt ratio of borrower should not be higher than 80% |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued salaries and related benefits | $ 6,824,453 | $ 5,734,177 |
Accrued interest due | 113,146 | 62,243 |
Other | 286,699 | 262,128 |
Accrued liabilities and other payables | $ 7,224,298 | $ 6,058,548 |
Certain Risks and Concentrati_3
Certain Risks and Concentrations (Details) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Major Customers [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 22.00% | 24.00% | ||
Major Customers [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 16.00% | [1] | ||
Major Customers [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 16.00% | [1] | ||
Major Customers [Member] | Customer D [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 12.00% | 13.00% | ||
Major Customers [Member] | Customer E [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 10.00% | 11.00% | ||
Major Suppliers [Member] | Supplier A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 67.00% | [1] | ||
Major Suppliers [Member] | Supplier B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 19.00% | [1] | 33.00% | |
Major Suppliers [Member] | Supplier C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 21.00% | ||
Major Suppliers [Member] | Supplier D (Hong Long, a related party) [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 18.00% | ||
[1] | less than 10% |
Certain Risks and Concentrati_4
Certain Risks and Concentrations (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019CustomerSupplier | Mar. 31, 2018 | Dec. 31, 2018CustomerSupplier | |
Major Suppliers [Member] | Accounts payable - related parties [Member] | |||
Certain Risks and Concentrations (Textual) | |||
Concentration risk, Percentage | 10.00% | 10.00% | 10.00% |
Number of suppliers | Supplier | 2 | 1 | |
Percentage of total outstanding accounts payable related parties | 75.00% | ||
Major Customers [Member] | Accounts Receivable [Member] | |||
Certain Risks and Concentrations (Textual) | |||
Concentration risk, Percentage | 10.00% | 10.00% | 10.00% |
Number of customer | Customer | 3 | 3 | |
Percentage of total outstanding accounts payable related parties | 76.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies (Textual) | ||
Severance payments | $ 10,000 | $ 10,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Apr. 11, 2019USD ($) |
Subsequent Events (Textual) | |
Received loan from The Export-Import Bank of China | $ 17,820,000 |
Loan due date | Sep. 30, 2020 |
Annual interest rate | 4.75% |