Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Oct. 11, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | PINGTAN MARINE ENTERPRISE LTD. | ||
Trading Symbol | PME | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 85,940,965 | ||
Entity Public Float | $ 39,000,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001517130 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | E9 | ||
Entity File Number | 001-35192 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 18-19/F | ||
Entity Address, Address Line Two | Zhongshan Building A | ||
Entity Address, Address Line Three | No. 154 Hudong Road | ||
Entity Address, City or Town | Fuzhou | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 350001 | ||
City Area Code | (86) | ||
Local Phone Number | 591-8727-1266 | ||
Title of 12(b) Security | Ordinary Shares, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 691,933 | $ 10,092,205 |
Restricted cash | 9,912,666 | |
Accounts receivable, net of allowance for doubtful accounts | 31,946,561 | 9,273,446 |
Due from related parties | 12,477,777 | |
Inventories, net of reserve | 67,611,136 | 30,527,752 |
Prepaid expenses | 170,706 | 1,354,129 |
Prepaid expenses-related party | 2,015,357 | |
Other receivables | 1,901,094 | 613,384 |
Total Current Assets | 114,249,453 | 64,338,693 |
OTHER ASSETS: | ||
Cost method investment | 3,218,440 | 3,010,235 |
Equity method investment | 29,689,813 | 27,923,464 |
Prepayment for long-term assets | 66,083,041 | 49,040,338 |
Right-of-use asset | 64,220 | 438,254 |
Property, plant and equipment, net | 250,155,011 | 259,377,729 |
Total Other Assets | 349,210,525 | 339,790,020 |
Total Assets | 463,459,978 | 404,128,713 |
CURRENT LIABILITIES: | ||
Accounts payable | 18,792,983 | 7,951,766 |
Accounts payable - related parties | 9,966,708 | 1,707,217 |
Short-term bank loans | 52,414,596 | 10,034,116 |
Long-term bank loans - current portion | 39,987,577 | 57,122,789 |
Accrued liabilities and other payables | 12,151,633 | 11,428,018 |
Lease liability- current | 32,349 | 375,922 |
Due to related parties | 18,354 | 168,328 |
Total Current Liabilities | 133,364,200 | 88,788,156 |
OTHER LIABILITIES: | ||
Lease liability | 32,203 | |
Long-term bank loans - non-current portion | 245,116,088 | 160,230,498 |
Total Liabilities | 378,480,288 | 249,050,857 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 79,302,428 and 79,055,053 shares issued and outstanding at December 31, 2020 and 2019, respectively.) | 79,302 | 79,055 |
Additional paid-in capital | 82,045,993 | 81,682,599 |
(Deficit) retained earnings | (18,594,755) | 54,286,454 |
Statutory reserve | 15,751,712 | 15,748,751 |
Accumulated other comprehensive loss | (9,568,873) | (16,080,908) |
Total equity attributable to owners of the Company | 69,713,379 | 135,715,951 |
Non-controlling interest | 15,266,311 | 19,361,905 |
Total Shareholders’ Equity | 84,979,690 | 155,077,856 |
Total Liabilities and Shareholders’ Equity | $ 463,459,978 | $ 404,128,713 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 125,000,000 | 125,000,000 |
Ordinary shares, shares issued | 79,302,428 | 79,055,053 |
Ordinary shares, shares outstanding | 79,302,428 | 79,055,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (loss) Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
REVENUE | $ 87,240,420 | $ 89,622,156 | $ 64,256,088 |
COST OF REVENUE | 89,661,883 | 64,396,571 | 33,239,582 |
GROSS (LOSS)/ PROFIT | (2,421,463) | 25,225,585 | 31,016,506 |
OPERATING EXPENSES (INCOME): | |||
Selling | 4,850,044 | 2,715,599 | 1,622,451 |
General and administrative | 4,091,729 | 4,163,873 | 4,513,193 |
General and administrative - depreciation | 3,066,522 | 3,726,061 | 5,791,557 |
Government subsidy | (13,660,284) | (6,440,299) | (8,584,731) |
Impairment loss | 67,713,324 | 7,951,635 | 9,715,058 |
(Gain) loss on fixed assets disposal | (59,432) | 2,105,960 | |
Total Operating Expenses, Net | 66,061,335 | 12,057,437 | 15,163,488 |
(LOSS) INCOME FROM OPERATIONS | (68,482,798) | 13,168,148 | 15,853,018 |
OTHER INCOME (EXPENSE): | |||
Interest income | 3,745,611 | 780,604 | 41,446 |
Interest (expense) | (13,432,919) | (6,055,310) | (1,210,974) |
Foreign currency transaction gain (loss) | 607,674 | (298,304) | (157,852) |
Dividend income from cost method investment | 135,338 | 312,727 | 382,627 |
(Loss) on the interest sold | (86,603) | ||
(Loss) on equity method investment | (156,085) | (486,803) | (192,746) |
Other (expense) income | (35,401) | (954,394) | 97,179 |
Total Other Expense | (9,135,782) | (6,788,083) | (1,040,320) |
(LOSS) INCOME BEFORE INCOME TAXES | (77,618,580) | 6,380,065 | 14,812,698 |
INCOME TAXES | |||
NET (LOSS) INCOME | (77,618,580) | 6,380,065 | 14,812,698 |
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST | (4,740,332) | 698,041 | 1,415,397 |
NET (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY | (72,878,248) | 5,682,024 | 13,397,301 |
COMPREHENSIVE (LOSS) INCOME: | |||
NET (LOSS) INCOME | (77,618,580) | 6,380,065 | 14,812,698 |
Unrealized foreign currency translation gain (loss) | 7,156,773 | (2,861,319) | (8,387,092) |
COMPREHENSIVE (LOSS) INCOME | (70,461,807) | 3,518,746 | 6,425,606 |
Less: comprehensive (loss) income attributable to the non-controlling interest | (4,095,594) | 469,583 | 744,463 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY | $ (66,366,213) | $ 3,049,163 | $ 5,681,143 |
NET (LOSS) INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | |||
Basic and diluted (in Dollars per share) | $ (0.92) | $ 0.07 | $ 0.17 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | |||
Basic and diluted (in Shares) | 79,121,471 | 79,055,053 | 79,055,053 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Deficit) | Statutory Reserve | Accumulated Other Comprehensive Income (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 (in Shares) at Dec. 31, 2017 | 79,055,053 | ||||||
Net income (loss) | 13,397,301 | 1,415,397 | 14,812,698 | ||||
Appropriation to statutory reserve | (1,781,769) | 1,781,769 | |||||
Dividend declared | (2,371,652) | (2,371,652) | |||||
Foreign currency translation adjustment | (7,716,158) | (670,934) | (8,387,092) | ||||
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 (in Shares) at Dec. 31, 2018 | 79,055,053 | ||||||
Net income (loss) | 5,682,024 | 698,041 | 6,380,065 | ||||
Appropriation to statutory reserve | (988,639) | 988,639 | |||||
Foreign currency translation adjustment | (2,632,861) | (228,458) | (2,861,319) | ||||
Balance at Dec. 31, 2019 | $ 79,055 | 81,682,599 | 54,286,454 | 15,748,751 | (16,080,908) | 19,361,905 | 155,077,856 |
Balance (in Shares) at Dec. 31, 2019 | 79,055,053 | ||||||
Net income (loss) | (72,878,248) | (4,740,332) | (77,618,580) | ||||
Common stock issuance for professional fees | $ 247 | 363,394 | 363,641 | ||||
Common stock issuance for professional fees (in Shares) | 247,375 | ||||||
Appropriation to statutory reserve | (2,961) | 2,961 | |||||
Foreign currency translation adjustment | 6,512,035 | 644,738 | 7,156,773 | ||||
Balance at Dec. 31, 2020 | $ 79,302 | $ 82,045,993 | $ (18,594,755) | $ 15,751,712 | $ (9,568,873) | $ 15,266,311 | $ 84,979,690 |
Balance (in Shares) at Dec. 31, 2020 | 79,302,428 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (77,618,580) | $ 6,380,065 | $ 14,812,698 |
Adjustments to reconcile net income from operations to net cash provided by (used in) operating activities: | |||
Depreciation | 14,722,446 | 11,308,882 | 9,141,975 |
Increase (decrease) in allowance for doubtful accounts | 380,866 | 8,050 | (66,532) |
Increase (decrease) in reserve for inventories | 14,984,980 | (142,370) | 429,267 |
Loss on equity method investment | 156,085 | 486,803 | 192,746 |
Common stock issuance for professional fees | 209,793 | ||
Loss on the interest sold | 86,603 | ||
Loss (gain)on disposal of fixed assets | (59,432) | 2,016,992 | |
Impairment loss | 67,713,324 | 7,943,585 | 9,715,058 |
Accounts receivable | (21,222,129) | (3,110,730) | 6,373,815 |
Inventories | (48,067,241) | (24,918,904) | (2,970,908) |
Prepaid expenses | 1,199,764 | (727,857) | (559,629) |
Prepaid expenses - related parties | (1,906,460) | ||
Other receivables | (1,177,998) | 74,967 | (450,948) |
Advance from customers | 8,933,807 | (22,443,999) | 1,044,710 |
Accounts payable - related parties | 7,701,504 | (1,501,793) | 1,584,351 |
Accrued liabilities and other payables | 738,755 | 5,527,508 | 995,836 |
Accrued liabilities and other payables - related party | (1,290) | (36,918) | |
Due to related parties | 672,932 | (9,483,868) | 11,080,369 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (32,578,152) | (30,573,780) | 53,302,882 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Prepayment made for long-term assets | (12,913,191) | (49,592,695) | |
Payments for equity method investment | (86,611,283) | (118,468,793) | (60,930,363) |
Proceeds from disposal of property, plant and equipment | 72,480 | ||
Proceeds from government grants for fishing vessels construction | 29,358,038 | 35,524,824 | 5,223,804 |
NET CASH USED IN INVESTING ACTIVITIES | (70,166,436) | (132,464,184) | (55,706,559) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term bank loans | 93,075,852 | 10,147,133 | 14,960,559 |
Repayments of short-term bank loans | (53,641,846) | (5,062,771) | (14,622,143) |
Proceeds from long-term bank loans | 108,821,094 | 208,023,483 | 5,478,766 |
Repayments of long-term bank loans | (58,952,604) | (18,880,916) | (5,893,554) |
Advances from related parties | (10,046,010) | 3,891,085 | |
Repayments of loans issued to related parties | (12,618,318) | ||
Proceeds from Due from related party | 12,619,964 | ||
Payments made for dividend | (2,371,652) | ||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 101,922,460 | 171,562,601 | 1,443,061 |
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,334,522 | (399,287) | (899,256) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 512,394 | 8,125,350 | (1,859,872) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period | 10,092,205 | 1,966,855 | 3,826,727 |
CASH, CASH EQUIVALENTS AND RESTRICTED - end of period | 10,604,599 | 10,092,205 | 1,966,855 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest | 20,549,990 | 6,419,569 | 1,311,455 |
Income taxes | |||
RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS: | |||
Cash and cash equivalents | 691,933 | 10,092,205 | 1,966,855 |
Restricted cash | 9,912,666 | ||
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 10,604,599 | 10,092,205 | 1,966,855 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Acquisition of property and equipment by decreasing prepayment for long-term assets | (12,913,191) | 11,431,500 | |
Property and equipment acquired on credit as payable | $ 26,488,534 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [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 the 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 (“FASB”) 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 Company’s 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 the 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”), and 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 Chinese Renmibi (“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 December 31, 2020, are as follows: Name of subsidiaries Place and date 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. 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 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 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 (“EEZ”), and the international waters. Going Concern Consideration, Liquidity and Capital Resources The Company has a working capital deficit of $19,114,747 as of December 31, 2020. In order to mitigate its liquidity risk, the Company plans to rely on the proceeds from loans from banks and/or financial institutions to increase working capital in order to meet capital demands, and the government subsidies for modification and rebuilding projects and reimbursement of certain operating expenses. In addition, Mr. Zhuo, the Chief Executive Officer and Chairman of the Board, will continue to provide financial support to the Company when necessary. From January to September 2021, we received $44.4 million from short-term bank loan, $77.2 million from long-term bank loan, and $19.0 million from government subsidy, with the majority of the bank loan received are for funding working capital. In the same period, we repaid $84.8 bank loans. Hence we believe we have enough resources to operate for at least the next 12 months. 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 license renewals creates uncertainty over fishing operations in Indonesian waters. The Company’s forecasts and projections show that the Company has adequate resources to continue in operational existence to meet its obligations in the twelve months following the date of this filing, considering operations in Indian waters and international waters and consideration of opportunities in new fishing territories. Also, in the past two years, the Company has upgraded 51 fishing vessels and the deployment of these vessels into operation will generate more revenue and cash inflows to the Company. In addition, the Company receives subsidies for modification and rebuilding projects and is reimbursed for certain operating expenses from government entities, as an encouragement of the development of ocean fishing industry. Considerations related to COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) surfaced in the PRC. In reaction to this outbreak, many provinces and municipalities in the PRC activated the highest Level-I Response to the emergency public health incident. As a result, business activities in the PRC were significantly affected. Emergency quarantine measures and travel restrictions have had a significant impact on many sectors across the PRC, which has also adversely affected the Company’s operations. To reduce the impact on its production and operation, the Company implemented certain safety measures to allow them to gradually resume work in mid-February. For the employees who left Fuzhou during the Spring Festival holiday and could not return to Fuzhou as scheduled, or those who could only resume work after satisfying the 14-day quarantine requirement, the Company provided paid leave. Since resuming work in mid-February, the Company has been using a shift system and adopted additional health and safety procedures to protect their employees. With these measures, the Company was able to maintain sales and operations from mid-February to mid-March. On March 23, 2020, the Company resumed normal operations and is conducting business as usual with health and safety procedures to protect employees. Management is focused on mitigating the effects of COVID-19 on the Company’s business operations while protecting the employees’ health and safety. The Company will continue to actively monitor the situation and may take further actions that alter the business operations, as may be required by local authorities, or that the Company determines are in the best interests of its employees, customers, partners, suppliers and other stakeholders. Some of the Company’s customers are fish processing plants that export processed fish products to foreign countries. These customers reduced or postponed their purchases from the Company in the initial stage of the pandemic, but since the middle of the second quarter of 2020, they have adjusted their business strategies in relation to exportation or domestic sales. Because of the reduction or postponement, our unit selling prices decreased, our inventory levels increased and our accounts receivable were not timely paid as anticipated. The COVID-19 pandemic continues to cause major disruptions to businesses and markets worldwide as the virus spreads or the resurgence in certain jurisdictions. The effects of the pandemic are still evolving, and the ultimate severity and duration and the implications on global economic conditions remains uncertain. Therefore, the extent of the impact of the pandemic on the Company’s financial condition and results of operations is still highly uncertain and will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on the Company’s customers and exporters, how quickly normal economic conditions, operations, and the demand for the Company’s products can resume and whether the pandemic leads to recessionary conditions in the PRC. While the Company anticipates that its results of operations will continue to be impacted by this pandemic in 2021, the Company is unable to reasonably estimate the extent of the impact on its full-year results of operations, its liquidity or its overall financial position. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements and related notes have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements of the Company have been prepared as if the existing corporate structure had been in existence throughout the periods presented and as if the reorganization had occurred as of the beginning of the earliest period presented. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP 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 during the years ended December 31, 2020, 2019 and 2018 include the 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 not fully covered by insurance. At December 31, 2020 and 2019, cash balances inside mainland PRC are $468,273 and $9,971,626, respectively, and cash balances in Hong Kong are $223,660 and $120,579, respectively, and are not fully 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. Restricted cash Restricted cash consists of cash deposits held by the Export Import Bank of China to secure its bank loans, the bank loans of Hong Long and Global Deep Ocean. At December 31, 2020 and December 31, 2019, restricted cash amounted to $9,912,666 and nil Fair value of financial instruments The Company utilizes the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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, restricted cash, accounts receivable, inventories, prepaid expenses, prepaid expenses – related party, other receivables, accounts payable, accounts payable – related parties, short-term bank loans, accrued liabilities and other payables, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Company’s long-term bank loans under its agreements approximates its carrying value at December 31, 2020 and 2019. The fair value of the Company’s long-term bank loans under its agreements were estimated using Level 2 inputs based on market data. As of December 31, 2020, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. 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 allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, 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 December 31, 2020 and 2019, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $411,131 and $7,960, respectively. Inventories Inventories, consisting of frozen fish and marine catches, are stated at the lower of cost or net realizable value 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 has lower catch quantities compared to the October to January period, which is the peak season. A reserve is established when management determines that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess of expected demand, the Company will record a reserve for the difference between the cost and the net realizable value. These reserves are recorded based on estimates. The Company has a reserve for inventories in the amount of $16,125,749 and $266,405, during the year ended December 31, 2020 and 2019, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: forecasted sales and 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 PRC (“MARA”) to carry out ocean fishing projects in international waters and foreign territories, and to the extent required, a fishing license in the 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 license prior to expiration to avoid interruptions of each fishing vessels’ operations. Since 2014 there has been a moratorium on fishing in Indonesian waters. Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting in accordance with FASB ASC Topic 323 for its investment in, and earnings 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 the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. 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 are 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 the statement of operations 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 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 the 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 $1,476,240, $334,851, and $589,147 for the years ended December 31, 2020, 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. The Company evaluates the impairment by comparing the carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value. Impairment loss represents the impairment loss on the vessels whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recovered. Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to international waters and consider obtaining corresponding fishing permits. The catching and processing capabilities of the 37 vessels in Indonesian waters have not been significantly reduced, however, due to the higher requirements for the catching and processing capabilities of fishing vessels in international waters, the 37 fishing vessels are being carry out the modification and rebuilding project in batches. Based on change in management’s strategy, during the fourth quarter of 2020, the Company deregistered 20 vessels in Indonesian waters and applied to the MARA for building 20 new fishing vessels, among which 12 and 8 fishing vessels are going to be deployed to North Pacific waters and Indian waters for operation, respectively. As of December 31, 2020, the remaining 17 vessels with a net carrying value of approximately $556,000 in Indonesian waters are maintaining existing condition, further redeployment and operation will be based on market conditions and the latest policies. In 2019, the Company dismantled 1 transport vessel and deregistered 16 fishing vessels and applied to the MARA for rebuilding of the remaining 17 vessels. The Company assessed the recoverability of the 50 fishing vessels and 1 krill fishing vessel in the building stage and 17 fishing vessels during the year ended 2020 and 2019 based on the undiscounted future cash flow that the fishing vessels are expected to generate as less than the carrying amount, and recognized an impairment loss. The impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the years ended 2020, 2019 and 2018, respectively. Revenue recognition The Company catches different species of fish, ships them back to the PRC and sells the catches to distributors and retailers by acting as a wholesaler. Marine catch is the Company’s one and only product line. The product type, contractual price and quantities are identified in contracts. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers, and the Company does not accept returns from customers. The Company’s revenues are recorded at a point in time. All of the operations are considered by the Company’s Chief Operating Decision Maker to be aggregated in one reportable operating segment and the Company’s revenue is disaggregated by product type in terms of species of fish sold pursuant to ASC Topic 606-10-55-91(a). The Company’s revenue is generated from the sale of frozen fish and other marine catches. The Company recognizes revenue at the amount the Company expects to be entitled to be paid, determined when control of the products is transferred to its customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and the Company has a right to receive payment. The Company has identified one performance obligation as when the frozen fish and other marine catches identified in the contract are picked up by the customers at cold storage warehouse, with revenue being recognized at a point in time. The Company initially recognizes revenue in an amount which is estimated based on contractual prices. The receivables under contracts, whereby pricing is based on contractual prices, are primarily collected within 180 days of completion of its performance obligation. Disaggregation of revenue The following tables disaggregate revenues under ASC Topic 606 by species of fish. For the years ended December 31, 2020, 2019 and 2018, our revenue by species of fish was as follows: Year Ended December 31, 2020 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 33,968,115 41,608,084 $ 0.82 38.9 % Peru squid 14,709,193 10,700,911 1.37 16.9 % Chub mackerel 6,453,289 7,084,126 0.91 7.4 % Cuttle fish 6,145,172 1,452,960 4.23 7.0 % Sardine 4,296,979 11,399,554 0.38 4.9 % Others 21,667,672 11,939,367 1.81 24.9 % Total $ 87,240,420 84,185,002 $ 1.04 100.0 % Year Ended December 31, 2019 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 35,502,599 32,028,789 $ 1.11 39.6 % Ribbon fish 12,236,897 3,622,444 3.38 13.7 % Cuttle fish 10,921,686 2,173,027 5.03 12.2 % Peru squid(whole) 7,512,216 4,234,436 1.77 8.4 % Croaker fish 4,884,278 2,301,876 2.12 5.4 % Others 18,564,480 6,433,891 2.89 20.7 % Total $ 89,622,156 50,794,463 $ 1.76 100.0 % Year Ended December 31, 2018 Revenue Volume (KG) Average price Percentage of revenue Ribbon fish $ 13,327,231 4,880,638 $ 2.73 20.7 % Croaker fish 11,525,765 5,223,607 2.21 17.9 % Argentina squid(whole) 9,360,032 2,533,700 3.69 14.6 % Peru squid(whole) 3,008,186 1,896,375 1.59 4.7 % Squid 2,934,602 2,028,995 1.45 4.6 % Chub mackerel 2,592,529 2,858,082 0.91 4.0 % Others 21,507,743 6,868,996 3.13 33.5 % Total $ 64,256,088 26,290,393 $ 2.44 100.0 % Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be satisfied. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy, on a systematic basis, to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is credited to the cost of the asset and is released in the statement of operations 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 and accordingly, no relevant tax provision is made in the accompanying consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the MARA. The qualification renews on April 1 of each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it possesses a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. China’s Enterprise Income Tax Law (“EIT Law”), which went into effect on January 1, 2008, 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 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 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 December 31, 2020 and 2019, 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 amounted to $371,611, $429,091 and $395,344 for the years ended December 31, 2020, 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 amounted to $2,557,142, $2,955,762 and $951,216 for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising Advertising is expensed as incurred and is included in selling expense on the accompanying consolidated statements of operations and comprehensive income (loss). Advertising amounted to $12,178, $22 and $20,151 for the years ended December 31, 2020, 2019 and 2018, respectively. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company and Merchant Supreme and Prime Cheer, the Company’s subsidiaries, is the U.S. dollar. The functional currency of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, the Company’s subsidiaries, is the RMB. For the Company’s subsidiaries 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 years ended December 31, 2020, 2019 and 2018 was $830,704, $(399,287) and $(899,256), 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 and 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 transactions 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 December 31, 2020 and 2019 were translated at 6.5249 RMB to $1.00 and at 6.9762 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 and comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were 6.8976RMB, 6.8985RMB and 6.6174RMB 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. 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 (loss) per share is 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: Year Ended December 31, 2020 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary stock $ (72,878,248 ) $ 5,682,024 $ 13,397,301 Weighted average ordinary stock outstanding - basic and diluted 79,121,471 79,055,053 79,055,053 Net (loss) income per ordinary share attributable to owners of the Company - basic and diluted $ (0.92 ) $ 0.07 $ 0.17 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. This 8% interest is shown as a “non-controlling interest” in the accompanying financial statements. 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 (loss) Comprehensive income (loss) is comprised of net income (loss) 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 (loss) for the years ended December 31, 2020, 2019 and 2018 included net income (loss) and unrealized gain from foreign currency translation adjustments. Segment information ASC Topic 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, liability for breaches of contracts. 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 historical operations, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of December 31, 2020 and 2019. 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 not fully covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivable 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 operating rights to operate these vessels which are owned by a related company, Fuzhou Hong Long Ocean Fishery Co., Ltd (“Hong Long”) and the Company is entitled to 100% of the 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 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 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE At December 31, 2020 and 2019, accounts receivable consisted of the following: December 31, December 31, Accounts receivable $ 32,357,692 $ 9,281,406 Less: allowance for doubtful accounts (411,131 ) (7,960 ) $ 31,946,561 $ 9,273,446 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 an individual balance. Bad debt expense (recovery) was $380,866, $30,366, and $(66,532) for the years ended December 31, 2020, 2019 and 2018, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES At December 31, 2020 and 2019, inventories consisted of the following: December 31, December 31, Frozen fish and marine catches - warehouse $ 44,272,021 $ 1,933,310 Frozen fish and marine catches - work in progress 20,702,914 25,401,843 Frozen fish and marine catches - in transit 18,761,950 3,459,004 83,736,885 30,794,157 Less: reserve for inventories (16,125,749 ) (266,405 ) $ 67,611,136 $ 30,527,752 Frozen fish and marine catches - work in progress represents fish inventory in vessels’ refrigerators, which has not been delivered to ports in the PRC, nor applied for duty-exemption import into the PRC. Frozen fish and marine catches -in transit represent fish inventory that obtained duty-exemption import permission and is in the process of being shipped to the PRC. Frozen fish and marine catches - warehouse represent fish inventory in cold storage warehouses located in the PRC. As of December 31, 2020, our total inventory balance was $67,611,136 compared to $30,527,752 as of December 31, 2019. The change in the balance is mainly attributable to an increase in frozen fish and marine catches in warehouse by $42.34 million and an increase in frozen fish and marine catches in transit by $15.30 million, a large portion of which was booked as frozen fish and marine catches - work in progress as of December 31, 2019. A reserve 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 a reserve for the difference between the cost and the market value. For the year ended 2020, due to the influence of COVID-19, the quantity of inventories increased significantly while the average selling price decreased by over 40%, resulting in the net realizable value of inventories being lower than its cost, which required a significant provision for obsolete inventory in 2020. The provision for obsolete inventory was $16,125,749, $266,405 and $413,893 for the years ended December 31, 2020, 2019 and 2018, respectively. These reserves are recorded based on estimates. |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 5 – OTHER RECEIVABLES At December 31, 2020 and 2019, other receivables consisted of the following: December 31, December 31, VAT recoverable (1) $ 1,520,501 $ - Other 380,593 613,384 $ 1,901,094 $ 613,384 (1) The balance of recoverable VAT represents input VAT available to offset VAT to be paid in the future. |
Cost Method Investment
Cost Method Investment | 12 Months Ended |
Dec. 31, 2020 | |
Cost Method Investment Line Item [Abstract] | |
COST METHOD INVESTMENT | NOTE 6 – COST METHOD INVESTMENT At December 31, 2020 and 2019, cost method investment amounted to $3,218,440 and $3,010,235, 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 US$3.0 million) for of the common stock of Pingtan Rural-Commercial Bank. Pingtan Fishing has15,113,250 shares and which accounts for a 4.8% investment in the total equity investment of the bank as of December 31, 2020 and 2019. In accordance with ASC Topic 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. 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 of this investment as of December 31, 2020 and 2019. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | NOTE 7 – EQUITY METHOD INVESTMENT At December 31, 2020 and 2019, the investment accounted for under the equity method amounted to $29,689,813 and $27,923,464, 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 two unrelated companies in the PRC. In April 2017, these two companies sold their shares to another unrelated party, Zhen Lin. On September 3, 2020, Zhen Lin sold his shares to Fujian Xinqiao Agricultural Development Group Co., Ltd. As of December 31, 2020, Pingtan Fishing and Fujian Xinqiao Agricultural Development Group Co., Ltd. accounted for 20% and 80% of the total ownership, respectively. Global Deep Ocean processes, stores, and transports Deep Ocean fishing products. The total registered capital of Global Deep Ocean is RMB 1 billion (approximately US$153.3 million) and as of December 31, 2020, Pingtan Fishing had contributed its share of registered capital of RMB 200 million (approximately US$30.7 million). Global Deep Ocean commenced operations in 2020. During the years ended December 31, 2020, 2019 and 2018, we purchased frozen shrimp from Global Deep Ocean for approximately $17,187,000, nil nil 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 years ended December 31, 2020, 2019 and 2018, the Company’s share of Global Deep Ocean’s net loss was $156,085, $486,803 and $192,746, respectively, which was included in “loss on equity method investment” in the accompanying consolidated statements of operations and comprehensive (loss) income. The tables below present the summarized financial information, as provided to the Company by the investee, for the unconsolidated company: December 31, December 31, Current assets $ 123,683,068 $ 75,494,648 Noncurrent assets 40,594,887 25,108,507 Current liabilities 7,910,987 860,179 Noncurrent liabilities 93,763,889 50,428,600 Equity 62,603,079 49,314,376 Year ended December 31, 2020 2019 2018 Net revenue $ 21,193,564 $ - $ - Gross loss (232,431 ) - - Loss from operations (780,422 ) (2,434,002 ) (963,731 ) Net loss (780,422 ) (2,434,016 ) (963,731 ) |
Prepayment for Long-Term Assets
Prepayment for Long-Term Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepayment For Long Term Assets [Abstract] | |
PREPAYMENT FOR LONG-TERM ASSETS | NOTE 8 – PREPAYMENT FOR LONG-TERM ASSETS At December 31, 2020 and 2019, prepayment for long-term assets consisted of prepayment for fishing vessels’ construction. The Company reclassifies the prepayment for fishing vessels’ construction to construction-in-progress using the percentage of completion method. In 2020, the Company reclassified RMB778,288,796 (approximately US$112.8 million) from prepayment for long-term assets to construction-in-progress and fishing vessels. In 2020, a summary of activities in prepayment for long-term assets was as follows: Prepayment Balance - December 31, 2018 $ - Prepayments made for fishing vessels’ construction 200,844,827 Reclassification to construction-in-progress (151,252,132 ) Foreign currency fluctuation (552,357 ) Balance - December 31, 2019 49,040,338 Prepayments made for fishing vessels’ construction 125,747,916 Reclassification to construction-in-progress and fishing vessels (112,834,725 ) Foreign currency fluctuation 4,129,512 Balance – December 31, 2020 $ 66,083,041 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 9 – PROPERTY, PLANT AND EQUIPMENT At December 31, 2020 and 2019, property, plant and equipment consisted of the following: Useful life December 31, 2020 December 31, 2019 Fishing vessels 10 - 20 Years $ 304,764,105 $ 304,619,431 Vehicles 5 Years 23,336 21,826 Office and other equipment 3 – 5 Years 488,084 427,154 305,275,525 305,068,411 Less: accumulated depreciation (55,120,514 ) (45,690,682 ) $ 250,155,011 $ 259,377,729 In 2020, the Company received a government subsidy for 30 completed fishing vessels that amounted to RMB 202.5 million (approximately US$29.4 million). The subsidy is related to assets, which require deducting it from the carrying amount of the asset. For the years ended December 31, 2020, 2019 and 2018, depreciation expense amounted to $14,722,446, $11,308,882 and $9,141,975, respectively, of which $11,655,924, $7,582,821 and $3,350,417, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. The Company had 82 and 70 fishing vessels at December 31, 2020 and 2019, with net carrying amounts of approximately $227.3 million and $190.8 million, respectively, pledged as collateral for its bank loans. Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to the international waters and consider obtaining corresponding fishing permits. In response to impairment triggering events, the Company recorded impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the year ended 2020, 2019 and 2018, respectively. See Note 2 for further details. |
Related Parties Transactions
Related Parties Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 10 – RELATED PARTIES TRANSACTIONS Due from related party At December 31, 2020 and 2019, the due from related party amount consisted of the following: December 31, December 31, Due from related party-Honglong $ - $ 12,477,777 Due from related party-Honglong was repaid within one year, with an annual interest rate of 4.35%. Interest earned was $2.9 million, $0.7 million and nil Accounts payable - related parties At December 31, 2020 and 2019, accounts payable - related parties consisted of the following: Name of related party December 31, December 31, Global Deep Ocean $ 7,602,944 $ - Hong Long (1) 781,225 270,230 Fujian Jingfu Ocean Fishery Development Co., Ltd. (2) 1,327 - Huna Lin(3) 1,581,212 1,436,987 $ 9,966,708 $ 1,707,217 (1) Hong Long is an affiliate company majority owned by an immediate family member of the Company’s CEO. (2) Fujian Jingfu Ocean Fishery Development Co., Ltd. is a subsidiary of Hong Long (3) Huna Lin is an immediate family of Zhiyan Lin, and Zhiyan Lin is shareholder of Pingtan Fishing, These accounts payable - related parties’ amounts are short-term in nature, non-interest bearing, unsecured and payable on demand. Due to related parties At December 31, 2020 and 2019, the due to related parties amount consisted of the following: December 31, December 31, Accrued compensation for LiMing Yung, Chief Financial Officer $ 15,000 $ 15,000 Accrued compensation for Xinrong Zhuo, Chief Executive Officer 3,354 3,328 Advance from Xinrong Zhuo - 150,000 $ 18,354 $ 168,328 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. 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 US$12,200) and the renewed Office Lease expires on July 31, 2021. For the years ended December 31, 2020, 2019 and 2018, rent expense related to the Office Lease amounted $12,178, $12,177 and $12,694, respectively. Future minimum rental payment required under the Office Lease is as follows: Year Ending December 31: Amount 2021 $ 7,104 Sales to related parties During the years ended December 31, 2020, 2019 and 2018 selling to related parties were as follows: Year Ended December 31, 2020 Percentage 2019 Percentage 2018 Percentage Xiamen International Trade Honglong Industrial Co., Ltd. $ 733,318 0.8 % $ - - % $ - - % Purchases from related parties During the years ended December 31, 2020, 2019 and 2018, purchases from related parties were as follows: Year Ended December 31, 2020 2019 2018 Purchase of fuel, freight, fishing nets and other on-board consumables Fuzhou Honglong Ocean Fishery Co., Ltd. $ 2,001,375 $ 5,021,348 $ 2,046,821 Zhiyan Lin 2,950 4,068 - Huna Lin 11,279,793 - - 13,284,118 5,025,416 2,046,821 Purchase of vessel maintenance service Huna Lin - 481,119 48,388 Zhiyan Lin 7,144 - - Fuzhou Honglong Ocean Fishery Co., Ltd. - - 71,084 7,144 481,119 119,472 Purchase of frozen shimp Global Deep Ocean 17,186,623 - - 17,186,623 - - Purchase of storage and transportation service Fuzhou Honglong Ocean Fishery Co., Ltd. - 114,230 465,863 Fujian Jingfu Ocean Fishery Development Co., Ltd. 707,153 - - 707,153 114,230 465,863 |
Bank Loans
Bank Loans | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 11 – 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 maturity. The Company is in compliance with all debt covenants. At December 31, 2020 and December 31, 2019, short-term bank loans consisted of the following: December 31, December 31, Loan from Fujian Haixia Bank, due on November 1, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. $ - $ 4,300,335 Loan from Fujian Haixia Bank, due on November 6, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. - 5,017,058 Loan from Fujian Haixia Bank, due on November 14, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. - 716,723 Loan from Fujian Haixia Bank, due on October 29, 2021 with annual interest rate of 6.09% at December 31, 2020, collateralized by Hong Long’s 5 fishing vessels, the Company’s 1 fishing vessel 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%. 10,728,134 - Loan from The Export-Import Bank of China, due on January 21, 2021 with annual interest rate of 3.88% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, pledged deposits provided by Hong Long amounted to RMB 42 million, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 41,686,462 - $ 52,414,596 $ 10,034,116 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 maturity. The Company is in compliance with all long-term bank loan covenants. At December 31, 2020 and December 31, 2019, long-term bank loans consisted of the following: December 31, December 31, Loan from The Export-Import Bank of China, due on various dates until August 28, 2020 with annual interest rate of 4.75% at December 31, 2019, guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. $ - $ 4,730,369 Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.90% at December 31, 2020 and 2019, 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. 2,298,886 5,017,058 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.15% at December 31, 2020 and 2019, 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%. 4,291,254 5,447,092 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.95% at December 31, 2020 and 2019, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 58,238,440 65,938,477 Loan from The Export-Import Bank of China, due on various dates until September 30, 2020 with annual interest rate of 4.75% at December 31, 2019, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by equity investment of 67 million shares of Hong Long in Xiamen International Bank. - 16,484,619 Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.70% at December 31, 2020 and 2019, guaranteed by Pin Lin, Xinrong Zhuo and Yaohua Zhuo, 15 fishing vessels, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 57,931,922 63,214,931 Loan from The Export-Import Bank of China, due on various dates until October 21, 2025 with annual interest rate of 4.70% at December 31, 2020 and 2019, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo and Hong Long, 15 fishing vessels and 1 transport vessel, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 49,809,192 45,017,345 Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.39% at December 31, 2020 and 2019, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totalled area 22,123.50m2, the debt ratio of borrower should not be higher than 80%. 10,383,301 11,503,396 Loan from The Export-Import Bank of China, due on various dates until April 21, 2028 with annual interest rate of 4.65% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. 19,923,677 - Loan from The Export-Import Bank of China, due on various dates until December 21, 2028 with annual interest rate of 4.65% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. 21,456,268 - Loan from The Export-Import Bank of China, due on various dates until August 21, 2022 with annual interest rate of 2.20% at December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. 21,000,000 - Loan from Bank of Communications, due on various dates until June 27, 2025 with annual interest rate of 4.650% at December 31, 2020, guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd.. 39,770,725 - Total long-term bank loans 285,103,665 217,353,287 Less: current portion (39,987,577 ) (57,122,789 ) Long-term bank loans, non-current portion $ 245,116,088 $ 160,230,498 The future maturities of long-term bank loans are as follows: Due in twelve-month periods ending December 31, Principal 2021 $ 39,987,577 2022 72,967,855 2023 57,088,998 2024 55,403,148 2025 43,219,053 Thereafter 16,437,034 $ 285,103,665 Less: current portion (39,987,577 ) Long-term liability $ 245,116,088 The weighted average interest rate for short-term bank loans was approximately 5.3%, 6.5% and 5.5% for the years ended December 31, 2020, 2019 and 2018, respectively. The weighted average interest rate for long-term bank loans was approximately 4.4%, 5.4% and 5.2% for the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, interest expense related to bank loans amounted to $14,909,159, $6,700,421 and $1,800,121, respectively, of which, $1,476,240, $334,851 and $589,147 was capitalized to construction-in-progress, respectively. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | NOTE 12 – ACCRUED LIABILITIES AND OTHER PAYABLES At December 31, 2020 and December 31, 2019, accrued liabilities and other payables consisted of the following: December 31, December 31, Accrued salaries and related benefits $ 11,440,174 $ 10,003,346 Accrued interest 462,304 339,629 Other 249,155 1,085,043 $ 12,151,633 $ 11,428,018 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13 – SHAREHOLDERS’ EQUITY Statutory reserve Pingtan Guansheng, Fujian Heyue, Pingtan Fishing and Pingtan Dingxin, which operate in the PRC are required to reserve 10% of their net profits after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The statutory reserves of the Company represent the statutory reserves of the above-mentioned companies as required under the PRC law. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. As of December 31, 2015, the Company appropriated the required 50% of its registered capital to statutory reserve for Heyue. Accordingly, no additional statutory reserve for Heyue was required for the years ended December 31, 2020, 2019 and 2018.. The Company made appropriation to statutory reserve for Pingtan Fishing amounted to $2,961 by the end of year 2020. Pingtan Guansheng, Pingtan Dingxin, Pingtan Ocean, Fuzhou Howcious Investment, Pingtan Shinsilkroad and Pingtan Yikang had sustained losses since their establishment. No appropriation to their statutory reserves was required as they incurred recurring net losses. For the years ended December 31, 2020 and 2019, statutory reserve activities for Pingtan Fishing and Fujian Heyue were as follows: Pingtan Fujian Total Balance - December 31, 2018 $ 13,955,930 $ 804,182 $ 14,760,112 Addition to statutory reserve 988,639 - 988,639 Balance – December 31, 2019 14,944,569 804,182 15,748,751 Addition to statutory reserve 2,961 - 2,961 Balance – December 31, 2020 $ 14,947,530 $ 804,182 $ 15,751,712 |
Certain Risks and Concentration
Certain Risks and Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CERTAIN RISKS AND CONCENTRATIONS | NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS Credit risk At December 31, 2020 and 2019, 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 has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Major customers Year Ended December 31, Customer 2020 2019 2018 A 14 % 19 % 17 % B 13 % * * C 11 % 15 % 19 % D 10 % * * E * * 14 % * less than 10% Six customers, whose outstanding accounts receivable accounted for 10% or more of the Company’s total outstanding accounts receivable at December 31, 2020, accounted for 87.4% of the Company’s total outstanding accounts receivable at December 31, 2020. Three customers, whose outstanding accounts receivable accounted for 10% or more of the Company’s total outstanding accounts receivable at December 31, 2019, accounted for 74.9% of the Company’s total outstanding accounts receivable at December 31, 2019. 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 years ended December 31, 2020, 2019 and 2018. Year Ended December 31, Supplier 2020 2019 2018 A 32 % 44 % 25 % Global Deep Ocean (equity investment) 15 % * * C 13 % * * D 10 % * * E * 16 % 24 % F * * 17 % * 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 December 31, 2020, accounted for 76.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2020. 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 December 31, 2019, accounted for 76.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Severance payments The Company has employment agreements with certain employees that provide 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 December 31, 2020 and 2019, which have not been reflected in its consolidated financial statements. Operating lease See note 10 for related party operating lease commitment. Rental payment On March 1, 2018, the Company entered into a lease agreement (the “Lease Agreement”) for office space in Hong Kong. Pursuant to the Lease Agreement, the monthly payments are HK$298,500 (approximately US$38,000). The Lease Agreement expired on February 28, 2021. For the years ended December 31, 2020, 2019 and 2018, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $461,786, $457,098 and $457,063, respectively. As of December 31, 2020, future minimum lease payments on operating leases were as follows: December 31, Maturity of lease liabilities 2021 $ 64,975 Total minimum lease payments 64,975 Imputed interest (32,626 ) Present value of minimum lease payments $ 32,349 The remaining lease terms (in years) and discount rates consisted of the following: December 31, Lease term and discount rate Remaining operating lease term 0.16 Discount rate 5.13 % |
Condensed Parent Company Financ
Condensed Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT COMPANY FINANCIAL INFORMATION | NOTE 16 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s China-based operating subsidiaries. The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements. PINGTAN MARINE ENTERPRISE LTD. Condensed Parent Company Balance Sheets December 31, December 31, ASSETS Current assets: Cash $ - $ - Other receivable - - Investments in subsidiaries at equity 89,333,519 153,728,021 Total current assets 89,333,519 153,728,021 Other assets: Property, plant and equipment 1,540,520 18,394,635 Total assets $ 90,874,039 $ 172,122,656 LIABILITIES AND EQUITY Current liabilities: Due to related parties $ 5,894,349 $ 17,044,800 Total liabilities 5,894,349 17,044,800 Shareholders’ equity: Equity attributable to owners of the company: Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 79,302,428 and 79,055,053 shares issued and outstanding at December 31, 2020 and 2019, respectively.) 79,302 79,055 Additional paid-in capital 82,045,993 81,682,599 Retained earnings (2,843,043 ) 70,035,205 Accumulated other comprehensive loss (9,568,873 ) (16,080,908 ) Total equity attributable to owners of the company 69,713,379 135,715,951 Non-controlling interest 15,266,311 19,361,905 Total shareholders’ equity 84,979,690 155,077,856 Total liabilities and equity $ 90,874,039 $ 172,122,656 PINGTAN MARINE ENTERPRISE LTD. Condensed Parent Company Statements of Operations For the Year Ended December 31, 2020 2019 2018 Revenue $ - $ - $ - Cost of revenue - - - Operating expenses: General and administrative (17,215,617 ) (2,198,906 ) (2,730,666 ) Total operating expenses (17,215,617 ) (2,198,906 ) (2,730,666 ) Loss from operations (17,215,617 ) (2,198,906 ) (2,730,666 ) Other expense (26 ) (8 ) (174 ) Loss attributable to parent only (17,215,643 ) (2,198,914 ) (2,730,840 ) Equity in income of subsidiaries (60,402,937 ) 8,578,979 17,543,538 Net (loss) income (77,618,580 ) 6,380,065 14,812,698 Less: net income attributable to the non-controlling interest (4,740,332 ) 698,041 1,415,397 Net (loss) income attributable to owners of the company $ (72,878,248 ) $ 5,682,024 $ 13,397,301 PINGTAN MARINE ENTERPRISE LTD. Condensed Parent Company Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITES Net (loss) income $ (77,618,580 ) $ 6,380,065 $ 14,812,698 Adjustments to reconcile net income(loss) to net cash used in operating activities: Equity in (income) loss of subsidiaries 60,402,937 (8,578,979 ) (17,543,538 ) Changes in assets and liabilities: Prepaid expenses - - - Other receivable - - - Accrued liabilities and other payables - - - Due to related parties 23,430,302 37,947 (20,000 ) NET CASH USED IN OPERATING ACTIVITIES 6,214,659 (2,160,967 ) (2,750,840 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment payments to subsidiaries - - - NET CASH USED IN INVESTING ACTIVITIES - - - CASH FLOWS FROM FINANCING ACTIVITIES Cash acquired from subsidiaries 4,935,792 2,165,959 5,140,707 Advances from related parties - - - Return to related parties (11,150,452 ) (4,992 ) (18,215 ) Payments made for dividend - - (2,371,652 ) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (6,214,659 ) 2,160,967 2,750,840 NET (DECREASE) INCREASE IN CASH - - - CASH - beginning of year - - - CASH - end of year $ - $ - $ - Note 1. Basis of Preparation The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries. Note 2. Investments in Subsidiaries The Company and its subsidiaries were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries were reported as equity in earnings of subsidiaries in the accompanying parent company financial statements. Note 3. Retained Earnings The retained earnings in the Company’s stand-alone financial statements do not represent the distributable earnings of the Group as it includes the statutory reserve of its subsidiaries in PRC of $15,751,712 and $15,748,751 as of December 31, 2020 and 2019, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 17 – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Set forth below is the unaudited selected quarterly financial data. We believe that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the unaudited selected quarterly financial data when read in conjunction with our consolidated financial statements. The sum of the quarterly net (loss) income per share amounts do not necessarily equal the annual amount reported, as per share amounts are computed independently for each quarter and the annual period based on the weighted average common shares outstanding in each period. The operating results for any quarter are not necessarily indicative of results for any future period. Quarter 2020 First Second Third Fourth Revenue $ 17,307,000 $ 23,463,133 $ 15,448,083 $ 31,022,204 Gross profit 5,752,557 2,163,213 1,660,562 (11,997,795 ) Net income (loss) 8,417,076 (1,661,380 ) 781,695 (85,155,971 ) Net income (loss) attributable to owners of the Company 7,664,690 (1,576,010 ) 689,184 (79,656,112 ) Basic and diluted net income (loss) per ordinary share attributable to owners of the Company $ 0.10 $ (0.02 ) $ 0.01 $ (1.00 ) Quarter 2019 First Second Third Fourth Revenue $ 18,424,209 $ 25,463,094 $ 11,179,946 $ 34,554,907 Gross profit 4,080,651 9,266,814 3,585,232 8,292,888 Net income (loss) (1,968,339 ) 5,033,967 4,410,393 (1,095,956 ) Net income (loss) attributable to owners of the Company (1,887,239 ) 4,579,044 4,032,534 (1,042,315 ) Basic and diluted net income (loss) per ordinary share attributable to owners of the Company $ (0.02 ) $ 0.06 $ 0.05 $ (0.01 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 – SUBSEQUENT EVENTS On January 8, 2021, the Company received $4 million investment through issuing 4,000,000 of its Series A Convertible Preferred Shares, par value $0.001 per share (“Series A Preferred Shares”), in a registered direct offering. Each Series A Preferred Share is convertible into the Company’s ordinary shares at a conversion price per share equal to the lesser of (i) $2.00 and (ii) 90% of the lowest volume weighted average price of the ordinary shares on a trading day during the ten trading days prior to the conversion date, but not lower than $0.44, subject to certain adjustments. Holders of Series A Preferred Shares are entitled to receive dividends of 8.0% per annum. In connection with the offering, the Company engaged Spartan Capital Securities, LLC to act as its exclusive placement agent. In consideration for its placement agent services, the Company paid Spartan Capital Securities, in addition to certain other fees and expenses, warrants to purchase 149,733 ordinary shares of the Company at an exercise price per share of $1.87, subject to adjustment. The warrants are exercisable, in whole or in part, commencing on a date that is six months and one day after the closing of the offering and expire on the five-year anniversary of the closing. On January 18, 2021, the Company received a loan of $34.0 million from The Export-Import Bank of China. The loan is due on January 15, 2023 with interest of 4.00%. On January 20, 2021, the Company received loans of $29.1 million and $12.6 million from Haixia Bank. The loans are due on January 19 and 20, 2022 with interest of 6.09%. On January 22, 2021, the Company repaid a short-term bank loan of $41.7 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On January 29, 2021, the Company received a government subsidy of $860,653. On February 1, 2021, the Company received a loan of $2.8 million from Haixia Bank. The loan is due on January 20, 2022 with interest of 6.09%. On February 7, 2021, the Company repaid a long-term bank loan of $4.83 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On February 18, 2021, the Company received a loan of $11.0 million from The Export-Import Bank of China. The loan is due on February 17, 2023 with interest of 2.20%. On February 21, 2021, the Company repaid a long-term bank loan of $0.3 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On March 8, 2021, the Company sold 3,625,954 ordinary shares at a price of $1.31 per share, and 2,719,464 five-year warrants to purchase ordinary shares at an exercise price of $1.31 per share, in a registered direct offering. The net proceeds to the Company from this offering were approximately $4.35 million. In connection with the offering, the Company engaged Spartan Capital Securities, to act as its exclusive placement agent. In consideration for its placement agent services, the Company paid Spartan Capital Securities, in addition to certain other fees and expenses, warrants to purchase 253,816 ordinary shares of the Company at an exercise price per share of $1.31, subject to adjustment. The warrants are exercisable, in whole or in part, commencing on a date that is six months and one day after the closing of the offering and expire on the five-year anniversary of the closing. On March 21, 2021, the Company repaid a long-term bank loan of $6.1 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On April 21, 2021, the Company repaid a long-term bank loan of $5.0 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On May 12, 2021, the Company repaid a long-term bank loan of $0.8 million to The China Development Bank in accordance with the loan repayment schedule. On June 18, 2021, the Company repaid a long-term bank loan of $1.0 million to The China Development Bank in accordance with the loan repayment schedule. On June 17, 2021, the Company received a government subsidy of $389,278. On June 21, 2021, the Company repaid a long-term bank loan of $3.8 million to The Bank of Communications in accordance with the loan repayment schedule. On June 29, 2021, the Company received a loan of $22.5 million from The Export-Import Bank of China. The loan is due on June 21, 2028 with interest of 4.65%. On July 21, 2021, the Company repaid a long-term bank loan of $0.7 million to The Bank of Communications in accordance with the loan repayment schedule. On August 19, 2021, the Company received a government subsidy of $229,889. On August 21, 2021, the Company repaid a short-term loan and a long-term bank loan of $0.4 million and $4.8 million to The Export-Import Bank of China in accordance with the loan repayment schedule, respectively. On September 2, 2021, the Company received a loan of $4.1 million from The Export-Import Bank of China. The loan is due on July 1, 2023 with interest of 2.20%. On September 2, 2021, the Company repaid a long-term bank loan of $4.3 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On September 10, 2021, the Company received a loan of $1.1 million from The Export-Import Bank of China. The loan is due on July 1, 2023 with interest of 2.20%. On September 10, 2021, the Company repaid a long-term bank loan of $1.2 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On September 15, 2021, the Company received a loan of $4.4 million from The Export-Import Bank of China. The loan is due on July 1, 2023 with interest of 2.20%. On September 15, 2021, the Company repaid a long-term bank loan of $4.4 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On September 21, 2021, the Company repaid a long-term bank loan of $6.1 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On September 30, 2021, the Company received a government subsidy of $17,506,169. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements and related notes have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements of the Company have been prepared as if the existing corporate structure had been in existence throughout the periods presented and as if the reorganization had occurred as of the beginning of the earliest period presented. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP 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 during the years ended December 31, 2020, 2019 and 2018 include the 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 not fully covered by insurance. At December 31, 2020 and 2019, cash balances inside mainland PRC are $468,273 and $9,971,626, respectively, and cash balances in Hong Kong are $223,660 and $120,579, respectively, and are not fully 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. |
Restricted cash | Restricted cash Restricted cash consists of cash deposits held by the Export Import Bank of China to secure its bank loans, the bank loans of Hong Long and Global Deep Ocean. At December 31, 2020 and December 31, 2019, restricted cash amounted to $9,912,666 and nil |
Fair value of financial instruments | Fair value of financial instruments The Company utilizes the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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, restricted cash, accounts receivable, inventories, prepaid expenses, prepaid expenses – related party, other receivables, accounts payable, accounts payable – related parties, short-term bank loans, accrued liabilities and other payables, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Company’s long-term bank loans under its agreements approximates its carrying value at December 31, 2020 and 2019. The fair value of the Company’s long-term bank loans under its agreements were estimated using Level 2 inputs based on market data. As of December 31, 2020, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. 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 allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, 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 December 31, 2020 and 2019, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $411,131 and $7,960, respectively. Inventories Inventories, consisting of frozen fish and marine catches, are stated at the lower of cost or net realizable value 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 has lower catch quantities compared to the October to January period, which is the peak season. A reserve is established when management determines that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess of expected demand, the Company will record a reserve for the difference between the cost and the net realizable value. These reserves are recorded based on estimates. The Company has a reserve for inventories in the amount of $16,125,749 and $266,405, during the year ended December 31, 2020 and 2019, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: forecasted sales and 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 PRC (“MARA”) to carry out ocean fishing projects in international waters and foreign territories, and to the extent required, a fishing license in the 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 license prior to expiration to avoid interruptions of each fishing vessels’ operations. Since 2014 there has been a moratorium on fishing in Indonesian waters. Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting in accordance with FASB ASC Topic 323 for its investment in, and earnings 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 the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. 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 are 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 the statement of operations 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 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 the 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 $1,476,240, $334,851, and $589,147 for the years ended December 31, 2020, 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. The Company evaluates the impairment by comparing the carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value. Impairment loss represents the impairment loss on the vessels whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recovered. Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to international waters and consider obtaining corresponding fishing permits. The catching and processing capabilities of the 37 vessels in Indonesian waters have not been significantly reduced, however, due to the higher requirements for the catching and processing capabilities of fishing vessels in international waters, the 37 fishing vessels are being carry out the modification and rebuilding project in batches. Based on change in management’s strategy, during the fourth quarter of 2020, the Company deregistered 20 vessels in Indonesian waters and applied to the MARA for building 20 new fishing vessels, among which 12 and 8 fishing vessels are going to be deployed to North Pacific waters and Indian waters for operation, respectively. As of December 31, 2020, the remaining 17 vessels with a net carrying value of approximately $556,000 in Indonesian waters are maintaining existing condition, further redeployment and operation will be based on market conditions and the latest policies. In 2019, the Company dismantled 1 transport vessel and deregistered 16 fishing vessels and applied to the MARA for rebuilding of the remaining 17 vessels. The Company assessed the recoverability of the 50 fishing vessels and 1 krill fishing vessel in the building stage and 17 fishing vessels during the year ended 2020 and 2019 based on the undiscounted future cash flow that the fishing vessels are expected to generate as less than the carrying amount, and recognized an impairment loss. The impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the years ended 2020, 2019 and 2018, respectively. Revenue recognition The Company catches different species of fish, ships them back to the PRC and sells the catches to distributors and retailers by acting as a wholesaler. Marine catch is the Company’s one and only product line. The product type, contractual price and quantities are identified in contracts. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers, and the Company does not accept returns from customers. The Company’s revenues are recorded at a point in time. All of the operations are considered by the Company’s Chief Operating Decision Maker to be aggregated in one reportable operating segment and the Company’s revenue is disaggregated by product type in terms of species of fish sold pursuant to ASC Topic 606-10-55-91(a). The Company’s revenue is generated from the sale of frozen fish and other marine catches. The Company recognizes revenue at the amount the Company expects to be entitled to be paid, determined when control of the products is transferred to its customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and the Company has a right to receive payment. The Company has identified one performance obligation as when the frozen fish and other marine catches identified in the contract are picked up by the customers at cold storage warehouse, with revenue being recognized at a point in time. The Company initially recognizes revenue in an amount which is estimated based on contractual prices. The receivables under contracts, whereby pricing is based on contractual prices, are primarily collected within 180 days of completion of its performance obligation. Disaggregation of revenue The following tables disaggregate revenues under ASC Topic 606 by species of fish. For the years ended December 31, 2020, 2019 and 2018, our revenue by species of fish was as follows: Year Ended December 31, 2020 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 33,968,115 41,608,084 $ 0.82 38.9 % Peru squid 14,709,193 10,700,911 1.37 16.9 % Chub mackerel 6,453,289 7,084,126 0.91 7.4 % Cuttle fish 6,145,172 1,452,960 4.23 7.0 % Sardine 4,296,979 11,399,554 0.38 4.9 % Others 21,667,672 11,939,367 1.81 24.9 % Total $ 87,240,420 84,185,002 $ 1.04 100.0 % Year Ended December 31, 2019 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 35,502,599 32,028,789 $ 1.11 39.6 % Ribbon fish 12,236,897 3,622,444 3.38 13.7 % Cuttle fish 10,921,686 2,173,027 5.03 12.2 % Peru squid(whole) 7,512,216 4,234,436 1.77 8.4 % Croaker fish 4,884,278 2,301,876 2.12 5.4 % Others 18,564,480 6,433,891 2.89 20.7 % Total $ 89,622,156 50,794,463 $ 1.76 100.0 % Year Ended December 31, 2018 Revenue Volume (KG) Average price Percentage of revenue Ribbon fish $ 13,327,231 4,880,638 $ 2.73 20.7 % Croaker fish 11,525,765 5,223,607 2.21 17.9 % Argentina squid(whole) 9,360,032 2,533,700 3.69 14.6 % Peru squid(whole) 3,008,186 1,896,375 1.59 4.7 % Squid 2,934,602 2,028,995 1.45 4.6 % Chub mackerel 2,592,529 2,858,082 0.91 4.0 % Others 21,507,743 6,868,996 3.13 33.5 % Total $ 64,256,088 26,290,393 $ 2.44 100.0 % Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be satisfied. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy, on a systematic basis, to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is credited to the cost of the asset and is released in the statement of operations 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 and accordingly, no relevant tax provision is made in the accompanying consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the MARA. The qualification renews on April 1 of each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it possesses a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. China’s Enterprise Income Tax Law (“EIT Law”), which went into effect on January 1, 2008, 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 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 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 December 31, 2020 and 2019, 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 amounted to $371,611, $429,091 and $395,344 for the years ended December 31, 2020, 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 amounted to $2,557,142, $2,955,762 and $951,216 for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising Advertising is expensed as incurred and is included in selling expense on the accompanying consolidated statements of operations and comprehensive income (loss). Advertising amounted to $12,178, $22 and $20,151 for the years ended December 31, 2020, 2019 and 2018, respectively. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company and Merchant Supreme and Prime Cheer, the Company’s subsidiaries, is the U.S. dollar. The functional currency of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, the Company’s subsidiaries, is the RMB. For the Company’s subsidiaries 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 years ended December 31, 2020, 2019 and 2018 was $830,704, $(399,287) and $(899,256), 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 and 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 transactions 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 December 31, 2020 and 2019 were translated at 6.5249 RMB to $1.00 and at 6.9762 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 and comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were 6.8976RMB, 6.8985RMB and 6.6174RMB 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. 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 (loss) per share is 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: Year Ended December 31, 2020 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary stock $ (72,878,248 ) $ 5,682,024 $ 13,397,301 Weighted average ordinary stock outstanding - basic and diluted 79,121,471 79,055,053 79,055,053 Net (loss) income per ordinary share attributable to owners of the Company - basic and diluted $ (0.92 ) $ 0.07 $ 0.17 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. This 8% interest is shown as a “non-controlling interest” in the accompanying financial statements. 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 (loss) Comprehensive income (loss) is comprised of net income (loss) 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 (loss) for the years ended December 31, 2020, 2019 and 2018 included net income (loss) and unrealized gain from foreign currency translation adjustments. Segment information ASC Topic 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, liability for breaches of contracts. 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 historical operations, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of December 31, 2020 and 2019. 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 not fully covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivable 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 operating rights to operate these vessels which are owned by a related company, Fuzhou Hong Long Ocean Fishery Co., Ltd (“Hong Long”) and the Company is entitled to 100% of the 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 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. Recently 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 Topic 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Effective January 1, 2019, we 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. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This standard eliminates the current requirement to disclose the amount or reason for transfers between level 1 and level 2 of the fair value hierarchy and the requirement to disclose the valuation methodology for level 3 fair value measurements. |
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 allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, 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 December 31, 2020 and 2019, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $411,131 and $7,960, respectively. |
Inventories | Inventories Inventories, consisting of frozen fish and marine catches, are stated at the lower of cost or net realizable value 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 has lower catch quantities compared to the October to January period, which is the peak season. A reserve is established when management determines that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess of expected demand, the Company will record a reserve for the difference between the cost and the net realizable value. These reserves are recorded based on estimates. The Company has a reserve for inventories in the amount of $16,125,749 and $266,405, during the year ended December 31, 2020 and 2019, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: forecasted sales and 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 PRC (“MARA”) to carry out ocean fishing projects in international waters and foreign territories, and to the extent required, a fishing license in the 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 license prior to expiration to avoid interruptions of each fishing vessels’ operations. Since 2014 there has been a moratorium on fishing in Indonesian waters. Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting in accordance with FASB ASC Topic 323 for its investment in, and earnings 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 the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. 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 are 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 the statement of operations 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 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 the 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 $1,476,240, $334,851, and $589,147 for the years ended December 31, 2020, 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. The Company evaluates the impairment by comparing the carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value. Impairment loss represents the impairment loss on the vessels whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recovered. Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to international waters and consider obtaining corresponding fishing permits. The catching and processing capabilities of the 37 vessels in Indonesian waters have not been significantly reduced, however, due to the higher requirements for the catching and processing capabilities of fishing vessels in international waters, the 37 fishing vessels are being carry out the modification and rebuilding project in batches. Based on change in management’s strategy, during the fourth quarter of 2020, the Company deregistered 20 vessels in Indonesian waters and applied to the MARA for building 20 new fishing vessels, among which 12 and 8 fishing vessels are going to be deployed to North Pacific waters and Indian waters for operation, respectively. As of December 31, 2020, the remaining 17 vessels with a net carrying value of approximately $556,000 in Indonesian waters are maintaining existing condition, further redeployment and operation will be based on market conditions and the latest policies. In 2019, the Company dismantled 1 transport vessel and deregistered 16 fishing vessels and applied to the MARA for rebuilding of the remaining 17 vessels. The Company assessed the recoverability of the 50 fishing vessels and 1 krill fishing vessel in the building stage and 17 fishing vessels during the year ended 2020 and 2019 based on the undiscounted future cash flow that the fishing vessels are expected to generate as less than the carrying amount, and recognized an impairment loss. The impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the years ended 2020, 2019 and 2018, respectively. Revenue recognition The Company catches different species of fish, ships them back to the PRC and sells the catches to distributors and retailers by acting as a wholesaler. Marine catch is the Company’s one and only product line. The product type, contractual price and quantities are identified in contracts. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers, and the Company does not accept returns from customers. The Company’s revenues are recorded at a point in time. All of the operations are considered by the Company’s Chief Operating Decision Maker to be aggregated in one reportable operating segment and the Company’s revenue is disaggregated by product type in terms of species of fish sold pursuant to ASC Topic 606-10-55-91(a). The Company’s revenue is generated from the sale of frozen fish and other marine catches. The Company recognizes revenue at the amount the Company expects to be entitled to be paid, determined when control of the products is transferred to its customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and the Company has a right to receive payment. The Company has identified one performance obligation as when the frozen fish and other marine catches identified in the contract are picked up by the customers at cold storage warehouse, with revenue being recognized at a point in time. The Company initially recognizes revenue in an amount which is estimated based on contractual prices. The receivables under contracts, whereby pricing is based on contractual prices, are primarily collected within 180 days of completion of its performance obligation. Disaggregation of revenue The following tables disaggregate revenues under ASC Topic 606 by species of fish. For the years ended December 31, 2020, 2019 and 2018, our revenue by species of fish was as follows: Year Ended December 31, 2020 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 33,968,115 41,608,084 $ 0.82 38.9 % Peru squid 14,709,193 10,700,911 1.37 16.9 % Chub mackerel 6,453,289 7,084,126 0.91 7.4 % Cuttle fish 6,145,172 1,452,960 4.23 7.0 % Sardine 4,296,979 11,399,554 0.38 4.9 % Others 21,667,672 11,939,367 1.81 24.9 % Total $ 87,240,420 84,185,002 $ 1.04 100.0 % Year Ended December 31, 2019 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 35,502,599 32,028,789 $ 1.11 39.6 % Ribbon fish 12,236,897 3,622,444 3.38 13.7 % Cuttle fish 10,921,686 2,173,027 5.03 12.2 % Peru squid(whole) 7,512,216 4,234,436 1.77 8.4 % Croaker fish 4,884,278 2,301,876 2.12 5.4 % Others 18,564,480 6,433,891 2.89 20.7 % Total $ 89,622,156 50,794,463 $ 1.76 100.0 % Year Ended December 31, 2018 Revenue Volume (KG) Average price Percentage of revenue Ribbon fish $ 13,327,231 4,880,638 $ 2.73 20.7 % Croaker fish 11,525,765 5,223,607 2.21 17.9 % Argentina squid(whole) 9,360,032 2,533,700 3.69 14.6 % Peru squid(whole) 3,008,186 1,896,375 1.59 4.7 % Squid 2,934,602 2,028,995 1.45 4.6 % Chub mackerel 2,592,529 2,858,082 0.91 4.0 % Others 21,507,743 6,868,996 3.13 33.5 % Total $ 64,256,088 26,290,393 $ 2.44 100.0 % Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be satisfied. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy, on a systematic basis, to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is credited to the cost of the asset and is released in the statement of operations 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 and accordingly, no relevant tax provision is made in the accompanying consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the MARA. The qualification renews on April 1 of each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it possesses a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. China’s Enterprise Income Tax Law (“EIT Law”), which went into effect on January 1, 2008, 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 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 or the Western and Central Pacific Fisheries Commission areas. |
Investment in unconsolidated company – Global Deep Ocean | Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting in accordance with FASB ASC Topic 323 for its investment in, and earnings 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 the recorded value may not be recoverable. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the entities including current earnings trends and forecasted cash flows, and other company and industry specific information. 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 are 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 the statement of operations 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 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 the 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 $1,476,240, $334,851, and $589,147 for the years ended December 31, 2020, 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. The Company evaluates the impairment by comparing the carrying amount of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived assets over their fair value. Impairment loss represents the impairment loss on the vessels whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recovered. Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to international waters and consider obtaining corresponding fishing permits. The catching and processing capabilities of the 37 vessels in Indonesian waters have not been significantly reduced, however, due to the higher requirements for the catching and processing capabilities of fishing vessels in international waters, the 37 fishing vessels are being carry out the modification and rebuilding project in batches. Based on change in management’s strategy, during the fourth quarter of 2020, the Company deregistered 20 vessels in Indonesian waters and applied to the MARA for building 20 new fishing vessels, among which 12 and 8 fishing vessels are going to be deployed to North Pacific waters and Indian waters for operation, respectively. As of December 31, 2020, the remaining 17 vessels with a net carrying value of approximately $556,000 in Indonesian waters are maintaining existing condition, further redeployment and operation will be based on market conditions and the latest policies. In 2019, the Company dismantled 1 transport vessel and deregistered 16 fishing vessels and applied to the MARA for rebuilding of the remaining 17 vessels. The Company assessed the recoverability of the 50 fishing vessels and 1 krill fishing vessel in the building stage and 17 fishing vessels during the year ended 2020 and 2019 based on the undiscounted future cash flow that the fishing vessels are expected to generate as less than the carrying amount, and recognized an impairment loss. The impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the years ended 2020, 2019 and 2018, respectively. |
Revenue recognition | Revenue recognition The Company catches different species of fish, ships them back to the PRC and sells the catches to distributors and retailers by acting as a wholesaler. Marine catch is the Company’s one and only product line. The product type, contractual price and quantities are identified in contracts. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers, and the Company does not accept returns from customers. The Company’s revenues are recorded at a point in time. All of the operations are considered by the Company’s Chief Operating Decision Maker to be aggregated in one reportable operating segment and the Company’s revenue is disaggregated by product type in terms of species of fish sold pursuant to ASC Topic 606-10-55-91(a). The Company’s revenue is generated from the sale of frozen fish and other marine catches. The Company recognizes revenue at the amount the Company expects to be entitled to be paid, determined when control of the products is transferred to its customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and the Company has a right to receive payment. The Company has identified one performance obligation as when the frozen fish and other marine catches identified in the contract are picked up by the customers at cold storage warehouse, with revenue being recognized at a point in time. The Company initially recognizes revenue in an amount which is estimated based on contractual prices. The receivables under contracts, whereby pricing is based on contractual prices, are primarily collected within 180 days of completion of its performance obligation. Disaggregation of revenue The following tables disaggregate revenues under ASC Topic 606 by species of fish. For the years ended December 31, 2020, 2019 and 2018, our revenue by species of fish was as follows: Year Ended December 31, 2020 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 33,968,115 41,608,084 $ 0.82 38.9 % Peru squid 14,709,193 10,700,911 1.37 16.9 % Chub mackerel 6,453,289 7,084,126 0.91 7.4 % Cuttle fish 6,145,172 1,452,960 4.23 7.0 % Sardine 4,296,979 11,399,554 0.38 4.9 % Others 21,667,672 11,939,367 1.81 24.9 % Total $ 87,240,420 84,185,002 $ 1.04 100.0 % Year Ended December 31, 2019 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 35,502,599 32,028,789 $ 1.11 39.6 % Ribbon fish 12,236,897 3,622,444 3.38 13.7 % Cuttle fish 10,921,686 2,173,027 5.03 12.2 % Peru squid(whole) 7,512,216 4,234,436 1.77 8.4 % Croaker fish 4,884,278 2,301,876 2.12 5.4 % Others 18,564,480 6,433,891 2.89 20.7 % Total $ 89,622,156 50,794,463 $ 1.76 100.0 % Year Ended December 31, 2018 Revenue Volume (KG) Average price Percentage of revenue Ribbon fish $ 13,327,231 4,880,638 $ 2.73 20.7 % Croaker fish 11,525,765 5,223,607 2.21 17.9 % Argentina squid(whole) 9,360,032 2,533,700 3.69 14.6 % Peru squid(whole) 3,008,186 1,896,375 1.59 4.7 % Squid 2,934,602 2,028,995 1.45 4.6 % Chub mackerel 2,592,529 2,858,082 0.91 4.0 % Others 21,507,743 6,868,996 3.13 33.5 % Total $ 64,256,088 26,290,393 $ 2.44 100.0 % |
Government subsidies | Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be satisfied. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy, on a systematic basis, to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is credited to the cost of the asset and is released in the statement of operations 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 and accordingly, no relevant tax provision is made in the accompanying consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the MARA. The qualification renews on April 1 of each year. Pingtan Fishing is exempt from income tax derived from its ocean fishing operations in the periods it possesses a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. China’s Enterprise Income Tax Law (“EIT Law”), which went into effect on January 1, 2008, 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 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 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 December 31, 2020 and 2019, 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 amounted to $371,611, $429,091 and $395,344 for the years ended December 31, 2020, 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 amounted to $2,557,142, $2,955,762 and $951,216 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Advertising | Advertising Advertising is expensed as incurred and is included in selling expense on the accompanying consolidated statements of operations and comprehensive income (loss). Advertising amounted to $12,178, $22 and $20,151 for the years ended December 31, 2020, 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 Company and Merchant Supreme and Prime Cheer, the Company’s subsidiaries, is the U.S. dollar. The functional currency of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, the Company’s subsidiaries, is the RMB. For the Company’s subsidiaries 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 years ended December 31, 2020, 2019 and 2018 was $830,704, $(399,287) and $(899,256), 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 and 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 transactions 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 December 31, 2020 and 2019 were translated at 6.5249 RMB to $1.00 and at 6.9762 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 and comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were 6.8976RMB, 6.8985RMB and 6.6174RMB 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. 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 (loss) per share is 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: Year Ended December 31, 2020 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary stock $ (72,878,248 ) $ 5,682,024 $ 13,397,301 Weighted average ordinary stock outstanding - basic and diluted 79,121,471 79,055,053 79,055,053 Net (loss) income per ordinary share attributable to owners of the Company - basic and diluted $ (0.92 ) $ 0.07 $ 0.17 |
Non-controlling interest | Non-controlling interest |
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 (loss) | Comprehensive income (loss) Comprehensive income (loss) is comprised of net income (loss) 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 (loss) for the years ended December 31, 2020, 2019 and 2018 included net income (loss) and unrealized gain from foreign currency translation adjustments. |
Segment information | Segment information ASC Topic 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, liability for breaches of contracts. 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 historical operations, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of December 31, 2020 and 2019. 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 not fully covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivable 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 operating rights to operate these vessels which are owned by a related company, Fuzhou Hong Long Ocean Fishery Co., Ltd (“Hong Long”) and the Company is entitled to 100% of the 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 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 | Recently 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 Topic 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Effective January 1, 2019, we 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 June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”, which will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. In November 2019, the FASB issued ASU 2019-10. Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, finalizes effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses, leases, and hedging standards. The effective date for SEC filers, excluding smaller reporting companies as defined by the SEC, remains as fiscal years beginning after December 15, 2019. The new effective date for all other entities is fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”) to clarify the interaction in accounting for equity securities under Topic 321, investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. This ASU is not expected to have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which eliminates certain exceptions to the existing guidance for income taxes related to the approach for intra-period tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU also simplifies the accounting for income taxes by clarifying and amending existing guidance related to the effects of enacted changes in tax laws or rates in the effective tax rate computation, the recognition of franchise tax and the evaluation of a step-up in the tax basis of goodwill, among other clarifications. ASU 2019-12 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the potential effects of this ASU, however, does not expect that its adoption will have a material effect on the Company’s consolidated financial statements. |
Description of Business and O_2
Description of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of subsidiary and variable interest entity | Name of subsidiaries Place and date 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. 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 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 Pingtan Ocean Fishery Co., Ltd PRC, 100% held by Pingtan Fishing Dormant |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Estimated Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years |
Schedule of disaggregate revenues | Year Ended December 31, 2020 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 33,968,115 41,608,084 $ 0.82 38.9 % Peru squid 14,709,193 10,700,911 1.37 16.9 % Chub mackerel 6,453,289 7,084,126 0.91 7.4 % Cuttle fish 6,145,172 1,452,960 4.23 7.0 % Sardine 4,296,979 11,399,554 0.38 4.9 % Others 21,667,672 11,939,367 1.81 24.9 % Total $ 87,240,420 84,185,002 $ 1.04 100.0 % Year Ended December 31, 2019 Revenue Volume (KG) Average price Percentage of revenue Indian Ocean squid $ 35,502,599 32,028,789 $ 1.11 39.6 % Ribbon fish 12,236,897 3,622,444 3.38 13.7 % Cuttle fish 10,921,686 2,173,027 5.03 12.2 % Peru squid(whole) 7,512,216 4,234,436 1.77 8.4 % Croaker fish 4,884,278 2,301,876 2.12 5.4 % Others 18,564,480 6,433,891 2.89 20.7 % Total $ 89,622,156 50,794,463 $ 1.76 100.0 % Year Ended December 31, 2018 Revenue Volume (KG) Average price Percentage of revenue Ribbon fish $ 13,327,231 4,880,638 $ 2.73 20.7 % Croaker fish 11,525,765 5,223,607 2.21 17.9 % Argentina squid(whole) 9,360,032 2,533,700 3.69 14.6 % Peru squid(whole) 3,008,186 1,896,375 1.59 4.7 % Squid 2,934,602 2,028,995 1.45 4.6 % Chub mackerel 2,592,529 2,858,082 0.91 4.0 % Others 21,507,743 6,868,996 3.13 33.5 % Total $ 64,256,088 26,290,393 $ 2.44 100.0 % |
Schedule of reconciliation of basic and diluted net income per share | Year Ended December 31, 2020 2019 2018 Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary stock $ (72,878,248 ) $ 5,682,024 $ 13,397,301 Weighted average ordinary stock outstanding - basic and diluted 79,121,471 79,055,053 79,055,053 Net (loss) income per ordinary share attributable to owners of the Company - basic and diluted $ (0.92 ) $ 0.07 $ 0.17 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Accounts receivable $ 32,357,692 $ 9,281,406 Less: allowance for doubtful accounts (411,131 ) (7,960 ) $ 31,946,561 $ 9,273,446 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, Frozen fish and marine catches - warehouse $ 44,272,021 $ 1,933,310 Frozen fish and marine catches - work in progress 20,702,914 25,401,843 Frozen fish and marine catches - in transit 18,761,950 3,459,004 83,736,885 30,794,157 Less: reserve for inventories (16,125,749 ) (266,405 ) $ 67,611,136 $ 30,527,752 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Receivables [Abstract] | |
Schedule of other receivables | December 31, December 31, VAT recoverable (1) $ 1,520,501 $ - Other 380,593 613,384 $ 1,901,094 $ 613,384 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity investment | December 31, December 31, Current assets $ 123,683,068 $ 75,494,648 Noncurrent assets 40,594,887 25,108,507 Current liabilities 7,910,987 860,179 Noncurrent liabilities 93,763,889 50,428,600 Equity 62,603,079 49,314,376 Year ended December 31, 2020 2019 2018 Net revenue $ 21,193,564 $ - $ - Gross loss (232,431 ) - - Loss from operations (780,422 ) (2,434,002 ) (963,731 ) Net loss (780,422 ) (2,434,016 ) (963,731 ) |
Prepayment for Long-Term Asse_2
Prepayment for Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayment For Long Term Assets [Abstract] | |
Schedule of prepayment for long-term assets | Prepayment Balance - December 31, 2018 $ - Prepayments made for fishing vessels’ construction 200,844,827 Reclassification to construction-in-progress (151,252,132 ) Foreign currency fluctuation (552,357 ) Balance - December 31, 2019 49,040,338 Prepayments made for fishing vessels’ construction 125,747,916 Reclassification to construction-in-progress and fishing vessels (112,834,725 ) Foreign currency fluctuation 4,129,512 Balance – December 31, 2020 $ 66,083,041 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Useful life December 31, 2020 December 31, 2019 Fishing vessels 10 - 20 Years $ 304,764,105 $ 304,619,431 Vehicles 5 Years 23,336 21,826 Office and other equipment 3 – 5 Years 488,084 427,154 305,275,525 305,068,411 Less: accumulated depreciation (55,120,514 ) (45,690,682 ) $ 250,155,011 $ 259,377,729 |
Related Parties Transactions (T
Related Parties Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Parties Transactions (Tables) [Line Items] | |
Schedule of accounts payable - related parties | Name of related party December 31, December 31, Global Deep Ocean $ 7,602,944 $ - Hong Long (1) 781,225 270,230 Fujian Jingfu Ocean Fishery Development Co., Ltd. (2) 1,327 - Huna Lin(3) 1,581,212 1,436,987 $ 9,966,708 $ 1,707,217 |
Schedule of due to related parties | December 31, December 31, Accrued compensation for LiMing Yung, Chief Financial Officer $ 15,000 $ 15,000 Accrued compensation for Xinrong Zhuo, Chief Executive Officer 3,354 3,328 Advance from Xinrong Zhuo - 150,000 $ 18,354 $ 168,328 |
Schedule of future minimum lease payments on office lease | Year Ending December 31: Amount 2021 $ 7,104 |
Schedule of selling to related parties | Year Ended December 31, 2020 Percentage 2019 Percentage 2018 Percentage Xiamen International Trade Honglong Industrial Co., Ltd. $ 733,318 0.8 % $ - - % $ - - % |
Schedule of purchases from related parties | Year Ended December 31, 2020 2019 2018 Purchase of fuel, freight, fishing nets and other on-board consumables Fuzhou Honglong Ocean Fishery Co., Ltd. $ 2,001,375 $ 5,021,348 $ 2,046,821 Zhiyan Lin 2,950 4,068 - Huna Lin 11,279,793 - - 13,284,118 5,025,416 2,046,821 Purchase of vessel maintenance service Huna Lin - 481,119 48,388 Zhiyan Lin 7,144 - - Fuzhou Honglong Ocean Fishery Co., Ltd. - - 71,084 7,144 481,119 119,472 Purchase of frozen shimp Global Deep Ocean 17,186,623 - - 17,186,623 - - Purchase of storage and transportation service Fuzhou Honglong Ocean Fishery Co., Ltd. - 114,230 465,863 Fujian Jingfu Ocean Fishery Development Co., Ltd. 707,153 - - 707,153 114,230 465,863 |
Hong Long [Member] | |
Related Parties Transactions (Tables) [Line Items] | |
Schedule of accounts payable - related parties | December 31, December 31, Due from related party-Honglong $ - $ 12,477,777 |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | December 31, December 31, Loan from Fujian Haixia Bank, due on November 1, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. $ - $ 4,300,335 Loan from Fujian Haixia Bank, due on November 6, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. - 5,017,058 Loan from Fujian Haixia Bank, due on November 14, 2020 with annual interest rate of 6.09% at December 31, 2019, collateralized by Hong Long’s 6 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%. - 716,723 Loan from Fujian Haixia Bank, due on October 29, 2021 with annual interest rate of 6.09% at December 31, 2020, collateralized by Hong Long’s 5 fishing vessels, the Company’s 1 fishing vessel 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%. 10,728,134 - Loan from The Export-Import Bank of China, due on January 21, 2021 with annual interest rate of 3.88% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, pledged deposits provided by Hong Long amounted to RMB 42 million, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 41,686,462 - $ 52,414,596 $ 10,034,116 |
Schedule of long-term bank loans | December 31, December 31, Loan from The Export-Import Bank of China, due on various dates until August 28, 2020 with annual interest rate of 4.75% at December 31, 2019, guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. $ - $ 4,730,369 Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.90% at December 31, 2020 and 2019, 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. 2,298,886 5,017,058 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.15% at December 31, 2020 and 2019, 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%. 4,291,254 5,447,092 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.95% at December 31, 2020 and 2019, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 58,238,440 65,938,477 Loan from The Export-Import Bank of China, due on various dates until September 30, 2020 with annual interest rate of 4.75% at December 31, 2019, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by equity investment of 67 million shares of Hong Long in Xiamen International Bank. - 16,484,619 Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.70% at December 31, 2020 and 2019, guaranteed by Pin Lin, Xinrong Zhuo and Yaohua Zhuo, 15 fishing vessels, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 57,931,922 63,214,931 Loan from The Export-Import Bank of China, due on various dates until October 21, 2025 with annual interest rate of 4.70% at December 31, 2020 and 2019, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo and Hong Long, 15 fishing vessels and 1 transport vessel, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 49,809,192 45,017,345 Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.39% at December 31, 2020 and 2019, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totalled area 22,123.50m2, the debt ratio of borrower should not be higher than 80%. 10,383,301 11,503,396 Loan from The Export-Import Bank of China, due on various dates until April 21, 2028 with annual interest rate of 4.65% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. 19,923,677 - Loan from The Export-Import Bank of China, due on various dates until December 21, 2028 with annual interest rate of 4.65% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. 21,456,268 - Loan from The Export-Import Bank of China, due on various dates until August 21, 2022 with annual interest rate of 2.20% at December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. 21,000,000 - Loan from Bank of Communications, due on various dates until June 27, 2025 with annual interest rate of 4.650% at December 31, 2020, guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd.. 39,770,725 - Total long-term bank loans 285,103,665 217,353,287 Less: current portion (39,987,577 ) (57,122,789 ) Long-term bank loans, non-current portion $ 245,116,088 $ 160,230,498 |
Schedule of future maturities of long-term bank loans | Due in twelve-month periods ending December 31, Principal 2021 $ 39,987,577 2022 72,967,855 2023 57,088,998 2024 55,403,148 2025 43,219,053 Thereafter 16,437,034 $ 285,103,665 Less: current portion (39,987,577 ) Long-term liability $ 245,116,088 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other payables | December 31, December 31, Accrued salaries and related benefits $ 11,440,174 $ 10,003,346 Accrued interest 462,304 339,629 Other 249,155 1,085,043 $ 12,151,633 $ 11,428,018 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Statutory Reserve Activities | Pingtan Fujian Total Balance - December 31, 2018 $ 13,955,930 $ 804,182 $ 14,760,112 Addition to statutory reserve 988,639 - 988,639 Balance – December 31, 2019 14,944,569 804,182 15,748,751 Addition to statutory reserve 2,961 - 2,961 Balance – December 31, 2020 $ 14,947,530 $ 804,182 $ 15,751,712 |
Certain Risks and Concentrati_2
Certain Risks and Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major Customers [Member] | |
Certain Risks and Concentrations (Tables) [Line Items] | |
Schedule of major customers | Year Ended December 31, Customer 2020 2019 2018 A 14 % 19 % 17 % B 13 % * * C 11 % 15 % 19 % D 10 % * * E * * 14 % * less than 10% |
Major Suppliers [Member] | |
Certain Risks and Concentrations (Tables) [Line Items] | |
Schedule of major customers | Year Ended December 31, Supplier 2020 2019 2018 A 32 % 44 % 25 % Global Deep Ocean (equity investment) 15 % * * C 13 % * * D 10 % * * E * 16 % 24 % F * * 17 % * less than 10% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | December 31, Maturity of lease liabilities 2021 $ 64,975 Total minimum lease payments 64,975 Imputed interest (32,626 ) Present value of minimum lease payments $ 32,349 |
Schedule of remaining lease terms and discount rates | December 31, Lease term and discount rate Remaining operating lease term 0.16 Discount rate 5.13 % |
Condensed Parent Company Fina_2
Condensed Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed parent company balance sheets | December 31, December 31, ASSETS Current assets: Cash $ - $ - Other receivable - - Investments in subsidiaries at equity 89,333,519 153,728,021 Total current assets 89,333,519 153,728,021 Other assets: Property, plant and equipment 1,540,520 18,394,635 Total assets $ 90,874,039 $ 172,122,656 LIABILITIES AND EQUITY Current liabilities: Due to related parties $ 5,894,349 $ 17,044,800 Total liabilities 5,894,349 17,044,800 Shareholders’ equity: Equity attributable to owners of the company: Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 79,302,428 and 79,055,053 shares issued and outstanding at December 31, 2020 and 2019, respectively.) 79,302 79,055 Additional paid-in capital 82,045,993 81,682,599 Retained earnings (2,843,043 ) 70,035,205 Accumulated other comprehensive loss (9,568,873 ) (16,080,908 ) Total equity attributable to owners of the company 69,713,379 135,715,951 Non-controlling interest 15,266,311 19,361,905 Total shareholders’ equity 84,979,690 155,077,856 Total liabilities and equity $ 90,874,039 $ 172,122,656 |
Schedule of condensed parent company statements of operations | For the Year Ended December 31, 2020 2019 2018 Revenue $ - $ - $ - Cost of revenue - - - Operating expenses: General and administrative (17,215,617 ) (2,198,906 ) (2,730,666 ) Total operating expenses (17,215,617 ) (2,198,906 ) (2,730,666 ) Loss from operations (17,215,617 ) (2,198,906 ) (2,730,666 ) Other expense (26 ) (8 ) (174 ) Loss attributable to parent only (17,215,643 ) (2,198,914 ) (2,730,840 ) Equity in income of subsidiaries (60,402,937 ) 8,578,979 17,543,538 Net (loss) income (77,618,580 ) 6,380,065 14,812,698 Less: net income attributable to the non-controlling interest (4,740,332 ) 698,041 1,415,397 Net (loss) income attributable to owners of the company $ (72,878,248 ) $ 5,682,024 $ 13,397,301 |
Schedule of condensed parent company statements of cash flows | For the Year Ended December 31, 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITES Net (loss) income $ (77,618,580 ) $ 6,380,065 $ 14,812,698 Adjustments to reconcile net income(loss) to net cash used in operating activities: Equity in (income) loss of subsidiaries 60,402,937 (8,578,979 ) (17,543,538 ) Changes in assets and liabilities: Prepaid expenses - - - Other receivable - - - Accrued liabilities and other payables - - - Due to related parties 23,430,302 37,947 (20,000 ) NET CASH USED IN OPERATING ACTIVITIES 6,214,659 (2,160,967 ) (2,750,840 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment payments to subsidiaries - - - NET CASH USED IN INVESTING ACTIVITIES - - - CASH FLOWS FROM FINANCING ACTIVITIES Cash acquired from subsidiaries 4,935,792 2,165,959 5,140,707 Advances from related parties - - - Return to related parties (11,150,452 ) (4,992 ) (18,215 ) Payments made for dividend - - (2,371,652 ) NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (6,214,659 ) 2,160,967 2,750,840 NET (DECREASE) INCREASE IN CASH - - - CASH - beginning of year - - - CASH - end of year $ - $ - $ - |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarter 2020 First Second Third Fourth Revenue $ 17,307,000 $ 23,463,133 $ 15,448,083 $ 31,022,204 Gross profit 5,752,557 2,163,213 1,660,562 (11,997,795 ) Net income (loss) 8,417,076 (1,661,380 ) 781,695 (85,155,971 ) Net income (loss) attributable to owners of the Company 7,664,690 (1,576,010 ) 689,184 (79,656,112 ) Basic and diluted net income (loss) per ordinary share attributable to owners of the Company $ 0.10 $ (0.02 ) $ 0.01 $ (1.00 ) Quarter 2019 First Second Third Fourth Revenue $ 18,424,209 $ 25,463,094 $ 11,179,946 $ 34,554,907 Gross profit 4,080,651 9,266,814 3,585,232 8,292,888 Net income (loss) (1,968,339 ) 5,033,967 4,410,393 (1,095,956 ) Net income (loss) attributable to owners of the Company (1,887,239 ) 4,579,044 4,032,534 (1,042,315 ) Basic and diluted net income (loss) per ordinary share attributable to owners of the Company $ (0.02 ) $ 0.06 $ 0.05 $ (0.01 ) |
Description of Business and O_3
Description of Business and Organization (Details) | Feb. 15, 2015USD ($) | Dec. 31, 2020USD ($)$ / shares | Sep. 30, 2021USD ($) | Dec. 31, 2019USD ($)$ / shares | Feb. 15, 2015CNY (¥) | Feb. 09, 2015 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Working capital deficit | $ 19,114,747 | |||||
Short term bank loan | 52,414,596 | $ 10,034,116 | ||||
Goverment subsidy | 19,000,000 | |||||
Repayment of bank loan | $ 84,800,000 | |||||
Pingtan Fishing [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Percentage of ownership | 100.00% | |||||
Percentage of equity-owned subsidiaries | 92.00% | |||||
China Agriculture Industry Development Fund Co., Ltd. [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Percentage of ownership | 8.00% | 8.00% | ||||
Agriculture investment | $ 65,000,000 | ¥ 400,000,000 | ||||
Forecast [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Bank loan | $ 44,400,000 | |||||
Short term bank loan | $ 77,200,000 |
Description of Business and O_4
Description of Business and Organization (Details) - Schedule of subsidiary and variable interest entity | 12 Months Ended |
Dec. 31, 2020 | |
Merchant Supreme Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | BVI, June 25, 2012 |
Percentage of ownership | 100% held by PME |
Principal activities | Intermediate holding company |
Prime Cheer Corporation Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | Hong Kong, May 3, 2012 |
Percentage of ownership | 100% held by Merchant Supreme |
Principal activities | Intermediate holding company |
Pingtan Guansheng Ocean Fishing Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, October 12, 2012 |
Percentage of ownership | 100% held by Prime Cheer |
Principal activities | Intermediate holding company |
Fujian Heyue Marine Fishing Development Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, January 27, 2015 |
Percentage of ownership | 100% held by Pingtan Guansheng |
Principal activities | Intermediate holding company |
Fujian Provincial Pingtan County Fishing Group Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, February 27, 1998 |
Percentage of ownership | 92% held by Fujian Heyue |
Principal activities | Oceanic fishing |
Pingtan Dingxin Fishing Information Consulting Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, October 23, 2012 |
Percentage of ownership | 100% held by Pingtan Fishing |
Principal activities | Dormant |
Pingtan Yikang Global Fishery Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, September 14, 2017 |
Percentage of ownership | 100% held by Pingtan Fishing |
Principal activities | Dormant |
Pingtan Shinsilkroad Fishery Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, September 14, 2017 |
Percentage of ownership | 100% held by Pingtan Fishing |
Principal activities | Dormant |
Fuzhou Howcious Investment Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, September 5, 2017 |
Percentage of ownership | 100% held by Pingtan Fishing |
Principal activities | Dormant |
Pingtan Ocean Fishery Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation | PRC, July 21, 2017 |
Percentage of ownership | 100% held by Pingtan Fishing |
Principal activities | Dormant |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Dec. 04, 2013 | May 03, 2012 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 15, 2015USD ($) | Feb. 15, 2015CNY (¥) |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 691,933 | $ 10,092,205 | $ 1,966,855 | ||||
Restricted cash | 9,912,666 | ||||||
Allowance for doubtful accounts | 411,131 | 7,960 | |||||
Reserve for inventories | 16,125,749 | 266,405 | |||||
Capitalized interest | 1,476,240 | 334,851 | 589,147 | ||||
Net carrying value | 556,000 | ||||||
Impairment loss on vessels | $ 66,694,253 | 7,951,635 | 9,715,058 | ||||
Effective income tax rate on estimated profit | 25.00% | 25.00% | |||||
Shipping and handling costs | $ 371,611 | 429,091 | 395,344 | ||||
Employee benefit costs | 2,557,142 | 2,955,762 | 951,216 | ||||
Advertising expense | 12,178 | 22 | 20,151 | ||||
Cumulative translation adjustment and effect of exchange rate | $ 830,704 | (399,287) | (899,256) | ||||
Description of foreign currency translation | Asset and liability accounts at December 31, 2020 and 2019 were translated at 6.5249 RMB to $1.00 and at 6.9762 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 and comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were 6.8976RMB, 6.8985RMB and 6.6174RMB to $1.00, respectively. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. | ||||||
Number of reportable segment | 1 | ||||||
Entitlement of net profit loss towards fishing vessels by entity, percentage | 100.00% | ||||||
Right use of asset and liabilities | $ 770,000 | ||||||
China Agriculture Industry Development Fund Co Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Non-controlling interest, percentage | 8.00% | ||||||
China Agriculture Industry Development Fund Co Ltd. [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Agriculture investment | $ 65,000,000 | ¥ 400,000,000 | |||||
Business Combination [Member] | Pingtan Fishing [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Acquisition, percentage | 8.00% | 8.00% | |||||
CHINA | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 468,273 | 9,971,626 | |||||
HONG KONG | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 223,660 | $ 120,579 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets | 12 Months Ended |
Dec. 31, 2020 | |
Vehicles [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment, Estimated useful life | 5 years |
Minimum [Member] | Fishing vessels [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment, Estimated useful life | 10 years |
Minimum [Member] | Office and other equipment [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment, Estimated useful life | 3 years |
Maximum [Member] | Fishing vessels [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment, Estimated useful life | 20 years |
Maximum [Member] | Office and other equipment [Member] | |
Business Acquisition [Line Items] | |
Property, plant and equipment, Estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 87,240,420 | $ 89,622,156 | $ 64,256,088 |
Volume (KG) | 84,185,002 | 50,794,463 | 26,290,393 |
Average price (in Dollars per share) | $ / shares | $ 1.04 | $ 1.76 | $ 2.44 |
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Indian Ocean squid [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 33,968,115 | $ 35,502,599 | |
Volume (KG) | 41,608,084 | 32,028,789 | |
Average price (in Dollars per share) | $ / shares | $ 0.82 | $ 1.11 | |
Percentage of revenue | 38.90% | 39.60% | |
Peru squid(whole) [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 14,709,193 | $ 3,008,186 | |
Volume (KG) | 10,700,911 | 1,896,375 | |
Average price (in Dollars per share) | $ / shares | $ 1.37 | $ 1.59 | |
Percentage of revenue | 16.90% | 4.70% | |
Chub mackerel [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 6,453,289 | $ 2,592,529 | |
Volume (KG) | 7,084,126 | 2,858,082 | |
Average price (in Dollars per share) | $ / shares | $ 0.91 | $ 0.91 | |
Percentage of revenue | 7.40% | 4.00% | |
Cuttle Fish [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 6,145,172 | $ 10,921,686 | |
Volume (KG) | 1,452,960 | 2,173,027 | |
Average price (in Dollars per share) | $ / shares | $ 4.23 | $ 5.03 | |
Percentage of revenue | 7.00% | 12.20% | |
Sardine [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 4,296,979 | ||
Volume (KG) | 11,399,554 | ||
Average price (in Dollars per share) | $ / shares | $ 0.38 | ||
Percentage of revenue | 4.90% | ||
Others [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 21,667,672 | $ 18,564,480 | $ 21,507,743 |
Volume (KG) | 11,939,367 | 6,433,891 | 6,868,996 |
Average price (in Dollars per share) | $ / shares | $ 1.81 | $ 2.89 | $ 3.13 |
Percentage of revenue | 24.90% | 20.70% | 33.50% |
Ribbon fish [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 12,236,897 | $ 13,327,231 | |
Volume (KG) | 3,622,444 | 4,880,638 | |
Average price (in Dollars per share) | $ / shares | $ 3.38 | $ 2.73 | |
Percentage of revenue | 13.70% | 20.70% | |
Argentina squid(whole) [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 7,512,216 | $ 9,360,032 | |
Volume (KG) | 4,234,436 | 2,533,700 | |
Average price (in Dollars per share) | $ / shares | $ 1.77 | $ 3.69 | |
Percentage of revenue | 8.40% | 14.60% | |
Croaker fish [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 4,884,278 | $ 11,525,765 | |
Volume (KG) | 2,301,876 | 5,223,607 | |
Average price (in Dollars per share) | $ / shares | $ 2.12 | $ 2.21 | |
Percentage of revenue | 5.40% | 17.90% | |
Squid [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | |||
Revenue (in Dollars) | $ | $ 2,934,602 | ||
Volume (KG) | 2,028,995 | ||
Average price (in Dollars per share) | $ / shares | $ 1.45 | ||
Percentage of revenue | 4.60% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of basic and diluted net income per share - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of reconciliation of basic and diluted net income per share [Abstract] | |||
Net (loss) income available to owners of the Company for basic and diluted net income per share of ordinary stock | $ (72,878,248) | $ 5,682,024 | $ 13,397,301 |
Weighted average ordinary stock outstanding - basic and diluted | 79,121,471 | 79,055,053 | 79,055,053 |
Net (loss) income per ordinary share attributable to owners of the Company - basic and diluted | $ (0.92) | $ 0.07 | $ 0.17 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Bad debt expense (recovery) | $ 66,532 | $ 30,366 | $ 380,866 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 32,357,692 | $ 9,281,406 |
Less: allowance for doubtful accounts | (411,131) | (7,960) |
Accounts receivable, net | $ 31,946,561 | $ 9,273,446 |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories (Details) [Line Items] | |||
Total inventory | $ 67,611,136 | $ 30,527,752 | |
Increase in frozen fish and marine catches in warehouse | 42,340,000 | ||
Increase in frozen fish and marine catches in transit | 15,300,000 | ||
Inventory selling price decreased percentage | 40.00% | ||
Inventory | $ 67,611,136 | 30,527,752 | |
Provision For Obsolete Inventory [Member] | |||
Inventories (Details) [Line Items] | |||
Inventory | $ 16,125,749 | ||
Provision For Obsolete Inventory [Member] | |||
Inventories (Details) [Line Items] | |||
Inventory | $ 266,405 | ||
Provision For Obsolete Inventory [Member] | |||
Inventories (Details) [Line Items] | |||
Inventory | $ 413,893 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Frozen fish and marine catches - warehouse | $ 44,272,021 | $ 1,933,310 |
Frozen fish and marine catches - work in progress | 20,702,914 | 25,401,843 |
Frozen fish and marine catches - in transit | 18,761,950 | 3,459,004 |
Inventories, gross | 83,736,885 | 30,794,157 |
Less: reserve for inventories | (16,125,749) | (266,405) |
Total inventories | $ 67,611,136 | $ 30,527,752 |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of other receivables [Abstract] | |||
VAT recoverable | [1] | $ 1,520,501 | |
Other | 380,593 | 613,384 | |
Other receivables | $ 1,901,094 | $ 613,384 | |
[1] | The balance of recoverable VAT represents input VAT available to offset VAT to be paid in the future. |
Cost Method Investment (Details
Cost Method Investment (Details) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Oct. 17, 2012USD ($) | Oct. 17, 2012CNY (¥) |
Cost Method Investment [Line Items] | ||||
Cost method investment | $ | $ 3,218,440 | $ 3,010,235 | ||
Pingtan Fishing [Member] | ||||
Cost Method Investment [Line Items] | ||||
Cost method investment | $ 3,000,000 | ¥ 21,000,000 | ||
Number of shares held as investment (in Shares) | shares | 113,250 | |||
Cost method investment, ownership percentage | 4.80% |
Equity Method Investment (Detai
Equity Method Investment (Details) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020CNY (¥) | |
Equity Method Investment (Details) [Line Items] | ||||
Equity method investment | $ 29,689,813 | $ 27,923,464 | ||
Purchased frozen shrimp | 17,187,000 | |||
Loss on equity method investments | $ (156,085) | (486,803) | (192,746) | |
Pingtan Fishing [Member] | ||||
Equity Method Investment (Details) [Line Items] | ||||
Percentage of ownership | 20.00% | 20.00% | ||
Joint venture registered capital | $ 30,700,000 | ¥ 200 | ||
Zhen Lin [Member] | ||||
Equity Method Investment (Details) [Line Items] | ||||
Percentage of ownership | 80.00% | 80.00% | ||
Global Deep Ocean [Member] | ||||
Equity Method Investment (Details) [Line Items] | ||||
Joint venture registered capital | $ 153,300,000 | ¥ 1,000 | ||
Loss on equity method investments | $ 156,085 | $ 486,803 | $ 192,746 |
Equity Method Investment (Det_2
Equity Method Investment (Details) - Schedule of equity investment - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of equity investment [Abstract] | |||
Current assets | $ 123,683,068 | $ 75,494,648 | |
Noncurrent assets | 40,594,887 | 25,108,507 | |
Current liabilities | 7,910,987 | 860,179 | |
Noncurrent liabilities | 93,763,889 | 50,428,600 | |
Equity | 62,603,079 | 49,314,376 | |
Net revenue | 21,193,564 | ||
Gross loss | (232,431) | ||
Loss from operations | (780,422) | (2,434,002) | (963,731) |
Net loss | $ (780,422) | $ (2,434,016) | $ (963,731) |
Prepayment for Long-Term Asse_3
Prepayment for Long-Term Assets (Details) - 12 months ended Dec. 31, 2020 $ in Millions | USD ($) | CNY (¥) |
Prepayment For Long Term Assets [Abstract] | ||
Prepayment for long-term assets reclassified | $ 112.8 | ¥ 778,288,796 |
Prepayment for Long-Term Asse_4
Prepayment for Long-Term Assets (Details) - Schedule of prepayment for long-term assets - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of prepayment for long-term assets [Abstract] | ||
Balance at beginning | $ 49,040,338 | |
Prepayments made for fishing vessels’ construction | 125,747,916 | 200,844,827 |
Reclassification to construction-in-progress and fishing vessels | (112,834,725) | (151,252,132) |
Foreign currency fluctuation | 4,129,512 | (552,357) |
Balance at ending | $ 66,083,041 | $ 49,040,338 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Received government subsidy | $ 29,400,000 | ¥ 202,500,000 | ||
Depreciation | 14,722,446 | $ 11,308,882 | $ 9,141,975 | |
Net carrying amount | 227,300,000 | 190,800,000 | ||
Impairment loss on vessels | 66,694,253 | $ 7,951,635 | $ 9,715,058 | |
Cost of Revenue [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | 11,655,924 | |||
Inventories [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | 7,582,821 | |||
General and Administrative Expense [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 3,350,417 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 305,275,525 | $ 305,068,411 |
Less: accumulated depreciation | (55,120,514) | (45,690,682) |
Property, plant and equipment, net | 250,155,011 | 259,377,729 |
Fishing Vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 304,764,105 | 304,619,431 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 5 years | |
Property, plant and equipment, gross | $ 23,336 | 21,826 |
Office and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 488,084 | $ 427,154 |
Minimum [Member] | Fishing Vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 10 years | |
Minimum [Member] | Office and other 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 and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 5 years |
Related Parties Transactions (D
Related Parties Transactions (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2012USD ($) | Jul. 31, 2012CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Interest earned | $ 2,900,000 | $ 700,000 | |||
Office rent expenses | $ 12,178 | $ 12,177 | $ 12,694 | ||
Hong Long [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from related party annual interest | 4.35% | ||||
Ping Lin [Member] | |||||
Related Party Transaction [Line Items] | |||||
Lessee, operating lease, description | Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately US$12,200) and the renewed Office Lease expires on July 31, 2021. | Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately US$12,200) and the renewed Office Lease expires on July 31, 2021. | |||
Operating office lease, rent expense | $ 12,200 | ¥ 84,000 |
Related Parties Transactions _2
Related Parties Transactions (Details) - Schedule of accounts payable - related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts payable - related parties [Abstract] | ||
Due from related party-Hong Long | $ 12,477,777 |
Related Parties Transactions _3
Related Parties Transactions (Details) - Schedule of accounts payable - related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | |||
Accounts payable - related parties | $ 9,966,708 | $ 1,707,217 | |
Global Deep Ocean [Member] | |||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | |||
Accounts payable - related parties | 7,602,944 | ||
Hong Long [Member] | |||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | |||
Accounts payable - related parties | [1] | 781,225 | 270,230 |
Fujian Jingfu Ocean Fishery Development Co., Ltd. [Member] | |||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | |||
Accounts payable - related parties | [2] | 1,327 | |
Huna Lin [Member] | |||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | |||
Accounts payable - related parties | [3] | $ 1,581,212 | $ 1,436,987 |
[1] | Hong Long is an affiliate company majority owned by an immediate family member of the Company’s CEO. | ||
[2] | Fujian Jingfu Ocean Fishery Development Co., Ltd. is a subsidiary of Hong Long | ||
[3] | Huna Lin is an immediate family of Zhiyan Lin, and Zhiyan Lin is shareholder of Pingtan Fishing, |
Related Parties Transactions _4
Related Parties Transactions (Details) - Schedule of due to related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | $ 18,354 | $ 168,328 |
LiMing Yung [Member] | ||
Related Parties Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | 15,000 | 15,000 |
Xinrong Zhuo [Member] | ||
Related Parties Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | 3,354 | 3,328 |
Advance from Xinrong Zhuo [Member] | ||
Related Parties Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | $ 150,000 |
Related Parties Transactions _5
Related Parties Transactions (Details) - Schedule of future minimum lease payments on office lease | Dec. 31, 2020USD ($) |
Ping Lin [Member] | |
Related Parties Transactions (Details) - Schedule of future minimum lease payments on office lease [Line Items] | |
2021 | $ 7,104 |
Related Parties Transactions _6
Related Parties Transactions (Details) - Schedule of selling to related parties - Xiamen International Trade Honglong Industrial Co., Ltd. [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Parties Transactions (Details) - Schedule of selling to related parties [Line Items] | |||
Amount | $ 733,318 | ||
Percentage of revenue | 0.80% |
Related Parties Transactions _7
Related Parties Transactions (Details) - Schedule of purchases from related parties - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Purchase of fuel, freight, fishing nets and other on-board consumables | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | $ 13,284,118 | $ 5,025,416 | $ 2,046,821 |
Purchase of vessel maintenance service | |||
Purchase of vessel maintenance service | 7,144 | 481,119 | 119,472 |
Purchase of frozen shimp | |||
Purchase of frozen shimp | 17,186,623 | ||
Purchase of storage and transportation service | |||
Purchase of storage and transportation service | 707,153 | 114,230 | 465,863 |
Fuzhou Honglong Ocean Fishery Co., Ltd. [Member] | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | 2,001,375 | 5,021,348 | 2,046,821 |
Purchase of vessel maintenance service | |||
Purchase of vessel maintenance service | 71,084 | ||
Purchase of storage and transportation service | |||
Purchase of storage and transportation service | 114,230 | 465,863 | |
Zhiyan Lin [Member] | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | 2,950 | 4,068 | |
Purchase of vessel maintenance service | |||
Purchase of vessel maintenance service | 7,144 | ||
Huna Lin [Member] | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | |||
Purchase of fuel, freight, fishing nets and other on-board consumables | 11,279,793 | ||
Purchase of vessel maintenance service | |||
Purchase of vessel maintenance service | $ 481,119 | $ 48,388 | |
Global Deep Ocean [Member] | |||
Purchase of frozen shimp | |||
Purchase of frozen shimp | 17,186,623 | ||
Fujian Jingfu Ocean Fishery Development Co., Ltd. [Member] | |||
Purchase of storage and transportation service | |||
Purchase of storage and transportation service | $ 707,153 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Weighted average interest rate for short-term bank loans | 5.30% | 6.50% | 5.50% |
Weighted average interest rate for long-term bank loans | 4.40% | 5.40% | 5.20% |
Interest expense | $ 14,909,159 | $ 6,700,421 | $ 1,800,121 |
Construction-in-Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest costs capitalized | $ 1,476,240 | $ 334,851 | $ 589,147 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 52,414,596 | $ 10,034,116 |
Due on November 1, 2020 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 4,300,335 | |
Due on November 6, 2020 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 5,017,058 | |
Due on November 14, 2020 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 716,723 | |
Due to October 29, 2021 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 10,728,134 | |
Due on January 21, 2021 [Member] | Export-Import Bank of China [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 41,686,462 |
Bank Loans (Details) - Schedu_2
Bank Loans (Details) - Schedule of short-term bank loans (Parentheticals) | 12 Months Ended |
Dec. 31, 2020 | |
Due on November 1, 2020 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Nov. 1, 2020 |
Short-term debt description | Collateralized by Hong Long's 6 fishing vessels and 7 real estate properties |
Debt ratio of borrower | 100.00% |
Due on November 6, 2020 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Nov. 6, 2020 |
Short-term debt description | Collateralized by Hong Long's 6 fishing vessels and 7 real estate properties |
Debt ratio of borrower | 100.00% |
Due on November 14, 2020 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Nov. 14, 2020 |
Short-term debt description | Collateralized by Hong Long's 6 fishing vessels and 7 real estate properties |
Debt ratio of borrower | 100.00% |
Due to October 29, 2021 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Oct. 29, 2021 |
Short-term debt description | Collateralized by Hong Long's 5 fishing vessels, the Company's 1 fishing vessel 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%. |
Due on January 21, 2021 [Member] | Export-Import Bank of China [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 3.88% |
Debt instrument, maturity date | Jan. 21, 2021 |
Short-term debt description | Guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, pledged deposits provided by Hong Long amounted to RMB 42 million, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
Bank Loans (Details) - Schedu_3
Bank Loans (Details) - Schedule of long-term bank loans - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 285,103,665 | $ 217,353,287 |
Less: current portion | (39,987,577) | (57,122,789) |
Long-term bank loans, non-current portion | 245,116,088 | 160,230,498 |
Due on August 28, 2020 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 4,730,369 | |
Due on January 30, 2023 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 2,298,886 | 5,017,058 |
Due on November 27, 2023 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 4,291,254 | 5,447,092 |
Due on March 28, 2025 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 58,238,440 | 65,938,477 |
Due on September 30, 2020 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 16,484,619 | |
Due on August 21, 2026 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 57,931,922 | 63,214,931 |
Due on October 21, 2025 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 49,809,192 | 45,017,345 |
Due on July 30, 2026 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 10,383,301 | $ 11,503,396 |
Due on April 21, 2028 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 19,923,677 | |
Due on December 21, 2028 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 21,456,268 | |
Due on August 21, 2022 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 21,000,000 | |
Due on June 27, 2025 [Member] | Bank of Communications [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 39,770,725 |
Bank Loans (Details) - Schedu_4
Bank Loans (Details) - Schedule of long-term bank loans (Parentheticals) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Due on August 28, 2020 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
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. | |
Due on January 30, 2023 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.90% | 4.90% |
Debt instrument, maturity date | 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. | |
Due on November 27, 2023 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 5.145% | 5.145% |
Debt instrument, maturity date | Nov. 27, 2023 | |
Long-term debt, description | guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin,17 fishing vessels and 7 Hong Long's fishing vessels | |
Debt ratio of borrower | 80.00% | |
Due on March 28, 2025 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.949% | 4.949% |
Debt instrument, maturity date | Mar. 28, 2025 | |
Long-term debt, description | Guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. | |
Due on September 30, 2020 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.75% | |
Debt instrument, maturity date | Sep. 30, 2020 | |
Long-term debt, description | Guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by equity investment of 67 million shares of Hong Long in Xiamen International Bank. | |
Due on August 21, 2026 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.70% | 4.70% |
Debt instrument, maturity date | Aug. 21, 2026 | |
Long-term debt, description | Guaranteed by Pin Lin, Xinrong Zhuo and Yaohua Zhuo, 15 fishing vessels, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. | |
Due on October 21, 2025 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.70% | 4.70% |
Debt instrument, maturity date | Oct. 21, 2025 | |
Long-term debt, description | Guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo and Hong Long, 15 fishing vessels and 1 transport vessel, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. | |
Due on July 30, 2026 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 5.39% | 5.39% |
Debt instrument, maturity date | Jul. 30, 2026 | |
Long-term debt, description | Guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long's fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totalled area 22,123.50m2 | |
Debt ratio of borrower | 80.00% | |
Due on April 21, 2028 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | |
Debt instrument, maturity date | Apr. 21, 2028 | |
Long-term debt, description | Guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. | |
Due on December 21, 2028 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | |
Debt instrument, maturity date | Dec. 21, 2028 | |
Long-term debt, description | Guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. | |
Due on August 21, 2022 [Member] | Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 2.20% | |
Debt instrument, maturity date | Aug. 21, 2022 | |
Long-term debt, description | Guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. | |
Due on June 27, 2025 [Member] | Bank of Communications [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | |
Debt instrument, maturity date | Jun. 27, 2025 | |
Long-term debt, description | Guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd.. |
Bank Loans (Details) - Schedu_5
Bank Loans (Details) - Schedule of future maturities of long-term bank loans - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of future maturities of long-term bank loans [Abstract] | ||
2021 | $ 39,987,577 | |
2022 | 72,967,855 | |
2023 | 57,088,998 | |
2024 | 55,403,148 | |
2025 | 43,219,053 | |
Thereafter | 16,437,034 | |
Total long-term bank loans | 285,103,665 | $ 217,353,287 |
Less: current portion | (39,987,577) | (57,122,789) |
Long-term liability | $ 245,116,088 | $ 160,230,498 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of accrued liabilities and other payables - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accrued liabilities and other payables [Abstract] | ||
Accrued salaries and related benefits | $ 11,440,174 | $ 10,003,346 |
Accrued interest | 462,304 | 339,629 |
Other | 249,155 | 1,085,043 |
Accrued liabilities and other payables | $ 12,151,633 | $ 11,428,018 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2020 | |
Shareholders' Equity (Details) [Line Items] | ||
Income tax statutory reserve percentage | 50.00% | |
Fujian Heyue [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Income tax statutory reserve percentage | 50.00% | |
Pingtan Fishing [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Income tax statutory reserve amount (in Dollars) | $ 2,961 | |
Related Party [Member] | ||
Shareholders' Equity (Details) [Line Items] | ||
Income tax statutory reserve percentage | 10.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of Statutory Reserve Activities - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shareholders' Equity (Details) - Schedule of Statutory Reserve Activities [Line Items] | ||
Beginning Balance | $ 15,748,751 | $ 14,760,112 |
Addition to statutory reserve | 2,961 | 988,639 |
Ending Balance | 15,751,712 | 15,748,751 |
Pingtan Fishing [Member] | ||
Shareholders' Equity (Details) - Schedule of Statutory Reserve Activities [Line Items] | ||
Beginning Balance | 14,944,569 | 13,955,930 |
Addition to statutory reserve | 2,961 | 988,639 |
Ending Balance | 14,947,530 | 14,944,569 |
Fujian Heyue [Member] | ||
Shareholders' Equity (Details) - Schedule of Statutory Reserve Activities [Line Items] | ||
Beginning Balance | 804,182 | 804,182 |
Addition to statutory reserve | ||
Ending Balance | $ 804,182 | $ 804,182 |
Certain Risks and Concentrati_3
Certain Risks and Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer [Member] | ||
Certain Risks and Concentrations (Details) [Line Items] | ||
Outstanding accounts receivable | 10.00% | |
Major Customers [Member] | Accounts Receivable [Member] | ||
Certain Risks and Concentrations (Details) [Line Items] | ||
Outstanding accounts receivable | 10.00% | 10.00% |
Number of customer | 6 | 3 |
Percentage of total outstanding accounts payable related parties | 87.40% | 74.90% |
Supplier [Member] | ||
Certain Risks and Concentrations (Details) [Line Items] | ||
Outstanding accounts receivable | 10.00% | |
Major Suppliers [Member] | Accounts Payable Related Party [Member] | ||
Certain Risks and Concentrations (Details) [Line Items] | ||
Outstanding accounts receivable | 10.00% | 10.00% |
Percentage of total outstanding accounts payable related parties | 76.00% | 76.00% |
Number of suppliers | 2 | 2 |
Certain Risks and Concentrati_4
Certain Risks and Concentrations (Details) - Schedule of major customers | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Customer A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 14.00% | 19.00% | 17.00% | |||
Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 13.00% | [1] | [1] | |||
Customer C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 11.00% | 15.00% | 19.00% | |||
Customer D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 10.00% | [1] | [1] | |||
Customer E [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | [1] | [1] | 14.00% | |||
[1] | less than 10% |
Certain Risks and Concentrati_5
Certain Risks and Concentrations (Details) - Schedule of major suppliers | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Supplier [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 32.00% | 44.00% | 25.00% | |||
Global Deep Ocean [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 15.00% | [1] | [1] | |||
Supplier C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 13.00% | [1] | [1] | |||
Supplier D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | 10.00% | [1] | [1] | |||
Supplier E [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | [1] | 16.00% | 24.00% | |||
Supplier F [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, Percentage | [1] | [1] | 17.00% | |||
[1] | less than 10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 01, 2018USD ($) | Mar. 01, 2018HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Monthly payment | $ 38,000 | $ 298,500 | |||
Service agreement expenses | $ 461,786 | $ 457,098 | $ 457,063 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of future minimum lease payments | Dec. 31, 2020USD ($) |
Maturity of lease liabilities | |
2021 | $ 64,975 |
Total minimum lease payments | 64,975 |
Imputed interest | (32,626) |
Present value of minimum lease payments | $ 32,349 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of remaining lease terms and discount rates | Dec. 31, 2020 |
Lease term and discount rate | |
Remaining operating lease term | 1 month 28 days |
Discount rate | 5.13% |
Condensed Parent Company Fina_3
Condensed Parent Company Financial Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Information Disclosure [Abstract] | |||
Statutory reserve | $ 15,751,712 | $ 15,748,751 | $ 14,760,112 |
Condensed Parent Company Fina_4
Condensed Parent Company Financial Information (Details) - Schedule of condensed parent company balance sheets - Parent [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | ||
Other receivable | ||
Investments in subsidiaries at equity | 89,333,519 | 153,728,021 |
Total current assets | 89,333,519 | 153,728,021 |
Other assets: | ||
Property, plant and equipment | 1,540,520 | 18,394,635 |
Total assets | 90,874,039 | 172,122,656 |
Current liabilities: | ||
Due to related parties | 5,894,349 | 17,044,800 |
Total liabilities | 5,894,349 | 17,044,800 |
Equity attributable to owners of the company: | ||
Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 79,302,428 and 79,055,053 shares issued and outstanding at December 31, 2020 and 2019, respectively.) | 79,302 | 79,055 |
Additional paid-in capital | 82,045,993 | 81,682,599 |
Retained earnings | (2,843,043) | 70,035,205 |
Accumulated other comprehensive loss | (9,568,873) | (16,080,908) |
Total equity attributable to owners of the company | 69,713,379 | 135,715,951 |
Non-controlling interest | 15,266,311 | 19,361,905 |
Total shareholders’ equity | 84,979,690 | 155,077,856 |
Total liabilities and equity | $ 90,874,039 | $ 172,122,656 |
Condensed Parent Company Fina_5
Condensed Parent Company Financial Information (Details) - Schedule of condensed parent company balance sheets (Parentheticals) - Parent [Member] - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, shares authorized | 125,000,000 | 125,000,000 |
Ordinary shares, shares issued | 79,302,428 | 79,055,053 |
Ordinary shares, shares outstanding | 79,302,428 | 79,055,053 |
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Condensed Parent Company Fina_6
Condensed Parent Company Financial Information (Details) - Schedule of condensed parent company statements of operations - Parent [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenue | |||
Cost of revenue | |||
Operating expenses: | |||
General and administrative | (17,215,617) | (2,198,906) | (2,730,666) |
Total operating expenses | (17,215,617) | (2,198,906) | (2,730,666) |
Loss from operations | (17,215,617) | (2,198,906) | (2,730,666) |
Other expense | (26) | (8) | (174) |
Loss attributable to parent only | (17,215,643) | (2,198,914) | (2,730,840) |
Equity in income of subsidiaries | (60,402,937) | 8,578,979 | 17,543,538 |
Net (loss) income | (77,618,580) | 6,380,065 | 14,812,698 |
Less: net income attributable to the non-controlling interest | (4,740,332) | 698,041 | 1,415,397 |
Net (loss) income attributable to owners of the company | $ (72,878,248) | $ 5,682,024 | $ 13,397,301 |
Condensed Parent Company Fina_7
Condensed Parent Company Financial Information (Details) - Schedule of condensed parent company statements of cash flows - Parent [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net (loss) income | $ (77,618,580) | $ 6,380,065 | $ 14,812,698 |
Adjustments to reconcile net income(loss) to net cash used in operating activities: | |||
Equity in (income) loss of subsidiaries | 60,402,937 | (8,578,979) | (17,543,538) |
Changes in assets and liabilities: | |||
Prepaid expenses | |||
Other receivable | |||
Accrued liabilities and other payables | |||
Due to related parties | 23,430,302 | 37,947 | (20,000) |
NET CASH USED IN OPERATING ACTIVITIES | 6,214,659 | (2,160,967) | (2,750,840) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment payments to subsidiaries | |||
NET CASH USED IN INVESTING ACTIVITIES | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash acquired from subsidiaries | 4,935,792 | 2,165,959 | 5,140,707 |
Advances from related parties | |||
Return to related parties | (11,150,452) | (4,992) | (18,215) |
Payments made for dividend | (2,371,652) | ||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (6,214,659) | 2,160,967 | 2,750,840 |
NET (DECREASE) INCREASE IN CASH | |||
CASH - beginning of year | |||
CASH - end of year |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Details) - Schedule of quarterly financial information - Consolidated Entities [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selected Quarterly Financial Data (unaudited) (Details) - Schedule of quarterly financial information [Line Items] | ||||||||
Revenue | $ 17,307,000 | $ 18,424,209 | $ 23,463,133 | $ 25,463,094 | $ 15,448,083 | $ 11,179,946 | $ 31,022,204 | $ 34,554,907 |
Gross profit | 5,752,557 | 4,080,651 | 2,163,213 | 9,266,814 | 1,660,562 | 3,585,232 | (11,997,795) | 8,292,888 |
Net income (loss) | 8,417,076 | (1,968,339) | (1,661,380) | 5,033,967 | 781,695 | 4,410,393 | (85,155,971) | (1,095,956) |
Net income (loss) attributable to owners of the Company | $ 7,664,690 | $ (1,887,239) | $ (1,576,010) | $ 4,579,044 | $ 689,184 | $ 4,032,534 | $ (79,656,112) | $ (1,042,315) |
Basic and diluted net income (loss) per ordinary share attributable to owners of the Company (in Dollars per share) | $ 0.10 | $ (0.02) | $ (0.02) | $ 0.06 | $ 0.01 | $ 0.05 | $ (1) | $ (0.01) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Sep. 30, 2021 | Sep. 15, 2021 | Sep. 10, 2021 | Sep. 02, 2021 | Aug. 19, 2021 | Mar. 08, 2021 | Feb. 21, 2021 | Feb. 07, 2021 | Feb. 02, 2021 | Jan. 08, 2021 | Jan. 29, 2021 | Jan. 22, 2021 | Jan. 21, 2021 | Jan. 18, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 21, 2021 | Aug. 21, 2021 | Jul. 21, 2021 | Jun. 18, 2021 | Apr. 21, 2021 | Apr. 12, 2021 | Mar. 21, 2021 | Feb. 18, 2021 | Feb. 01, 2021 | Jan. 20, 2021 |
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 22,500,000 | ||||||||||||||||||||||||||
Repayments of long term debt | $ 58,952,604 | $ 18,880,916 | $ 5,893,554 | ||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Proceeds from investment | $ 4,000,000 | ||||||||||||||||||||||||||
Description of securities | Each Series A Preferred Share is convertible into the Company’s ordinary shares at a conversion price per share equal to the lesser of (i) $2.00 and (ii) 90% of the lowest volume weighted average price of the ordinary shares on a trading day during the ten trading days prior to the conversion date, but not lower than $0.44, subject to certain adjustments. | On January 18, 2021, the Company received a loan of $34.0 million from The Export-Import Bank of China. The loan is due on January 15, 2023 with interest of 4.00%. On January 20, 2021, the Company received loans of $29.1 million and $12.6 million from Haixia Bank. The loans are due on January 19 and 20, 2022 with interest of 6.09%. On January 22, 2021, the Company repaid a short-term bank loan of $41.7 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On January 29, 2021, the Company received a government subsidy of $860,653. On February 1, 2021, the Company received a loan of $2.8 million from Haixia Bank. The loan is due on January 20, 2022 with interest of 6.09%. On February 7, 2021, the Company repaid a long-term bank loan of $4.83 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On February 18, 2021, the Company received a loan of $11.0 million from The Export-Import Bank of China. The loan is due on February 17, 2023 with interest of 2.20%. On February 21, 2021, the Company repaid a long-term bank loan of $0.3 million to The Export-Import Bank of China in accordance with the loan repayment schedule. On March 8, 2021, the Company sold 3,625,954 ordinary shares at a price of $1.31 per share, and 2,719,464 five-year warrants to purchase ordinary shares at an exercise price of $1.31 per share, in a registered direct offering. The net proceeds to the Company from this offering were approximately $4.35 million. | |||||||||||||||||||||||||
Subsequent event, description | the Company sold 3,625,954 ordinary shares at a price of $1.31 per share, and 2,719,464 five-year warrants to purchase ordinary shares at an exercise price of $1.31 per share, in a registered direct offering. The net proceeds to the Company from this offering were approximately $4.35 million. In connection with the offering, the Company engaged Spartan Capital Securities, to act as its exclusive placement agent. In consideration for its placement agent services, the Company paid Spartan Capital Securities, in addition to certain other fees and expenses, warrants to purchase 253,816 ordinary shares of the Company at an exercise price per share of $1.31, subject to adjustment. | ||||||||||||||||||||||||||
Loan amount | $ 700,000 | ||||||||||||||||||||||||||
Due date | Jun. 21, 2028 | ||||||||||||||||||||||||||
Repayment of short term loan | $ 300,000 | ||||||||||||||||||||||||||
Subsidy | $ 860,653 | ||||||||||||||||||||||||||
Subsidy amount | $ 389,278 | ||||||||||||||||||||||||||
The Export-Import Bank of China [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 34,000,000 | $ 5,000,000 | $ 6,100,000 | $ 11,000,000 | |||||||||||||||||||||||
Due date | Jan. 15, 2023 | ||||||||||||||||||||||||||
Annual interest rate | 4.00% | 2.20% | |||||||||||||||||||||||||
Repayment of short term loan | $ 41,700,000 | ||||||||||||||||||||||||||
Repayment of long-term loan | $ 4,830,000 | ||||||||||||||||||||||||||
Interest | 4.65% | ||||||||||||||||||||||||||
Haixia Bank [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 2,800,000 | ||||||||||||||||||||||||||
Due date | Jan. 20, 2022 | ||||||||||||||||||||||||||
Annual interest rate | 6.09% | 6.09% | |||||||||||||||||||||||||
Forecast [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Subsidy amount | $ 17,506,169 | $ 229,889 | |||||||||||||||||||||||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Issuance of shares (in Shares) | 4,000,000 | ||||||||||||||||||||||||||
Price per share (in Dollars per share) | $ 0.001 | ||||||||||||||||||||||||||
Subsequent event, description | Holders of Series A Preferred Shares are entitled to receive dividends of 8.0% per annum. In connection with the offering, the Company engaged Spartan Capital Securities, LLC to act as its exclusive placement agent. In consideration for its placement agent services, the Company paid Spartan Capital Securities, in addition to certain other fees and expenses, warrants to purchase 149,733 ordinary shares of the Company at an exercise price per share of $1.87, subject to adjustment. | ||||||||||||||||||||||||||
China Development Bank [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 3,800,000 | $ 1,000,000 | $ 800,000 | ||||||||||||||||||||||||
The Export-Import Bank of China [Member] | Forecast [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Due date | Jul. 1, 2023 | Jul. 1, 2023 | Jul. 1, 2023 | ||||||||||||||||||||||||
Loan amount | $ 4,400,000 | $ 1,100,000 | $ 4,100,000 | $ 6,100,000 | |||||||||||||||||||||||
Interest | 2.20% | 2.20% | 2.20% | ||||||||||||||||||||||||
Repayments of long term debt | $ 4,400,000 | $ 1,200,000 | $ 4,300,000 | ||||||||||||||||||||||||
Maximum [Member] | Haixia Bank [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Repayment of short term loan | 29,100,000 | ||||||||||||||||||||||||||
Minimum [Member] | Haixia Bank [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Repayment of short term loan | $ 12,600,000 | ||||||||||||||||||||||||||
Short-term loan [Member] | The Export-Import Bank of China [Member] | Forecast [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 400,000 | ||||||||||||||||||||||||||
Long-term bank loan [Member] | The Export-Import Bank of China [Member] | Forecast [Member] | |||||||||||||||||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||||||||||||||||
Loan amount | $ 4,800,000 |