Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Oct. 15, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | PINGTAN MARINE ENTERPRISE LTD. | |
Trading Symbol | PME | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 85,940,965 | |
Amendment Flag | false | |
Entity Central Index Key | 0001517130 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35192 | |
Entity Incorporation, State or Country Code | E9 | |
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, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,362,874 | $ 691,933 |
Restricted cash | 9,767,414 | 9,912,666 |
Accounts receivable, net of allowance for doubtful accounts | 22,221,870 | 31,946,561 |
Inventories, net of reserve | 70,314,394 | 67,611,136 |
Prepaid expenses | 350,074 | 170,706 |
Prepaid expenses - related party | 4,282,493 | 2,015,357 |
Other receivables | 1,140,365 | 1,901,094 |
Total Current Assets | 114,439,484 | 114,249,453 |
OTHER ASSETS: | ||
Cost method investment | 3,195,715 | 3,218,440 |
Equity method investment | 29,271,108 | 29,689,813 |
Prepayment for long-term assets | 100,742,168 | 66,083,041 |
Right-of-use asset | 717,132 | 64,220 |
Property, plant and equipment, net | 244,946,593 | 250,155,011 |
Total Other Assets | 378,872,716 | 349,210,525 |
Total Assets | 493,312,200 | 463,459,978 |
CURRENT LIABILITIES: | ||
Accounts payable | 22,363,055 | 18,792,983 |
Accounts payable - related parties | 5,192,068 | 9,966,708 |
Short-term bank loans | 54,783,681 | 52,414,596 |
Long-term bank loans - current portion | 40,363,729 | 39,987,577 |
Accrued liabilities and other payables | 14,484,513 | 12,151,633 |
Lease liability- current | 367,451 | 32,349 |
Due to related parties | 18,354 | 18,354 |
Total Current Liabilities | 137,572,851 | 133,364,200 |
OTHER LIABILITIES: | ||
Lease liability | 317,210 | |
Long-term bank loans - non-current portion | 276,477,720 | 245,116,088 |
Total Liabilities | 414,367,781 | 378,480,288 |
COMMITMENTS AND CONTINGENCIES | ||
Equity attributable to owners of the company: | ||
Preferred shares, $0.001 par value; 5,000,000 shares authorized; 1,045,466 shares issued and outstanding at March 31, 2021 | 1,045 | |
Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 86,153,061 and 79,302,428 shares issued and outstanding at March 31, 2021 and December 31, 2020) | 86,153 | 79,302 |
Additional paid-in capital | 90,347,612 | 82,045,993 |
Retained earnings | (30,501,204) | (18,594,755) |
Statutory reserve | 15,751,712 | 15,751,712 |
Accumulated other comprehensive loss | (10,927,216) | (9,568,873) |
Total equity attributable to owners of the company | 64,758,102 | 69,713,379 |
Non-controlling interest | 14,186,317 | 15,266,311 |
Total Shareholders’ Equity | 78,944,419 | 84,979,690 |
Total Liabilities and Shareholders’ Equity | $ 493,312,200 | $ 463,459,978 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares, shares issued | 1,045,466 | 1,045,466 |
Preferred shares, shares outstanding | 1,045,466 | 1,045,466 |
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 | 86,153,061 | 79,302,428 |
Ordinary shares, shares outstanding | 86,153,061 | 79,302,428 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations and Comprehensive (loss) Income - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUE | $ 28,307,138 | $ 17,307,000 |
COST OF REVENUE | 34,553,495 | 11,554,443 |
GROSS (LOSS) PROFIT | (6,246,357) | 5,752,557 |
OPERATING EXPENSES: | ||
Selling | 1,543,889 | 901,651 |
General and administrative | 1,768,098 | 1,270,143 |
General and administrative - depreciation | 72,286 | 711,433 |
Impairment loss | 484,046 | |
Subsidy | (2,029,820) | (7,773,993) |
Total Operating (Income) Expenses | 1,838,499 | (4,890,766) |
(LOSS) INCOME FROM OPERATIONS | (8,084,856) | 10,643,323 |
OTHER INCOME (EXPENSE): | ||
Interest income | 28,131 | 1,200,126 |
Interest expense | (3,800,136) | (2,898,896) |
Foreign currency transaction (loss) | (550,293) | (366,409) |
Loss on equity method investment | (211,867) | (125,528) |
Other income (expense) | 102 | (35,540) |
Total Other Expense Income, net | (4,534,063) | (2,226,247) |
(LOSS) INCOME BEFORE INCOME TAXES | (12,618,919) | 8,417,076 |
INCOME TAXES | ||
NET (LOSS) INCOME | (12,618,919) | 8,417,076 |
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST | (972,470) | 752,386 |
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY BEFORE PREFERRED DIVIDENDS | (11,646,449) | 7,664,690 |
LESS: PREFERRED SHARE DIVIDENDS | (260,000) | |
NET (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY | (11,906,449) | 7,664,690 |
COMPREHENSIVE (LOSS) INCOME: | ||
NET (LOSS) INCOME | (12,618,919) | 8,417,076 |
Unrealized foreign currency translation (loss) gain | (1,465,867) | (1,688,439) |
COMPREHENSIVE (LOSS) INCOME | (14,084,786) | 6,728,637 |
LESS: COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST | (1,079,994) | 617,214 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY | $ (13,004,792) | $ 6,111,423 |
NET (LOSS) INCOME PER ORDINARY SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY | ||
Basic and diluted (in Dollars per share) | $ (0.15) | $ 0.1 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||
Basic and diluted (in Shares) | 81,291,531 | 79,055,053 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Preferred shares | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Loss | Non- controlling Interest | Total |
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) | 7,664,690 | 752,386 | 8,417,076 | |||||
Dividend payments for preferred shares | ||||||||
Foreign currency translation adjustment | (1,553,267) | (135,172) | (1,688,439) | |||||
Balance at Mar. 31, 2020 | $ 79,055 | 81,682,599 | 61,951,144 | 15,748,751 | (17,634,175) | 19,979,119 | 161,806,493 | |
Balance (in Shares) at Mar. 31, 2020 | 79,055,053 | |||||||
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 | |||||||
Net income (loss) | (11,646,449) | (972,470) | (12,618,919) | |||||
Issue of preferred shares | $ 4,000 | 3,694,273 | 3,698,273 | |||||
Issue of preferred shares (in Shares) | 4,000,000 | |||||||
Issue of ordinary shares | $ 3,626 | 4,347,616 | 4,351,242 | |||||
Issue of ordinary shares (in Shares) | 3,625,954 | |||||||
Dividend payments for preferred shares | $ 239 | 259,761 | (260,000) | |||||
Dividend payments for preferred shares (in Shares) | 238,865 | |||||||
Converted Series A Preferred Shares into ordinary shares | $ (2,955) | $ 2,986 | (31) | |||||
Converted Series A Preferred Shares into ordinary shares (in Shares) | (2,954,534) | 2,985,814 | ||||||
Foreign currency translation adjustment | (1,358,343) | (107,524) | (1,465,867) | |||||
Balance at Mar. 31, 2021 | $ 1,045 | $ 86,153 | $ 90,347,612 | $ (30,501,204) | $ 15,751,712 | $ (10,927,216) | $ 14,186,317 | $ 78,944,419 |
Balance (in Shares) at Mar. 31, 2021 | 1,045,466 | 86,153,061 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (12,618,919) | $ 8,417,076 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Depreciation | 3,499,224 | 3,378,428 |
Increase in allowance for doubtful accounts | (95,231) | 107,542 |
Increase (decrease) in reserve for inventories | 2,820,090 | (266,298) |
Loss on equity method investment | 211,867 | 125,528 |
Impairment loss of fishing vessels | 484,046 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 9,721,649 | (1,227,791) |
Inventories | (6,043,375) | (20,751,500) |
Prepaid expenses | (183,953) | 376,068 |
Prepaid expenses - related party | (2,311,941) | |
Other receivables | 757,321 | 566,339 |
Accounts payable | 3,752,392 | (4,837,739) |
Accrued liabilities and other payables - related party | (4,767,309) | (38,188) |
Advance from customers | 233,182 | (821,178) |
Accrued liabilities and other payables | 2,217,848 | (615,618) |
Due from related parties | (1,165,502) | |
Due to related parties | (89,819) | (332,844) |
NET CASH PROVIDED (USED IN) BY OPERATING ACTIVITIES | (2,412,928) | (17,085,677) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Prepayment made for long-term assets | (35,596,474) | |
Purchase of property, plant and equipment | (484,046) | (8,709,670) |
Proceeds from government subsidies for fishing vessels construction | 21,051,727 | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (36,080,520) | 12,342,057 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 44,722,719 | 81,960,166 |
Repayments of short-term bank loans | (41,946,826) | |
Proceeds from long-term bank loans | 45,703,933 | 8,161,628 |
Repayments of long-term bank loans | (11,500,721) | (10,961,456) |
Proceeds from issuance of ordinary shares | 4,351,242 | |
Proceeds from Issue of preferred shares | 3,698,273 | |
Advance to related party-HL | (45,721,566) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 45,024,620 | 33,438,772 |
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (1,009,483) | 195,545 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 5,525,689 | 28,890,697 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period | 10,604,599 | 10,092,205 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - end of period | 16,130,288 | 38,982,902 |
Cash paid for: | ||
Interest | 4,217,799 | 3,059,072 |
Income taxes | ||
RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS: | ||
Cash and cash equivalents | 6,362,874 | 32,763,999 |
Restricted cash | 9,767,414 | 6,218,903 |
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 16,130,288 | 38,982,902 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property and equipment acquired on credit as payable | $ (35,596,474) | $ (15,705,688) |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2021 | |
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 Accounting Standards Codification (“ASC”) 805-40, CDGC and Merchant Supreme are deemed the accounting acquirers and the Company is the legal acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of the Company. Accordingly, the assets and liabilities and the historical operations that are reflected in the consolidated financial statements are those of CDGC, Merchant Supreme and their subsidiaries and are recorded at the historical cost basis. The Company’s assets, liabilities and results of operations were consolidated with the assets, liabilities and results of operations of CDGC, Merchant Supreme and their subsidiaries subsequent to the acquisition date of February 25, 2013. Following the completion of the business combination which became effective on February 25, 2013, CDGC and Merchant Supreme became the wholly-owned subsidiaries of the Company. The ordinary shares, par value $0.001 per share, are listed on The NASDAQ Capital Market under the symbol “PME”. In order to place increased focus on 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”), together the “Pingtan Fishing’s Shareholders”), Pingtan Fishing and Pingtan Guansheng Ocean Fishing Co., Ltd. (“Pingtan Guansheng”). On February 9, 2015, the Pingtan Fishing’s Shareholders transferred 100% of their equity interest in Pingtan Fishing to Fujian Heyue Marine Fishing Development Co., Ltd. (“Fujian Heyue”), pursuant to an Equity Transfer Agreement dated February 9, 2015, entered into by and among the Pingtan Fishing’s Shareholders, Pingtan Fishing and Fujian Heyue. On February 15, 2015, China Agriculture Industry Development Fund Co., Ltd. (“China Agriculture”) invested RMB 400 million (approximately $65 million) into Pingtan Fishing for an 8% equity interest in Pingtan Fishing. After the restructuring transactions described above, Pingtan Fishing and its entities became the 92% equity-owned subsidiaries of the Company and was no longer a VIE. Details of the Company’s subsidiaries which are included in these consolidated financial statements as of March 31, 2021 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, the international waters and Arafura Sea of Indonesia. The Company had a working capital deficit of $23,133,367 as of March 31, 2021. 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 project 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. The Company meets its day-to-day working capital requirements through cash flow provided by operations, bank loans and related parties’ advances. The Indonesian government’s moratorium on fishing licenses renewals creates uncertainty over fishing operations in Indonesian waters. The Company’s forecasts and projections 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 recent years, the Company has upgraded 57 fishing vessels and 3 transport vessels, the deployment of more vessels in operation will generate more revenue and cash inflows to the Company. In addition, the Company receives subsidy for modification and rebuilding project and reimbursement of certain operating expenses from government, as an encouragement of the development of ocean fishing industry. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These interim consolidated financial statements of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures necessary for a fair presentation of these interim consolidated financial statements have been included. The results reported in the unaudited consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all information and footnotes necessary for a complete presentation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company’s unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on October 13, 2021. Use of estimates The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the three months ended March 31, 2021 and 2020 include allowance for doubtful accounts, reserve for inventories, the useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in the PRC and Hong Kong. At March 31, 2021 and December 31, 2020, cash balances in the PRC are $5,670,273 and $468,273, respectively, and cash balances in Hong Kong are $692,601 and $223,660, respectively, and are uninsured. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. Restricted cash Restricted cash consists of cash deposits held by the Export Import Bank of China to secure short term bank loans for Hong Long. At March 31, 2021 and December 31, 2020, restricted cash amounted to $9,767,414 and $9,912,666, respectively. 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, advances to suppliers, prepaid expenses, prepaid expenses – related party, other receivables, other receivables – related party, accounts payable, accounts payable – related parties, short-term bank loans, accrued liabilities and other payables, accrued liabilities and other payables – related party, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Company’s long-term bank loans under its agreements approximates its carrying value at March 31, 2021. 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 March 31, 2020, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 180 days after customers received the purchased goods. At March 31, 2021 and December 31, 2020, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $314,256 and $411,131, 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 demonstrates lower catch quantities compared to the October to January period, which is the peak season. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess of expected demand or price decreases, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. At March 31, 2021 and December 31, 2020, the Company has a reserve for inventories in the amount of $18,794,681 and $16,125,748, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales 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 approval prior to expiration to avoid interruptions of the fishing vessels’ operations. Since no fishing and using in other areas after making required changes. Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that recorded value may not be recoverable. 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 6 for discussion of equity method investment. Property, plant and equipment Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives of the assets are as follows: Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Capitalized interest Interest associated with the construction of fishing vessels is capitalized and included in the cost of the fishing vessels. When no debt is incurred specifically for the construction of a fishing vessel, interest is capitalized on amounts expended on the construction using 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 $0 and $1,476,240 for the three months ended March 31, 2021 and 2020, respectively, for 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 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. The impairment loss on vessels was $484,046 and nil for the three months ended March 31, 2021 and 2020, respectively. Revenue recognition The Company recognizes revenue from product sales in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Revenue is recognized when control of the promised goods or services, through performance obligations by the Company, is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligations. The revenue is generated from the sale of frozen fish and other marine catches. We recognize revenue at the amount we expect to be entitled to be paid, determined when control of the products is transferred to our customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and we have a right to payment. We have identified one performance obligation as the frozen fish and other marine catches identified in the contract are picked up by the customers at our cold storage warehouse, with revenue being recognized at a point in time. We initially recognize 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. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. The Company does not accept returns from customers. Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by species of fish. For the three months ended March 31, 2021 and 2020, our revenue by species of fish was as follows (dollars in thousands, except for average price): Three Months Ended March 31, 2021 Revenue Volume Average Percentage Argentina squid $ 7,554 2,294,050 $ 3.29 26.7 % Peru squid 4,545 3,394,278 1.34 16.1 % South American white shrimp 4,542 565,212 8.04 16.0 % Indian Ocean squid 3,306 3,467,580 0.95 11.7 % South American white shrimp (whole) 3,080 604,560 5.09 10.9 % Others 5,280 6,605,092 0.80 18.7 % Total $ 28,307 16,930,772 $ 1.67 100.0 % Three Months Ended March 31, 2020 Revenue Volume Average Percentage Indian Ocean squid $ 7,713 8,302,140 $ 0.93 44.6 % Cuttle fish 2,450 526,900 4.65 14.2 % Peru squid 1,983 1,104,450 1.80 11.5 % Chub mackerel 1,951 2,269,869 0.86 11.3 % Croaker fish 1,257 692,789 1.81 7.3 % Others 1,953 643,135 3.04 11.1 % Total $ 17,307 13,539,283 $ 1.28 100.0 % 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 to the income statement over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Income taxes Under the current laws of the Cayman Islands and British Virgin Islands, the Company and Merchant Supreme are not subject to any income or capital gains tax, and dividend payments that the Company may make are not subject to any withholding tax in the Cayman Islands or British Virgin Islands. Under the current laws of Hong Kong, Prime Cheer is not subject to any capital gains tax and dividend payments are not subject to any withholding tax in Hong Kong. The Company is not incorporated nor does it engage in any trade or business in the United States and is not subject to United States federal income taxes. The Company did not derive any significant amount of income subject to such taxes after completion of the Share Exchange and accordingly, no relevant tax provision is made in the accompanying unaudited consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the 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 processes a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. The new China’s Enterprise Income Tax Law (“EIT Law”) also provides that an enterprise established under the laws of foreign countries or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the new EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled “Notice Regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their Place of Effective Management.” Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company seals, minutes and files of board meetings and shareholders’ meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the new EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to May 3, 2012. In addition, Pingtan Fishing is not subject to foreign income taxes for its operations in either India or the Western and Central Pacific Fisheries Commission areas. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be effective when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations and comprehensive income (loss) in the period that includes the enactment date. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken in the tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. As of March 31, 2021 and December 31, 2020, there were no amounts that had been accrued with respect to uncertain tax positions. Shipping and handling costs Shipping and handling costs are included in selling expense and totaled $333,339 and $276,141 for the three months ended March 31, 2021 and 2020, respectively. Employee benefits The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $735,184 and $1,268,805 for the three months ended March 31, 2021 and 2020, respectively. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company and subsidiaries of Merchant Supreme and Prime Cheer is the U.S. dollar and the functional currency of the Company’s subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing is the Chinese Renminbi (“RMB”). For the subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The cumulative translation adjustment and effect of exchange rate changes on cash for the three months ended March 31, 2021 and 2020 was $1,009,483 and $195,545, respectively. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company’s revenue transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Asset and liability accounts at March 31, 2021 and December 31, 2020 were translated at 6.5713 RMB to $1.00 and at 6.5249 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2021 and 2020 were 6.4844 RMB and 6.9790 RMB to $1.00, respectively. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. Earnings per share ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net (loss) income per share are computed by dividing net (loss) income available to ordinary shareholders adjusted for preferred stock dividends accumulated by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net (loss) income adjusted for preferred stock dividends accumulated by the weighted average number of ordinary shares, ordinary share equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive ordinary shares consist of the ordinary shares issuable upon the exercise of ordinary share warrants (using the treasury stock method). Ordinary share equivalents are not included in the calculation of diluted earnings per share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net income per share: Three Months Ended 2021 2020 Net (loss) income attributable to ordinary shareholders of the Company (11,646,449 ) 7,664,690 Preferred Share Dividends (260,000 ) - Net (loss) income available to ordinary shareholders of the Company for basic and diluted net income per share of ordinary share $ (11,906,449 ) $ 7,664,690 Weighted average ordinary shares outstanding Basic and diluted 81,291,531 79,055,053 Net (loss) income per ordinary share attributable to ordinary shareholders of the Company Basic and diluted $ (0.15 ) $ 0.10 Non-controlling interest On February 15, 2015, China Agriculture invested RMB 400 million (approximately $65 million) into Pingtan Fishing and acquired an 8% equity interest in Pingtan Fishing. As of March 31, 2021, China Agriculture owned 8% of the equity interest of Pingtan Fishing, which was not under the Company’s control. Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Comprehensive (loss) income Comprehensive (loss) income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the three months ended March 31, 2021 and 2020 included net income and unrealized gain from foreign currency translation adjustments. Segment information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. All of the Company’s customers are in the PRC and all income is derived from ocean fishery. Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of March 31, 2021 and December 31, 2020. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, liquidity or results of operations. Concentrations of credit, economic and political risks The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operation in the PRC is subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances aboard, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. According to the sale agreement signed on December 4, 2013, the Company does not own 20 fishing vessels but has the 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 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. 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. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirem |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE At March 31, 2021 and December 31, 2020, accounts receivable consisted of the following: March 31, December 31, (Unaudited) Accounts receivable $ 22,536,126 $ 32,357,692 Less: allowance for doubtful accounts (314,256 ) (411,131 ) $ 22,221,870 $ 31,946,561 The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balance. Bad debt expense was $ 95,231) and $107,542 for the three months ended March 31, 2021 and 2020, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES At March 31, 2021 and December 31, 2020, inventories consisted of the following: March 31, December 31, (Unaudited) Frozen fish and marine catches in warehouse $ 47,919,372 $ 44,272,021 Frozen fish and marine catches work in progress 39,859,763 20,702,914 Frozen fish and marine catches in transit 1,329,940 18,761,950 89,109,075 83,736,885 Less: reserve for inventories (18,794,681 ) (16,125,748 ) $ 70,314,394 $ 67,611,136 Frozen fish and marine catches in warehouse represents fish inventory in cold storage warehouses located in China. Frozen fish and marine catches work in progress represents fish inventory in vessels’ refrigerators, which has not been delivered to ports in China, nor applied for duty-exemption import into China. Frozen fish and marine catches in transit represents fish inventory that obtained duty-exemption import permission and is in the process of being shipped to China. As of March 31, 2021, our total inventory balance was $70,314,394 compared to $67,611,136 as of December 31, 2020. The change in the balance is mainly attributable to an increase in frozen fish and marine catches in warehouse by $3.65 million and an increase in frozen fish and marine catches work in progress by $19.16 million, a large portion of which was booked as frozen fish and marine catches in transit as of December 31, 2020. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. The Company recorded a provision for inventory of $2,820,090 and $(266,298) for the three months ended March 31, 2021 and 2020, respectively. |
Other Receivables
Other Receivables | 3 Months Ended |
Mar. 31, 2021 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 5 – OTHER RECEIVABLES At March 31, 2021 and December 31, 2020, other receivables consisted of the following: March 31, December 31, (Unaudited) VAT recoverable (1) $ 823,021 $ 1,520,501 Other 317,344 380,593 $ 1,140,365 $ 1,901,094 (1) The balance of recoverable VAT represents input VAT available to offset the amount of VAT to be paid in the future. |
Cost Method Investment
Cost Method Investment | 3 Months Ended |
Mar. 31, 2021 | |
Cost Method Investment Line Item [Abstract] | |
COST METHOD INVESTMENT | NOTE 6 – COST METHOD INVESTMENT At March 31, 2021 and December 31, 2020, cost method investment amounted to $3,195,715 and $3,218,440, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s minority interest in Fujian Pingtan Rural-Commercial Bank Joint-Stock Co., Ltd. (“Pingtan Rural-Commercial Bank”), a private financial institution. Pingtan Fishing completed its registration as a shareholder on October 17, 2012 and paid RMB 21 million (approximately $3.0 million) to subscribe 5% of the common stock of Pingtan Rural-Commercial Bank. Pingtan Fishing held 15,113,250 shares and accounted for 4.8% investment in the total equity investment of the bank as of March 31, 2021 and December 31, 2020. In accordance with ASC 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 on this investment as of March 31, 2021 and December 31, 2020. |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | NOTE 7 – EQUITY METHOD INVESTMENT At March 31, 2021 and December 31, 2020, equity method investment amounted to $29,271,108 and $29,689,813, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s interest in Global Deep Ocean. On June 12, 2014, Pingtan Fishing incorporated Global Deep Ocean with other two unrelated companies in PRC. On April 12, 2017, another unrelated party, Zhen Lin, purchased shares from existing shareholders. As of March 31, 2021, Pingtan Fishing and Zhen Lin accounted for 20% and 80% of the total ownership, respectively. Global Deep Ocean will process, cold storage, and transport Deep Ocean fishing products. Total registered capital of Global Deep Ocean is RMB 1 billion (approximately $152.2 million) and as of March 31, 2021, Pingtan Fishing had contributed its share of registered capital of RMB 200 million (approximately $30.4 million). The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. For the three months ended March 31, 2021 and 2020, the Company’s share of Global Deep Ocean’s net loss was $211,867 and $125,528, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income (loss). |
Prepayment for Long-Term Assets
Prepayment for Long-Term Assets | 3 Months Ended |
Mar. 31, 2021 | |
Prepayment For Long Term Assets [Abstract] | |
PREPAYMENT FOR LONG-TERM ASSETS | NOTE 8 – PREPAYMENT FOR LONG-TERM ASSETS At March 31, 2021 and December 31, 2020 For the three months ended March 31, 2021, a summary of activities in prepayment for long-term assets was as follows: Prepayment Balance - December 31, 2020 $ 66,083,041 Prepayments made for fishing vessels’ construction 35,596,474 Reclassification to construction-in-progress - Foreign currency fluctuation (937,347 ) Balance – March 31, 2021-unaudited $ 100,742,168 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 9 – PROPERTY, PLANT AND EQUIPMENT Useful life March 31, December 31, (Unaudited) Fishing vessels 10 - 20 Years $ 302,626,346 $ 304,764,105 Vehicles 5 Years 23,171 23,336 Office and other equipment 3 – 5 Years 484,638 488,084 303,134,155 305,275,525 Less: accumulated depreciation (58,187,562 ) (55,120,514 ) $ 244,946,593 $ 250,155,011 On January 19, 2021, the Company received government subsidy for a batch of fishing vessels amounting to RMB 13.2 million (approximately $2.0 million), the subsidy is related to assets requiring it to be deducted from the carrying amount of the asset. For the three months ended March 31, 2021 and 2020, depreciation expense amounted to $3,499,224 and $3,378,428, respectively, of which $3,426,938 and $2,666,995, respectively, was included in cost of revenue, and the remainder was included in general and administrative expense. The Company had 81 and 82 fishing vessels at March 31, 2021 and December 31, 2020, with net carrying amount of approximately $2522.7 million and $227.3 million, respectively, pledged as collateral for its bank loans. In the first quarter of 2021, the Company assessed the recoverability of 1 krill fishing vessel that was in the building stage based on the undiscounted future cash flow that the fishing vessel is expected to generate as less than the carrying amount, and recognized an impairment loss. The impairment loss on vessels was $484,046 and nil |
Related Parties Transactions
Related Parties Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 10 – RELATED PARTIES TRANSACTIONS Accounts payable - related parties At March 31, 2021 and December 31, 2020, accounts payable - related parties consisted of the following: Name of related party March 31, December 31, (Unaudited) Hong Long (1) $ 4,159,603 $ 781,225 Global Deep Ocean - 7,602,944 Fujian Jingfu Ocean Fishery Development Co., Ltd. (2) - 1,327 Huna Lin 1,032,465 1,581,212 $ 5,192,068 $ 9,966,708 (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 These accounts payable - related parties’ amounts are short-term in nature, non-interest bearing, unsecured and payable on demand. Due to related parties At March 31, 2021 and December 31, 2020, the due to related parties amount consisted of the following: March 31, December 31, (Unaudited) Accrued compensation for LiMing Yung, Chief Financial Officer $ 15,000 $ 15,000 Accrued compensation for Xinrong Zhuo, Chief Executive Officer 3,354 3,354 $ 18,354 $ 18,354 The balance represents accrued compensation for CEO and CFO. Operating lease On July 31, 2012, the Company entered into a lease for office space with Ping Lin, spouse of the Company’s CEO (the “Office Lease”). Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately $12,000) and the renewed Office Lease expires on July 31, 2021. For the three months ended March 31, 2021 and 2020, rent expense related to the Office Lease amounted to $3,239 and $3,009, respectively. The future minimum rental payment required under the Office Lease is as follows: Twelve-month period Ending March 31: Amount 2022 $ 4,318 Purchases from related parties During the three months ended March 31, 2021 and 2020, purchases from related parties were as follows: Three Months Ended 2021 2020 (Unaudited) (Unaudited) Purchase of fuel, fishing nets and other on-board consumables Fuzhou Hong Long Ocean Fishery Co., Ltd $ 647,560 $ 428,190 Fujian Jingfu Ocean Fishery Development Co., Ltd. 461,913 - 1,109,473 428,190 Purchase of leasing Ping Lin 3,239 3,009 Purchase of labor, parking, freight and other on-board consumables service Huna Lin 3,080,682 2,989,329 |
Bank Loans
Bank Loans | 3 Months Ended |
Mar. 31, 2021 | |
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 maturities. The Company is in compliance with all debt covenants. At March 31, 2021 and December 31, 2020, short-term bank loans consisted of the following: March 31, December 31, (Unaudited) Loan from The Export-Import Bank of China, due on January 21, 2021 with annual interest rate of 3.8800% 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 Loan from Fujian Haixia Bank, due on October 29, 2021 with annual interest rate of 6.0900% at March 31, 2021 and 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%. 10,652,382 10,728,134 Loan from Fujian Haixia Bank, due on January 19, 2022 with annual interest rate of 6.0900% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. 28,913,609 - Loan from Fujian Haixia Bank, due on January 20, 2022 with annual interest rate of 6.0900% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. 15,217,690 - $ 54,783,681 $ 52,414,596 Long-term bank loans Long-term bank loans represent the amounts due to various banks lasting over one year. Usually, the long-term bank loans cannot be renewed with these banks upon maturities. The Company is in compliance with all long-term bank loan covenants. At March 31, 2021 and December 31, 2020, long-term bank loans consisted of the following: March 31, December 31, (Unaudited) Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at March 31, 2021 and December 31, 2020, 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. $ 2,282,653 $ 2,298,886 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at March 31, 2021 and December 31, 2020, 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%. 4,260,953 4,291,254 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.949% at March 31, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 51,740,143 58,238,440 Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.700% at March 31, 2021 and December 31, 2020, 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. 52,729,293 57,931,922 Loan from The Export-Import Bank of China, due on various dates until October 21, 2025 with annual interest rate of 4.700% at March 31, 2021 and December 31, 2020, 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. 49,457,489 49,809,192 Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at March 31, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50m2, the debt ratio of borrower should not be higher than 80%. 10,309,984 10,383,301 Loan from The Export-Import Bank of China, due on various dates until April 21, 2028 with annual interest rate of 4.650% at March 31, 2021 and 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. 19,782,996 19,923,677 Loan from The Export-Import Bank of China, due on various dates until December 21, 2028 with annual interest rate of 4.650% at March 31, 2021 and 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. 21,304,765 21,456,268 Loan from The Export-Import Bank of China, due on various dates until January 15, 2023 with annual interest rate of 4.000% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, and collateralized by two related parties’ investments in equity interest of one PRC local banks. 33,783,270 - Loan from The Export-Import Bank of China, due on various dates until August 21, 2022 with annual interest rate of 2.200% at March 31, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. 20,700,000 21,000,000 Loan from The Export-Import Bank of China, due on various dates until February 21, 2023 with annual interest rate of 2.200% at March 31, 2021, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin and collateralized by two related parties’ investments in equity interest of one PRC local banks and the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 11,000,000 - Loan from Bank of Communications, due on various dates until June 27, 2025 with annual interest rate of 4.650% at March 31, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd. 39,489,903 39,770,725 Total long-term bank loans $ 316,841,449 $ 285,103,665 Less: current portion (40,363,729 ) (39,987,577 ) Long-term bank loans, non-current portion $ 276,477,720 $ 245,116,088 The future maturities of long-term bank loans are as follows: Due in twelve-month periods ending March 31, Principal 2022 $ 40,363,729 2023 118,708,329 2024 55,164,123 2025 55,011,946 2026 36,065,923 Thereafter 11,527,399 $ 316,841,449 Less: current portion 40,363,729 Long-term liability $ 276,477,720 The weighted average interest rate for short-term bank loans was approximately 5.7% and 4.3% for the three months ended March 31, 2021 and 2020, respectively. The weighted average interest rate for long-term bank loans was approximately 4.1% and 4.8% for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021 and 2020, interest expense related to bank loans amounted to $ 4,217,799 and $3,142,755, respectively, of which $0 and $243,859 was capitalized to construction-in-progress, respectively. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | NOTE 12 – ACCRUED LIABILITIES AND OTHER PAYABLES At March 31, 2021 and December 31, 2020, accrued liabilities and other payables consisted of the following: March 31, December 31, (Unaudited) Accrued salaries and related benefits $ 13,552,896 $ 11,440,174 Accrued interest due 524,875 462,304 Other 406,742 249,155 $ 14,484,513 $ 12,151,633 |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2021 | |
Share Capital [Abstract] | |
SHARE CAPITAL | NOTE 13 – SHARE CAPITAL Number of Total Balance, December 31, 2020 79,302,428 $ 79,302 Issuance of shares* 3,224,679 3,225 Issuance of shares** 3,625,954 3,626 Balance, March 30, 2021 86,153,061 $ 86,153 * On January 8, 2021, the Company issued 4,000,000 of its Series A Convertible Preferred Shares, par value $0.001 per share (“Series A Preferred Shares”), at a purchase price of $1.00 per share and a stated value of $1.10 per share, in a registered direct offering. During the three months ended March 30, 2021, 2,954,534 of Series A Convertible Preferred Shares were converted to 3,224,679 ordinary shares. ** 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. 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, a number of 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 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, a number of 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. |
Certain Risks and Concentration
Certain Risks and Concentrations | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CERTAIN RISKS AND CONCENTRATIONS | NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS Credit risk At March 31, 2021 and December 31, 2020, the Company’s cash included bank deposits in accounts maintained within the PRC and Hong Kong. The Company does not experience any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Major customers The following table sets forth information as to each customer that accounted for 10% or more of the Company’s sales for the three months ended March 31, 2021 and 2020. Three Months Ended Customer 2021 2020 A 18 % * B 16 % * C 11 % * D * 14 % E * 13 % F * 10 % G * 10 % * less than 10% Six suppliers, whose outstanding accounts receivable accounted for 10% or more of the Company’s total outstanding accounts receivable at March 31, 2021, accounted for 90.1% of the Company’s total outstanding accounts receivable at March 31, 2021. Major suppliers The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended March 31, 2021 and 2020. Three Months Ended Supplier 2021 2020 A 71 % 46 % B * 30 % * less than 10% Two suppliers, whose outstanding accounts payable accounted for 83.5% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2021, accounted for 83.5% of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2021. Four suppliers, whose outstanding accounts payable accounted for 10% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2020, accounted for 89.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Severance payments The Company has employment agreements with certain employees that provided severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. The Company has estimated its possible severance payments of approximately $10,000 as of March 31, 2021 and December 31, 2020, which have not been reflected in its consolidated financial statements. Operating lease See note 10 for related party operating lease commitment. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 – SUBSEQUENT EVENTS On April 21, 2021, the Company repaid a long-term bank loan of $4.9 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. From January 8, 2021 until May 27, 2021, the purchaser converted 3,409,078 Series A Preferred Shares into 3,805,775 ordinary shares of the Company pursuant to the terms of the certificate of designation of the Preferred Shares (the “Certificate of Designation”). On May 27, 2021, the Company redeemed 590,922 Series A Preferred Shares and repurchased 793,192 ordinary shares that were converted following the failure to file the 10-K from the purchaser. The total consideration was $1,450,000, which includes the dividend payable of the preferred shares redeemed. On May 28, 2021, the Company sent an instruction letter to its transfer agent to retire the repurchased ordinary shares and resume the preferred shares to authorized but unissued preferred shares of the Company. 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 $386,529. On June 21, 2021, the Company repaid a long-term bank loan of $3.7 million to The Bank of Communications in accordance with the loan repayment schedule. On June 29, 2021, the Company received a loan of $22.4 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 $0.1 million to The Bank of Communications in accordance with the loan repayment schedule. On August 19, 2021, the Company received a subsidy of $228,265. 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 $4.3 million from The Export-Import Bank of China. The loan is due on July 1, 2023 with annual interest rate of 2.20%. 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 annual interest rate 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 annual interest rate 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 8, 2021, the Company’s Board of Directors consented the Unanimous Written Resolutions for the suspension of the construction of a krill fishing vessel and the initiation of negotiations with the shipbuilding company for the purpose of vessel construction contract termination on the basis that the construction progress of the vessel continued to be behind schedule during 2021 and the shipbuilding company may not be able to deliver the vessel as agreed. The Company recorded an impairment charge associated with the construction-in-progress of approximately $24,472,000 from this vessel in December 2020, which was included in the total impairment of assets of approximately $66,694,000. Through September 30, 2021, the Company has impaired approximately $1,471,000 of the construction costs related to the krill vessel. Although management believes this amount should be adequate, based upon further negotiation with Huanghai Shipbuilding Co., Ltd, an additional impairment charge might be necessary. On September 30, 2021, the Company received a subsidy of $17,382,557. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These interim consolidated financial statements of the Company and its subsidiaries are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures necessary for a fair presentation of these interim consolidated financial statements have been included. The results reported in the unaudited consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all information and footnotes necessary for a complete presentation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company’s unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on October 13, 2021. |
Use of estimates | Use of estimates The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the three months ended March 31, 2021 and 2020 include allowance for doubtful accounts, reserve for inventories, the useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. |
Cash | Cash Cash consists of cash on hand and cash in banks. The Company maintains cash with various financial institutions in the PRC and Hong Kong. At March 31, 2021 and December 31, 2020, cash balances in the PRC are $5,670,273 and $468,273, respectively, and cash balances in Hong Kong are $692,601 and $223,660, respectively, and are uninsured. The Company has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. |
Restricted cash | Restricted cash Restricted cash consists of cash deposits held by the Export Import Bank of China to secure short term bank loans for Hong Long. At March 31, 2021 and December 31, 2020, restricted cash amounted to $9,767,414 and $9,912,666, respectively. |
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, advances to suppliers, prepaid expenses, prepaid expenses – related party, other receivables, other receivables – related party, accounts payable, accounts payable – related parties, short-term bank loans, accrued liabilities and other payables, accrued liabilities and other payables – related party, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The fair value of the Company’s long-term bank loans under its agreements approximates its carrying value at March 31, 2021. 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 March 31, 2020, the Company does not have any assets or liabilities that are measured on a recurring basis at fair value. ASC Topic 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. |
Accounts receivable | Accounts receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balance, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 180 days after customers received the purchased goods. At March 31, 2021 and December 31, 2020, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $314,256 and $411,131, 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 demonstrates lower catch quantities compared to the October to January period, which is the peak season. An allowance is established when management determines that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess of expected demand or price decreases, the Company will record reserve for the difference between the cost and the market value. These reserves are recorded based on estimates. At March 31, 2021 and December 31, 2020, the Company has a reserve for inventories in the amount of $18,794,681 and $16,125,748, respectively. When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales 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 approval prior to expiration to avoid interruptions of the fishing vessels’ operations. Since no fishing and using in other areas after making required changes. |
Investment in unconsolidated company – Global Deep Ocean | Investment in unconsolidated company – Global Deep Ocean The Company uses the equity method of accounting for its investment in, and earning or loss of, companies that it does not control but over which it does exert significant influence. The Company considers whether the fair value of its equity method investment has declined below its carrying value whenever adverse events or changes in circumstances indicate that recorded value may not be recoverable. 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 6 for discussion of equity method investment. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The estimated useful lives of the assets are as follows: Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. |
Capitalized interest | Capitalized interest Interest associated with the construction of fishing vessels is capitalized and included in the cost of the fishing vessels. When no debt is incurred specifically for the construction of a fishing vessel, interest is capitalized on amounts expended on the construction using 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 $0 and $1,476,240 for the three months ended March 31, 2021 and 2020, respectively, for 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 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. The impairment loss on vessels was $484,046 and nil for the three months ended March 31, 2021 and 2020, respectively. |
Revenue recognition | Revenue recognition The Company recognizes revenue from product sales in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Revenue is recognized when control of the promised goods or services, through performance obligations by the Company, is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligations. The revenue is generated from the sale of frozen fish and other marine catches. We recognize revenue at the amount we expect to be entitled to be paid, determined when control of the products is transferred to our customers, which occurs upon delivery of and acceptance of the frozen fish by the customer and we have a right to payment. We have identified one performance obligation as the frozen fish and other marine catches identified in the contract are picked up by the customers at our cold storage warehouse, with revenue being recognized at a point in time. We initially recognize 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. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. The Company does not accept returns from customers. Disaggregation of revenue The following tables disaggregate revenues under ASC 606 by species of fish. For the three months ended March 31, 2021 and 2020, our revenue by species of fish was as follows (dollars in thousands, except for average price): Three Months Ended March 31, 2021 Revenue Volume Average Percentage Argentina squid $ 7,554 2,294,050 $ 3.29 26.7 % Peru squid 4,545 3,394,278 1.34 16.1 % South American white shrimp 4,542 565,212 8.04 16.0 % Indian Ocean squid 3,306 3,467,580 0.95 11.7 % South American white shrimp (whole) 3,080 604,560 5.09 10.9 % Others 5,280 6,605,092 0.80 18.7 % Total $ 28,307 16,930,772 $ 1.67 100.0 % Three Months Ended March 31, 2020 Revenue Volume Average Percentage Indian Ocean squid $ 7,713 8,302,140 $ 0.93 44.6 % Cuttle fish 2,450 526,900 4.65 14.2 % Peru squid 1,983 1,104,450 1.80 11.5 % Chub mackerel 1,951 2,269,869 0.86 11.3 % Croaker fish 1,257 692,789 1.81 7.3 % Others 1,953 643,135 3.04 11.1 % Total $ 17,307 13,539,283 $ 1.28 100.0 % |
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 to the income statement over the expected useful life in a consistent manner with the depreciation method for the relevant asset. |
Income taxes | Income taxes Under the current laws of the Cayman Islands and British Virgin Islands, the Company and Merchant Supreme are not subject to any income or capital gains tax, and dividend payments that the Company may make are not subject to any withholding tax in the Cayman Islands or British Virgin Islands. Under the current laws of Hong Kong, Prime Cheer is not subject to any capital gains tax and dividend payments are not subject to any withholding tax in Hong Kong. The Company is not incorporated nor does it engage in any trade or business in the United States and is not subject to United States federal income taxes. The Company did not derive any significant amount of income subject to such taxes after completion of the Share Exchange and accordingly, no relevant tax provision is made in the accompanying unaudited consolidated statements of operations and comprehensive income (loss). The Company’s subsidiary, Pingtan Fishing, is a qualified ocean fishing enterprise certified by the 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 processes a valid Ocean Fishing Enterprise Qualification Certificate issued by the MARA. The new China’s Enterprise Income Tax Law (“EIT Law”) also provides that an enterprise established under the laws of foreign countries or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the new EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled “Notice Regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their Place of Effective Management.” Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company seals, minutes and files of board meetings and shareholders’ meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the new EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to May 3, 2012. In addition, Pingtan Fishing is not subject to foreign income taxes for its operations in either India or the Western and Central Pacific Fisheries Commission areas. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be effective when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations and comprehensive income (loss) in the period that includes the enactment date. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken in the tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. As of March 31, 2021 and December 31, 2020, there were no amounts that had been accrued with respect to uncertain tax positions. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are included in selling expense and totaled $333,339 and $276,141 for the three months ended March 31, 2021 and 2020, respectively. |
Employee benefits | Employee benefits The Company makes mandatory contributions to the PRC government’s health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $735,184 and $1,268,805 for the three months ended March 31, 2021 and 2020, respectively. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company and subsidiaries of Merchant Supreme and Prime Cheer is the U.S. dollar and the functional currency of the Company’s subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing is the Chinese Renminbi (“RMB”). For the subsidiaries of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, whose functional currencies are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income. The cumulative translation adjustment and effect of exchange rate changes on cash for the three months ended March 31, 2021 and 2020 was $1,009,483 and $195,545, respectively. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. All of the Company’s revenue transactions are transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. Asset and liability accounts at March 31, 2021 and December 31, 2020 were translated at 6.5713 RMB to $1.00 and at 6.5249 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2021 and 2020 were 6.4844 RMB and 6.9790 RMB to $1.00, respectively. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. |
Earnings per share | Earnings per share ASC Topic 260 “Earnings per Share,” requires presentation of both basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net (loss) income per share are computed by dividing net (loss) income available to ordinary shareholders adjusted for preferred stock dividends accumulated by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net (loss) income adjusted for preferred stock dividends accumulated by the weighted average number of ordinary shares, ordinary share equivalents and potentially dilutive securities outstanding during each period. Potentially dilutive ordinary shares consist of the ordinary shares issuable upon the exercise of ordinary share warrants (using the treasury stock method). Ordinary share equivalents are not included in the calculation of diluted earnings per share if their effect would be anti-dilutive. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net income per share: Three Months Ended 2021 2020 Net (loss) income attributable to ordinary shareholders of the Company (11,646,449 ) 7,664,690 Preferred Share Dividends (260,000 ) - Net (loss) income available to ordinary shareholders of the Company for basic and diluted net income per share of ordinary share $ (11,906,449 ) $ 7,664,690 Weighted average ordinary shares outstanding Basic and diluted 81,291,531 79,055,053 Net (loss) income per ordinary share attributable to ordinary shareholders of the Company Basic and diluted $ (0.15 ) $ 0.10 |
Non-controlling interest | Non-controlling interest On February 15, 2015, China Agriculture invested RMB 400 million (approximately $65 million) into Pingtan Fishing and acquired an 8% equity interest in Pingtan Fishing. As of March 31, 2021, China Agriculture owned 8% of the equity interest of Pingtan Fishing, which was not under the Company’s control. |
Related parties | Related parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. |
Comprehensive income (loss) | Comprehensive (loss) income Comprehensive (loss) income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive income for the three months ended March 31, 2021 and 2020 included net income and unrealized gain from foreign currency translation adjustments. |
Segment information | Segment information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. All of the Company’s customers are in the PRC and all income is derived from ocean fishery. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of March 31, 2021 and December 31, 2020. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Concentrations of credit, economic and political risks | Concentrations of credit, economic and political risks The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operation in the PRC is subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances aboard, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. According to the sale agreement signed on December 4, 2013, the Company does not own 20 fishing vessels but has the 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 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. 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. The standard includes additional disclosure requirements for level 3 fair value measurements, including the requirement to disclose the changes in unrealized gains and losses in other comprehensive income during the period and permits the disclosure of other relevant quantitative information for certain unobservable inputs. The new guidance is effective for interim and annual periods beginning after December 15, 2019. We applied the new standard beginning January 1, 2020. |
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. |
Description of Business and O_2
Description of Business and Organization (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Estimated useful life Fishing vessels 10 - 20 Years Vehicles 5 Years Office and other equipment 3 - 5 Years |
Schedule of disaggregate revenues | Three Months Ended March 31, 2021 Revenue Volume Average Percentage Argentina squid $ 7,554 2,294,050 $ 3.29 26.7 % Peru squid 4,545 3,394,278 1.34 16.1 % South American white shrimp 4,542 565,212 8.04 16.0 % Indian Ocean squid 3,306 3,467,580 0.95 11.7 % South American white shrimp (whole) 3,080 604,560 5.09 10.9 % Others 5,280 6,605,092 0.80 18.7 % Total $ 28,307 16,930,772 $ 1.67 100.0 % Three Months Ended March 31, 2020 Revenue Volume Average Percentage Indian Ocean squid $ 7,713 8,302,140 $ 0.93 44.6 % Cuttle fish 2,450 526,900 4.65 14.2 % Peru squid 1,983 1,104,450 1.80 11.5 % Chub mackerel 1,951 2,269,869 0.86 11.3 % Croaker fish 1,257 692,789 1.81 7.3 % Others 1,953 643,135 3.04 11.1 % Total $ 17,307 13,539,283 $ 1.28 100.0 % |
Schedule of reconciliation of basic and diluted net income per share | Three Months Ended 2021 2020 Net (loss) income attributable to ordinary shareholders of the Company (11,646,449 ) 7,664,690 Preferred Share Dividends (260,000 ) - Net (loss) income available to ordinary shareholders of the Company for basic and diluted net income per share of ordinary share $ (11,906,449 ) $ 7,664,690 Weighted average ordinary shares outstanding Basic and diluted 81,291,531 79,055,053 Net (loss) income per ordinary share attributable to ordinary shareholders of the Company Basic and diluted $ (0.15 ) $ 0.10 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | March 31, December 31, (Unaudited) Accounts receivable $ 22,536,126 $ 32,357,692 Less: allowance for doubtful accounts (314,256 ) (411,131 ) $ 22,221,870 $ 31,946,561 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, (Unaudited) Frozen fish and marine catches in warehouse $ 47,919,372 $ 44,272,021 Frozen fish and marine catches work in progress 39,859,763 20,702,914 Frozen fish and marine catches in transit 1,329,940 18,761,950 89,109,075 83,736,885 Less: reserve for inventories (18,794,681 ) (16,125,748 ) $ 70,314,394 $ 67,611,136 |
Other Receivables (Tables)
Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Receivables [Abstract] | |
Schedule of other receivables | March 31, December 31, (Unaudited) VAT recoverable (1) $ 823,021 $ 1,520,501 Other 317,344 380,593 $ 1,140,365 $ 1,901,094 |
Prepayment for Long-Term Asse_2
Prepayment for Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Prepayment For Long Term Assets [Abstract] | |
Schedule of prepayment for long-term assets | Prepayment Balance - December 31, 2020 $ 66,083,041 Prepayments made for fishing vessels’ construction 35,596,474 Reclassification to construction-in-progress - Foreign currency fluctuation (937,347 ) Balance – March 31, 2021-unaudited $ 100,742,168 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Useful life March 31, December 31, (Unaudited) Fishing vessels 10 - 20 Years $ 302,626,346 $ 304,764,105 Vehicles 5 Years 23,171 23,336 Office and other equipment 3 – 5 Years 484,638 488,084 303,134,155 305,275,525 Less: accumulated depreciation (58,187,562 ) (55,120,514 ) $ 244,946,593 $ 250,155,011 |
Related Parties Transactions (T
Related Parties Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of accounts payable - related parties | Name of related party March 31, December 31, (Unaudited) Hong Long (1) $ 4,159,603 $ 781,225 Global Deep Ocean - 7,602,944 Fujian Jingfu Ocean Fishery Development Co., Ltd. (2) - 1,327 Huna Lin 1,032,465 1,581,212 $ 5,192,068 $ 9,966,708 |
Schedule of due to related parties | March 31, December 31, (Unaudited) Accrued compensation for LiMing Yung, Chief Financial Officer $ 15,000 $ 15,000 Accrued compensation for Xinrong Zhuo, Chief Executive Officer 3,354 3,354 $ 18,354 $ 18,354 |
Schedule of future minimum lease payments on office lease | Twelve-month period Ending March 31: Amount 2022 $ 4,318 |
Schedule of purchases from related parties | Three Months Ended 2021 2020 (Unaudited) (Unaudited) Purchase of fuel, fishing nets and other on-board consumables Fuzhou Hong Long Ocean Fishery Co., Ltd $ 647,560 $ 428,190 Fujian Jingfu Ocean Fishery Development Co., Ltd. 461,913 - 1,109,473 428,190 Purchase of leasing Ping Lin 3,239 3,009 Purchase of labor, parking, freight and other on-board consumables service Huna Lin 3,080,682 2,989,329 |
Bank Loans (Tables)
Bank Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | March 31, December 31, (Unaudited) Loan from The Export-Import Bank of China, due on January 21, 2021 with annual interest rate of 3.8800% 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 Loan from Fujian Haixia Bank, due on October 29, 2021 with annual interest rate of 6.0900% at March 31, 2021 and 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%. 10,652,382 10,728,134 Loan from Fujian Haixia Bank, due on January 19, 2022 with annual interest rate of 6.0900% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. 28,913,609 - Loan from Fujian Haixia Bank, due on January 20, 2022 with annual interest rate of 6.0900% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. 15,217,690 - $ 54,783,681 $ 52,414,596 |
Schedule of long-term bank loans | March 31, December 31, (Unaudited) Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at March 31, 2021 and December 31, 2020, 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. $ 2,282,653 $ 2,298,886 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at March 31, 2021 and December 31, 2020, 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%. 4,260,953 4,291,254 Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.949% at March 31, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. 51,740,143 58,238,440 Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.700% at March 31, 2021 and December 31, 2020, 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. 52,729,293 57,931,922 Loan from The Export-Import Bank of China, due on various dates until October 21, 2025 with annual interest rate of 4.700% at March 31, 2021 and December 31, 2020, 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. 49,457,489 49,809,192 Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at March 31, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50m2, the debt ratio of borrower should not be higher than 80%. 10,309,984 10,383,301 Loan from The Export-Import Bank of China, due on various dates until April 21, 2028 with annual interest rate of 4.650% at March 31, 2021 and 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. 19,782,996 19,923,677 Loan from The Export-Import Bank of China, due on various dates until December 21, 2028 with annual interest rate of 4.650% at March 31, 2021 and 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. 21,304,765 21,456,268 Loan from The Export-Import Bank of China, due on various dates until January 15, 2023 with annual interest rate of 4.000% at March 31, 2021, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, and collateralized by two related parties’ investments in equity interest of one PRC local banks. 33,783,270 - Loan from The Export-Import Bank of China, due on various dates until August 21, 2022 with annual interest rate of 2.200% at March 31, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. 20,700,000 21,000,000 Loan from The Export-Import Bank of China, due on various dates until February 21, 2023 with annual interest rate of 2.200% at March 31, 2021, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin and collateralized by two related parties’ investments in equity interest of one PRC local banks and the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. 11,000,000 - Loan from Bank of Communications, due on various dates until June 27, 2025 with annual interest rate of 4.650% at March 31, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd. 39,489,903 39,770,725 Total long-term bank loans $ 316,841,449 $ 285,103,665 Less: current portion (40,363,729 ) (39,987,577 ) Long-term bank loans, non-current portion $ 276,477,720 $ 245,116,088 |
Schedule of future maturities of long-term bank loans | Due in twelve-month periods ending March 31, Principal 2022 $ 40,363,729 2023 118,708,329 2024 55,164,123 2025 55,011,946 2026 36,065,923 Thereafter 11,527,399 $ 316,841,449 Less: current portion 40,363,729 Long-term liability $ 276,477,720 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other payables | March 31, December 31, (Unaudited) Accrued salaries and related benefits $ 13,552,896 $ 11,440,174 Accrued interest due 524,875 462,304 Other 406,742 249,155 $ 14,484,513 $ 12,151,633 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share Capital [Abstract] | |
Schedule of share capital | Number of Total Balance, December 31, 2020 79,302,428 $ 79,302 Issuance of shares* 3,224,679 3,225 Issuance of shares** 3,625,954 3,626 Balance, March 30, 2021 86,153,061 $ 86,153 |
Certain Risks and Concentrati_2
Certain Risks and Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Major Customers [Member] | |
Certain Risks and Concentrations (Tables) [Line Items] | |
Schedule of major customers | Three Months Ended Customer 2021 2020 A 18 % * B 16 % * C 11 % * D * 14 % E * 13 % F * 10 % G * 10 % |
Major Suppliers [Member] | |
Certain Risks and Concentrations (Tables) [Line Items] | |
Schedule of major customers | Three Months Ended Supplier 2021 2020 A 71 % 46 % B * 30 % |
Description of Business and O_3
Description of Business and Organization (Details) | Feb. 15, 2015USD ($) | Mar. 31, 2021USD ($)$ / shares | Dec. 31, 2020$ / 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 (in Dollars) | $ | $ 23,133,367 | ||||
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 |
Description of Business and O_4
Description of Business and Organization (Details) - Schedule of subsidiary and variable interest entity | 3 Months Ended |
Mar. 31, 2021 | |
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 | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 15, 2015USD ($) | Feb. 15, 2015CNY (¥) |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 6,362,874 | $ 32,763,999 | $ 691,933 | ||||
Restricted cash | 9,767,414 | 9,912,666 | |||||
Allowance for doubtful accounts | 314,256 | 411,131 | |||||
Reserve for inventories | 18,794,681 | 16,125,748 | |||||
Capitalized interest | 0 | 1,476,240 | |||||
Impairment loss on vessels | 484,046 | ||||||
Income tax at the rate | 25.00% | ||||||
Shipping and handling costs | 333,339 | 276,141 | |||||
Employee benefit costs | 735,184 | 1,268,805 | |||||
Cumulative translation adjustment and effect of exchange rate | $ 1,009,483 | $ 195,545 | |||||
Description of foreign currency translation | Asset and liability accounts at March 31, 2021 and December 31, 2020 were translated at 6.5713 RMB to $1.00 and at 6.5249 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. Equity accounts were stated at their historical rate. The average translation rates applied to the statements of operations for the three months ended March 31, 2021 and 2020 were 6.4844 RMB and 6.9790 RMB 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% | ||||||
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% | 8.00% | ||||
CHINA | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 5,670,273 | 468,273 | |||||
Income tax at the rate | 25.00% | ||||||
HONG KONG | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash balances | $ 692,601 | $ 223,660 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets | 3 Months Ended |
Mar. 31, 2021 | |
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 | 3 Months Ended | |
Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | |
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 28,307,138 | $ 17,307,000 |
Volume (KG) | 16,930,772 | 13,539,283 |
Average price (in Dollars per share) | $ / shares | $ 1.67 | $ 1.28 |
Percentage of revenue | 100.00% | 100.00% |
Argentina squid [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 7,554,000 | |
Volume (KG) | 2,294,050 | |
Average price (in Dollars per share) | $ / shares | $ 3.29 | |
Percentage of revenue | 26.70% | |
Peru Squid(Whole) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 4,545,000 | $ 1,983,000 |
Volume (KG) | 3,394,278 | 1,104,450 |
Average price (in Dollars per share) | $ / shares | $ 1.34 | $ 1.8 |
Percentage of revenue | 16.10% | 11.50% |
South American white shrimp [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 4,542,000 | |
Volume (KG) | 565,212 | |
Average price (in Dollars per share) | $ / shares | $ 8.04 | |
Percentage of revenue | 16.00% | |
Indian Ocean squid [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 3,306,000 | $ 7,713,000 |
Volume (KG) | 3,467,580 | 8,302,140 |
Average price (in Dollars per share) | $ / shares | $ 0.95 | $ 0.93 |
Percentage of revenue | 11.70% | 44.60% |
South American white shrimp (whole) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 3,080,000 | |
Volume (KG) | 604,560 | |
Average price (in Dollars per share) | $ / shares | $ 5.09 | |
Percentage of revenue | 10.90% | |
Others [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 5,280,000 | $ 1,953,000 |
Volume (KG) | 6,605,092 | 643,135 |
Average price (in Dollars per share) | $ / shares | $ 0.8 | $ 3.04 |
Percentage of revenue | 18.70% | 11.10% |
Cuttle Fish [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 2,450,000 | |
Volume (KG) | 526,900 | |
Average price (in Dollars per share) | $ / shares | $ 4.65 | |
Percentage of revenue | 14.20% | |
Chub mackerel [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 1,951,000 | |
Volume (KG) | 2,269,869 | |
Average price (in Dollars per share) | $ / shares | $ 0.86 | |
Percentage of revenue | 11.30% | |
Croaker Fish [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregate revenues [Line Items] | ||
Revenue (in Dollars) | $ | $ 1,257,000 | |
Volume (KG) | 692,789 | |
Average price (in Dollars per share) | $ / shares | $ 1.81 | |
Percentage of revenue | 7.30% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of basic and diluted net income per share - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of reconciliation of basic and diluted net income per share [Abstract] | ||
Net (loss) income attributable to ordinary shareholders of the Company | $ (11,646,449) | $ 7,664,690 |
Preferred Share Dividends | (260,000) | |
Net (loss) income available to ordinary shareholders of the Company for basic and diluted net income per share of ordinary share | $ (11,906,449) | $ 7,664,690 |
Basic and diluted (in Shares) | 81,291,531 | 79,055,053 |
Basic and diluted (in Dollars per share) | $ (0.15) | $ 0.1 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Receivables [Abstract] | ||
Bad debt expenses | $ (95,231) | $ 107,542 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 22,536,126 | $ 32,357,692 |
Less: allowance for doubtful accounts | (314,256) | (411,131) |
Accounts receivable, net | $ 22,221,870 | $ 31,946,561 |
Inventories (Details)
Inventories (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Inventories (Details) [Line Items] | |||
Total inventory balance | $ 70,314,394 | $ 67,611,136 | |
Increase in frozen fish and marine catches in warehouse | 3,650,000 | ||
Increase in frozen fish and marine catches work in progress | 19,160,000 | ||
Provision for inventory | 18,794,681 | $ 16,125,748 | |
Inventories [Member] | |||
Inventories (Details) [Line Items] | |||
Provision for inventory | $ 2,820,090 | $ (266,298) |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Frozen fish and marine catches in warehouse | $ 47,919,372 | $ 44,272,021 |
Frozen fish and marine catches work in progress | 39,859,763 | 20,702,914 |
Frozen fish and marine catches in transit | 1,329,940 | 18,761,950 |
Inventories, gross | 89,109,075 | 83,736,885 |
Less: reserve for inventories | (18,794,681) | (16,125,748) |
Total inventories | $ 70,314,394 | $ 67,611,136 |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of other receivables - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of other receivables [Abstract] | |||
VAT recoverable | [1] | $ 823,021 | $ 1,520,501 |
Other | 317,344 | 380,593 | |
Other receivables | $ 1,140,365 | $ 1,901,094 | |
[1] | The balance of recoverable VAT represents input VAT available to offset the amount of VAT to be paid in the future. |
Cost Method Investment (Details
Cost Method Investment (Details) | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Oct. 17, 2012USD ($) | Oct. 17, 2012CNY (¥) |
Cost Method Investment [Line Items] | ||||
Cost method investment | $ | $ 3,195,715 | $ 3,218,440 | ||
Pingtan Fishing [Member] | ||||
Cost Method Investment [Line Items] | ||||
Cost method investment | $ 3,000,000 | ¥ 21,000,000 | ||
Percentage of common stock subscribed | 5.00% | 5.00% | ||
Number of shares held as investment | shares | 15,113,250 | |||
Cost method investment, ownership percentage | 4.80% | 4.80% |
Equity Method Investment (Detai
Equity Method Investment (Details) ¥ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | |
Equity Method Investment (Details) [Line Items] | ||||
Equity method investment | $ 29,271,108 | $ 29,689,813 | ||
Loss on equity method investments | $ (211,867) | $ (125,528) | ||
Pingtan Fishing [Member] | ||||
Equity Method Investment (Details) [Line Items] | ||||
Percentage of ownership | 20.00% | 20.00% | ||
Total registered capital | $ 30,400,000 | ¥ 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] | ||||
Total registered capital | $ 152,200,000 | ¥ 1,000 |
Prepayment for Long-Term Asse_3
Prepayment for Long-Term Assets (Details) - Schedule of prepayment for long-term assets | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Schedule of prepayment for long-term assets [Abstract] | |
Balance at beginning | $ 66,083,041 |
Prepayments made for fishing vessels’ construction | 35,596,474 |
Reclassification to construction-in-progress | |
Foreign currency fluctuation | (937,347) |
Balance – March 31, 2021-unaudited | $ 100,742,168 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) ¥ in Millions | 1 Months Ended | 3 Months Ended | |||
Jan. 19, 2021USD ($) | Jan. 19, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Received government subsidy | $ 2,000,000 | ¥ 13.2 | |||
Depreciation expense | $ 3,499,224 | $ 3,378,428 | |||
Net carrying amount | 2,522,700,000 | $ 227,300,000 | |||
Impairment loss on vessels | 484,046 | ||||
Cost of Revenue [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 3,426,938 | $ 2,666,995 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 303,134,155 | $ 305,275,525 |
Less: accumulated depreciation | (58,187,562) | (55,120,514) |
Property, plant and equipment, net | 244,946,593 | 250,155,011 |
Fishing Vessels [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 302,626,346 | 304,764,105 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful life | 5 years | |
Property, plant and equipment, gross | $ 23,171 | 23,336 |
Office and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 484,638 | $ 488,084 |
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 | 3 Months Ended | ||
Jul. 31, 2012USD ($) | Jul. 31, 2012CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||
Office rent expenses | $ 3,239 | $ 3,009 | ||
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 $12,000) and the renewed Office Lease expires on July 31, 2021. | Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately $12,000) and the renewed Office Lease expires on July 31, 2021. | ||
Operating office lease, rent expense | $ 12,000 | ¥ 84,000 |
Related Parties Transactions _2
Related Parties Transactions (Details) - Schedule of accounts payable - related parties - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | ||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | ||||
Accounts payable - related parties | $ 5,192,068 | $ 9,966,708 | ||
Hong Long [Member] | ||||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | ||||
Accounts payable - related parties | [1] | 4,159,603 | 781,225 | |
Global Deep Ocean [Member] | ||||
Related Parties Transactions (Details) - Schedule of accounts payable - related parties [Line Items] | ||||
Accounts payable - related parties | 7,602,944 | |||
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 | $ 1,032,465 | $ 1,581,212 | ||
[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 |
Related Parties Transactions _3
Related Parties Transactions (Details) - Schedule of due to related parties - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Related Parties Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | $ 18,354 | $ 18,354 |
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 | $ 3,354 |
Related Parties Transactions _4
Related Parties Transactions (Details) - Schedule of future minimum lease payments on office lease | Mar. 31, 2021USD ($) |
Ping Lin [Member] | |
Related Parties Transactions (Details) - Schedule of future minimum lease payments on office lease [Line Items] | |
2022 | $ 4,318 |
Related Parties Transactions _5
Related Parties Transactions (Details) - Schedule of purchases from related parties - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Purchase of fuel, fishing nets and other on-board consumables | ||
Purchase of fuel, fishing nets and other on-board consumables | $ 1,109,473 | $ 428,190 |
Fuzhou Hong Long Ocean Fishery Co., Ltd [Member] | ||
Purchase of fuel, fishing nets and other on-board consumables | ||
Purchase of fuel, fishing nets and other on-board consumables | 647,560 | 428,190 |
Fujian Jingfu Ocean Fishery Development Co., Ltd. [Member] | ||
Purchase of fuel, fishing nets and other on-board consumables | ||
Purchase of fuel, fishing nets and other on-board consumables | 461,913 | |
Ping Lin [Member] | ||
Purchase of leasing | ||
Purchase of leasing | 3,239 | 3,009 |
Huna Lin [Member] | ||
Purchase of labor, parking, freight and other on-board consumables service | ||
Purchase of labor, parking, freight and other on-board consumables service | $ 3,080,682 | $ 2,989,329 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Weighted average interest rate for short-term bank loans | 5.70% | 4.30% |
Weighted average interest rate for long-term bank loans | 4.10% | 4.80% |
Interest expense | $ 4,217,799 | $ 3,142,755 |
Construction-in-Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Interest costs capitalized | $ 0 | $ 243,859 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 54,783,681 | $ 52,414,596 |
Due on January 21, 2021 [Member] | The Export-Import Bank of China [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 41,686,462 | |
Due on October 29, 2021 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 10,652,382 | 10,728,134 |
Due on January 19, 2022 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | 28,913,609 | |
Due to October 29, 2021 [Member] | Fujian Haixia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 15,217,690 |
Bank Loans (Details) - Schedu_2
Bank Loans (Details) - Schedule of short-term bank loans (Parentheticals) | 3 Months Ended |
Mar. 31, 2021 | |
Due on January 21, 2021 [Member] | The 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 |
Due on 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 |
Debt ratio of borrower | 100.00% |
Due on January 19, 2022 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Jan. 19, 2022 |
Short-term debt description | Guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road |
Debt ratio of borrower | 80.00% |
Due on January 20, 2022 [Member] | Fujian Haixia Bank [Member] | |
Short-term Debt [Line Items] | |
Annual interest rate | 6.09% |
Debt instrument, maturity date | Jan. 20, 2022 |
Short-term debt description | Guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road |
Debt ratio of borrower | 80.00% |
Bank Loans (Details) - Schedu_3
Bank Loans (Details) - Schedule of long-term bank loans - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 316,841,449 | $ 285,103,665 |
Less: current portion | (40,363,729) | (39,987,577) |
Long-term bank loans, non-current portion | 276,477,720 | 245,116,088 |
Due on January 30, 2023 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 2,282,653 | 2,298,886 |
Due on November 27, 2023 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 4,260,953 | 4,291,254 |
Due on March 28, 2025 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 51,740,143 | 58,238,440 |
Due on August 21, 2026 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 52,729,293 | 57,931,922 |
Due on October 21, 2025 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 49,457,489 | 49,809,192 |
Due on July 30, 2026 [Member] | China Development Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 10,309,984 | 10,383,301 |
Due on April 21, 2028 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 19,782,996 | 19,923,677 |
Due on December 21, 2028 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 21,304,765 | 21,456,268 |
Due on January 15, 2023 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 33,783,270 | |
Due on August 21, 2022 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 20,700,000 | 21,000,000 |
Due on February 21, 2023 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | 11,000,000 | |
Due on June 27, 2025 [Member] | Bank of Communications [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term bank loans | $ 39,489,903 | $ 39,770,725 |
Bank Loans (Details) - Schedu_4
Bank Loans (Details) - Schedule of long-term bank loans (Parentheticals) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Due on January 30, 2023 [Member] | The 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 | |
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 and 17 fishing vessels | |
Debt ratio of borrower | 80.00% | |
Due on March 28, 2025 [Member] | The 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 August 21, 2026 [Member] | The 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] | The 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., totaled area 22,123.50m2 | |
Debt ratio of borrower | 80.00% | |
Due on April 21, 2028 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | 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] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | 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 January 15, 2023 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.00% | |
Debt instrument, maturity date | Jan. 15, 2023 | |
Long-term debt, description | Guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, and collateralized by two related parties' investments in equity interest of one PRC local banks. | |
Due on August 21, 2022 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 2.20% | 2.20% |
Debt instrument, maturity date | Aug. 21, 2022 | |
Long-term debt, description | Guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. | |
Due on February 21, 2023 [Member] | The Export-Import Bank of China [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 2.20% | 2.20% |
Debt instrument, maturity date | Feb. 21, 2023 | |
Long-term debt, description | guaranteed by Hong Long, Xinrong Zhuo and Pin Lin and collateralized by two related parties’ investments in equity interest of one PRC local banks and the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. | |
Due on June 27, 2025 [Member] | Bank of Communications [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate | 4.65% | 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 ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of future maturities of long-term bank loans [Abstract] | ||
2022 | $ 40,363,729 | |
2023 | 118,708,329 | |
2024 | 55,164,123 | |
2025 | 55,011,946 | |
2026 | 36,065,923 | |
Thereafter | 11,527,399 | |
Total long-term bank loans | 316,841,449 | $ 285,103,665 |
Less: current portion | 40,363,729 | 39,987,577 |
Long-term liability | $ 276,477,720 | $ 245,116,088 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - Schedule of accrued liabilities and other payables - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of accrued liabilities and other payables [Abstract] | ||
Accrued salaries and related benefits | $ 13,552,896 | $ 11,440,174 |
Accrued interest due | 524,875 | 462,304 |
Other | 406,742 | 249,155 |
Accrued liabilities and other payables | $ 14,484,513 | $ 12,151,633 |
Share Capital (Details)
Share Capital (Details) - $ / shares | Mar. 08, 2021 | Jan. 08, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Share Capital (Details) [Line Items] | ||||
Convertible Preferred Shares | 3,625,954 | 2,954,534 | ||
Convertible preferred shares, par value | $ 0.001 | $ 0.001 | ||
stated value, per share | $ 1.31 | |||
Warrant shares | 2,719,464 | |||
Price per share | $ 1.31 | |||
Number of warrants purchased | 253,816 | 149,733 | ||
Exercise price per share | $ 1.87 | |||
Warrant 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. | |||
Warrant exercise price per share | $ 1.31 | |||
Series A Preferred Shares [Member] | ||||
Share Capital (Details) [Line Items] | ||||
Convertible Preferred Shares | 4,000,000 | |||
Convertible preferred shares, par value | $ 0.001 | |||
Purchase price | 1 | |||
stated value, per share | $ 1.1 | |||
Preferred shares description | 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 $0.44, subject to certain adjustments. | |||
Dividend percentage | 8.00% | |||
Series A Convertible Preferred Shares [Member] | ||||
Share Capital (Details) [Line Items] | ||||
Convertible Preferred Shares | 3,224,679 |
Share Capital (Details) - Sched
Share Capital (Details) - Schedule of share capital | 3 Months Ended | |
Mar. 31, 2021USD ($)shares | ||
Schedule of share capital [Abstract] | ||
Balance | shares | 79,302,428 | |
Balance | $ | $ 79,302 | |
Issuance of shares* | shares | 3,224,679 | [1] |
Issuance of shares* | $ | $ 3,225 | [1] |
Issuance of shares** | shares | 3,625,954 | [2] |
Issuance of shares** | $ | $ 3,626 | [2] |
Balance | shares | 86,153,061 | |
Balance | $ | $ 86,153 | |
[1] | On January 8, 2021, the Company issued 4,000,000 of its Series A Convertible Preferred Shares, par value $0.001 per share (“Series A Preferred Shares”), at a purchase price of $1.00 per share and a stated value of $1.10 per share, in a registered direct offering. | |
[2] | 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. |
Certain Risks and Concentrati_3
Certain Risks and Concentrations (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 10.00% | ||
Accounts Receivable [Member] | |||
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 10.00% | ||
Major Customers [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% | 90.10% | |
Number of customer | 6 | ||
Major Suppliers [Member] | |||
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 10.00% | ||
Major Suppliers [Member] | Accounts Receivable [Member] | |||
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 10.00% | 10.00% | |
Major Suppliers [Member] | Accounts Payable Related Party [Member] | |||
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 10.00% | ||
Number of suppliers | 4 | ||
Percentage of total outstanding accounts payable related parties | 89.00% | ||
Major Suppliers [Member] | Accounts Payable Related Party [Member] | |||
Certain Risks and Concentrations (Details) [Line Items] | |||
Outstanding accounts receivable | 83.50% | ||
Number of suppliers | 2 | ||
Percentage of total outstanding accounts payable related parties | 83.50% |
Certain Risks and Concentrati_4
Certain Risks and Concentrations (Details) - Schedule of major customers | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 18.00% | [1] | ||
Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 16.00% | [1] | ||
Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | 11.00% | [1] | ||
Customer D [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 14.00% | ||
Customer E [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 13.00% | ||
Customer F [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 10.00% | ||
Customer G [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, Percentage | [1] | 10.00% | ||
[1] | less than 10% |
Certain Risks and Concentrati_5
Certain Risks and Concentrations (Details) - Schedule of major suppliers | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, Percentage | 71.00% | 46.00% | |
Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, Percentage | [1] | 30.00% | |
[1] | less than 10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Severance Costs | $ 10,000 | $ 10,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Sep. 30, 2021 | Sep. 15, 2021 | Sep. 10, 2021 | Sep. 08, 2021 | Sep. 02, 2021 | Aug. 19, 2021 | Jun. 29, 2021 | Jun. 17, 2021 | May 27, 2021 | May 27, 2021 | Dec. 31, 2020 | Jul. 01, 2023 | Sep. 21, 2021 | Aug. 21, 2021 | Jul. 21, 2021 | Jun. 21, 2021 | Jun. 18, 2021 | May 12, 2021 | Apr. 21, 2021 | Jan. 08, 2021 |
Subsequent Events (Details) [Line Items] | ||||||||||||||||||||
Repaid a long-term bank loan | $ 4,400,000 | $ 1,200,000 | $ 6,100,000 | $ 4,800,000 | $ 100,000 | $ 3,700,000 | $ 1,000,000 | $ 800,000 | $ 4,900,000 | |||||||||||
Convertion of preferred stock (in Shares) | 3,805,775 | 3,805,775 | 3,409,078 | |||||||||||||||||
Repurchased ordinary shares (in Shares) | 793,192 | |||||||||||||||||||
Total consideration | $ 1,450,000 | |||||||||||||||||||
Subsidy amount | $ 17,382,557 | $ 228,265 | $ 386,529 | |||||||||||||||||
Interest amount description | On June 29, 2021, the Company received a loan of $22.4 million from The Export-Import Bank of China. The loan is due on June 21, 2028 with interest of 4.65%. | |||||||||||||||||||
Short term loan amount | $ 400,000 | |||||||||||||||||||
Loans Received | $ 4,400,000 | $ 1,100,000 | $ 4,300,000 | |||||||||||||||||
Annual interest rate | 2.20% | |||||||||||||||||||
Impairment charge | $ 24,472,000 | |||||||||||||||||||
Impairment of assets | $ 66,694,000 | |||||||||||||||||||
Impairment loss on krill vessel | $ 1,471,000 | |||||||||||||||||||
Forecast [Member] | ||||||||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||||||||
Annual interest rate | 2.20% | |||||||||||||||||||
Forecast [Member] | Export-Import Bank of China [Member] | ||||||||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||||||||
Annual interest rate | 2.20% | |||||||||||||||||||
Series A Preferred Shares [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||||||||
Issuance of shares (in Shares) | 590,922 | 590,922 |