| 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 consolidated
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, as amended, for the year ended December 31, 2020 filed with the Securities
and Exchange Commission on October 13, 2021. Going concern The Company had a working capital deficit of $102,268,349
as of September 30, 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 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 68 fishing vessels and 3 transport vessels, the deployment of these vessels into operation
will generate more revenue and cash inflows to the Company. In addition, the Company receives subsidies for modification and rebuilding
projects and is reimbursed for certain operating expenses from government entities, as an encouragement of the development of ocean fishing
industry. Use of estimates The preparation of the unaudited consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting
period. Actual results could materially differ from these estimates. Significant estimates in the three and nine months ended September
30, 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 China's mainland and Hong Kong. At September 30, 2021 and December 31,
2020, cash balances in China's mainland were $15,716,960 and $468,273, respectively, and cash balances in Hong Kong were $39,333 and $223,660,
respectively, and are not fully insured. According to the "Deposit Protection Scheme Regulations" implemented in Hong Kong in
September 2006 and the "Deposit Insurance Regulations" implemented in China's mainland in February 2015, if a bank fails, companies
can receive up to HK$500,000 and RMB500,000 in compensation, respectively. The Company has not experienced any losses in bank accounts
and believes it is not exposed to any risks on its cash in bank accounts. Restricted cash Restricted cash consists of cash deposits held
by the Export Import Bank of China to secure its bank loans and Hong Long’s short-term bank loans. At September 30, 2021 and December
31, 2020, restricted cash amounted to $13,018,350 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. 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 creditworthiness 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 September 30, 2021 and December 31, 2020,
the Company had established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $1,168,466
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. A reserve is established when management determines
that certain inventories may not be saleable. If inventory costs exceed net realizable value due to obsolescence or quantities in excess
of expected demand or price decreases, the Company will record a reserve for the difference between the cost and the market value. These
reserves are recorded based on estimates. At September 30, 2021 and December 31, 2020, the Company has a reserve for inventories in the
amount of $16,962,451 and $16,125,749, respectively. Inventory reserves are intended to reduce the
carrying value of inventories to their net realizable value. The Company regularly evaluates its ability to realize the value of inventories
based on a combination of factors including: 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 to carry out ocean fishing projects in international waters.
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. 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 usually owns 20% to 50% 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 7 for discussion of the equity 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 operation in the year of disposition. The Company examines
the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded
value may not be recoverable. The estimated useful lives of the assets are as
follows:
Estimated
Fishing vessels 10 - 20 Years
Vehicles 5 Years
Office and other equipment 3 - 5 Years Expenditures for repairs and maintenance, which
do not extend the useful life of the assets, are expensed as incurred. Capitalized interest Interest associated with the construction of fishing vessels is capitalized
and included in the cost of the fishing vessels. When no debt is incurred specifically for the construction of a fishing vessel, interest
is capitalized on amounts expended on the construction using the weighted-average cost of the Company’s outstanding borrowings.
Capitalization of interest ceases when the construction is substantially complete, or the construction activity is suspended for more
than a brief period. The Company capitalized interest of nil nil Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets
for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.
The Company evaluates the impairment by comparing the carrying amount of the assets to an estimate of future undiscounted cash flows expected
to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is
less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the
long-lived assets over their fair value. Impairment loss represents the impairment loss on the vessels whenever events or changes in circumstances
indicate that the carrying amount of the assets might not be recovered. The Company recognized impairment loss of $495,857 and nil nil 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 the vessel construction contract termination on the
basis that the construction progress 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. As of September 30, 2021, the Company was in negotiations with the shipbuilding company regarding the details
of the return of the prepaid shipbuilding payments. 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
being when 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 Topic 606 by species of fish. For the three months ended September 30, 2021 and 2020, our revenue by species of fish was as follows
(dollars in thousands, except for average price):
Three Months Ended September 30, 2021
Revenue Volume Average Percentage
Argentina squid $ 9,587 2,960,703 $ 3.24 26.6 %
Indian Ocean squid 7,872 8,108,747 0.97 21.8 %
Sardine 4,262 10,240,299 0.42 11.8 %
South American white shrimp (whole) 3,584 688,152 5.21 9.9 %
Chub mackerel 2,915 3,935,434 0.74 8.1 %
Other 7,884 4,942,466 8.35 21.8 %
Total $ 36,104 30,875,800 $ 1.17 100.0 %
Three Months Ended September 30, 2020
Revenue Volume Average Percentage
Indian Ocean squid $ 6,071 7,285,134 $ 0.83 39.3 %
Peru squid 4,685 3,382,517 1.39 30.3 %
Chub mackerel 981 1,030,773 0.95 6.4 %
Tuna 662 184,867 3.58 4.3 %
Sardine 649 1,743,914 0.37 4.2 %
Others 2,400 1,070,101 2.24 15.5 %
Total $ 15,448 14,697,306 $ 1.05 100.0 % The following tables disaggregate revenues under
ASC Topic 606 by species of fish. For the nine months ended September 30, 2021 and 2020, our revenue by species of fish was as follows
(dollars in thousands, except for average price):
Nine Months Ended September 30, 2021
Revenue Volume Average Percentage
Argentina squid $ 22,176 6,872,403 $ 3.23 21.9 %
Indian Ocean squid 18,574 18,968,099 0.98 18.3 %
South American white shrimp (whole) 16,449 3,251,646 5.06 16.2 %
Peru squid 13,984 10,519,823 1.33 13.8 %
Chub mackerel 7,934 8,145,864 0.97 7.8 %
Others 22,159 24,086,521 0.92 22.0 %
Total $ 101,276 71,844,356 $ 1.41 100.0 %
Nine Months Ended September 30, 2020
Revenue Volume Average Percentage
Indian Ocean squid $ 25,892 30,557,785 $ 0.85 46.1 %
Peru squid 9,523 6,436,282 1.48 16.9 %
Chub mackerel 4,996 5,585,977 0.89 8.9 %
Cuttle fish 4,554 1,024,960 4.44 8.1 %
Croaker fish 3,367 1,861,511 1.81 6.0 %
Others 7,886 4,524,509 1.74 14.0 %
Total $ 56,218 49,991,024 $ 1.12 100.0 % 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 Ministry of Agriculture and Rural Affairs of the PRC (“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 China’s Enterprise Income Tax Law (“EIT
Law”), which went into effect on January 1, 2018, also provides that an enterprise established under the laws of foreign countries
or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes
and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the new EIT Law
merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the
overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company
is located.” On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled “Notice Regarding
Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their Place of Effective
Management.” Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC
resident enterprise if (i) the senior management and the core management departments in charge of its daily operations mainly function
in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions
in the PRC; (iii) its major assets, accounting books, company seals, minutes and files of board meetings and shareholders’ meetings
are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the
PRC. Based on a review of surrounding facts and circumstances, the Company does not believe that it is likely that its operations outside
of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history
of the EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on
worldwide income at a uniform tax rate of 25% retroactive to May 3, 2012. In addition, Pingtan Fishing is not subject to
foreign income taxes for its operations in either India or the Western and Central Pacific Fisheries Commission areas. Deferred income tax assets and liabilities are
determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted
tax rates and laws that will be effective when the differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance to the extent that management concludes it is more likely than not that the assets will not be realized. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the
consolidated statements of operations and comprehensive income (loss) in the period that includes the enactment date. The Company prescribes a more-likely-than-not
threshold for financial statement recognition and measurement of a tax position taken in the tax return. This interpretation also provides
guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities,
accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures.
As of September 30, 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 amounted
to $213,891 and $35,397 for the three months ended September 30, 2021 and 2020, respectively. Shipping and handling costs amounted to
$258,311 and $356,490 for the nine months ended September 30, 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 amounted to $1,340,598 and $606,825 for the three months ended September 30, 2021 and 2020, respectively.
Employee benefit costs amounted to $2,970,449 and $1,795,348 for the nine months ended September 30, 2021 and 2020, respectively. Foreign currency translation The reporting currency of the Company is the U.S.
dollar. The functional currency of the Company and Merchant Supreme and Prime Cheer, the Company’s subsidiaries, is the U.S. dollar.
The functional currency of Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, the Company’s subsidiaries, is the Chinese Renminbi
(“RMB”). For the Company’s subsidiaries Pingtan Guansheng, Fujian Heyue and Pingtan Fishing, whose functional currencies
are the RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are
translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result,
amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the
corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial
statements into U.S. dollars are included in determining comprehensive income. The cumulative translation adjustment and effect of exchange
rate changes on cash for the nine months ended September 30, 2021 and 2020 was $2,622,688 and $935,670, respectively. Transactions denominated
in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and
liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance
sheet date and any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other
than the functional currency are included in the results of operations as incurred. All the Company’s revenue transactions are
transacted in the functional currency of the operating subsidiaries. The Company does not enter into any material transactions in foreign
currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of
the Company. Asset and liability accounts at September 30,
2021 and December 31, 2020 were translated at 6.4854 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 nine months ended September 30, 2021 and 2020 were 6.4714 RMB and 6.9917 RMB to $1.00, respectively. The average
translation rates applied to the statements of operations for three months ended September 30, 2021 and 2020 were 6.4707 RMB and 6.9205
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 (loss) 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 dilutive securities.
Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or
converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic net income per share is computed by dividing
net income (loss) 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 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 Nine Months Ended
2021 2020 2021 2020
Net income (loss) attributable to ordinary shareholders of the Company 2,584,624 689,184 (9,155,641 ) 6,777,864
Preferred Share Dividends - - (300,000 ) -
Net income (loss) available to ordinary shareholders of the company for basic and diluted net income per share of ordinary shares $ 2,584,624 $ 689,184 $ (9,455,641 ) $ 6,777,864
Weighted average ordinary shares outstanding
Basic 86,389,548 79,071,363 83,854,623 79,060,490
Diluted 86,797,148 79,071,363 83,854,623 79,060,490
Net income per ordinary share attributable to ordinary shareholders of the Company
Basic $ 0.03 $ 0.01 $ (0.11 ) $ 0.09
Diluted $ 0.03 $ 0.01 $ (0.11 ) $ 0.09 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 September
30, 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 ordinary shareholders of the Company, its management, members of the immediate families
of principal ordinary shareholders of the Company and its management and other parties with which the Company may deal with if one party
controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Comprehensive income (loss) Comprehensive income (loss) is comprised of net
income (loss) and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes
in paid-in capital and distributions to stockholders. For the Company, comprehensive income (loss) for the three and nine months ended
September 30, 2021 and 2020 included net income (loss) and unrealized gain from foreign currency translation adjustments. Segment information ASC Topic 280 “Segment reporting”
establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s
operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. All of the Company’s
customers are in the PRC and all income is derived from ocean fishery. Commitments and contingencies In the normal course of business, the Company
is subject to contingencies, including legal proceedings and environmental claims, arising out of the normal course of businesses that
relate to a wide range of matters, including among others, liability for breaches of contracts. The Company records accruals for such
contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management
may consider many factors in making these assessments, including historical operations, scientific evi |
