Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | KBS Fashion Group Ltd |
Entity Central Index Key | 0001546383 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | 1T |
Entity File Number | 001-35715 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,591,299 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Revenue | $ 16,465,562 | $ 18,535,115 | $ 23,762,536 |
Cost of sales | (10,714,519) | (20,851,252) | (35,274,352) |
Gross profit | 5,751,043 | (2,316,137) | (11,511,816) |
Other income | 291,582 | 122,139 | 461,564 |
Other gains and (losses) | (1,064,588) | (13,522,300) | (122,243) |
Distribution and selling expenses | (1,094,391) | (2,670,955) | (3,265,380) |
Administrative expenses | (3,478,258) | (4,907,020) | (4,879,397) |
Profit (loss) from operations | 405,388 | (23,294,273) | (19,317,272) |
Finance costs | (67,203) | (96,444) | (96,385) |
Change in fair value of warrant liabilities | |||
Loss before tax | 338,185 | (23,390,717) | (19,413,657) |
Income tax income/(expense) | (442,590) | 5,422,119 | 4,598,061 |
Loss for the year | (104,405) | (17,968,598) | (14,815,596) |
Other comprehensive loss | |||
-currency translation differences | (951,780) | (3,071,697) | 4,810,715 |
Total comprehensive loss for the year | $ (1,056,185) | $ (21,040,295) | $ (10,004,881) |
Loss per share of common stock attributable to the Company | |||
-Basic | $ 0 | $ (8.06) | $ (7.96) |
-Diluted | $ 0 | $ (8.06) | $ (7.96) |
Weighted average shares outstanding: | |||
-Basic | 2,517,491 | 2,229,915 | 1,860,831 |
-Diluted | 2,517,491 | 2,229,915 | 1,860,831 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | ||
Property, plant and equipment-net | $ 6,083,966 | $ 12,173,808 |
Investment property-net | 5,099,178 | |
Prepayments and premiums under operating leases | 2,261,153 | 2,371,735 |
Land use rights | 579,900 | 603,503 |
Deferred tax assets | 14,330,463 | 14,688,829 |
Non-current assets | 28,354,660 | 29,837,875 |
Current assets | ||
Inventories | 1,442,260 | 1,245,800 |
Trade receivables | 10,475,766 | 8,122,223 |
Other receivables and prepayments | 120,298 | 855,473 |
Prepayments and premiums under operating leases | 75,318 | 78,532 |
Cash and cash equivalents | 20,620,478 | 21,026,103 |
Current assets | 32,734,120 | 31,328,131 |
Total assets | 61,088,780 | 61,166,006 |
Current liabilities | ||
Short term bank loans | 1,075,084 | 1,092,783 |
Trade and other payables | 4,578,419 | 5,278,460 |
Due to related parties | 560,165 | 445,614 |
Contract liabilities | 173,919 | 47,828 |
Income tax payable | 256,808 | |
Current liabilities | 6,644,394 | 6,864,685 |
Non-current liability | ||
Warrant liabilities | ||
Non-current liabilities | ||
Total liabilities | 6,644,394 | 6,864,685 |
Equity | ||
Share capital | 259 | 227 |
Share premium | 9,199,779 | 8,000,561 |
Revaluation reserve | 184,272 | 184,272 |
Statutory surplus reserve | 6,084,836 | 6,084,836 |
Retained profits | 46,073,808 | 46,178,213 |
Foreign currency translation reserve | (7,098,568) | (6,146,788) |
Total equity | 54,444,386 | 54,301,321 |
Total liabilities and equity | $ 61,088,780 | $ 61,166,006 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Share capital | Share premium | Revaluation reserve | Statutory surplus reserve | Retained profits | Foreign currency translation reserve | Total |
Beginning balance at Dec. 31, 2016 | $ 177 | $ 6,056,240 | $ 184,272 | $ 6,084,836 | $ 78,962,407 | $ (7,885,806) | $ 83,402,126 |
Shares issued for stock based compensation | 21 | 629,929 | 629,950 | ||||
Loss for the year | (14,815,596) | (14,815,596) | |||||
Other comprehensive income/loss for the year | 4,810,715 | 4,810,715 | |||||
Ending balance at Dec. 31, 2017 | 198 | 6,686,169 | 184,272 | 6,084,836 | 64,146,811 | (3,075,091) | 74,027,195 |
Shares issued for stock based compensation | 29 | 1,314,392 | 1,314,421 | ||||
Loss for the year | (17,968,598) | (17,968,598) | |||||
Other comprehensive income/loss for the year | (3,071,697) | (3,071,697) | |||||
Ending balance at Dec. 31, 2018 | 227 | 8,000,561 | 184,272 | 6,084,836 | 46,178,213 | (6,146,788) | 54,301,321 |
Shares issued for stock based compensation | 32 | 1,199,218 | 1,199,250 | ||||
Loss for the year | (104,405) | (104,405) | |||||
Other comprehensive income/loss for the year | (951,780) | (951,780) | |||||
Ending balance at Dec. 31, 2019 | $ 259 | $ 9,199,779 | $ 184,272 | $ 6,084,836 | $ 46,073,808 | $ (7,098,568) | $ 54,444,386 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Profit/(loss) for the year | $ (104,405) | $ (17,968,598) | $ (14,815,596) |
Adjustments for: | |||
Share-based payment | 1,199,250 | 1,314,420 | 629,950 |
Finance cost | 67,203 | 96,444 | 96,385 |
Interest income | (62,538) | (71,693) | (81,517) |
Depreciation of property, plant and equipment | 671,262 | 1,521,725 | 1,510,213 |
Amortization of prepaid lease payments and trademark | 13,992 | 14,545 | 14,307 |
Amortization of subsidies prepaid to distributors | 401,259 | ||
Amortization of prepayments and premiums under operating leases | 96,743 | 107,088 | 105,340 |
Provision/(reversal) of inventory obsolescence | (145,747) | 196,124 | 101,256 |
Bad debt provision of trade receivables | 1,028,972 | ||
Gain/(loss) on disposal of property, plant and equipment | (2,093) | 940 | 2,418 |
Provision of impairment loss in property, plant and equipment | 13,311,557 | ||
Operating cash flows before movements in working capital | 2,762,639 | (1,477,448) | (12,035,985) |
(Increase)/ decrease in trade and other receivables | (3,554,014) | 1,941,336 | 13,983,781 |
(Increase)/ decrease in inventories | (219,210) | 294,204 | 669,923 |
Increase/ (decrease) in trade and other payables | (641,494) | 2,036 | 522,839 |
Increase/ (decrease) in income tax payable | 259,855 | (263,333) | |
(Increase)/ decrease in deferred tax assets | 124,274 | (5,422,119) | (4,598,061) |
Prepayments and premiums paid under operating leases | 709,146 | 958,638 | 3,645,471 |
CASH (USED IN) GENERATED FROM OPERATING ACTIVITIES | (558,804) | (3,703,353) | 1,924,635 |
Income tax paid | (2,385) | ||
NET CASH FROM/(USED IN) OPERATING ACTIVITIES | (558,804) | (3,703,353) | 1,922,250 |
INVESTING ACTIVITIES | |||
Interest received | 62,538 | 71,693 | 81,517 |
Purchase of property, plant and equipment | 269,975 | (18,761) | (946,882) |
NET CASH (USED IN)/FROM INVESTING ACTIVITIES | 332,513 | 52,932 | (865,365) |
FINANCING ACTIVITIES | |||
Interest paid | (67,203) | (96,444) | (96,385) |
New bank loans raised | 1,087,839 | 1,130,840 | 1,557,336 |
Repayment of borrowings | (1,087,839) | (1,583,175) | (1,557,336) |
Advance from related party | 124,292 | 299,542 | 387,030 |
Repayment to related party | (7,633) | (1,386,555) | |
NET CASH FROM/(USED IN) FINANCING ACTIVITIES | 57,089 | (256,870) | (1,095,910) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (169,202) | (3,907,291) | (39,025) |
Effects of currency translation | (236,423) | (1,117,062) | 1,513,140 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 21,026,103 | 26,050,456 | 24,576,341 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 20,620,478 | $ 21,026,103 | $ 26,050,456 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2019 | |
General Information [Abstract] | |
GENERAL INFORMATION | 1. GENERAL INFORMATION On January 26, 2012, Aquasition Investments Corp ("Company") was organized as a blank check company pursuant to the laws of the Republic of the Marshall Islands for the purpose of acquiring through a merger, capital stock exchange, asset acquisition, stock purchase, or similar acquisition transaction, one or more operating businesses or assets. On March 24, 2014, the Company entered into a Share Exchange Agreement and Plan of Liquidation (the "Agreement") among KBS International Holdings, Inc. ("KBS"), a Nevada corporation, Hongri International Holdings Ltd ("Hongri"), a company organized under the laws of the British Virgin Islands, and Cheung So Wa and Chan Sun Keung, the principal shareholders of KBS. On August 1, 2014, the share exchange was completed. In order to align with the brand and operations of the entities acquired pursuant to the Agreement, the Company changed its name from Aquasition Investments Corp to KBS Fashion Group Limited. The Company's units which are comprised of one share of common stock and one warrant are traded on the NASDAQ Capital Markets. The Company's trading symbol is KBSF. The acquisition was accounted for as a reverse merger and recapitalization where the Company, the legal acquirer is the accounting acquiree, and KBS, the legal acquiree, was the accounting acquirer. Description of Subsidiaries: Hongri International Holdings Limited (the "Hongri"), formerly known as Wah Ying International Investment Inc., was incorporated in the British Virgin Islands (the "BVI") on July 8, 2008 as a limited liability company with authorized share capital of $50,000, divided into 50,000 common shares with $1 par value. Up through December 31, 2010, 10,000 common shares had been issued at par. On January 27, 2011, the Company issued an additional 10,000 common shares for cash consideration at $77 per share. The principal activity of the Company is investment holding. Hongri a directly wholly owned subsidiary of the Company. France Cock (China) Limited ("France Cock") was incorporated in Hong Kong on September 21, 2005 as a limited liability company with authorized capital of HK$10,000, divided into 10,000 common shares with par value of HK$1. The capital has been fully paid up. The principal activity of France Cock is the holding of intellectual property rights such as trademarks. France Cock owns the Company's trademarks, including "KBS" and "Kabiniao". France Cock is a directly wholly owned subsidiary of Hongri. Roller Rome Limited ("Roller Rome") was incorporated in the BVI on March 28, 2006 as a limited liability company with authorized share capital of $50,000, divided into 50,000 common shares with par value of $1. The principal activity of Roller Rome is the provision of design and development services for sports apparel. Roller Rome is a directly wholly owned subsidiary of Hongri. Vast Billion Investment Limited ("Vast Billion") was incorporated in Hong Kong on November 25, 2010 as a limited liability company with authorized share capital of HK$10,000 divided into 10,000 ordinary shares with HK$1par value. One ordinary share has been issued at par. Vast Billion is an investment holding company, and is a directly wholly owned subsidiary of Hongri. Hongri (Fujian) Sports Goods Co. Ltd. ("Hongri Fujian") was established in the People's Republic of China (the "PRC") on November 17, 2005 with a registered and paid up capital of RMB 5,000,000. On March 24, 2011, Hongri Fujian increased registered capital from RMB 70,000,000 to RMB75,000,000. As of September 30, 2011, the paid up capital was RMB 39,551,860. Hongri Fujian is engaged in the design, manufacture, marketing, and sale of apparel in the PRC. Hongri Fujian is a directly wholly owned subsidiary of Vast Billion. Anhui Kai Xin Apparel Company Limited ("Anhui Kai Xin") was established in the PRC on March 16, 2011 with a registered and paid up capital of RMB 1,000,000. Anhui Kai Xin is a wholly owned subsidiary of Hongri Fujian. Anhui Kai Xin provides contracting manufacturing services for companies in the sports apparel business. |
Group Organization and Basis of
Group Organization and Basis of Presentation of Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Group Organization and Basis of Presentation of Consolidated Financial Statements [Abstract] | |
GROUP ORGANIZATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 2. GROUP ORGANIZATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS The Group structure as at the reporting date is as follows: |
Application of New and Revised
Application of New and Revised International Financial Reporting Standards ("IFRS") | 12 Months Ended |
Dec. 31, 2019 | |
Application of New and Revised International Financial Reporting Standards ("IFRS") [Abstract] | |
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") | 3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") For the year ended December 31, 2019 the Company has consistently adopted all the new and revised standards, amendments and interpretations (collectively IFRSs) issued by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee (formerly known as "International Financial Reporting Interpretations Committee" ("IFRIC")) of the IASB that are effective for financial year beginning on January 1, 2019 in the preparation of the consolidated financial statements throughout the year. For the year ended December 31, 2019, the following new and revised standards, amendments or interpretations that have become effective during the reporting period. IFRS 16 Lease Amendment to IAS 19 Employee Benefits Amendments to IFRS 3 Business Combinations and IFRS 11 Joint Operations Amendment to IFRS 9 Financial Instruments Amendment to IAS 12 Income Taxes Amendment to IAS 23 Borrowing Costs The adoption of the above new and revised standards had no significant financial effect on these financial statements. |
Signifcant Accounting Policies
Signifcant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Signifcant Accounting Policies [Abstract] | |
SIGNIFCANT ACCOUNTING POLICIES | SIGNIFCANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation The consolidated financial statements have been prepared on the historical cost basis and in accordance with IFRS as issued by the IASB. The principal accounting policies are set out below. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. Foreign currencies Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The Group conducts its business predominately in the PRC and hence its functional currency is the Renminbi (RMB). Translation from RMB to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= RMB 6.5924 USD 1.00=RMB 6.7423 December 31, 2018 USD 1.00= RMB 6.8632 USD 1.00=RMB 6.6322 December 31, 2019 USD 1.00= RMB 6.9762 USD 1.00=RMB 6.8944 Translation from HKD to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= HKD 7.8170 USD 1.00=HKD 7.7928 December 31, 2018 USD 1.00= HKD 7.8329 USD 1.00=HKD 7.8636 December 31, 2019 USD 1.00= HKD 7.7877 USD 1.00=HKD 7.8342 The results and financial positions in functional currency are translated into the presentation currency, USD, of the Company as follows: (1) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; (2) Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); (3) Share equity, share premium and dividends are translated at historical exchange rates; and (4) All resulting exchange differences are recognized in foreign currency translation reserve, a separate component of equity. All financial information presented in USD has been rounded to the nearest dollar, except when otherwise indicated. Segment reporting Operating segments, and the amounts of each segment item reported in the financial statements, are identified from the financial information provided regularly to the Group's most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Group's various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Group's three segments are wholesale, retail and contract manufacturing. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods sold in the normal course of business, net of discounts and sales related taxes. The Group's revenue originates (i) from corporate owned stores, (ii) distributors and (iii) the services performed as an original design manufacturer. Revenue from all above categories is recognized when all the following conditions are satisfied: the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group has fully rendered service to the contract manufacturing customer by shipping the product to the customer; the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the Group; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. revenue from sale of goods is recognized when the goods are delivered and title has passed. the risks of obsolescence and loss have been transferred to the customer there is no unfulfilled obligation that could affect the customer's acceptance of the products Delivery occurs when the products have been shipped to the customer, and either the customer has accepted the products in accordance with the sales contract, any potential acceptance provisions have lapsed, or the group has objective evidence that all potential criteria for acceptance have been satisfied. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due Value added tax (VAT) Current standard Output VAT in effect is 13% of product sales and taxable services revenue, according to existing tax laws. The remaining balance of output VAT, after subtracting the deductible input VAT of the period, is VAT payable. Period Standard VAT rate in effect April 1, 2019 - Current 13 % May 1, 2018 – March 31, 2019 16 % Earlier 17 % Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. Retirement benefit costs Pursuant to the relevant regulations of the PRC government, the Group's subsidiaries located in the PRC participate in a local municipal government retirement benefits scheme (the "Scheme"), whereby they contribute a prescribed percentage of the basic salaries of their employees to the Scheme to fund their retirement benefits. Once the Scheme has been funded via contributions by the Group's participating subsidiaries, the local municipal government takes responsibility for the retirement benefits obligations of all existing and future retired employees of those subsidiaries located in the PRC; accordingly, the only obligation of the Group with respect to the Scheme is to pay the on-going required contributions as long as the employees maintain employment with the Group. There are no provisions under the Scheme whereby forfeited contributions may be used to reduce future contributions. These plans are considered defined contribution plans. The Group has no legal or constructive obligations to pay further contributions after its payment of the fixed contributions into the pension schemes. Contributions to pension schemes are recognized as an expense in the period in which the related service is performed. Taxation The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Store pre-opening cost Store pre-opening cost was the start-up activity costs incurred prior to opening a new store, mainly including leasing, leasehold improvements, payroll and supplies. The accounting policies for leasing and leasehold improvements were as below. Other store pre-opening costs were directly charged to expenses when occurred. Leasing IFRS 16 Leases requires lessees to recognise assets and liabilities for most leases based on a 'right-of-use model' which reflects that, at the commencement date, a lessee has a financial obligation to make lease payments to the lessor for its right to use the underlying asset during the lease term. The lessor conveys that right to use the underlying asset at lease commencement, which is the time when it makes the underlying asset available for use by the lessee. IFRS 16 defines a lease term as the noncancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. Under IFRS 16 lessees may also elect not to recognise assets and liabilities for leases with a lease term of 12 months or less. In such cases a lessee recognises the lease payments in profit or loss on a straight-line basis over the lease term. The exemption is required to be applied by class of underlying assets. Lessees can also make an election for leases for which the underlying asset is of low value. This election can be made on a lease-by-lease basis. For leases where the Group is the lessee, the lease term is either cancelable or no longer than 12 months, so the Group has elected not to record the leased assets. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17. IFRS 16 did not have any significant impact on leases where the Group is the lessor. Leasehold improvements Leasehold improvements, principally comprising costs of office buildings and shops renovation, are held for administrative and selling purposes. Leasehold improvements are initially measured at cost and amortized systematically over its useful life. Property, plant and equipment Property, plant and equipment ("PPE") including buildings held for use in the production or supply of goods or services, or for administrative purposes other than construction in progress are stated at cost less subsequent accumulated depreciation and accumulated impairment losses. Depreciation is provided to write off the cost of items of property, plant and equipment other than construction in progress over their estimated useful lives and after taking into account of their estimated residual value, using the straight-line method. Construction in progress includes property, plant and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the period in which the item is de-recognized. Investment properties Investment properties are land and buildings which are owned or held under a leasehold interest to earn rental income and/or for capital appreciation. These include land and buildings held for a currently undetermined future use. Such properties are stated at cost less accumulated depreciation and any impairment losses. Any gains or losses on the retirement or disposal of an investment property are recognised in the income statement in the year of the retirement or disposal. Depreciation is calculated on the straight-line basis to depreciate the cost of each item of investment properties over the estimated useful life of 20 years. The Group as lessor Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Land use rights Land use rights are stated at cost less accumulated amortization and accumulated impairment losses. Cost represents consideration paid for the rights to use the land on which various plants and buildings are situated for periods varying from 20 to 50 years. Amortization of land use rights is calculated on a straight-line basis over the period of the land use rights. Inventories Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determined using the weighted average method. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Financial instruments Financial assets and financial liabilities are recognized on the consolidated statements of financial position when a group entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. (1) Financial assets The Group's financial assets are classified as receivables. Effective interest method The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period to the net carrying amount on initial recognition. Interest income is recognized on an effective interest basis for debt instruments. Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables (including trade and other receivables, related parties receivables, and cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment (see accounting policy on impairment loss on receivables below). Impairments of receivables Receivables are assessed for indicators of impairment at the end of the reporting period. Receivables are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the receivables, the estimated future cash flows of the receivables have been affected. Objective evidence of impairment could include: ● significant financial difficulty of the issuer or counterparty; ● default or delinquency in interest or principal payments; ● it becoming probable that the borrower will enter bankruptcy or financial reorganization. For certain categories of financial asset, such as trade and other receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group's past experience of collecting payments, and increase in the number of delayed payments in the portfolio past the average credit period, observable changes in national or local economic conditions that correlate with default on receivables. An impairment loss is recognized in profit or loss when there is objective evidence that the asset is impaired, and is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. The carrying amount of the receivables is reduced by the impairment loss directly for all financial assets with exception of trade and other receivables, where the carrying amount is reduced through the use of an allowance account. Changes in carrying amount of the allowance account are recognized in profit or loss. When a trade and other receivable are considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited to profit or loss. If, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment losses was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition (2) Financial liabilities and equity Financial liabilities and equity instruments issued by a group entity are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Effective interest method The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period to the net carrying amount on initial recognition. Interest expense is recognized on an effective interest basis. Financial liabilities Financial liabilities including trade and other payables, related parties payables and short-term loans are subsequently measured at amortized cost, using the effective interest method. Equity instruments Equity instruments issued by the group entities are recorded at the proceeds received, net of direct issue costs. (3) De-recognition Financial assets are derecognized when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Group has transferred substantially all the risks and rewards of ownership of the financial assets. On de-recognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. Financial liabilities are derecognized when the obligation specified in the relevant contract is discharged, cancelled or expires. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. Capital and Reserves Share capital represents the nominal value of shares that have been issued by the Group. Share capital is determined using the nominal value of shares that have been issued. Retained profits include all current and prior period results as determined in the combined statement of comprehensive income. Foreign currency translation reserve arising on the translation are included in the currency translation reserve. In accordance with the relevant laws and regulations of PRC, the subsidiaries of the Group established in PRC are required to transfer 10% of its annual statutory net profit (after offsetting any prior years' losses) to the statutory reserve. When the balance of such reserve reaches 50% of the subsidiary's share capital, any further transfer of its annual statutory net profit is optional. Such reserve may be used to offset accumulated losses or to increase the registered capital of the subsidiary subject to the approval of the relevant authorities. However, except for offsetting prior years' losses, such statutory reserve must be maintained at a minimum of 25% of the share capital after such usage. The statutory reserves are not available for dividend distribution to the shareholders. All transactions with owners of the Group are recorded separately within equity. Earnings/(loss) per share Basic earnings per share ("EPS") are computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. The preparation of financial statements in conformity with IFRS requires management to exercise judgment in the process of applying the Group's accounting policies and requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and reported amount of revenue and expenses during the reporting period. The following estimates that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are disclosed below. |
Significant Management Judgemen
Significant Management Judgement in Applying Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Management Judgement in Applying Accounting Policies [Abstract] | |
SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES | 5. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES Allowance for Bad and Doubtful debts Allowances for bad and doubtful debts are based on an assessment of the recoverability of trade and other receivables. Allowances are applied to trade and other receivables where events or changes in circumstances indicate that the balances may not be collectible. The identification of bad and doubtful debts requires the use of judgment and estimates, where the expected outcome is different from the original estimate, such difference will impact carrying value of trade and other receivables and doubtful debt expenses in the period in which such estimate has been charged. ] Impairment Losses Impairment losses are based on an assessment of the investment or long-lived assets' ability to generate future cash flows when there is evidence that these assets may be impaired. The calculation of the amount of impairment loss are based on estimates made by management when applying broad accounting principles governing the accounting for these assets. The determination of these estimates requires judgment by management. The final outcome may differ from the original estimates made by management, which may impact the carrying value of the assets which management has determined to be impaired and charged to the Company's profit loss during the period. Income Tax The Group has exposure to income taxes in numerous jurisdictions. Significant judgment is involved in determining the Group's provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognized, such differences will impact the income tax and differed tax provisions in the period in which such determination is made. The carrying amount of the Group's income tax payable as at December 31, 2019 and 2018 amounted to $ 256,808 and $ nil respectively. |
Key Sources of Estimation Uncer
Key Sources of Estimation Uncertainty | 12 Months Ended |
Dec. 31, 2019 | |
Key Sources of Estimation Uncertainty [Abstract] | |
KEY SOURCES OF ESTIMATION UNCERTAINTY | 6. KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group's accounting policies, which are described in Note 4, management is required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year. Depreciation of building, machinery and equipment As described in Note 4, the Group reviews the estimated useful lives and residual values of property, plant and equipment at the end of each reporting period. The cost of building, machinery and equipment is depreciated on a straight-line basis over the assets' estimated useful lives. Management estimates the useful lives of these buildings, machinery and equipment to be within 5 to 20 years. These are the common life expectancies applied in the same industry. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised. Fair value of warrants The fair value of warrants was determined using a binomial-lattice model. This model requires the input of highly subjective assumptions, including price volatility of the underlying stock. Changes in the subjective input assumptions can materially affect the estimate of fair value of the warrants and the Company's results of operations could be impacted. This model is dependent upon several variables such as the instrument's expected term, expected strike price, expected risk-free interest rate over the expected instrument term, the expected dividend yield rate over the expected instrument term, and the expected volatility of the Company's stock price over the expected term. The expected term represents the period of time that the instruments granted are expected to be outstanding. The expected strike price is based upon a weighted average probability analysis of the strike price changes expected during the term as a result of the down round protection. The risk-free rates are based on U.S. Treasury securities with similar maturities as the expected terms of the options at the date of valuation. Expected dividend yield is based on historical trends. The Company measures volatility using the volatility rates of market index. Impairment of non-financial assets Property, plant and equipment are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the cash-generating-unit ("CGU") to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in the income statement, unless the asset is carried at revalued amount, in which case, such impairment loss is treated as a revaluation decrease. An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognized in the income statement, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase. During the years ended December 31, 2019, 2018, and 2017, the Company recognized impairment losses of $nil, $nil, and $nil, respectively, for its prepayments for acquisition of land use rights. During the years ended December 31, 2019, 2018, and 2017, the Company recognized impairment losses of $nil, $nil, and $nil, respectively, for its related prepayments for construction on such land. The impairment reflects the current reduction in the value of the investment as a result of the delay in time to complete the construction projects and delay in procurement of legal certificates that would lead to the assets being put into service that would give rise to expected future profitability which at December 31, 2019, has been temporarily postponed beyond the next operating period. The impairment losses charged to the prepayments has brought the carrying values to their respective recoverable amount in its fair value less costs to sell. During the years ended December 31, 2019, 2018, and 2017, the Company recognized impairment losses of $nil, $13,311,557, and $nil, respectively, for a part of its factory plant in Anhui that is not currently in use. The impairment reflects the current reduction in the value of the carrying cost as a result of the company's evaluation of the recoverability of its investment. The impairment losses charged to the factory plant has brought the carrying values to their respective recoverable amount in its fair value less costs to sell. For the prepayment for acquisition of land use rights, the Company provided an estimate of its fair value based on the market value substitution rule. The estimated fair value belongs to Level 2 of the fair value hierarchy because the input is determined through quoted prices of similar assets without an actively quoted market. Using the market approach, the Company compares the price of the land use right that the Company intended to acquire with the price of similar land use rights in the same geographical area, adjusted by factors such as price index, frequency of actual transactions conducted, environmental conditions, etc. Significant assumptions used in this estimation include the ability to legally obtain such land use rights, the usage of land as industrial use, the date of transaction at year end, etc. As a result, the Company provided an estimate in the amount of $5,154,034. Finally, the fair value is reduced by estimated costs to sell which include, but not limited to, legal costs, stamp duty, similar transaction tax, etc. in the amount of $379,971. The net value is then compared to the carrying value, and the difference is recorded as impairment loss in the amount of $1,317,295 in 2015. In 2016, since there was no progress in regards to the acquisition of land use rights, the Company provided further impairment to bring the carrying value down to $0 as management is unable to assert the recoverability of such asset. For the prepayment for construction, the Company provided an estimate of its fair value based on the time value approach. The estimated fair value belongs to Level 3 of the fair value hierarchy because the input is not easily observable. Using this approach, the Company calculates the time value of money of the amount prepaid based on the Company's weighted average cost of capital ("WACC") in order to arrive at its fair value. The Company uses this approach to determine its recoverable amount because such prepayments are not readily resalable, and the ability to realize this amount is contingent upon the Company's ability to successfully acquire the land use right as mentioned above. Significant assumptions used in this estimation include using the WACC, which is comprised of the Company's metrics of return of equity, return of debt, the relevant weights of the returns of equity and debt, and tax rate, in determining the fair value. As a result, as at December 31, 2015, the Company provided an estimate in the amount of $7,160,523. Since this asset is not resalable, the company estimated costs to sell for this asset in the amount of $0. The net value is then compared to the carrying value, and the difference is recorded as impairment loss in the amount of $1,248,039 in 2015. In 2017, since there was no progress in regards to the construction, the Company provided further impairment to bring the carrying value down to $0 as management is unable to assert the recoverability of such asset. For the factory plant, the Company provided an estimate of its fair value based on the time value approach. The estimated fair value belongs to Level 3 of the fair value hierarchy because the input is not easily observable. Using this approach, the Company calculates the time value of money of the amount recoverable based on the Company's weighted average cost of capital ("WACC") in order to arrive at its fair value. The Company uses this approach to determine its recoverable amount because a part of the factory plant is not readily resalable. Significant assumptions used in this estimation include using the WACC, which is comprised of the Company's metrics of return of equity, return of debt, the relevant weights of the returns of equity and debt, and tax rate, in determining the fair value. As a result, as at December 31, 2018, the Company recorded as impairment loss in the amount of $13,311,557 in 2018, which brings the carrying value of the part of the factory plant not in use down to $0 as management is unable to assert the recoverability of such asset. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 7. SEGMENT REPORTING Management currently identifies the Group's three sales models as operating segments, which are wholesale, retail and contract manufacturing. The segment presentation is in accordance with management's expectation of future business developments. These operating segments are monitored and strategic decisions are made on the basis of segmental gross margins. By business Wholesale Retail Subcontracting Consolidated For the year ended December 31, For the year ended December 31, For the year ended December 31, For the year ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Sales to external customers 10,308,309 13,584,754 15,034,800 571,403 2,375,773 6,983,592 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 Segment revenue 10,308,309 13,584,754 15,034,800 571,403 2,375,773 6,983,592 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 Segment gross margins/(loss) 3,268,945 2,245,944 2,277,858 319,706 (5,402,994 ) (14,291,680 ) 2,162,393 840,913 502,007 5,751,043 (2,316,136 ) (11,511,815 ) Reconciling items (5,412,858 ) (21,074,581 ) (7,901,842 ) Profit/(loss) before tax 338,185 (23,390,717 ) (19,413,657 ) Income tax income/(expense) (442,590 ) 5,422,119 4,598,061 Profit/(loss) for the year (104,405) (17,968,598 ) (14,815,596 ) As of December 31, 2019 Wholesale and Retail Subcontracting Unallocated Consolidated Current assets 24,741,115 7,979,513 13,492 32,734,120 Non-current assets 10,047,963 18,306,697 28,354,660 Total assets 34,789,078 26,286,610 13,492 61,088,780 Current liabilities 3,066,041 1,483,891 2,094,462 6,644,394 Total liabilities 3,066,041 1,483,891 2,094,462 6,644,394 As of December 31, 2018 Wholesale and Retail Subcontracting Unallocated Consolidated Current assets 24,915,855 6,394,814 17,462 31,328,131 Non-current assets 10,236,126 19,601,749 - 29,837,875 Total assets 35,151,981 25,996,563 17,462 61,166,006 Current liabilities 3,417,655 1,590,564 1,856,467 6,864,685 Total liabilities 3,417,655 1,590,564 1,856,467 6,864,685 Geographical information The Group's operations are located in the PRC and all of the Group's revenue is derived from sales to customers in the PRC. Hence, no analysis by geographical area of operations is provided. Information about major customers Major distributors that make up 10% or more of wholesale revenue are as below: Year ended December 31, 2019 2018 2017 Distributor A 1,019,139 1,331,194 1,454,862 Other distributors 9,289,170 12,253,560 13,579,938 10,308,309 13,584,754 15,034,800 Information about major suppliers Major suppliers that make up 10% or more of purchases are as below: Year ended December 31, 2019 2018 2017 Supplier A 1,270,597 3,031,310 2,403,309 Supplier B 2,325,926 2,879,110 - Supplier C 504,779 - 1,530,429 Supplier D 1,212,778 - 1,714,468 Supplier E 869,365 - 1,684,743 Supplier F 1,222,864 1,684,910 - Other suppliers 62,948 2,901,982 5,065,563 7,469,257 10,497,311 12,398,512 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
REVENUE | 8. REVENUE Year ended December 31, 2019 2018 2017 Apparel -Wholesale 10,308,309 13,584,754 15,034,800 -Retail 571,403 2,375,773 6,983,592 Subtotal 10,879,712 15,960,527 22,018,392 Subcontracting 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 Revenue is denominated only in USD. |
Cost of Sales
Cost of Sales | 12 Months Ended |
Dec. 31, 2019 | |
Cost of Sales [Abstract] | |
COST OF SALES | 9. COST OF SALES Cost of sales comprises of purchasing materials, labor costs for personnel employed in production, depreciation of non-current assets used for production purpose, outsourced manufacturing cost, taxes and surcharges, and water and electricity. The following table shows a breakdown of cost of sales for the periods presented for each category: Year ended December 31, 2019 2018 2017 Changes in inventories of finished goods and work in progress 76,800 (24,475 ) 227,132 Materials consumed in production 43,443 29,619 41,057 Purchases of finished goods 7,053,841 19,044,582 33,877,598 Labor 2,887,199 1,061,943 602,196 Depreciation 142,278 352,739 370,858 Rental - 452 - Outsourced manufacturing cost - - - Taxes and surcharges * 130,728 75,736 157,314 Water and electricity 63,969 62,027 52,796 Inventory provision 42,919 196,124 8 Others 237,561 128,773 120,886 Foreign currency translation difference 35,780 (76,269 ) (175,493 ) 10,714,519 20,851,252 35,274,352 * Tax and surcharges are mainly Urban Maintenance and Construction Tax (7% of Valued Added Tax payment amount), Extra Charges of Education Fund (3% of Valued Added Tax payment amount) and Local Surcharge for Education Fund (2% of Valued Added Tax payment amount). |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2019 | |
Other Income [Abstract] | |
OTHER INCOME | 10. OTHER INCOME Year ended December 31, 2019 2018 2017 Government grant 6,179 - 367,260 Interest income on bank deposits 62,538 71,693 81,517 Other 222,865 50,446 12,787 291,582 122,139 461,564 |
Other Gains and (Losses)
Other Gains and (Losses) | 12 Months Ended |
Dec. 31, 2019 | |
Other Gains and (Losses) [Abstract] | |
OTHER GAINS AND (LOSSES) | 11. OTHER GAINS AND (LOSSES) Year ended December 31, 2019 2018 2017 Gain on disposals of property, plant and equipment 2,124 1,380 171 Foreign exchange gain 13 (49 ) (48 ) Provision / reversal of inventory obsolescence - (196,124 ) (101,256 ) Bad debt provision of trade receivables (1,028,972 ) - - Impairment of property - (13,311,557 ) - Others (37,753 ) (15,950 ) (21,110 ) (1,064,588 ) (13,522,300 ) (122,243 ) |
Distribution and Selling Expens
Distribution and Selling Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Distribution and Selling Expenses [Abstract] | |
DISTRIBUTION AND SELLING EXPENSES | 12. DISTRIBUTION AND SELLING EXPENSES Year ended December 31, 2019 2018 2017 Rental 9,573 16,067 21,527 Depreciation - 1,218 2,680 Labor 170,771 275,026 258,233 Subsidy to distributors 477,779 787,064 773.238 Promotion - 15,623 32,216 Advertisement 287,354 1,152,176 1,591,742 Others 148,914 423,782 585,744 1,094,391 2,670,955 3,265,380 |
Administrative Expense
Administrative Expense | 12 Months Ended |
Dec. 31, 2019 | |
Administrative Expense [Abstract] | |
ADMINISTRATIVE EXPENSE | 13. ADMINISTRATIVE EXPENSE Year ended December 31, 2019 2018 2017 Labor 1,690,420 2,193,120 1,600,380 Audit fee 138,870 122,908 216,281 Professional fee 18,517 69,639 77,754 Design fee 372,192 648,632 937,478 Depreciation and amortization charges 685,253 1,185,257 1,149,455 Bank charges 2,815 8,130 18,352 Rental 73,021 75,907 74,668 Travelling and entertainment 17,439 2,662 107,566 Others 479,731 600,765 697,463 3,478,258 4,907,020 4,879,397 |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2019 | |
Finance Costs [Abstract] | |
FINANCE COSTS | 14. FINANCE COSTS Year ended December 31, 2019 2018 2017 Interest expenses on bank borrowings wholly repayable within one year 67,203 96,444 96,385 Bank borrowings interests are charged at a rate of 6.09% per annum for the bank loan that was fully repaid in 2019. |
Income Tax (Income)_ Expense
Income Tax (Income)/ Expense | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax (Income)/ Expense [Abstract] | |
INCOME TAX (INCOME)/ EXPENSE | 15. INCOME TAX (INCOME)/ EXPENSE Year ended December 31, 2019 2018 2017 PRC enterprises income tax: Current tax 256,808 - - Deferred tax 185,787 (5,422,119 ) (4,598,061 ) 442,595 (5,422,119 ) (4,598,061 ) Hongri Fujian and Anhui Kai Xin subject to the applicable enterprise income tax rate of 25%. As of December 31, 2019, 2018, and 2017, the Company had no unrecognized tax benefits. France Cock and Vast Billion were incorporated in Hong Kong and subject to Hong Kong profits tax at a tax rate of 16.5%. No provision for Hong Kong profits tax has been made as France Cock and Vast Billion has no taxable income during the reporting period. Hongri International Holding Limited and Roller Rome were incorporated in the BVI and, under the current laws of the BVI, are not subject to income taxes. KBS Fashion Group Limited was incorporated in the Marshall Island, and, under the current laws of the Marshall Island, is not subject to income taxes. The tax charge for the year can be reconciled to the profit per the consolidated statements of comprehensive income as follows: Year ended December 31, 2019 2018 2017 (Loss)/profit before tax 338,185 (23,390,716 ) (19,413,657 ) Tax calculated at domestic tax rates applicable to profits in PRC (2019, 2018, and 2017: 25%) 84,546 (5,847,679 ) (4,853,414 ) Tax effect of tax loss of tax exempt entities 358,049 425,560 255,354 Tax charge for the year 442,595 (5,422,119 ) (4,598,061 ) The following is the analysis of the deferred tax balances for financial reporting purposes: 2019 2018 2017 Temporary difference Deferred tax assets Temporary difference Deferred tax assets Temporary difference Deferred tax assets Beginning of the year 60,645,730 14,688,829 38,761,131 9,924,944 20,737,366 4,879,652 Bad Debt provisions charged to profit or loss (1,028,972 ) (257,243 ) - - - - Impairment charged to profit or loss 13,507,681 3,376,920 101,256 25,314 Tax loss carried forward 8,376,919 2,094,230 17,922,508 4,480,627 Effect of translation (304,207 ) - (707,265 ) - 539,351 End of the year 59,616,758 14,127,559 60,645,730 14,688,829 38,761,131 9,924,944 |
Profit for the Year
Profit for the Year | 12 Months Ended |
Dec. 31, 2019 | |
Profit for the Year [Abstract] | |
PROFIT FOR THE YEAR | 16. PROFIT FOR THE YEAR Profit for the year has been arrived at after charging: Year ended December 31, 2019 2018 2017 Cost of inventories recognized as expenses 10,583,791 20,398,829 35,094,050 Taxes and surcharges 130,728 112,108 180,302 10,714,519 20,510,936 35,274,352 Depreciation of property, plant and equipment 671,262 1,172,809 1,137,831 Amortization of land use rights and trademarks 13,992 14,545 14,307 Amortization of subsidies prepaid to distributors - 401,259 Amortization of prepayments and premiums under operating leases 96,743 104,206 105,340 Provision (Reversal) of inventory obsolescence (145,747 ) 196,124 101,256 Provision of bad debt allowance 1,028,972 - - Provision of impairment loss in property 13,311,557 - 1,665,222 14,799,241 1,759,993 |
Employees' Emoluments
Employees' Emoluments | 12 Months Ended |
Dec. 31, 2019 | |
Employees' Emoluments [Abstract] | |
EMPLOYEES' EMOLUMENTS | 17. EMPLOYEES' EMOLUMENTS Year ended December 31, 2019 2018 2017 Salaries and other short-term benefits 2,086,041 2,637,752 2,476,506 Defined contribution benefit schemes 290,414 205,499 189,621 Total employee benefits expense (including directors' emoluments) 2,376,454 2,843,251 2,666,127 The employees of the Group's PRC subsidiaries are members of state-managed retirement benefit schemes operated by the local government. The subsidiaries are required to contribute a specified percentage of its payroll costs to the retirement benefit schemes to fund the benefits. The only obligation of the Group with respect to the retirement benefit schemes is to make the specified contributions. |
Directors' Emoluments
Directors' Emoluments | 12 Months Ended |
Dec. 31, 2019 | |
Directors' Emoluments [Abstract] | |
DIRECTORS' EMOLUMENTS | 18. DIRECTORS' EMOLUMENTS The emoluments paid or payable to the directors of the Company were as follows: Year ended December 31, 2019 2018 2017 Salaries Yan Keyan 389,826 739,350 304,050 Lixia Tu 232,144 296,100 233,854 John Sano 18,600 23,050 43,950 Themis Kalapotharakos 148,800 161,350 87,900 Matthew Los 148,800 161,350 87,900 Zhongmin Zhang 18,600 23,020 43,950 Yuet Mei Chan 18,600 23,050 43,950 975,370 1,427,300 847,554 Social Welfare Yan Keyan 1,055 1,122 1,006 1,055 1,122 1,006 |
Earnings_ (Loss) Per Share
Earnings/ (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings/ (Loss) Per Share [Abstract] | |
EARNINGS/ (LOSS) PER SHARE | 19. EARNINGS/ (LOSS) PER SHARE For the years ended December 31, 2019 2018 2017 Basic (Loss)/Earnings Per Share Numerator Profit for the year attributable to owners of the Company $ (104,405 ) $ (17,968,598 ) $ (14,815,596 ) Diluted (Loss)/Earnings Per Share Numerator Profit for the year attributable to owners of the Company $ (104,405 ) $ (17,968,598 ) $ (14,815,596 ) Basic (Loss)/Earnings Per Share Denominator # Original shares: 2,271,299 1,986,299 1,767,821 Additions from actual events: - Issuance of common stock, weighted 246,192 288,421 93,010 Basic weighted average shares outstanding 2,517,491 2,229,915 1,860,831 Diluted (Loss)/Earnings Per Share Denominator # Basic weighted average shares outstanding 2,517,491 2,229,915 1,860,831 Dilutive shares: Potential additions from dilutive events: - Exercise of investor warrants* - Diluted Weighted Average Shares Outstanding: 2,517,491 2,229,915 1,860,831 (Loss)/Earnings Per Share # - Basic $ (0.00 ) $ (8,06 ) $ (7.96 ) - Diluted $ (0.00 ) $ (8.06 ) $ (7.96 ) Weighted Average Shares Outstanding # - Basic 2,517,491 2,229,915 1,860,831 - Diluted 2,517,491 2,229,915 1,860,831 * There were no potential dilutive additions to diluted weighted shares outstanding as a result of the outstanding warrants being out-of-the-money during the periods presented. # The amount of shares and the respective calculations of earnings/(loss) per share have been adjusted according to reverse split. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 20. PROPERTY, PLANT AND EQUIPMENT Owner-occupied Property Plant Machinery Office Motor Furniture Leasehold Leasehold Total COST At January 1, 2018 31,256,157 928,022 130,515 86,654 153,135 895,781 268,759 33,719,025 Additions - 1,767 11,544 - 8,014 - - 21,324 Disposals - (4,103 ) - - - - - (4,103 ) Translation adjustment (1,498,321 ) (44,486 ) (6,257 ) (4,154 ) (7,341 ) (42,941 ) (12,883 ) (1,616,383 ) At December 31, 2018 29,757,837 881,199 135,802 82,500 153,808 852,840 255,876 32,119,863 Additions - - 162 - - - - 162 Disposals - (266,304 ) (280 ) (387 ) - - - (266,971 ) Reclassification to investment property (12,291,058 ) - - - - - - (12,291,058 ) Translation adjustment (482,015 ) (14,274 ) (2,200 ) (1,336 ) (2,491 ) (13,814 ) (4,145 ) (520,275 ) At December 31, 2019 16,984,763 600,620 133,486 80,777 151,317 839,026 251,731 19,041,720 DEPRECIATION AND IMPAIRMENT At January 1, 2018 (3,932,436 ) (791,401 ) (99,887 ) (77,945 ) (146,818 ) (577,253 ) (268,759 ) (5,894,501 ) Provided for the year (891,146 ) (14,619 ) (8,776 ) (41 ) (2,411 ) (109,261 ) - (1,026,254 ) Eliminated upon disposal of assets - 3,693 - - - - - 3,693 Impairment (13,311,557 ) - - - - - - (13,311,557 ) Translation adjustment 188,509 37,937 4,788 3,736 7,038 27,672 12,883 282,564 At December 31, 2018 (17,946,631 ) (764,389 ) (103,875 ) (74,250 ) (142,191 ) (658,843 ) (255,876 ) (19,946,054 ) Provided for the year (832,476 ) (13,733 ) (7,279 ) - (1,857 ) (73,239 ) - (928,584 ) Eliminated upon disposal of assets 161,645 234,901 252 5,122 - - - 401,919 Depreciation reclassified to investment property 2,708,200 - - - - - - 2,708,200 Impairment reclassified to investment property 4,483,680 - - - - - - 4,483,680 Translation adjustment 290,698 12,382 1,683 1,203 2,303 10,672 4,145 323,085 At December 31, 2019 (11,134,883 ) (530,840 ) (109,220 ) (67,925 ) (141,745 ) (721,410 ) (251,731 ) (12,957,754 ) CARRYING AMOUNT At December 31, 2018 11,811,206 116,809 31,928 8,250 11,617 193,997 - 12,173,808 At December 31, 2019 5,849,880 69,780 24,266 12,852 9,572 117,616 - 6,083,966 Net exchange differences from translating the financial statements from functional currency to presentation currency were $(197,910) and $(1,333,819) as at December 31, 2019 and 2018. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 were $939,601, $1,525,548, and $1,137,831, respectively. Impairment loss charged for the years ended December 31, 2019, 2018, and 2017 were $nil, $13,311,557, and $nil, respectively. The detail estimation of such impairment provision is explained in note 6. Depreciation is provided on straight-line basis for all property, plant and equipment over their estimated useful lives of the assets as follows: Useful life Residual Value Plant 20 years 10% Machinery 5 years 10% Office equipment 5 years 10% Motor vehicles 5 years 10% Furniture and fixtures 5 years 10% Leasehold improvements-factories and offices Shorter of estimated useful life of 5 years or lease term 10% Leasehold improvements-shops Shorter of estimated useful life of 5 years or lease term Nil Distributor shops' furniture and fixtures 1.5 years Nil Plant includes buildings owned by Anhui Kaixin built on the following land: Location Description Gross area (m 2 Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC Dormitory 8,573 Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC Factory 22,292 The buildings were pledged as security for the outstanding bank loans as set forth in note 30. The gross carrying amount of the fully depreciated property, plant and equipment that is still in use is $93,701 and $123,265 as at December 31, 2019 and 2018, respectively. In 2012, the Company performed a revaluation of certain equipment. The revaluation was performed by an independent appraiser on November 10, 2012 and, as a result of the revaluation, the Company recognized a revaluation surplus in the amount of 184,272. The amount is classified as revaluation reserve. Since the surplus has not been realized, the amount recognized is not available for distribution. There was no movement in the revaluation reserve during 2019 and 2018. The carrying amount that would have been recognized had the assets been carried under the cost model is as follows: As at December 31, 2019 2018 Machinery 89,755 91,232 Motor Vehicles 33 33 Office Equipment 2,492 2,533 Furniture and fixtures 692 703 92,971 94,502 Investment Properties As at December 31, 2019, fair value approximated carry amounts, being the initial cost to acquire these investment properties. COST 2019 2018 Opening balance at 1 January - Acquisitions - Capitalised subsequent expenditure - Classified as held for sale or disposals - Transfer (to)/from inventories and owner-occupied property 12,291,058 Closing balance at 31 December 12,291,058 DEPRECIATION AND IMPAIRMENT 2019 2018 Opening balance at 1 January - Provided for the year - Eliminated upon disposal of assets - Impairment for the year - Transfer to/(from) inventories and owner-occupied property (7,191,880 ) Closing balance at 31 December (7,191,880 ) CARRYING AMOUNT 2019 2018 Closing balance at 31 December 5,099,178 |
Prepayments and Premiums Under
Prepayments and Premiums Under Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Premiums Under Operating Leases [Abstract] | |
PREPAYMENTS AND PREMIUMS UNDER OPERATING LEASES | 21. PREPAYMENTS AND PREMIUMS UNDER OPERATING LEASES Amount At January 1, 2018 2,652,106 additions for the year 26,899 charge for the year (104,206 ) translation adjustment (124,532 ) At December 31, 2018 2,450,267 additions for the year 21,757 charge for the year (96,743 ) translation adjustment (38,810 ) At December 31, 2019 2,336,471 Analyzed for reporting purposes as: As at December 31, 2019 2018 Current asset 75,318 78,532 Non-current asset 2,261,153 2,371,735 2,336,471 2,450,267 |
Prepayment for Construction of
Prepayment for Construction of New Plant | 12 Months Ended |
Dec. 31, 2019 | |
Prepayment For Construction Of New Plant [Abstract] | |
PREPAYMENT FOR CONSTRUCTION OF NEW PLANT | 22. PREPAYMENT FOR CONSTRUCTION OF NEW PLANT On November 20, 2010, Hongri Fujian entered into an agreement with a third party, Anqing Zhongfang Construction and Installation Co., Ltd., for the construction of the new plant in Anhui at a consideration of $17,826,251. In 2012, Kaixin Anhui made a prepayment of $6,363,853 for the second phase of the project. In 2013, Kaixin Anhui made another prepayment of $9,747,897 for the second phase of the project. The amount of $16,401,778 was recognized in Construction in progress. In 2014, Kaixin Anhui made another prepayment of $15,525,413 for the second and third phase of the project, and an amount of $6,537,016 was recognized in construction in progress. In 2015, an amount of $110,041 was recognized in construction in progress, which was subsequently recognized as fixed asset along with the completion of the second phase of the project. The total amount transferred to fixed assets from construction in progress amounted to $22,960,220. The third phase of the project is related to the construction of a building. The construction site is located on a piece of land whose land use right was to be acquired by the Company. Due to reasons as set forth in note 23, the anticipated completion date of the project is expected to be delayed and, in the worst case, may be terminated. Accordingly, management provided a provision of impairment loss against the carrying value of such prepayment. The detail of estimation of such provision is explained in note 6. As at December 31, 2019, the carrying amount of the prepayment for construction of new plant is as follows: As at December 31, 2019 Prepaid in 2015 8,469,878 Recognized as construction in progress (110,041 ) 8,359,837 Impairment loss in 2015: (1,199,314 ) 7,160,523 Impairment loss in 2016: (6,989,200 ) Translation adjustment: (171,323 ) - |
Prepayment for Acquisition of L
Prepayment for Acquisition of Land Use Right | 12 Months Ended |
Dec. 31, 2019 | |
Prepayment for Acquisition of Land Use Right [Abstract] | |
PREPAYMENT FOR ACQUISITION OF LAND USE RIGHT | 23. PREPAYMENT FOR ACQUISITION OF LAND USE RIGHT On September 2, 2010, Hongri Fujian entered into an agreement with a third party, Taihu Weiqi Sports Apparel Co., Ltd., to acquire a land use right in relation to the development of factories in Anhui Kaixin for a total consideration of $6,340,456. As of December 31, 2015, the transaction has not been completed yet due to disputes between the original owner of the land and the government regarding the compensation for vacating the premises. In relation to this dispute, the Company expected that the project would be delayed or, in the worst case, be terminated. Accordingly, the Company provided a provision of impairment loss against the carrying value for such prepayment. The detail estimation of such provision is explained in note 6. As at December 31, 2019, the carrying amount of the prepayment for acquisition of land use right is as follows: As at December 31, 2019 Prepaid in 2010 6,039,930 Impairment loss: (1,265,867 ) 4,774,063 Impairment loss in 2016: (4,659,838 ) Translation adjustment: (114,225 ) - |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2019 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | 24. LAND USE RIGHTS Amount COST At January 1, 2018 734,253 additions for the year - translation adjustment (35,198 ) At December 31, 2018 699,055 additions for the year translation adjustment (11,323 ) At December 31, 2019 687,732 AMORTIZATION At January 1, 2018 (85,600 ) charge for the year (15,545 ) translation adjustment 4,593 At December 31, 2018 (95,552 ) charge for the year (13,992 ) translation adjustment 1,712 At December 31, 2019 (107,832 ) CARRYING AMOUNTS At December 31, 2018 603,503 At December 31, 2019 579,900 The amounts represent the prepayment of rentals for land use right (industrial use) situated in the PRC. The land use rights have the term of 50 years. All the land use rights mentioned above were owned by Anhui Kaixin. The land use right is comprised of the following: Location Expiry date of tenure Land area (m 2 Longshan Road, Economic development District, Taihu County 2062-05-23 2,440 Longshan Road, Economic development District, Taihu County 2061-11-06 7,405 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
INVENTORIES | 25. INVENTORIES As at December 31, 2019 2018 Raw materials 1,047,532 956,947 Finished goods 437,144 478,377 Provision for obsolete inventories (42,416 ) (189,524 ) 1,442,260 1,245,800 |
Trade Receivables, Other Receiv
Trade Receivables, Other Receivables and Prepayments | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAYMENTS | 26. TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAYMENTS As at December 31, 2019 2018 Trade receivables 12,775,324 9,416,320 Bad debt provision for trade receivables (2,299,558 ) (1,294,097 ) 10,475,766 8,122,223 As at December 31, 2019 2018 Other receivables 3,387 2,617 Prepayments 116,911 852,856 120,298 855,473 The fair value of trade and other receivables have not been disclosed as, due to their short duration, management considers the carrying amounts recognized in the consolidated statements of financial position to be reasonable approximation of their fair values. Prepayments include advances to suppliers and prepaid income tax. Before accepting any new customer, the Group assesses the potential customer's credit quality and defined credit limits by customer. Limits attributed to customers are reviewed once a year. The aging analysis of trade receivables is as follows: As at December 31, 2019 2018 Current 778,047 1,743,556 Past due for less than 4 months 2,458,705 3,546,525 Past due for more than 4 months 9,538,573 4,126,240 12,755,324 9,416,320 The Group allows an average credit period of 120 -180 days to its trade customers. For the overdue trade receivable, the Company provided a bad debt allowance amounting to $2,299,558 and $1,294,097 as of December 31, 2019 and 2018, respectively. The provision for doubtful debts is recorded using a provision account unless the Group is satisfied that recovery is remote, in which case the unrecovered loss is written off against trade receivables and the provision for doubtful debts directly. The Group does not hold any collateral over these balances. The movement in the provision for doubtful debts during the year is as follows: 2019 2018 As at January 1 1,294,097 1,359,255 Provision provided in the year 1,028,972 - Translation adjustment (23,481 ) (65,158 ) As at December 31 2,299,558 1,294,097 Among the amounts of trade receivables, $1,509,839 and $1,368,183 of output VAT was included as of December 31, 2019 and 2018, respectively. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | 27. CASH AND CASH EQUIVALENTS As at December 31, 2019 2018 Cash on hand 8,692 12,874 Bank deposits 20,611,786 21,013,228 20,620,478 21,026,103 As at December 31, 2019 2018 Renminbi 20,618,675 21,021,141 Hong Kong Dollars 983 1,971 United States Dollars 820 2,991 20,620,478 21,026,103 Cash and cash equivalents comprise cash held by the Group and short-term deposits with an original maturity of three months or less. Bank deposits as at December 31, 2019 carry interest at market rates which ranged from 0.30% to 0.40% (2018: 0.35%-0.50%) per annum. Majority of our cash is deposited with financial institution in the PRC. Remittance of funds out of the PRC is subject to the exchange restrictions imposed by the PRC government. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
TRADE AND OTHER PAYABLES | 28. TRADE AND OTHER PAYABLES As at December 31, 2019 2018 Trade payables 63,550 42,063 Employee benefits payable 182,386 348,028 Other payables 1,761,358 1,645,271 Subtotal financial liabilities 2,007,294 2,035,362 Other taxes payable 2,571,125 3,243,098 4,578,419 5,278,460 The fair value of trade and other payables have not been disclosed as, due to their short duration, management considers the carrying amounts recognized in the consolidated statements of financial position to be reasonable approximation of their fair values. Trade payables comprise amounts outstanding for trade purchase. The average credit period is 30 days from the time when the services are rendered by or goods received from suppliers. The aging analysis of trade payables is as follows: As at December 31, 2019 2018 Current 52,632 12,456 Past due for less than 4 months 3,959 8,504 Past due for over 4 months 6,959 21,104 63,550 42,063 The Company was granted a credit term of 30 days. The balances past due were mainly for the Company's high bargaining power. |
Related Parties Payable
Related Parties Payable | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES PAYABLE | 29. RELATED PARTIES PAYABLE (1) Nature of relationship with related parties Name Relationship with the Group Yan, Keyan Chairman, Director, and CEO Chen, Bizhen Wife of Yan, Keyan KBS International Ex-shareholder of Hongri Shishi City Lingxiu Hongri Knitwear Factory Company owned by Chen, Bizhen (2) Significant balances between the Group and the above related parties: As at December 31, Name Nature 2019 2018 Yan, Keyan Borrowing of funds 560,165 445,614 560,165 445,614 Related parties payables were unsecured, non-interest bearing and repayment on demand. During 2017, Mr. Yan and Ms. Chen provided personal guarantees for the loans as set forth in Note 30. *The Company entered into a lease arrangement for office space with this related party in 2010. The breakdown of the commitment to the lease is disclosed in note 34. |
Short-Term Bank Loans
Short-Term Bank Loans | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Bank Loans [Abstract] | |
SHORT-TERM BANK LOANS | 30. SHORT-TERM BANK LOANS As at December 31, 2019 2018 Secured bank borrowings 1,075,084 1,092,785 Carrying amount repayable within 1 year 1,075,084 1,092,785 The borrowings are fixed-rate and denominated in RMB. Bank loans Amount USD Period Interest rate Mortgage Personal guarantee #1 1,075,084 3/21/2019 3/21/2020 6.09 % Land use right and buildings Yan, Keyan/ 1,075,084 |
Warrant Liabilities
Warrant Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Warrant Liabilities [Abstract] | |
WARRANT LIABILITIES | 31. WARRANT LIABILITIES On November 1, 2012, the Company sold 5,000,000 Units at an offering price of $10.00 per Unit generating gross proceeds of $50,000,000 in the Public Offering. Each Unit consisted of one share of common stock of the Company and one warrant to purchase one share of common stock of the Company ("Redeemable Warrants"). Each Redeemable Warrant entitled the holder to purchase one share of common stock at a price of $11.50 which would commence on the later of either the completion of an initial Acquisition Transaction or October 24, 2013, and would expire five years from the completion date of an initial Acquisition Transaction, provided that there is an effective registration statement covering the shares of common stock underlying the Redeemable Warrants. The Company is entitled to redeem the Redeemable Warrants at a price of $0.01 per Redeemable Warrant upon providing 30 days' notice, subject to the last sale price of the common stock was at a minimum of $17.50 per share for any 20 trading days within a 30-trading day period ("30-Day Trading Period") that ended on the third day prior to the date on which notice of redemption is given, provided that there is a current registration statement in effect with respect to the shares of common stock underlying such Redeemable Warrants commencing ten days prior to the 30-Day Trading Period and continuing each day thereafter until the date of redemption. The Company is required to use its best efforts to maintain the effectiveness of the registration statement covering the Redeemable Warrants. However, there are no contractual penalties for failure to deliver securities if a registration statement is not effective at the time of exercise. Additionally, in the event that a registration statement is not effective at the time of exercise, the holder of such Redeemable Warrant shall not be entitled to exercise such Redeemable Warrant for cash and in no event (whether in the case of a registration statement not being effective or otherwise) will the Company be required to net cash settle the Redeemable Warrant exercise. Simultaneously with the consummation of the Public Offering, the Company consummated a Private Placement for the sale of 337,750 Placement Units to its Founders at a price of $10.00 per share, generating total proceeds of $3,377,500. The Placement Units are identical to the Units sold in the Public Offering except that the warrants included in the Placement Units (i) were not redeemable by the Company and (ii) may be exercised for cash, or on a cashless basis, so long as they are held by the initial purchaser or any of its permitted transferees. Additionally, the Placement Units have been placed in escrow and the purchasers have agreed not to transfer, assign or sell any of the Placement Units, including the underlying securities (except to certain permitted transferees) until 30 days following the completion of an initial Acquisition Transaction. The securities held in the escrow account will only be released prior to the end of the escrow period if following the initial Acquisition Transaction, the Company consummates a subsequent transaction that results in all stockholders having a right to exchange their shares for cash or other consideration. The Company granted the underwriter in the Public Offering a 45-day option to purchase up to an additional 750,000 Units solely to cover over-allotments, if any. On November 7, 2012, the underwriters exercised a portion of their option and the Company sold an additional 550,000 Units at a price of $10.00 per Unit generating gross proceeds of $5,500,000. In addition, the Company sold an additional 30,250 Private Placement Units generating gross proceeds of $302,500. The table below provides a reconciliation of the beginning and ending balances for the liabilities measured using fair significant unobservable inputs: Balance – January 26, 2012 (inception) - Correction of an error 3,200,223 Issuance of warrants as part of Units on November 7, 2012 322,884 Change in fair value (45,225 ) Balance – December 31, 2012 3,477,882 Change in fair value (45,442 ) Balance – December 31, 2013 3,432,440 Change in fair value (3,417,053 ) Balance – December 31, 2014 15,387 Change in fair value (11,978 ) Balance – December 31, 2015 3,409 Change in fair value (3,409 ) Balance – December 31, 2016 - Change in fair value - Balance – December 31, 2017 - Change in fair value - Balance – December 31, 2018 - Change in fair value - Balance – December 31, 2019 - The fair value of warrants was determined using a binomial-lattice model. This model requires the input of highly subjective assumptions, including price volatility of the underlying stock. Changes in the subjective input assumptions can materially affect the estimate of fair value of the warrants and the Company's results of operations could be impacted. This model is dependent upon several variables such as the instrument's expected term, expected strike price, expected risk-free interest rate over the expected instrument term, the expected dividend yield rate over the expected instrument term, and the expected volatility of the Company's stock price over the expected term. The expected term represents the period of time that the instruments granted are expected to be outstanding. The expected strike price is based upon a weighted average probability analysis of the strike price changes expected during the term as a result of the down round protection. The risk-free rates are based on U.S. Treasury securities with similar maturities as the expected terms of the options at the date of valuation. Expected dividend yield is based on historical trends. The Company measures volatility using the volatility rates of market index. The inputs to the model were as follows: December 31, December 31, Stock price N/A 2.96 Dividend yield N/A N/A Risk-free rate N/A 2.56 % Expected term (in years) N/A 0.58 Expected volatility N/A 11.94 % The quoted price of the warrants on the over-the-counter-markets ("OTC") were no longer listed and $0.001 as at December 31, 2019 and 2018, respectively. At December 31, 2019, there were no unexpired warrants outstanding. |
Share Capital and Share Premium
Share Capital and Share Premium | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
SHARE CAPITAL AND SHARE PREMIUM | 32. SHARE CAPITAL AND SHARE PREMIUM The details of the Group's share capital are as follows: Number of shares Share capital Share premium Shares outstanding as December 31, 2017 1,986,299 $ 198 $ 6,686,170 Issuance of shares 285,000 29 1,314,392 Shares outstanding as December 31, 2018 2,271,299 $ 227 $ 8,000,561 Issuance of shares 320,000 32 1,199,218 Shares outstanding as December 31, 2019 2,591,299 259 9,199,779 Number of shares Share capital Share premium Authorized Common shares of US$0.0001 as at December 31, 2017 150,000,000 $ 15,000 $ - Issue and fully paid common shares of US$0.0001 as at December 31, 2017 1,986,299 $ 198 $ 6,686,170 Issue and fully paid common shares of US$0.0001 as at December 31, 2018 2,271,299 $ 227 $ 8,000,561 Issue and fully paid common shares of US$0.0001 as at December 31, 2019 2,591,299 $ 259 $ 9,199,779 Preferred Stock The Company is authorized to issue 5,000,000 preferred shares with a par value of $0.0001 per share with such designation, rights and preferences as may be determined by the Company's board of directors. No preferred shares are currently issued or outstanding. Common Stock The Company is authorized to issue 150,000,000 shares of common stock with a par value of $0.0001 per share. On March 29, 2016, the Company granted 1,100,000 of common stock to its executive officers and directors as compensation of their past services. The shares were vested immediately. The fair value of the award was calculated on the date of grant using the quoted price of the Company's common stock. Total expense recognized in connection with this share-based payment amounted to $429,000. On January 20, 2017, the Company granted and issued 57,600 shares to its employees. On February 6, 2017, the 1-15 reverse stock split took effect and, as a result, the number of issued and outstanding shares of the Company's Common Stock is reduced from 26,517,329 shares to approximately 1,767,821 shares. The accompanying financial statements have been retroactively adjusted to reflect the effects of the reverse stock split that occurred after the date of the most recent financial statements. On July 10, 2017, the Company granted, and subsequently issued, 215,000 to its directors. On February 10, 2018, the Company granted, and subsequently issued, 285,000 shares to its directors. The shares are for services rendered in 2018. The shares are vested immediately upon granting. On March 25, 2019, the Company granted an aggregate of 305,000 registered shares of common stock pursuant to the 2018 Equity Incentive Plan to the executive officers, directors and certain employees as compensations for their services On March 29, 2019, the board of directors approved the issuance of 15,000 shares of common stock to the Investor Relationship firm as compensation for their services. |
Reserve
Reserve | 12 Months Ended |
Dec. 31, 2019 | |
Reserve [Abstract] | |
RESERVE | 33. RESERVE Statutory surplus reserve As stipulated by the relevant laws and regulations applicable to China's foreign investment enterprises, the Company's PRC subsidiaries are required to maintain a statutory surplus reserve which is non-distributable. Appropriations to such reserve are made out of net profit after tax of the statutory financial statements of the PRC subsidiaries at the amounts determined by their respective boards of directors annually up to 50% of authorized capital, but must not be less than 10% of the net profit after tax. The statutory surplus reserve can be used for making up losses of the group entities in Mainland China, if any. The statutory surplus reserve may also be used to increase capital or to meet unexpected or future losses. The statutory surplus reserve is non-distributable other than upon liquidation. The statutory surplus reserve of the Group amounts to $6,084,836 and $6,084,836 at December 31, 2019 and 2018, respectively. The statutory surplus reserve of the Group is related to Hongri Fujian and Anhui Kaixin. Revaluation reserve Revaluation reserve is comprised of the surplus or deficit arising from the revaluation of the Company's fixed assets. Retained profits The retained profits comprise the cumulative net gains and losses recognized in the Company's income statement. Foreign currency translation reserve (other comprehensive income) Foreign currency translation reserve represents the foreign currency translation difference arising from the translation of the financial statements of companies within the Group from their functional currency to the Group's presentation currency. |
Risk Management and Fair Values
Risk Management and Fair Values | 12 Months Ended |
Dec. 31, 2019 | |
Risk Management and Fair Values [Abstract] | |
RISK MANAGEMENT AND FAIR VALUES | 34. RISK MANAGEMENT AND FAIR VALUES 1. Capital risk The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to owners through the optimization of the debt and equity balance. The Group's overall strategy remains unchanged during the year. The capital structure of the Group consisted of borrowings net of bank balances and cash, and equity attributable to owners of the Company comprising issued share capital and various reserves. The directors of the Company review the capital structure regularly. As part of this review, the Group considers the cost of capital and the risks associated with each class of capital, and will balance its overall capital through the payment of dividends, new share issues as well as the issue of new debt or the redemption of existing debt. The Group monitors capital using the Gearing Ratio, which is net debt divided by total equity. Net debt represents borrowings less cash and cash equivalents. The Company met its objective by minoring borrowing activities. The Company and its subsidiaries are not subject to externally imposed capital requirements. December 31, 2019 December 31, 2018 Total borrowing 1,075,084 1,092,783 Less: cash and cash equivalents (20,620,478 ) (21,026,103 ) Net debt (19,545,394 ) (19,933,320 ) Total equity 55,053,098 54,301,321 Total capital 35,507,704 34,368,001 Gearing ratio (36 )% (37) % 2. Financial risk Financial risk management objectives and policies The Group's major financial instruments include trade and other receivables, related parties receivables, cash and cash equivalents, trade and other payables, related parties payables and short-term loans. Details of these financial instruments are disclosed in the respective notes. The risks associated with these financial instruments include credit risk, market risk (interest rate risk and currency risk) and liquidity risk. The policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. 3. Market risk (i) Foreign currency risk While our reporting currency is the U.S. dollar, substantially all of our consolidated revenues and consolidated costs and expenses are denominated in RMB. Substantially all of our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollar and the RMB. If the RMB depreciates against the U.S. dollar, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in determining other comprehensive income, a component of equity. An average appreciation (depreciation) of the RMB against the U.S. dollar of 5% would increase (decrease) our comprehensive income by $2.7 million based on our outstanding revenues, costs and expenses, assets and liabilities denominated in RMB as of December 31, 2019. As of December 31, 2019, our accumulated other comprehensive loss was $(7.1) million. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk. (ii) Interest rate risk We deposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. Most of our outstanding debt instruments carry fixed rates of interest. Our operations generally are not directly sensitive to fluctuations in interest rates and we currently do not have any long-term debt outstanding. Management monitors the banks' prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort to reduce our exposure to interest rate risk. 4. Credit risk As at December 31, 2019, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to perform an obligation by the counterparties is arising from the carrying amount of the respective recognised financial assets as stated in the consolidated statement of financial position. In order to minimize the credit risk, the management of the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of each reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Group consider that the Group's credit risk is significantly reduced. The Group's exposure to credit risk on trade receivables in influenced mainly by the individual characteristics of each customer therefore concentrations of credit risk primarily arise when the Group has significant exposure to individual customers. At the end of the reporting period, the outstanding balance of the five largest customers represented approximately 38% of the trade receivables of the Group at December 31, 2019 (2018: 52%). In order to minimize the credit risk, management continuously monitors the level of exposure to ensure that follow-up actions and/or corrective actions are taken promptly to lower the risk exposure or to recover overdue balances. 5. Liquidity risk In the management of the liquidity risk, the Group monitors and maintains a level of cash and bank balances deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants. Liquidity tables The following tables detail the Group's remaining contractual maturity for its non-derivative financial liabilities as at December 31, 2019 based on agreed repayment terms. The tables have been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows. As at December 31, 2019 Within 1 year Over 1 year Total Short-term bank loans and related interests 1,075,084 - 1,075,084 Trade and other payables 4,578,419 - 4,578,419 Related parties payables 560,165 - 560,165 Total 6,213,668 - 6,213,668 As at December 31, 2018 Within 1 year Over 1 year Total Short-term bank loans and related interests 1,092,783 - 1,092,783 Trade and other payables 5,278,460 - 5,278,460 Related parties payables 445,614 - 445,614 Total 6,816,857 - 6,816,857 6. Fair value The fair value of financial assets and financial liabilities is determined in accordance with generally accepted pricing models based on discounted cash flow analysis. The following table presents the fair value of the Group's financial instruments measured at the end of the reporting period on a recurring basis, categorized into the three-level fair value hierarchy as defined in IFRS 13, Fair Value Measurement. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: - Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. - Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available. - Level 3 valuations: Fair value measured using significant unobservable inputs. December 31, 2019 December 31, 2018 Recurring far value measurements Liabilities: Warrant liabilities - - - - During the years ended December 31, 2019 and 2018, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group's policy is to recognize transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. Valuation techniques and inputs used in Level 2 fair value measurements The fair value of financial assets in Level 2 is determined by the model as disclosed in note 32. The directors of the Company consider that the carrying amounts of financial assets and financial liabilities recorded at amortized cost approximate their fair values. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 35. COMMITMENTS AND CONTINGENCIES (1) The Company had the following capital commitments in respect of the construction of plant and equipment which were contracted but not provided for in the financial statements: As at December 31, As at December 31, Contracted and authorized, in RMB 440,851,273 439,850,378 Contracted and authorized, in USD 63,193,611 64,088,236 (2) As at December 31, 2019, the Company had lease commitments as follows: As at December 31, 2019 2018 Within 1 year 80,049 78,532 2-5 years 216,493 220,058 Thereafter 2,044,660 2,151,677 2,341,202 2,450,267 The amount of $80,049 as of December 31, 2019 represents leases of one office and one warehouse. There is no contingent rent payable for all of the leases. All leases are within one year except for one of the offices, which is leased by a related party as disclosed in note 30. The commitment pertains to this particular lease is as follows: As at December 31, 2019 2018 Within 1 year 72,164 73,353 2-5 years 216,493 220,058 Thereafter 2,044,660 2,151,677 2,333,318 2,445,087 The Company has prepaid this lease in the full amount. The lease commenced on January 1, 2009 and will expire on April 22, 2052. The lease does not specify the terms of renewal, purchase options, or escalation clauses. The Company may not sublease the office to a third party. As it is a practically cancellable lease, the requirement of recognisation of ROU asset is not applicable. |
Events After the Balance Sheet
Events After the Balance Sheet | 12 Months Ended |
Dec. 31, 2019 | |
Events After the Balance Sheet [Abstract] | |
EVENTS AFTER THE BALANCE SHEET | 36. EVENTS AFTER THE BALANCE SHEET The outbreak of novel coronavirus (Covid-19) in Mainland China in early 2020 has certain impact on the Company's business operations and even the overall economy. In the opinion of the directors, the industry and the financial performance of the Company will inevitably be affected in the first half of 2020 and probably afterwards, and it is not practicable to provide a quantitative estimate of the potential impact of this outbreak on the Company's financial statements by the date of the report. |
Signifcant Accounting Policies
Signifcant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Signifcant Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared on the historical cost basis and in accordance with IFRS as issued by the IASB. The principal accounting policies are set out below. |
Basis of consolidation | Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Foreign currencies | Foreign currencies Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The Group conducts its business predominately in the PRC and hence its functional currency is the Renminbi (RMB). Translation from RMB to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= RMB 6.5924 USD 1.00=RMB 6.7423 December 31, 2018 USD 1.00= RMB 6.8632 USD 1.00=RMB 6.6322 December 31, 2019 USD 1.00= RMB 6.9762 USD 1.00=RMB 6.8944 Translation from HKD to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= HKD 7.8170 USD 1.00=HKD 7.7928 December 31, 2018 USD 1.00= HKD 7.8329 USD 1.00=HKD 7.8636 December 31, 2019 USD 1.00= HKD 7.7877 USD 1.00=HKD 7.8342 The results and financial positions in functional currency are translated into the presentation currency, USD, of the Company as follows: (1) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; (2) Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); (3) Share equity, share premium and dividends are translated at historical exchange rates; and (4) All resulting exchange differences are recognized in foreign currency translation reserve, a separate component of equity. All financial information presented in USD has been rounded to the nearest dollar, except when otherwise indicated. |
Segment reporting | Segment reporting Operating segments, and the amounts of each segment item reported in the financial statements, are identified from the financial information provided regularly to the Group's most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Group's various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Group's three segments are wholesale, retail and contract manufacturing. |
Revenue recognition | Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods sold in the normal course of business, net of discounts and sales related taxes. The Group's revenue originates (i) from corporate owned stores, (ii) distributors and (iii) the services performed as an original design manufacturer. Revenue from all above categories is recognized when all the following conditions are satisfied: the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group has fully rendered service to the contract manufacturing customer by shipping the product to the customer; the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the Group; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. revenue from sale of goods is recognized when the goods are delivered and title has passed. the risks of obsolescence and loss have been transferred to the customer there is no unfulfilled obligation that could affect the customer's acceptance of the products Delivery occurs when the products have been shipped to the customer, and either the customer has accepted the products in accordance with the sales contract, any potential acceptance provisions have lapsed, or the group has objective evidence that all potential criteria for acceptance have been satisfied. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due |
Value added tax (VAT) | Value added tax (VAT) Current standard Output VAT in effect is 13% of product sales and taxable services revenue, according to existing tax laws. The remaining balance of output VAT, after subtracting the deductible input VAT of the period, is VAT payable. Period Standard VAT rate in effect April 1, 2019 - Current 13 % May 1, 2018 – March 31, 2019 16 % Earlier 17 % |
Borrowing costs | Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. |
Retirement benefit costs | Retirement benefit costs Pursuant to the relevant regulations of the PRC government, the Group's subsidiaries located in the PRC participate in a local municipal government retirement benefits scheme (the "Scheme"), whereby they contribute a prescribed percentage of the basic salaries of their employees to the Scheme to fund their retirement benefits. Once the Scheme has been funded via contributions by the Group's participating subsidiaries, the local municipal government takes responsibility for the retirement benefits obligations of all existing and future retired employees of those subsidiaries located in the PRC; accordingly, the only obligation of the Group with respect to the Scheme is to pay the on-going required contributions as long as the employees maintain employment with the Group. There are no provisions under the Scheme whereby forfeited contributions may be used to reduce future contributions. These plans are considered defined contribution plans. The Group has no legal or constructive obligations to pay further contributions after its payment of the fixed contributions into the pension schemes. Contributions to pension schemes are recognized as an expense in the period in which the related service is performed. |
Taxation | Taxation The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
Store pre-opening cost | Store pre-opening cost Store pre-opening cost was the start-up activity costs incurred prior to opening a new store, mainly including leasing, leasehold improvements, payroll and supplies. The accounting policies for leasing and leasehold improvements were as below. Other store pre-opening costs were directly charged to expenses when occurred. |
Leasing | Leasing IFRS 16 Leases requires lessees to recognise assets and liabilities for most leases based on a 'right-of-use model' which reflects that, at the commencement date, a lessee has a financial obligation to make lease payments to the lessor for its right to use the underlying asset during the lease term. The lessor conveys that right to use the underlying asset at lease commencement, which is the time when it makes the underlying asset available for use by the lessee. IFRS 16 defines a lease term as the noncancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. Under IFRS 16 lessees may also elect not to recognise assets and liabilities for leases with a lease term of 12 months or less. In such cases a lessee recognises the lease payments in profit or loss on a straight-line basis over the lease term. The exemption is required to be applied by class of underlying assets. Lessees can also make an election for leases for which the underlying asset is of low value. This election can be made on a lease-by-lease basis. For leases where the Group is the lessee, the lease term is either cancelable or no longer than 12 months, so the Group has elected not to record the leased assets. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17. IFRS 16 did not have any significant impact on leases where the Group is the lessor. |
Leasehold improvements | Leasehold improvements Leasehold improvements, principally comprising costs of office buildings and shops renovation, are held for administrative and selling purposes. Leasehold improvements are initially measured at cost and amortized systematically over its useful life. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment ("PPE") including buildings held for use in the production or supply of goods or services, or for administrative purposes other than construction in progress are stated at cost less subsequent accumulated depreciation and accumulated impairment losses. Depreciation is provided to write off the cost of items of property, plant and equipment other than construction in progress over their estimated useful lives and after taking into account of their estimated residual value, using the straight-line method. Construction in progress includes property, plant and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the period in which the item is de-recognized. |
Investment properties | Investment properties Investment properties are land and buildings which are owned or held under a leasehold interest to earn rental income and/or for capital appreciation. These include land and buildings held for a currently undetermined future use. Such properties are stated at cost less accumulated depreciation and any impairment losses. Any gains or losses on the retirement or disposal of an investment property are recognised in the income statement in the year of the retirement or disposal. Depreciation is calculated on the straight-line basis to depreciate the cost of each item of investment properties over the estimated useful life of 20 years. |
The Group as lessor | The Group as lessor Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. |
Land use rights | Land use rights Land use rights are stated at cost less accumulated amortization and accumulated impairment losses. Cost represents consideration paid for the rights to use the land on which various plants and buildings are situated for periods varying from 20 to 50 years. Amortization of land use rights is calculated on a straight-line basis over the period of the land use rights. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determined using the weighted average method. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. |
Financial instruments | Financial instruments Financial assets and financial liabilities are recognized on the consolidated statements of financial position when a group entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. (1) Financial assets The Group's financial assets are classified as receivables. Effective interest method The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period to the net carrying amount on initial recognition. Interest income is recognized on an effective interest basis for debt instruments. Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables (including trade and other receivables, related parties receivables, and cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment (see accounting policy on impairment loss on receivables below). Impairments of receivables Receivables are assessed for indicators of impairment at the end of the reporting period. Receivables are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the receivables, the estimated future cash flows of the receivables have been affected. Objective evidence of impairment could include: ● significant financial difficulty of the issuer or counterparty; ● default or delinquency in interest or principal payments; ● it becoming probable that the borrower will enter bankruptcy or financial reorganization. For certain categories of financial asset, such as trade and other receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group's past experience of collecting payments, and increase in the number of delayed payments in the portfolio past the average credit period, observable changes in national or local economic conditions that correlate with default on receivables. An impairment loss is recognized in profit or loss when there is objective evidence that the asset is impaired, and is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. The carrying amount of the receivables is reduced by the impairment loss directly for all financial assets with exception of trade and other receivables, where the carrying amount is reduced through the use of an allowance account. Changes in carrying amount of the allowance account are recognized in profit or loss. When a trade and other receivable are considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited to profit or loss. If, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment losses was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition (2) Financial liabilities and equity Financial liabilities and equity instruments issued by a group entity are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Effective interest method The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period to the net carrying amount on initial recognition. Interest expense is recognized on an effective interest basis. Financial liabilities Financial liabilities including trade and other payables, related parties payables and short-term loans are subsequently measured at amortized cost, using the effective interest method. Equity instruments Equity instruments issued by the group entities are recorded at the proceeds received, net of direct issue costs. (3) De-recognition Financial assets are derecognized when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Group has transferred substantially all the risks and rewards of ownership of the financial assets. On de-recognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. Financial liabilities are derecognized when the obligation specified in the relevant contract is discharged, cancelled or expires. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. |
Capital and Reserves | Capital and Reserves Share capital represents the nominal value of shares that have been issued by the Group. Share capital is determined using the nominal value of shares that have been issued. Retained profits include all current and prior period results as determined in the combined statement of comprehensive income. Foreign currency translation reserve arising on the translation are included in the currency translation reserve. In accordance with the relevant laws and regulations of PRC, the subsidiaries of the Group established in PRC are required to transfer 10% of its annual statutory net profit (after offsetting any prior years' losses) to the statutory reserve. When the balance of such reserve reaches 50% of the subsidiary's share capital, any further transfer of its annual statutory net profit is optional. Such reserve may be used to offset accumulated losses or to increase the registered capital of the subsidiary subject to the approval of the relevant authorities. However, except for offsetting prior years' losses, such statutory reserve must be maintained at a minimum of 25% of the share capital after such usage. The statutory reserves are not available for dividend distribution to the shareholders. All transactions with owners of the Group are recorded separately within equity. |
Earnings/(loss) per share | Earnings/(loss) per share Basic earnings per share ("EPS") are computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. The preparation of financial statements in conformity with IFRS requires management to exercise judgment in the process of applying the Group's accounting policies and requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and reported amount of revenue and expenses during the reporting period. The following estimates that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are disclosed below. |
Signifcant Accounting Policie_2
Signifcant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Signifcant Accounting Policies [Abstract] | |
Schedule of functional currency | Translation from RMB to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= RMB 6.5924 USD 1.00=RMB 6.7423 December 31, 2018 USD 1.00= RMB 6.8632 USD 1.00=RMB 6.6322 December 31, 2019 USD 1.00= RMB 6.9762 USD 1.00=RMB 6.8944 Translation from HKD to USD found place at the following rates: Period end rates Average rates December 31, 2017 USD 1.00= HKD 7.8170 USD 1.00=HKD 7.7928 December 31, 2018 USD 1.00= HKD 7.8329 USD 1.00=HKD 7.8636 December 31, 2019 USD 1.00= HKD 7.7877 USD 1.00=HKD 7.8342 |
Schedule of value added tax | Period Standard VAT rate in effect April 1, 2019 - Current 13 % May 1, 2018 – March 31, 2019 16 % Earlier 17 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating segments gross margins | By business Wholesale Retail Subcontracting Consolidated For the year ended December 31, For the year ended December 31, For the year ended December 31, For the year ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Sales to external customers 10,308,309 13,584,754 15,034,800 571,403 2,375,773 6,983,592 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 Segment revenue 10,308,309 13,584,754 15,034,800 571,403 2,375,773 6,983,592 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 Segment gross margins/(loss) 3,268,945 2,245,944 2,277,858 319,706 (5,402,994 ) (14,291,680 ) 2,162,393 840,913 502,007 5,751,043 (2,316,136 ) (11,511,815 ) Reconciling items (5,412,858 ) (21,074,581 ) (7,901,842 ) Profit/(loss) before tax 338,185 (23,390,717 ) (19,413,657 ) Income tax income/(expense) (442,590 ) 5,422,119 4,598,061 Profit/(loss) for the year (104,405) (17,968,598 ) (14,815,596 ) |
Schedule of assets and liabilities | As of December 31, 2019 Wholesale and Retail Subcontracting Unallocated Consolidated Current assets 24,741,115 7,979,513 13,492 32,734,120 Non-current assets 10,047,963 18,306,697 28,354,660 Total assets 34,789,078 26,286,610 13,492 61,088,780 Current liabilities 3,066,041 1,483,891 2,094,462 6,644,394 Total liabilities 3,066,041 1,483,891 2,094,462 6,644,394 As of December 31, 2018 Wholesale and Retail Subcontracting Unallocated Consolidated Current assets 24,915,855 6,394,814 17,462 31,328,131 Non-current assets 10,236,126 19,601,749 - 29,837,875 Total assets 35,151,981 25,996,563 17,462 61,166,006 Current liabilities 3,417,655 1,590,564 1,856,467 6,864,685 Total liabilities 3,417,655 1,590,564 1,856,467 6,864,685 |
Schedule of major distributors revenue | Year ended December 31, 2019 2018 2017 Distributor A 1,019,139 1,331,194 1,454,862 Other distributors 9,289,170 12,253,560 13,579,938 10,308,309 13,584,754 15,034,800 |
Schedule of major suppliers purchases | Year ended December 31, 2019 2018 2017 Supplier A 1,270,597 3,031,310 2,403,309 Supplier B 2,325,926 2,879,110 - Supplier C 504,779 - 1,530,429 Supplier D 1,212,778 - 1,714,468 Supplier E 869,365 - 1,684,743 Supplier F 1,222,864 1,684,910 - Other suppliers 62,948 2,901,982 5,065,563 7,469,257 10,497,311 12,398,512 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [Abstract] | |
Schedule of information of revenue | Year ended December 31, 2019 2018 2017 Apparel -Wholesale 10,308,309 13,584,754 15,034,800 -Retail 571,403 2,375,773 6,983,592 Subtotal 10,879,712 15,960,527 22,018,392 Subcontracting 5,585,850 2,574,589 1,744,144 16,465,562 18,535,116 23,762,536 |
Cost of Sales (Tables)
Cost of Sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cost of Sales [Abstract] | |
Schedule of cost of sales | Year ended December 31, 2019 2018 2017 Changes in inventories of finished goods and work in progress 76,800 (24,475 ) 227,132 Materials consumed in production 43,443 29,619 41,057 Purchases of finished goods 7,053,841 19,044,582 33,877,598 Labor 2,887,199 1,061,943 602,196 Depreciation 142,278 352,739 370,858 Rental - 452 - Outsourced manufacturing cost - - - Taxes and surcharges * 130,728 75,736 157,314 Water and electricity 63,969 62,027 52,796 Inventory provision 42,919 196,124 8 Others 237,561 128,773 120,886 Foreign currency translation difference 35,780 (76,269 ) (175,493 ) 10,714,519 20,851,252 35,274,352 * Tax and surcharges are mainly Urban Maintenance and Construction Tax (7% of Valued Added Tax payment amount), Extra Charges of Education Fund (3% of Valued Added Tax payment amount) and Local Surcharge for Education Fund (2% of Valued Added Tax payment amount). |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income [Abstract] | |
Schedule of other income | Year ended December 31, 2019 2018 2017 Government grant 6,179 - 367,260 Interest income on bank deposits 62,538 71,693 81,517 Other 222,865 50,446 12,787 291,582 122,139 461,564 |
Other Gains and (Losses) (Table
Other Gains and (Losses) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Gains and (Losses) [Abstract] | |
Schedule of other gains and (losses) | Year ended December 31, 2019 2018 2017 Gain on disposals of property, plant and equipment 2,124 1,380 171 Foreign exchange gain 13 (49 ) (48 ) Provision / reversal of inventory obsolescence - (196,124 ) (101,256 ) Bad debt provision of trade receivables (1,028,972 ) - - Impairment of property - (13,311,557 ) - Others (37,753 ) (15,950 ) (21,110 ) (1,064,588 ) (13,522,300 ) (122,243 ) |
Distribution and Selling Expe_2
Distribution and Selling Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Distribution and Selling Expenses [Abstract] | |
Schedule of distribution and selling expenses | Year ended December 31, 2019 2018 2017 Rental 9,573 16,067 21,527 Depreciation - 1,218 2,680 Labor 170,771 275,026 258,233 Subsidy to distributors 477,779 787,064 773.238 Promotion - 15,623 32,216 Advertisement 287,354 1,152,176 1,591,742 Others 148,914 423,782 585,744 1,094,391 2,670,955 3,265,380 |
Administrative Expense (Tables)
Administrative Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Administrative Expense [Abstract] | |
Schedule of administrative expense | Year ended December 31, 2019 2018 2017 Labor 1,690,420 2,193,120 1,600,380 Audit fee 138,870 122,908 216,281 Professional fee 18,517 69,639 77,754 Design fee 372,192 648,632 937,478 Depreciation and amortization charges 685,253 1,185,257 1,149,455 Bank charges 2,815 8,130 18,352 Rental 73,021 75,907 74,668 Travelling and entertainment 17,439 2,662 107,566 Others 479,731 600,765 697,463 3,478,258 4,907,020 4,879,397 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Costs [Abstract] | |
Schedule of finance costs | Year ended December 31, 2019 2018 2017 Interest expenses on bank borrowings wholly repayable within one year 67,203 96,444 96,385 |
Income Tax (Income)_ Expense (T
Income Tax (Income)/ Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax (Income)/ Expense [Abstract] | |
Summary of income tax (Income)/Expense | Year ended December 31, 2019 2018 2017 PRC enterprises income tax: Current tax 256,808 - - Deferred tax 185,787 (5,422,119 ) (4,598,061 ) 442,595 (5,422,119 ) (4,598,061 ) |
Summary of tax charge | Year ended December 31, 2019 2018 2017 (Loss)/profit before tax 338,185 (23,390,716 ) (19,413,657 ) Tax calculated at domestic tax rates applicable to profits in PRC (2019, 2018, and 2017: 25%) 84,546 (5,847,679 ) (4,853,414 ) Tax effect of tax loss of tax exempt entities 358,049 425,560 255,354 Tax charge for the year 442,595 (5,422,119 ) (4,598,061 ) |
Summary of deferred tax balances | 2019 2018 2017 Temporary difference Deferred tax assets Temporary difference Deferred tax assets Temporary difference Deferred tax assets Beginning of the year 60,645,730 14,688,829 38,761,131 9,924,944 20,737,366 4,879,652 Bad Debt provisions charged to profit or loss (1,028,972 ) (257,243 ) - - - - Impairment charged to profit or loss 13,507,681 3,376,920 101,256 25,314 Tax loss carried forward 8,376,919 2,094,230 17,922,508 4,480,627 Effect of translation (304,207 ) - (707,265 ) - 539,351 End of the year 59,616,758 14,127,559 60,645,730 14,688,829 38,761,131 9,924,944 |
Profit for the Year (Tables)
Profit for the Year (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Profit for the Year [Abstract] | |
Schedule of profit for the year | Year ended December 31, 2019 2018 2017 Cost of inventories recognized as expenses 10,583,791 20,398,829 35,094,050 Taxes and surcharges 130,728 112,108 180,302 10,714,519 20,510,936 35,274,352 Depreciation of property, plant and equipment 671,262 1,172,809 1,137,831 Amortization of land use rights and trademarks 13,992 14,545 14,307 Amortization of subsidies prepaid to distributors - 401,259 Amortization of prepayments and premiums under operating leases 96,743 104,206 105,340 Provision (Reversal) of inventory obsolescence (145,747 ) 196,124 101,256 Provision of bad debt allowance 1,028,972 - - Provision of impairment loss in property 13,311,557 - 1,665,222 14,799,241 1,759,993 |
Employees' Emoluments (Tables)
Employees' Emoluments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employees' Emoluments [Abstract] | |
Schedule of emoluments paid or payable to the directors | Year ended December 31, 2019 2018 2017 Salaries and other short-term benefits 2,086,041 2,637,752 2,476,506 Defined contribution benefit schemes 290,414 205,499 189,621 Total employee benefits expense (including directors' emoluments) 2,376,454 2,843,251 2,666,127 |
Directors' Emoluments (Tables)
Directors' Emoluments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Directors' Emoluments [Abstract] | |
Schedule of directors' emoluments | Year ended December 31, 2019 2018 2017 Salaries Yan Keyan 389,826 739,350 304,050 Lixia Tu 232,144 296,100 233,854 John Sano 18,600 23,050 43,950 Themis Kalapotharakos 148,800 161,350 87,900 Matthew Los 148,800 161,350 87,900 Zhongmin Zhang 18,600 23,020 43,950 Yuet Mei Chan 18,600 23,050 43,950 975,370 1,427,300 847,554 Social Welfare Yan Keyan 1,055 1,122 1,006 1,055 1,122 1,006 |
Earnings_ (Loss) Per Share (Tab
Earnings/ (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings/ (Loss) Per Share [Abstract] | |
Schedule of earnings/ (loss) per share | For the years ended December 31, 2019 2018 2017 Basic (Loss)/Earnings Per Share Numerator Profit for the year attributable to owners of the Company $ (104,405 ) $ (17,968,598 ) $ (14,815,596 ) Diluted (Loss)/Earnings Per Share Numerator Profit for the year attributable to owners of the Company $ (104,405 ) $ (17,968,598 ) $ (14,815,596 ) Basic (Loss)/Earnings Per Share Denominator # Original shares: 2,271,299 1,986,299 1,767,821 Additions from actual events: - Issuance of common stock, weighted 246,192 288,421 93,010 Basic weighted average shares outstanding 2,517,491 2,229,915 1,860,831 Diluted (Loss)/Earnings Per Share Denominator # Basic weighted average shares outstanding 2,517,491 2,229,915 1,860,831 Dilutive shares: Potential additions from dilutive events: - Exercise of investor warrants* - Diluted Weighted Average Shares Outstanding: 2,517,491 2,229,915 1,860,831 (Loss)/Earnings Per Share # - Basic $ (0.00 ) $ (8,06 ) $ (7.96 ) - Diluted $ (0.00 ) $ (8.06 ) $ (7.96 ) Weighted Average Shares Outstanding # - Basic 2,517,491 2,229,915 1,860,831 - Diluted 2,517,491 2,229,915 1,860,831 * There were no potential dilutive additions to diluted weighted shares outstanding as a result of the outstanding warrants being out-of-the-money during the periods presented. # The amount of shares and the respective calculations of earnings/(loss) per share have been adjusted according to reverse split. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of properties. plant and equipment | Plant Machinery Office Motor Furniture Leasehold Leasehold Total COST At January 1, 2018 31,256,157 928,022 130,515 86,654 153,135 895,781 268,759 33,719,025 Additions - 1,767 11,544 - 8,014 - - 21,324 Disposals - (4,103 ) - - - - - (4,103 ) Translation adjustment (1,498,321 ) (44,486 ) (6,257 ) (4,154 ) (7,341 ) (42,941 ) (12,883 ) (1,616,383 ) At December 31, 2018 29,757,837 881,199 135,802 82,500 153,808 852,840 255,876 32,119,863 Additions - - 162 - - - - 162 Disposals - (266,304 ) (280 ) (387 ) - - - (266,971 ) Reclassification to investment property (12,291,058 ) - - - - - - (12,291,058 ) Translation adjustment (482,015 ) (14,274 ) (2,200 ) (1,336 ) (2,491 ) (13,814 ) (4,145 ) (520,275 ) At December 31, 2019 16,984,763 600,620 133,486 80,777 151,317 839,026 251,731 19,041,720 DEPRECIATION AND IMPAIRMENT At January 1, 2018 (3,932,436 ) (791,401 ) (99,887 ) (77,945 ) (146,818 ) (577,253 ) (268,759 ) (5,894,501 ) Provided for the year (891,146 ) (14,619 ) (8,776 ) (41 ) (2,411 ) (109,261 ) - (1,026,254 ) Eliminated upon disposal of assets - 3,693 - - - - - 3,693 Impairment (13,311,557 ) - - - - - - (13,311,557 ) Translation adjustment 188,509 37,937 4,788 3,736 7,038 27,672 12,883 282,564 At December 31, 2018 (17,946,631 ) (764,389 ) (103,875 ) (74,250 ) (142,191 ) (658,843 ) (255,876 ) (19,946,054 ) Provided for the year (832,476 ) (13,733 ) (7,279 ) - (1,857 ) (73,239 ) - (928,584 ) Eliminated upon disposal of assets 161,645 234,901 252 5,122 - - - 401,919 Depreciation reclassified to investment property 2,708,200 - - - - - - 2,708,200 Impairment reclassified to investment property 4,483,680 - - - - - - 4,483,680 Translation adjustment 290,698 12,382 1,683 1,203 2,303 10,672 4,145 323,085 At December 31, 2019 (11,134,883 ) (530,840 ) (109,220 ) (67,925 ) (141,745 ) (721,410 ) (251,731 ) (12,957,754 ) CARRYING AMOUNT At December 31, 2018 11,811,206 116,809 31,928 8,250 11,617 193,997 - 12,173,808 At December 31, 2019 5,849,880 69,780 24,266 12,852 9,572 117,616 - 6,083,966 |
Schedule of straight-line basis for all property, plant and equipment over estimated useful lives | Useful life Residual Value Plant 20 years 10% Machinery 5 years 10% Office equipment 5 years 10% Motor vehicles 5 years 10% Furniture and fixtures 5 years 10% Leasehold improvements-factories and offices Shorter of estimated useful life of 5 years or lease term 10% Leasehold improvements-shops Shorter of estimated useful life of 5 years or lease term Nil Distributor shops' furniture and fixtures 1.5 years Nil |
Schedule of plant includes buildings owned by Anhui Kaixin built on the following land | Location Description Gross area (m 2 Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC Dormitory 8,573 Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC Factory 22,292 |
Schedule of carrying amount recognized assets carried under cost model | As at December 31, 2019 2018 Machinery 89,755 91,232 Motor Vehicles 33 33 Office Equipment 2,492 2,533 Furniture and fixtures 692 703 92,971 94,502 COST 2019 2018 Opening balance at 1 January - Acquisitions - Capitalised subsequent expenditure - Classified as held for sale or disposals - Transfer (to)/from inventories and owner-occupied property 12,291,058 Closing balance at 31 December 12,291,058 DEPRECIATION AND IMPAIRMENT 2019 2018 Opening balance at 1 January - Provided for the year - Eliminated upon disposal of assets - Impairment for the year - Transfer to/(from) inventories and owner-occupied property (7,191,880 ) Closing balance at 31 December (7,191,880 ) CARRYING AMOUNT 2019 2018 Closing balance at 31 December 5,099,178 |
Prepayments and Premiums Unde_2
Prepayments and Premiums Under Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Premiums Under Operating Leases [Abstract] | |
Schedule of prepayments and premiums under operating leases | Amount At January 1, 2018 2,652,106 additions for the year 26,899 charge for the year (104,206 ) translation adjustment (124,532 ) At December 31, 2018 2,450,267 additions for the year 21,757 charge for the year (96,743 ) translation adjustment (38,810 ) At December 31, 2019 2,336,471 |
Schedule of prepayment and premium under operating lease analyzed for reporting | As at December 31, 2019 2018 Current asset 75,318 78,532 Non-current asset 2,261,153 2,371,735 2,336,471 2,450,267 |
Prepayment for Construction o_2
Prepayment for Construction of New Plant (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayment For Construction Of New Plant [Abstract] | |
Schedule of carrying amount of the prepayment for construction of new plant | As at December 31, 2019 Prepaid in 2015 8,469,878 Recognized as construction in progress (110,041 ) 8,359,837 Impairment loss in 2015: (1,199,314 ) 7,160,523 Impairment loss in 2016: (6,989,200 ) Translation adjustment: (171,323 ) - |
Prepayment for Acquisition of_2
Prepayment for Acquisition of Land Use Right (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayment for Acquisition of Land Use Right [Abstract] | |
Schedule of prepayment for acquisition of land use right | As at December 31, 2019 Prepaid in 2010 6,039,930 Impairment loss: (1,265,867 ) 4,774,063 Impairment loss in 2016: (4,659,838 ) Translation adjustment: (114,225 ) - |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Land Use Rights [Abstract] | |
Schedule of land use right | Amount COST At January 1, 2018 734,253 additions for the year - translation adjustment (35,198 ) At December 31, 2018 699,055 additions for the year translation adjustment (11,323 ) At December 31, 2019 687,732 AMORTIZATION At January 1, 2018 (85,600 ) charge for the year (15,545 ) translation adjustment 4,593 At December 31, 2018 (95,552 ) charge for the year (13,992 ) translation adjustment 1,712 At December 31, 2019 (107,832 ) CARRYING AMOUNTS At December 31, 2018 603,503 At December 31, 2019 579,900 |
Schedule of location | Location Expiry date of tenure Land area (m 2 Longshan Road, Economic development District, Taihu County 2062-05-23 2,440 Longshan Road, Economic development District, Taihu County 2061-11-06 7,405 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Inventories | As at December 31, 2019 2018 Raw materials 1,047,532 956,947 Finished goods 437,144 478,377 Provision for obsolete inventories (42,416 ) (189,524 ) 1,442,260 1,245,800 |
Trade Receivables, Other Rece_2
Trade Receivables, Other Receivables and Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Schedule of trade receivables | As at December 31, 2019 2018 Trade receivables 12,775,324 9,416,320 Bad debt provision for trade receivables (2,299,558 ) (1,294,097 ) 10,475,766 8,122,223 |
Schedule of other receivables | As at December 31, 2019 2018 Other receivables 3,387 2,617 Prepayments 116,911 852,856 120,298 855,473 |
Schedule of aging analysis of trade receivables | As at December 31, 2019 2018 Current 778,047 1,743,556 Past due for less than 4 months 2,458,705 3,546,525 Past due for more than 4 months 9,538,573 4,126,240 12,755,324 9,416,320 |
Schedule of provision for doubtful debts | 2019 2018 As at January 1 1,294,097 1,359,255 Provision provided in the year 1,028,972 - Translation adjustment (23,481 ) (65,158 ) As at December 31 2,299,558 1,294,097 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | As at December 31, 2019 2018 Cash on hand 8,692 12,874 Bank deposits 20,611,786 21,013,228 20,620,478 21,026,103 As at December 31, 2019 2018 Renminbi 20,618,675 21,021,141 Hong Kong Dollars 983 1,971 United States Dollars 820 2,991 20,620,478 21,026,103 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of trade and other payables | As at December 31, 2019 2018 Trade payables 63,550 42,063 Employee benefits payable 182,386 348,028 Other payables 1,761,358 1,645,271 Subtotal financial liabilities 2,007,294 2,035,362 Other taxes payable 2,571,125 3,243,098 4,578,419 5,278,460 |
Schedule of aging analysis of trade payables | As at December 31, 2019 2018 Current 52,632 12,456 Past due for less than 4 months 3,959 8,504 Past due for over 4 months 6,959 21,104 63,550 42,063 |
Related Parties Payable (Tables
Related Parties Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of nature of relationship with related parties | Name Relationship with the Group Yan, Keyan Chairman, Director, and CEO Chen, Bizhen Wife of Yan, Keyan KBS International Ex-shareholder of Hongri Shishi City Lingxiu Hongri Knitwear Factory Company owned by Chen, Bizhen |
Schedule of significant balances between group and related parties | As at December 31, Name Nature 2019 2018 Yan, Keyan Borrowing of funds 560,165 445,614 560,165 445,614 |
Short-Term Bank Loans (Tables)
Short-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Bank Loans [Abstract] | |
Schedule of components of short-term bank loans | As at December 31, 2019 2018 Secured bank borrowings 1,075,084 1,092,785 Carrying amount repayable within 1 year 1,075,084 1,092,785 |
Schedule of borrowings fixed-rate and denominated in RMB | Bank loans Amount USD Period Interest rate Mortgage Personal guarantee #1 1,075,084 3/21/2019 3/21/2020 6.09 % Land use right and buildings Yan, Keyan/ 1,075,084 |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warrant Liabilities [Abstract] | |
Schedule of liabilities measured using fair significant unobservable inputs | Balance – January 26, 2012 (inception) - Correction of an error 3,200,223 Issuance of warrants as part of Units on November 7, 2012 322,884 Change in fair value (45,225 ) Balance – December 31, 2012 3,477,882 Change in fair value (45,442 ) Balance – December 31, 2013 3,432,440 Change in fair value (3,417,053 ) Balance – December 31, 2014 15,387 Change in fair value (11,978 ) Balance – December 31, 2015 3,409 Change in fair value (3,409 ) Balance – December 31, 2016 - Change in fair value - Balance – December 31, 2017 - Change in fair value - Balance – December 31, 2018 - Change in fair value - Balance – December 31, 2019 - |
Schedule of inputs to the model | December 31, December 31, Stock price N/A 2.96 Dividend yield N/A N/A Risk-free rate N/A 2.56 % Expected term (in years) N/A 0.58 Expected volatility N/A 11.94 % |
Share Capital and Share Premi_2
Share Capital and Share Premium (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
Schedule of details of the group's share capital | Number of shares Share capital Share premium Shares outstanding as December 31, 2017 1,986,299 $ 198 $ 6,686,170 Issuance of shares 285,000 29 1,314,392 Shares outstanding as December 31, 2018 2,271,299 $ 227 $ 8,000,561 Issuance of shares 320,000 32 1,199,218 Shares outstanding as December 31, 2019 2,591,299 259 9,199,779 Number of shares Share capital Share premium Authorized Common shares of US$0.0001 as at December 31, 2017 150,000,000 $ 15,000 $ - Issue and fully paid common shares of US$0.0001 as at December 31, 2017 1,986,299 $ 198 $ 6,686,170 Issue and fully paid common shares of US$0.0001 as at December 31, 2018 2,271,299 $ 227 $ 8,000,561 Issue and fully paid common shares of US$0.0001 as at December 31, 2019 2,591,299 $ 259 $ 9,199,779 |
Risk Management and Fair Valu_2
Risk Management and Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk Management and Fair Values [Abstract] | |
Schedule of capital risk | December 31, 2019 December 31, 2018 Total borrowing 1,075,084 1,092,783 Less: cash and cash equivalents (20,620,478 ) (21,026,103 ) Net debt (19,545,394 ) (19,933,320 ) Total equity 55,053,098 54,301,321 Total capital 35,507,704 34,368,001 Gearing ratio (36 )% (37) % |
Schedule of liquidity risk | As at December 31, 2019 Within 1 year Over 1 year Total Short-term bank loans and related interests 1,075,084 - 1,075,084 Trade and other payables 4,578,419 - 4,578,419 Related parties payables 560,165 - 560,165 Total 6,213,668 - 6,213,668 As at December 31, 2018 Within 1 year Over 1 year Total Short-term bank loans and related interests 1,092,783 - 1,092,783 Trade and other payables 5,278,460 - 5,278,460 Related parties payables 445,614 - 445,614 Total 6,816,857 - 6,816,857 |
Schedule of recurring fair value measurements | December 31, 2019 December 31, 2018 Recurring far value measurements Liabilities: Warrant liabilities - - - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Schedule of capital commitments | As at December 31, As at December 31, Contracted and authorized, in RMB 440,851,273 439,850,378 Contracted and authorized, in USD 63,193,611 64,088,236 |
Schedule of lease commitments | As at December 31, 2019 2018 Within 1 year 80,049 78,532 2-5 years 216,493 220,058 Thereafter 2,044,660 2,151,677 2,341,202 2,450,267 As at December 31, 2019 2018 Within 1 year 72,164 73,353 2-5 years 216,493 220,058 Thereafter 2,044,660 2,151,677 2,333,318 2,445,087 |
General Information (Details)
General Information (Details) | Sep. 30, 2011CNY (¥) | Mar. 24, 2011CNY (¥) | Mar. 16, 2011CNY (¥) | Jan. 27, 2011$ / sharesshares | Dec. 31, 2010shares | Nov. 25, 2010HKD ($)$ / sharesshares | Jul. 08, 2008USD ($)$ / sharesshares | Mar. 28, 2006USD ($)$ / sharesshares | Nov. 17, 2005CNY (¥) | Sep. 21, 2005HKD ($)$ / sharesshares |
Anhui Kai Xin [Member] | RMB [Member] | ||||||||||
General Information (Textual) | ||||||||||
Paid up capital | ¥ | ¥ 1,000,000 | |||||||||
Hongri Fujian [Member] | RMB [Member] | ||||||||||
General Information (Textual) | ||||||||||
Common unit issuance of authorized value | ¥ | ¥ 5,000,000 | |||||||||
Paid up capital | ¥ | ¥ 39,551,860 | |||||||||
Hongri Fujian [Member] | RMB [Member] | Minimum [Member] | ||||||||||
General Information (Textual) | ||||||||||
Increased registered capital | ¥ | ¥ 70,000,000 | |||||||||
Hongri Fujian [Member] | RMB [Member] | Maximum [Member] | ||||||||||
General Information (Textual) | ||||||||||
Increased registered capital | ¥ | ¥ 75,000,000 | |||||||||
Vast Billion [Member] | HK [Member] | ||||||||||
General Information (Textual) | ||||||||||
Common unit issuance of authorized value | $ | $ 10,000 | |||||||||
Number of shares authorised | 10,000 | |||||||||
Par value per share | $ / shares | $ 1 | |||||||||
Roller Rome [Member] | ||||||||||
General Information (Textual) | ||||||||||
Common unit issuance of authorized value | $ | $ 50,000 | |||||||||
Number of shares authorised | 50,000 | |||||||||
Par value per share | $ / shares | $ 1 | |||||||||
France Cock [Member] | HK [Member] | ||||||||||
General Information (Textual) | ||||||||||
Common unit issuance of authorized value | $ | $ 10,000 | |||||||||
Number of shares authorised | 10,000 | |||||||||
Par value per share | $ / shares | $ 1 | |||||||||
Hongri [Member] | ||||||||||
General Information (Textual) | ||||||||||
Common unit issuance of authorized value | $ | $ 50,000 | |||||||||
Number of shares authorised | 50,000 | |||||||||
Par value per share | $ / shares | $ 77 | $ 1 | ||||||||
Number of shares issued | 10,000 | |||||||||
Issued on additional shares | 10,000 |
Signifcant Accounting Policie_3
Signifcant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RMB to USD [Member] | |||
Significant Accpunting Policies [Line Items] | |||
Translation currency, Period end rates | USD 1.00= RMB 6.9762 | USD 1.00= RMB 6.8632 | USD 1.00= RMB 6.5924 |
Translation currency, Average rates | USD 1.00=RMB 6.8944 | USD 1.00=RMB 6.6322 | USD 1.00=RMB 6.7423 |
HKD to USD [Member] | |||
Significant Accpunting Policies [Line Items] | |||
Translation currency, Period end rates | USD 1.00= HKD 7.7877 | USD 1.00= HKD 7.8329 | USD 1.00= HKD 7.8170 |
Translation currency, Average rates | USD 1.00=HKD 7.8342 | USD 1.00=HKD 7.8636 | USD 1.00=HKD 7.7928 |
Signifcant Accounting Policie_4
Signifcant Accounting Policies (Details 1) | Dec. 31, 2019 |
April 1, 2019 - Current [Member] | |
Statement Line Items [Line Items] | |
Standard VAT rate in effect | 13.00% |
May 1, 2018 - March 31, 2019 [Member] | |
Statement Line Items [Line Items] | |
Standard VAT rate in effect | 16.00% |
Earlier [Member] | |
Statement Line Items [Line Items] | |
Standard VAT rate in effect | 17.00% |
Signifcant Accounting Policie_5
Signifcant Accounting Policies (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies (Textual) | |
Value added tax rate | 13.00% |
Land use rights, description | Land use rights are stated at cost less accumulated amortization and accumulated impairment losses. Cost represents consideration paid for the rights to use the land on which various plants and buildings are situated for periods varying from 20 to 50 years. |
Currency translation reserve, description | In accordance with the relevant laws and regulations of PRC, the subsidiaries of the Group established in PRC are required to transfer 10% of its annual statutory net profit (after offsetting any prior years' losses) to the statutory reserve. When the balance of such reserve reaches 50% of the subsidiary's share capital, any further transfer of its annual statutory net profit is optional. Such reserve may be used to offset accumulated losses or to increase the registered capital of the subsidiary subject to the approval of the relevant authorities. However, except for offsetting prior years' losses, such statutory reserve must be maintained at a minimum of 25% of the share capital after such usage. |
Estimated useful life | 20 years |
Significant Management Judgem_2
Significant Management Judgement in Applying Accounting Policies (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Management Judgement in Applying Accounting Policies (Textual) | ||
Income tax payable | $ 256,808 |
Key Sources of Estimation Unc_2
Key Sources of Estimation Uncertainty (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||||
Buildings, machinery and equipment estimated useful lives | 5 to 20 years. | ||||
Impairment losses | |||||
Land [Member] | |||||
Statement Line Items [Line Items] | |||||
Impairment losses | |||||
Plants [Member] | |||||
Statement Line Items [Line Items] | |||||
Buildings, machinery and equipment estimated useful lives | 20 years | ||||
Impairment losses | 13,311,557 | ||||
Level 3 of fair value hierarchy [Member] | |||||
Statement Line Items [Line Items] | |||||
Impairment losses | 13,311,557 | $ 1,248,039 | |||
Estimation of construction prepayment | 7,160,523 | ||||
Impairment to carrying value down to management | $ 0 | $ 0 | 0 | ||
Level 2 of fair value hierarchy [Member] | |||||
Statement Line Items [Line Items] | |||||
Estimation of acquisition cost of land use right | 5,154,034 | ||||
Fair value estimated cost | 379,971 | ||||
Estimation of construction prepayment | $ 1,317,295 | ||||
Impairment to carrying value down to management | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Sales to external customers | $ 16,465,562 | $ 18,535,116 | $ 23,762,536 |
Segment revenue | 16,465,562 | 18,535,115 | 23,762,536 |
Segment gross margins/(loss) | 5,751,043 | (2,316,137) | (11,511,816) |
Reconciling items | (5,412,858) | (21,074,581) | (7,901,842) |
Profit/(loss) before tax | 338,185 | (23,390,717) | (19,413,657) |
Income tax income/(expense) | (442,590) | 5,422,119 | 4,598,061 |
Profit/(loss) for the year | (104,405) | (17,968,598) | (14,815,596) |
Wholesale [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Sales to external customers | 10,308,309 | 13,584,754 | 15,034,800 |
Segment revenue | 10,308,309 | 13,584,754 | 15,034,800 |
Segment gross margins/(loss) | 3,268,945 | 2,245,944 | 2,277,858 |
Retail [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Sales to external customers | 571,403 | 2,375,773 | 6,983,592 |
Segment revenue | 571,403 | 2,375,773 | 6,983,592 |
Segment gross margins/(loss) | 319,706 | (5,402,994) | (14,291,680) |
Subcontracting [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Sales to external customers | 5,585,850 | 2,574,589 | 1,744,144 |
Segment revenue | 5,585,850 | 2,574,589 | 1,744,144 |
Segment gross margins/(loss) | $ 2,162,393 | $ 840,913 | $ 502,007 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Current assets | $ 32,734,120 | $ 31,328,131 |
Non-current assets | 28,354,660 | 29,837,875 |
Total assets | 61,088,780 | 61,166,006 |
Current liabilities | 6,644,394 | 6,864,685 |
Total liabilities | 6,644,394 | 6,864,685 |
Wholesale and Retail [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Current assets | 24,741,115 | 24,915,855 |
Non-current assets | 10,047,963 | 10,236,126 |
Total assets | 34,789,078 | 35,151,981 |
Current liabilities | 3,066,041 | 3,417,655 |
Total liabilities | 3,066,041 | 3,417,655 |
Subcontracting [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Current assets | 7,979,513 | 6,394,814 |
Non-current assets | 18,306,697 | 19,601,749 |
Total assets | 26,286,610 | 25,996,563 |
Current liabilities | 1,483,891 | 1,590,564 |
Total liabilities | 1,483,891 | 1,590,564 |
Unallocated [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Current assets | 13,492 | 17,462 |
Non-current assets | ||
Total assets | 13,492 | 17,462 |
Current liabilities | 2,094,462 | 1,856,467 |
Total liabilities | $ 2,094,462 | $ 1,856,467 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 16,465,562 | $ 18,535,115 | $ 23,762,536 |
Wholesale [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 10,308,309 | 13,584,754 | 15,034,800 |
Wholesale [Member] | Distributor [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,019,139 | 1,331,194 | 1,454,862 |
Wholesale [Member] | Other Distributors [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 9,289,170 | $ 12,253,560 | $ 13,579,938 |
Segment Reporting (Details 3)
Segment Reporting (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | $ 7,469,257 | $ 10,497,311 | $ 12,398,512 |
Supplier A [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 1,270,597 | 3,031,310 | 2,403,309 |
Supplier B [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 2,325,926 | 2,879,110 | |
Supplier C [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 504,779 | 1,530,429 | |
Supplier D [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 1,212,778 | 1,714,468 | |
Supplier E [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 869,365 | 1,684,743 | |
Supplier F [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | 1,222,864 | 1,684,910 | |
Other suppliers [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Suppliers amount | $ 62,948 | $ 2,901,982 | $ 5,065,563 |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 16,465,562 | $ 18,535,115 | $ 23,762,536 |
Wholesale [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 10,308,309 | 13,584,754 | 15,034,800 |
Retail [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 571,403 | 2,375,773 | 6,983,592 |
Subtotal [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 10,879,712 | 15,960,527 | 22,018,392 |
Subcontracting [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 5,585,850 | $ 2,574,589 | $ 1,744,144 |
Cost of Sales (Details)
Cost of Sales (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cost of Sales [Abstract] | ||||
Changes in inventories of finished goods and work in progress | $ 76,800 | $ (24,475) | $ 227,132 | |
Materials consumed in production | 43,443 | 29,619 | 41,057 | |
Purchases of finished goods | 7,053,841 | 19,044,582 | 33,877,598 | |
Labor | 2,887,199 | 1,061,943 | 602,196 | |
Depreciation | 142,278 | 352,739 | 370,858 | |
Rental | 452 | |||
Outsourced manufacturing cost | ||||
Taxes and surcharges | [1] | 130,728 | 75,736 | 157,314 |
Water and electricity | 63,969 | 62,027 | 52,796 | |
Inventory provision | 42,919 | 196,124 | 8 | |
Others | 237,561 | 128,773 | 120,886 | |
Foreign currency translation difference | 35,780 | (76,269) | (175,493) | |
Cost of sales | $ 10,714,519 | $ 20,851,252 | $ 35,274,352 | |
[1] | Tax and surcharges are mainly Urban Maintenance and Construction Tax (7% of Valued Added Tax payment amount), Extra Charges of Education Fund (3% of Valued Added Tax payment amount) and Local Surcharge for Education Fund (2% of Valued Added Tax payment amount). |
Cost of Sales (Details Textual)
Cost of Sales (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Cost of Sales (Textual) | |
Tax and surcharges, description | Tax and surcharges are mainly Urban Maintenance and Construction Tax (7% of Valued Added Tax payment amount), Extra Charges of Education Fund (3% of Valued Added Tax payment amount) and Local Surcharge for Education Fund (2% of Valued Added Tax payment amount). |
Other Income (Details)
Other Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income [Abstract] | |||
Government grant | $ 6,179 | $ 367,260 | |
Interest income on bank deposits | 62,538 | 71,693 | 81,517 |
Others | 222,865 | 50,446 | 12,787 |
Other income | $ 291,582 | $ 122,139 | $ 461,564 |
Other Gains and (Losses) (Detai
Other Gains and (Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Gains and (Losses) [Abstract] | |||
Gain on disposals of property, plant and equipment | $ 2,124 | $ 1,380 | $ 171 |
Foreign exchange gain | 13 | (49) | (48) |
Provision / reversal of inventory obsolescence | (196,124) | (101,256) | |
Bad debt provision of trade receivables | (1,028,972) | ||
Impairment of property | (13,311,557) | ||
Others | (37,753) | (15,950) | (21,110) |
Other gains (losses) | $ (1,064,588) | $ (13,522,300) | $ (122,243) |
Distribution and Selling Expe_3
Distribution and Selling Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Distribution and Selling Expenses [Abstract] | |||
Rental | $ 9,573 | $ 16,067 | $ 21,527 |
Depreciation | 1,218 | 2,680 | |
Labor | 170,771 | 275,026 | 258,233 |
Subsidy to distributors | 477,779 | 787,064 | 773,238 |
Promotion | 15,623 | 32,216 | |
Advertisement | 287,354 | 1,152,176 | 1,591,742 |
Others | 148,914 | 423,782 | 585,744 |
Total | $ 1,094,391 | $ 2,670,955 | $ 3,265,380 |
Administrative Expense (Details
Administrative Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Administrative Expense [Abstract] | |||
Labor | $ 1,690,420 | $ 2,193,120 | $ 1,600,380 |
Audit fee | 138,870 | 122,908 | 216,281 |
Professional fee | 18,517 | 69,639 | 77,754 |
Design fee | 372,192 | 648,632 | 937,478 |
Depreciation and amortization charges | 685,253 | 1,185,257 | 1,149,455 |
Bank charges | 2,815 | 8,130 | 18,352 |
Rental | 73,021 | 75,907 | 74,668 |
Travelling and entertainment | 17,439 | 2,662 | 107,566 |
Others | 479,731 | 600,765 | 697,463 |
Total | $ 3,478,258 | $ 4,907,020 | $ 4,879,397 |
Finance Costs (Details)
Finance Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Costs [Abstract] | |||
Interest expenses on bank borrowings wholly repayable within one year | $ 67,203 | $ 96,444 | $ 96,385 |
Finance Costs (Details Textual)
Finance Costs (Details Textual) | Dec. 31, 2019 |
Bank loan [Member] | |
Finance Cost (Textual) | |
Bank borrowings interests | 6.09% |
Income Tax (Income)_ Expense (D
Income Tax (Income)/ Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PRC enterprises income tax: | |||
Tax expense (income), continuing operations | $ 442,590 | $ (5,422,119) | $ (4,598,061) |
PRC [Member] | |||
PRC enterprises income tax: | |||
Current tax | 256,808 | ||
Deferred tax | $ 185,787 | $ (5,422,119) | $ (4,598,061) |
Income Tax (Income)_ Expense _2
Income Tax (Income)/ Expense (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax (Income)/ Expense [Abstract] | |||
(Loss)/profit before tax | $ 338,185 | $ (23,390,717) | $ (19,413,657) |
Tax calculated at domestic tax rates applicable to profits in PRC (2019, 2018, and 2017: 25%) | 84,546 | (5,847,679) | (4,853,414) |
Tax effect of tax loss of tax exempt entities | 358,049 | 425,560 | 255,354 |
Tax charge for the year | $ 442,590 | $ (5,422,119) | $ (4,598,061) |
Income Tax (Income)_ Expense _3
Income Tax (Income)/ Expense (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Income Expense [Line Items] | |||
Beginning of the year | $ 14,688,829 | ||
End of the year | 14,330,463 | $ 14,688,829 | |
Deferred Income Tax [Member] | |||
Income Tax Income Expense [Line Items] | |||
Beginning of the year | 14,688,829 | 9,924,944 | $ 4,879,652 |
Bad Debt provisions charged to profit or loss | (257,243) | ||
Impairment charged to profit or loss | 3,376,920 | 25,314 | |
Tax loss carried forward | 2,094,230 | 4,480,627 | |
Effect of translation | (304,207) | (707,265) | 539,351 |
End of the year | 14,127,559 | 14,688,829 | 9,924,944 |
Temporary differences [member] | |||
Income Tax Income Expense [Line Items] | |||
Beginning of the year | 60,645,730 | 38,761,131 | 20,737,366 |
Bad Debt provisions charged to profit or loss | (1,028,972) | ||
Impairment charged to profit or loss | 13,507,681 | 101,256 | |
Tax loss carried forward | 8,376,919 | 17,922,508 | |
Effect of translation | |||
End of the year | $ 59,616,758 | $ 60,645,730 | $ 38,761,131 |
Income Tax (Income)_ Expense _4
Income Tax (Income)/ Expense (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax (Income)/ Expense [Textual) | |||
Tax rate effect of tax losses | 25.00% | 25.00% | 25.00% |
Applicable tax rate | 16.50% | ||
Hongri Fujian and Anhui Kai Xin [Member] | |||
Income Tax (Income)/ Expense [Textual) | |||
Tax rate effect of tax losses | 25.00% |
Profit for the Year (Details)
Profit for the Year (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit for the Year [Abstract] | |||
Cost of inventories recognized as expenses | $ 10,583,791 | $ 20,398,829 | $ 35,094,050 |
Taxes and surcharges | 130,728 | 112,108 | 180,302 |
Cost of sales | 10,714,519 | 20,510,936 | 35,274,352 |
Depreciation of property, plant and equipment | 671,262 | 1,172,809 | 1,137,831 |
Amortization of land use rights and trademarks | 13,992 | 14,545 | 14,307 |
Amortization of subsidies prepaid to distributors | 401,259 | ||
Amortization of prepayments and premiums under operating leases | 96,743 | 104,206 | 105,340 |
Provision (Reversal) of inventory obsolescence | (145,747) | 196,124 | 101,256 |
Provision of bad debt allowance | 1,028,972 | ||
Provision of impairment loss in property | 13,311,557 | ||
Profit for the year | $ 1,665,222 | $ 14,799,241 | $ 1,759,993 |
Employees' Emoluments (Details)
Employees' Emoluments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employees' Emoluments [Abstract] | |||
Salaries and other short-term benefits | $ 2,086,041 | $ 2,637,752 | $ 2,476,506 |
Defined contribution benefit schemes | 290,414 | 205,499 | 189,621 |
Total employee benefits expense (including directors’ emoluments) | $ 2,376,454 | $ 2,843,251 | $ 2,666,127 |
Directors' Emoluments (Details)
Directors' Emoluments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Salaries /Social Welfare [Abstract] | |||
Salaries | $ 975,370 | $ 1,427,300 | $ 847,554 |
Social Welfare | 1,055 | 1,122 | 1,006 |
Yan Keyan [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 389,826 | 739,350 | 304,050 |
Social Welfare | 1,055 | 1,122 | 1,006 |
Lixia Tu [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 232,144 | 296,100 | 233,854 |
John Sano [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 18,600 | 23,050 | 43,950 |
Themis Kalapotharakos [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 148,800 | 161,350 | 87,900 |
Matthew Los [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 148,800 | 161,350 | 87,900 |
Zhongmin Zhang [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | 18,600 | 23,020 | 43,950 |
Yuet Mei Chan [Member] | |||
Salaries /Social Welfare [Abstract] | |||
Salaries | $ 18,600 | $ 23,020 | $ 43,950 |
Earnings_ (Loss) Per Share (Det
Earnings/ (Loss) Per Share (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Basic (Loss)/Earnings Per Share Numerator | ||||
Profit for the year attributable to owners of the Company | $ (104,405) | $ (17,968,598) | $ (14,815,596) | |
Diluted (Loss)/Earnings Per Share Numerator | ||||
Profit for the year attributable to owners of the Company | $ (104,405) | $ (17,968,598) | $ (14,815,596) | |
Basic (Loss)/Earnings Per Share Denominator | ||||
Original shares: | [1] | 2,271,299 | 1,986,299 | 1,767,821 |
Additions from actual events: | ||||
- Issuance of common stock, weighted | [1] | 246,192 | 288,421 | 93,010 |
Basic weighted average shares outstanding | [1] | 2,517,491 | 2,229,915 | 1,860,831 |
Diluted (Loss)/Earnings Per Share Denominator | ||||
Basic weighted average shares outstanding | [1] | 2,517,491 | 2,229,915 | 1,860,831 |
Dilutive shares: Potential additions from dilutive events: | ||||
- Exercise of investor warrants | [1],[2] | |||
Diluted Weighted Average Shares Outstanding: | [1] | 2,517,491 | 2,229,915 | 1,860,831 |
(Loss)/Earnings Per Share | ||||
-Basic | $ 0 | $ (8.06) | $ (7.96) | |
-Diluted | $ 0 | $ (8.06) | $ (7.96) | |
Weighted Average Shares Outstanding | ||||
- Basic | [1] | 2,517,491 | 2,229,915 | 1,860,831 |
- Diluted | [1] | 2,517,491 | 2,229,915 | 1,860,831 |
[1] | The amount of shares and the respective calculations of earnings/(loss) per share have been adjusted according to reverse split. | |||
[2] | There were no potential dilutive additions to diluted weighted shares outstanding as a result of the outstanding warrants being out-of-the-money during the periods presented. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
COST | |||
Beginning balance, At January 1 | $ 32,119,863 | $ 33,719,025 | |
Additions | 162 | 21,324 | |
Disposals | (266,971) | (4,103) | |
Reclassification to investment property | (12,291,058) | ||
Translation adjustment | (520,275) | (1,616,383) | |
Ending balance, At December 31 | 19,041,720 | 32,119,863 | $ 33,719,025 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (19,946,054) | (5,894,501) | |
Provided for the year | (928,584) | (1,026,254) | |
Eliminated upon disposal of assets | 401,919 | 3,693 | |
Depreciation reclassified to investment property | 2,708,200 | ||
Impairment reclassified to investment property | 4,483,680 | ||
Impairment | (13,311,557) | ||
Translation adjustment | 323,085 | 282,564 | |
Ending balance, At December 31 | (12,957,754) | (19,946,054) | (5,894,501) |
Carrying Amount | 6,083,966 | 12,173,808 | |
Plants [Member] | |||
COST | |||
Beginning balance, At January 1 | 29,757,837 | 31,256,157 | |
Additions | |||
Disposals | |||
Reclassification to investment property | (12,291,058) | ||
Translation adjustment | (482,015) | (1,498,321) | |
Ending balance, At December 31 | 16,984,763 | 29,757,837 | 31,256,157 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (17,946,631) | (3,932,436) | |
Provided for the year | (832,476) | (891,146) | |
Eliminated upon disposal of assets | 161,645 | ||
Depreciation reclassified to investment property | 2,708,200 | ||
Impairment reclassified to investment property | 4,483,680 | ||
Impairment | (13,311,557) | ||
Translation adjustment | 290,698 | 188,509 | |
Ending balance, At December 31 | (11,134,883) | (17,946,631) | (3,932,436) |
Carrying Amount | 5,849,880 | 11,811,206 | |
Machinery [Member] | |||
COST | |||
Beginning balance, At January 1 | 881,199 | 928,022 | |
Additions | 1,767 | ||
Disposals | (266,304) | (4,103) | |
Translation adjustment | (14,274) | (44,486) | |
Ending balance, At December 31 | 600,620 | 881,199 | 928,022 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (764,389) | (791,402) | |
Provided for the year | (13,733) | (14,619) | |
Eliminated upon disposal of assets | 234,901 | 3,693 | |
Impairment | |||
Translation adjustment | 12,382 | 37,937 | |
Ending balance, At December 31 | (530,840) | (764,389) | (791,402) |
Carrying Amount | 69,780 | 116,809 | |
Office equipment [Member] | |||
COST | |||
Beginning balance, At January 1 | 135,802 | 130,515 | |
Additions | 162 | 11,544 | |
Disposals | (280) | ||
Translation adjustment | (2,200) | (6,257) | |
Ending balance, At December 31 | 133,486 | 135,802 | 130,515 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (103,875) | (99,887) | |
Provided for the year | (7,279) | (8,776) | |
Eliminated upon disposal of assets | 252 | ||
Impairment | |||
Translation adjustment | 1,683 | 4,788 | |
Ending balance, At December 31 | (109,220) | (103,875) | (99,887) |
Carrying Amount | 24,266 | 31,928 | |
Motor vehicles [Member] | |||
COST | |||
Beginning balance, At January 1 | 82,500 | 86,654 | |
Additions | |||
Disposals | (387) | ||
Translation adjustment | (1,336) | (4,154) | |
Ending balance, At December 31 | 80,777 | 82,500 | 86,654 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (74,250) | (77,945) | |
Provided for the year | (41) | ||
Eliminated upon disposal of assets | 5,122 | ||
Impairment | |||
Translation adjustment | 1,203 | 3,736 | |
Ending balance, At December 31 | (67,925) | (74,250) | (77,945) |
Carrying Amount | 12,852 | 8,250 | |
Furniture and fixtures [Member] | |||
COST | |||
Beginning balance, At January 1 | 153,808 | 153,135 | |
Additions | 8,014 | ||
Disposals | |||
Translation adjustment | (2,491) | (7,341) | |
Ending balance, At December 31 | 151,317 | 153,808 | 153,135 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (142,191) | (146,818) | |
Provided for the year | (1,857) | (2,411) | |
Eliminated upon disposal of assets | |||
Impairment | |||
Translation adjustment | 2,303 | 7,038 | |
Ending balance, At December 31 | (141,745) | (142,191) | (146,818) |
Carrying Amount | 9,572 | 11,617 | |
Leasehold improvements-factories and offices [Member] | |||
COST | |||
Beginning balance, At January 1 | 852,840 | 895,781 | |
Additions | |||
Disposals | |||
Translation adjustment | (13,814) | (42,941) | |
Ending balance, At December 31 | 839,026 | 852,840 | 895,781 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (658,843) | (577,253) | |
Provided for the year | (73,239) | (109,261) | |
Eliminated upon disposal of assets | |||
Impairment | |||
Translation adjustment | 10,672 | 27,672 | |
Ending balance, At December 31 | (721,410) | (658,843) | (577,253) |
Carrying Amount | 117,616 | 193,997 | |
Leasehold improvements-shops [Member] | |||
COST | |||
Beginning balance, At January 1 | 255,876 | 268,759 | |
Additions | |||
Disposals | |||
Translation adjustment | (4,145) | (12,883) | |
Ending balance, At December 31 | 251,731 | 255,876 | 268,759 |
DEPRECIATION AND IMPAIRMENT | |||
Beginning balance, At January 1 | (255,876) | (268,759) | |
Provided for the year | |||
Eliminated upon disposal of assets | |||
Impairment | |||
Translation adjustment | 4,145 | 12,883 | |
Ending balance, At December 31 | (251,731) | (255,876) | $ (268,759) |
Carrying Amount |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 to 20 years. |
Plant [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Residual Value | 10.00% |
Machinery [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Residual Value | 10.00% |
Office equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Residual Value | 10.00% |
Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Residual Value | 10.00% |
Furniture and fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Residual Value | 10.00% |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | Shorter of estimated useful life of 5 years or lease term |
Residual Value | 10.00% |
Leasehold Improvements Shops [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | Shorter of estimated useful life of 5 years or lease term |
Residual Value | |
Distributor shops' furniture and fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 1.5 years |
Residual Value |
Property, Plant and Equipment_4
Property, Plant and Equipment (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC [Member] | |
Land Use Rights [Line Items] | |
Description | Dormitory |
Gross area (m2) | 8,573 |
Jinxi Town, Longshan Road, Taihu City, Anhui Province, the PRC One [Member] | |
Land Use Rights [Line Items] | |
Description | Factory |
Gross area (m2) | 22,292 |
Property, Plant and Equipment_5
Property, Plant and Equipment (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying amount of recognized assets cost | $ 92,971 | $ 94,502 |
Machinery [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying amount of recognized assets cost | 89,755 | 91,232 |
Motor Vehicles [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying amount of recognized assets cost | 33 | 33 |
Office Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying amount of recognized assets cost | 2,492 | 2,533 |
Furniture and fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying amount of recognized assets cost | $ 692 | $ 703 |
Property, Plant and Equipment_6
Property, Plant and Equipment (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
COST | ||
Opening balance at 1 January | ||
Acquisitions | ||
Capitalised subsequent expenditure | ||
Classified as held for sale or disposals | ||
Transfer (to)/from inventories and owner-occupied property | 12,291,058 | |
Closing balance at 31 December | 5,099,178 | |
DEPRECIATION AND IMPAIRMENT | ||
Opening balance at 1 January | ||
Provided for the year | ||
Eliminated upon disposal of assets | ||
Impairment for the year | ||
Transfer to/(from) inventories and owner-occupied property | (7,191,880) | |
Closing balance at 31 December | (7,191,880) | |
Closing balance at 31 December | $ 5,099,178 |
Property, Plant and Equipment_7
Property, Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 10, 2012 | |
Property, plant and equipment [abstract] | ||||
Net exchange differences from translating from functional currency to presentation currency | $ (197,910) | $ (1,333,819) | ||
Depreciation expense | 535,006 | 1,521,725 | $ 1,510,213 | |
Impairment loss | (13,311,557) | |||
Gross carrying amount of fully depreciated property, plant and equipment still in use | $ 93,701 | $ 123,265 | ||
Revaluation surplus | $ 184,272 |
Prepayments and Premiums Unde_3
Prepayments and Premiums Under Operating Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Prepayments and Premiums Under Operating Leases [Abstract] | ||
Beginning balance, At January 1 | $ 2,450,267 | $ 2,652,106 |
additions for the year | 21,757 | 26,899 |
charge for the year | (96,743) | (104,206) |
translation adjustment | (38,810) | (124,532) |
Ending balance, At December 31 | $ 2,336,471 | $ 2,450,267 |
Prepayments and Premiums Unde_4
Prepayments and Premiums Under Operating Leases (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Prepayments and Premiums Under Operating Leases [Abstract] | |||
Current asset | $ 75,318 | $ 78,532 | |
Non-current asset | 2,261,153 | 2,371,735 | |
Total | $ 2,336,471 | $ 2,450,267 | $ 2,652,106 |
Prepayment for Construction o_3
Prepayment for Construction of New Plant (Details) | Dec. 31, 2019USD ($) |
Prepayment For Construction Of New Plant [Abstract] | |
Prepaid in 2015 | $ 8,469,878 |
Recognized as construction in progress | (110,041) |
Net recognized construction in progress | 8,359,837 |
Impairment loss in 2015: | (1,199,314) |
Adjustment construction in progress | 7,160,523 |
Impairment loss in 2016: | (6,989,200) |
Translation adjustment: | (171,323) |
Adjustment construction in progress |
Prepayment for Construction o_4
Prepayment for Construction of New Plant (Details Textual) - USD ($) | 1 Months Ended | |||||
Nov. 20, 2010 | Dec. 31, 2019 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Prepayment for Construction of New Plant (Textual) | ||||||
Prepayment for construction | $ 15,525,413 | |||||
Recognized in construction in progress | $ 110,041 | |||||
Amount transferred construction in progress | $ 22,960,220 | |||||
Consideration amount | $ 17,826,251 | |||||
Kaixin Anhui [Member] | Second Phase [Member] | ||||||
Prepayment for Construction of New Plant (Textual) | ||||||
Prepayment for construction | $ 9,747,897 | $ 6,363,853 | ||||
Recognized in construction in progress | $ 16,401,778 | |||||
Construction in progress [Member] | ||||||
Prepayment for Construction of New Plant (Textual) | ||||||
Recognized in construction in progress | $ 110,041 | $ 6,537,016 |
Prepayment for Acquisition of_3
Prepayment for Acquisition of Land Use Right (Details) | Dec. 31, 2019USD ($) |
Prepayment for Acquisition of Land Use Right [Abstract] | |
Prepaid in 2010 | $ 6,039,930 |
Impairment loss: | (1,265,867) |
Prepayment for acquisition of land use right | 4,774,063 |
Impairment loss in 2016: | (4,659,838) |
Translation adjustment: | (114,225) |
Prepayment for acquisition of land use right net |
Prepayment for Acquisition of_4
Prepayment for Acquisition of Land Use Right (Details Textual) | Sep. 02, 2010USD ($) |
Prepayment for Acquisition of Land Use Right (Textual) | |
Total consideration | $ 6,340,456 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
COST | ||
Beginning balance, At January 1 | $ 699,055 | $ 734,253 |
additions for the year | ||
translation adjustment | (11,323) | (35,198) |
Ending balance, At December 31 | 687,732 | 699,055 |
AMORTIZATION | ||
Beginning balance, At January 1 | (95,552) | (85,600) |
charge for the year | (13,992) | (15,545) |
translation adjustment | 1,712 | 4,593 |
Ending balance, At December 31 | (107,832) | (95,552) |
CARRYING AMOUNTS | ||
Land use rights | $ 579,900 | $ 603,503 |
Land Use Rights (Details 1)
Land Use Rights (Details 1) | 12 Months Ended |
Dec. 31, 2019LandArea | |
Ngshan Road Economic Development District Taihu County [Member] | |
Land Use Rights [Line Items] | |
Expiry date of tenure | May 23, 2062 |
Land area (m2) | 2,440 |
Ngshan Road Economic Development District Taihu County One [Member] | |
Land Use Rights [Line Items] | |
Expiry date of tenure | Nov. 6, 2061 |
Land area (m2) | 7,405 |
Land Use Rights (Details Textua
Land Use Rights (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Land Use Rights (Textual) | |
Land use rights, terms | 50 years |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Raw materials | $ 1,047,532 | $ 956,947 |
Finished goods | 437,144 | 478,377 |
Provision for obsolete inventories | (42,416) | (189,524) |
Inventories | $ 1,442,260 | $ 1,245,800 |
Trade Receivables, Other Rece_3
Trade Receivables, Other Receivables and Prepayments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | ||
Trade receivables | $ 12,775,324 | $ 9,416,320 |
Bad debt provision for trade receivables | (2,299,558) | (1,294,097) |
Trade receivables, net | $ 10,475,766 | $ 8,122,223 |
Trade Receivables, Other Rece_4
Trade Receivables, Other Receivables and Prepayments (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | ||
Other receivables | $ 3,387 | $ 2,617 |
Prepayments | 116,911 | 852,856 |
Trade and other receivables | $ 120,298 | $ 855,473 |
Trade Receivables, Other Rece_5
Trade Receivables, Other Receivables and Prepayments (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Trade Receivables [Line Items] | ||
Trade receivables | $ 12,775,324 | $ 9,416,320 |
Aging analysis, Current [Member] | ||
Trade Receivables [Line Items] | ||
Trade receivables | 778,047 | 1,743,556 |
Aging analysis, Past due for less than 4 months [Member] | ||
Trade Receivables [Line Items] | ||
Trade receivables | 2,458,705 | 3,546,525 |
Aging analysis, Past due for more than 4 months [Member] | ||
Trade Receivables [Line Items] | ||
Trade receivables | $ 9,538,573 | $ 4,126,240 |
Trade Receivables, Other Rece_6
Trade Receivables, Other Receivables and Prepayments (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other receivables [abstract] | ||
Beginning balance, As at January 1 | $ 1,294,097 | $ 1,359,255 |
Provision provided in the year | 1,028,972 | |
Translation adjustment | (23,481) | (65,158) |
Ending balance, As at December 31 | $ 2,299,558 | $ 1,294,097 |
Trade Receivables, Other Rece_7
Trade Receivables, Other Receivables and Prepayments (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other receivables [abstract] | |||
Average credit period, description | The Group allows an average credit period of 120 -180 days to its trade customers. | ||
Bad deb allowance | $ 2,299,558 | $ 1,294,097 | $ 1,359,255 |
Trade receivables | $ 1,509,839 | $ 1,368,183 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||||
Cash on hand | $ 8,692 | $ 12,874 | ||
Bank deposits | 20,611,786 | 21,013,228 | ||
Cash and cash equivalents | $ 20,620,478 | $ 21,026,103 | $ 26,050,456 | $ 24,576,341 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalent [Line Items] | ||||
Cash and cash equivalents | $ 20,620,478 | $ 21,026,103 | $ 26,050,456 | $ 24,576,341 |
Renminbi [Member] | ||||
Cash And Cash Equivalent [Line Items] | ||||
Cash and cash equivalents | 20,618,675 | 21,021,141 | ||
Hong Kong Dollars [Member] | ||||
Cash And Cash Equivalent [Line Items] | ||||
Cash and cash equivalents | 983 | 1,971 | ||
United States Dollars [Member] | ||||
Cash And Cash Equivalent [Line Items] | ||||
Cash and cash equivalents | $ 820 | $ 2,991 |
Cash and Cash Equivalents (De_3
Cash and Cash Equivalents (Details Textual) | Dec. 31, 2019 | Dec. 31, 2018 |
Bottom of range [Member] | ||
Cash and Cash Equivalents (Textual) | ||
Percentage of bank deposit interest rate | 0.30% | 0.35% |
Top of range [Member] | ||
Cash and Cash Equivalents (Textual) | ||
Percentage of bank deposit interest rate | 0.40% | 0.50% |
Trade and Other Payables (Detai
Trade and Other Payables (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other payables [abstract] | ||
Trade payables | $ 63,550 | $ 42,063 |
Employee benefits payable | 182,386 | 348,028 |
Other payables | 1,761,358 | 1,645,271 |
Subtotal financial liabilities | 2,007,294 | 2,035,362 |
Other taxes payable | 2,571,125 | 3,243,098 |
Trade and other payables | $ 4,578,419 | $ 5,278,460 |
Trade and Other Payables (Det_2
Trade and Other Payables (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of provision matrix [line items] | ||
Trade payables | $ 63,550 | $ 42,063 |
Current [Member] | ||
Disclosure of provision matrix [line items] | ||
Trade payables | 52,632 | 12,456 |
Past due for less than 4 months [Member] | ||
Disclosure of provision matrix [line items] | ||
Trade payables | 3,959 | 8,504 |
Past due for over 4 months [Member] | ||
Disclosure of provision matrix [line items] | ||
Trade payables | $ 6,959 | $ 21,104 |
Related Parties Payable (Detail
Related Parties Payable (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Yan, Keyan [Member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Group | Chairman, Director, and CEO |
Chen, Bizhen [Member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Group | Wife of Yan, Keyan |
KBS International [Member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Group | Ex-shareholder of Hongri |
Shishi City Lingxiu Hongri Knitwear Factory [Member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Group | Company owned by Chen, Bizhen |
Related Parties Payable (Deta_2
Related Parties Payable (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Borrowing of funds | $ 560,165 | $ 445,614 |
Yan, Keyan [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Borrowing of funds | $ 560,165 | $ 445,614 |
Short-Term Bank Loans (Details)
Short-Term Bank Loans (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-Term Bank Loans [Abstract] | ||
Secured bank borrowings | $ 1,075,084 | $ 1,092,783 |
Carrying amount repayable within 1 year | $ 1,075,084 | $ 1,092,785 |
Short-Term Bank Loans (Details
Short-Term Bank Loans (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 1,075,084 | $ 1,092,785 |
Bank loans, #1 [Member] | 3/21/2019 - 3/21/2020 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 1,075,084 | |
Interest rate | 6.09% | |
Mortgage | Land use right and buildings | |
Personal guarantee | Yan, Keyan/ Chen, Bizhen |
Warrant Liabilities (Details)
Warrant Liabilities (Details) - USD ($) | 11 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrant Liabilities [Abstract] | ||||||||
Balance | $ 3,409 | $ 15,387 | $ 3,432,440 | $ 3,477,882 | ||||
Correction of an error | 3,200,223 | |||||||
Issuance of warrants as part of Units on November 7, 2012 | 322,884 | |||||||
Change in fair value | (45,225) | (3,409) | (11,978) | (3,417,053) | (45,442) | |||
Balance | $ 3,477,882 | $ 3,409 | $ 15,387 | $ 3,432,440 |
Warrant Liabilities (Details 1)
Warrant Liabilities (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Warrant Liabilities [Abstract] | ||
Stock price | $ 2.96 | |
Dividend yield | ||
Risk-free rate | 2.56% | |
Expected term (in years) | 0 years | 6 months 29 days |
Expected volatility | 11.94% |
Warrant Liabilities (Details Te
Warrant Liabilities (Details Textual) | Nov. 07, 2012USD ($)Units$ / shares | Nov. 01, 2012USD ($)Units$ / shares | Dec. 31, 2019Units$ / shares | Dec. 31, 2018$ / shares |
Warrant Liabilities (Textual) | ||||
Public offering units sold | 5,000,000 | |||
Offering price | $ / shares | $ 10 | $ 10 | ||
Proceeds from public offering | $ | $ 5,500,000 | $ 50,000,000 | ||
Public offering, description | Each Redeemable Warrant entitled the holder to purchase one share of common stock at a price of $11.50 which would commence on the later of either the completion of an initial Acquisition Transaction or October 24, 2013, and would expire five years from the completion date of an initial Acquisition Transaction, provided that there is an effective registration statement covering the shares of common stock underlying the Redeemable Warrants. The Company is entitled to redeem the Redeemable Warrants at a price of $0.01 per Redeemable Warrant upon providing 30 days' notice, subject to the last sale price of the common stock was at a minimum of $17.50 per share for any 20 trading days within a 30-trading day period ("30-Day Trading Period") that ended on the third day prior to the date on which notice of redemption is given, provided that there is a current registration statement in effect with respect to the shares of common stock underlying such Redeemable Warrants commencing ten days prior to the 30-Day Trading Period and continuing each day thereafter until the date of redemption. | |||
Private placement unit sold | 30,250 | 337,750 | ||
Proceeds from private placement | $ | $ 302,500 | $ 3,377,500 | ||
Additional public offering unit sold | 550,000 | 750,000 | ||
Warrants quoted price | $ / shares | $ 0.001 | $ 0.001 |
Share Capital and Share Premi_3
Share Capital and Share Premium (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share capital | |||
Shares outstanding | $ 227 | ||
Shares outstanding | 259 | $ 227 | |
Share premium | |||
Shares outstanding | 8,000,561 | ||
Shares outstanding | $ 9,199,779 | $ 8,000,561 | |
Group's share capital [Member] | |||
Number of shares | |||
Shares outstanding | 2,271,299 | 1,986,299 | |
Issuance of shares | 320,000 | 285,000 | |
Shares outstanding | 2,591,299 | 2,271,299 | |
Share capital | |||
Shares outstanding | $ 227 | $ 198 | |
Issuance of shares | 32 | 29 | |
Shares outstanding | 259 | 227 | |
Share premium | |||
Shares outstanding | 8,000,561 | 6,686,170 | |
Issuance of shares | 1,199,218 | 1,314,392 | |
Shares outstanding | $ 9,199,779 | $ 8,000,561 | |
Number of shares | |||
Authorized Common shares | 150,000,000 | ||
Issue and fully paid common shares | 2,591,299 | 2,271,299 | 1,986,299 |
Share capital | |||
Authorized Common shares | $ 15,000 | ||
Issue and fully paid common shares | $ 259 | $ 227 | 198 |
Share premium | |||
Authorized Common shares | |||
Issue and fully paid common shares | $ 9,199,779 | $ 8,000,561 | $ 6,686,170 |
Share Capital and Share Premi_4
Share Capital and Share Premium (Details Textual) - USD ($) | Feb. 10, 2018 | Jul. 10, 2017 | Feb. 06, 2017 | Jan. 20, 2017 | Mar. 29, 2016 | Dec. 31, 2019 | Mar. 29, 2019 | Mar. 25, 2019 |
Share Capital and Share Premium (Textual) | ||||||||
Prefered stock, share authorized | 5,000,000 | |||||||
Prefered stock, par value | $ 0.0001 | |||||||
Common stock, share authorized | 150,000,000 | |||||||
Common stock, par value | $ 0.0001 | |||||||
Common stock granted, and subsequently issued | 285,000 | 215,000 | ||||||
Share based payment, amount | $ 429,000 | |||||||
Company granted and issued | 57,600 | |||||||
Reverse stock split, description | 1-15 reverse stock split | |||||||
Registered shares granted | 305,000 | |||||||
Shares issued for services | 15,000 | |||||||
Executive officers and directors [Member] | ||||||||
Share Capital and Share Premium (Textual) | ||||||||
Common stock granted, and subsequently issued | 1,100,000 | |||||||
Top of range [member] | ||||||||
Share Capital and Share Premium (Textual) | ||||||||
Common stock reduced (approximately) | 26,517,329 | |||||||
Bottom of range [member] | ||||||||
Share Capital and Share Premium (Textual) | ||||||||
Common stock reduced (approximately) | 1,767,821 |
Reserve (Details)
Reserve (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve (Textual) | ||
Statutory surplus reserve ,description | The amounts determined by their respective boards of directors annually up to 50% of authorized capital, but must not be less than 10% of the net profit after tax. | |
Statutory surplus reserve | $ 6,084,836 | $ 6,084,836 |
Risk Management and Fair Valu_3
Risk Management and Fair Values (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Risk Management and Fair Values [Abstract] | ||||
Total borrowing | $ 1,075,084 | $ 1,092,785 | ||
Less: cash and cash equivalents | 20,620,478 | 21,026,103 | $ 26,050,456 | $ 24,576,341 |
Net debt | (19,545,394) | (19,933,320) | ||
Total equity | 54,444,386 | 54,301,321 | $ 74,027,195 | $ 83,402,126 |
Total capital | $ 35,507,704 | $ 34,368,001 | ||
Gearing ratio | (36.00%) | (37.00%) |
Risk Management and Fair Valu_4
Risk Management and Fair Values (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Risk Management And Fair Values [Line Items] | ||
Short-term bank loans and related interests | $ 1,075,084 | $ 1,092,783 |
Trade and other payables | 4,578,419 | 5,278,460 |
Related parties payables | 560,165 | 445,614 |
Total | 6,213,668 | 6,816,857 |
Within 1 year [Member] | ||
Risk Management And Fair Values [Line Items] | ||
Short-term bank loans and related interests | 1,075,084 | 1,092,783 |
Trade and other payables | 4,578,419 | 5,278,460 |
Related parties payables | 560,165 | 445,614 |
Total | 6,213,668 | 6,816,857 |
Over 1 year [Member] | ||
Risk Management And Fair Values [Line Items] | ||
Short-term bank loans and related interests | ||
Trade and other payables | ||
Related parties payables | ||
Total |
Risk Management and Fair Valu_5
Risk Management and Fair Values (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities: | ||
Warrant liabilities | ||
Recurring fair value measurement [Member] | Level 2 [member] | ||
Liabilities: | ||
Warrant liabilities |
Risk Management and Fair Valu_6
Risk Management and Fair Values (Details Textual) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Risk Management and Fair Values (Textual) | |
Average appreciation (depreciation) foreign currency ,description | An average appreciation (depreciation) of the RMB against the U.S. dollar of 5%. |
Increase (decrease) comprehensive income | $ 2,700,000 |
Accumulated other comprehensive loss | $ (7,100,000) |
Description of concentrations risk | The Group has concentration of credit risk on the Group's trade receivables. The outstanding balance of the five largest customers represented approximately 38% of the trade receivables of the Group at December 31, 2019 (2018: 52%). |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) |
Statement Line Items [Line Items] | ||||
Contracted and authorized | $ | $ 63,193,611 | $ 64,088,236 | ||
RMB [Member] | ||||
Statement Line Items [Line Items] | ||||
Contracted and authorized | ¥ | ¥ 440,851,273 | ¥ 439,850,378 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | $ 2,341,202 | $ 2,450,267 |
Office [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 2,333,318 | 2,445,087 |
Within 1 year [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 80,049 | 78,532 |
Within 1 year [Member] | Office [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 72,164 | 73,353 |
2-5 years [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 216,493 | 220,058 |
2-5 years [Member] | Office [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 216,493 | 220,058 |
Thereafter [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | 2,044,660 | 2,151,677 |
Thereafter [Member] | Office [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum lease payments payable under non-cancellable operating lease | $ 2,044,660 | $ 2,151,677 |
Commitments and Contingencies_4
Commitments and Contingencies (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies (Textual) | |
Description of leases | The amount of $80,049 as of December 31, 2019 represents leases of one office and one warehouse. There is no contingent rent payable for all of the leases. All leases are within one year except for one of the offices, which is leased by a related party as disclosed in note 30. |
Description of leases period | The Company has prepaid this lease in the full amount. The lease commenced on January 1, 2009 and will expire on April 22, 2052. |