Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | AXIOM HOLDINGS, INC. | ||
Entity Central Index Key | 1,584,584 | ||
Trading Symbol | aiom | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 340,000,000 | ||
Entity Public Float | $ 203,000,000 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 52,159 | $ 140,438 |
Accounts receivable | 13,986 | 78,532 |
Prepaid expenses | 10,167,037 | |
Due from related party | 855,391 | |
Total Current Assets | 11,088,573 | 218,970 |
Long-term deposits | 68,976 | 73,919 |
Property and equipment, net | 70,197,828 | 75,893,832 |
Intangible assets, net | 199,599 | 221,606 |
TOTAL ASSETS | 81,554,976 | 76,408,327 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 1,507,063 | 1,541,519 |
Accrued interest | 2,147,424 | 1,254,629 |
Current portion of loans payable | 3,175,770 | |
Deposit received | 1,557,372 | 1,713,694 |
Due to related parties | 29,271,765 | 22,619,301 |
Tax payable | 654,730 | 744,699 |
Dividend payable | 49,578 | |
Other current liabilities | 114,960 | 1,309,000 |
Total Current Liabilities | 38,478,662 | 29,182,842 |
Long-term loans payable | 33,877,275 | 36,628,900 |
TOTAL LIABILITIES | 72,355,937 | 65,811,742 |
Stockholders' Equity | ||
Preferred stock: 50,000,000 authorized; $0.001 par value no shares issued and outstanding | ||
Common stock: 3,000,000,000 authorized; $0.001 par value 340,000,000 shares issued and outstanding, respectively | 340,000 | 340,000 |
Capital reserve | 34,287 | 34,287 |
Additional paid in capital | 9,625,791 | 9,330,000 |
Accumulated other comprehensive income | 2,080,980 | 2,755,206 |
Accumulated deficit | (2,882,019) | (1,862,908) |
Total Stockholders' Equity | 9,199,039 | 10,596,585 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 81,554,976 | $ 76,408,327 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 340,000,000 | 340,000,000 |
Common stock, shares outstanding | 340,000,000 | 340,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 2,234,415 | $ 1,987,464 | $ 2,183,113 |
Cost of goods sold | (992,736) | (833,467) | (924,122) |
Gross Profit | 1,241,679 | 1,153,997 | 1,258,991 |
Operating Expenses | |||
General and administrative | 457,269 | 568,803 | 2,044,625 |
Professional fees | 157,131 | ||
Total operating expenses | 614,400 | 568,803 | 2,044,625 |
Operating Profit | 627,279 | 585,194 | (785,634) |
Other income (expense) | |||
Interest expense, net | (1,088,952) | (1,068,176) | (803,306) |
Other expense | (419) | (23,998) | (32) |
Loss on related party guarantee | (557,019) | ||
Total other expenses | (1,646,390) | (1,092,174) | (803,338) |
Net loss before income taxes | (1,019,111) | (506,980) | (1,588,972) |
Provision for income taxes | |||
Net Loss | (1,019,111) | (506,980) | (1,588,972) |
Other Comprehensive Loss | |||
Foreign currency translation adjustments | (674,226) | (494,751) | (353,574) |
Total Comprehensive Loss | $ (1,693,337) | $ (1,001,731) | $ (1,942,546) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) | 340,000,000 | 340,000,000 | 340,000,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) | Preferred Stock | Common Stock | Capital Reserve | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balance at Dec. 31, 2013 | $ 340,000 | $ 34,287 | $ 9,329,988 | $ 3,603,531 | $ 233,044 | $ 13,540,850 | |
Balance (in shares) at Dec. 31, 2013 | 339,999,578 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (1,588,972) | (1,588,972) | |||||
Other comprehensive loss | (353,574) | (353,574) | |||||
Balance at Dec. 31, 2014 | $ 340,000 | 34,287 | 9,329,988 | 3,249,957 | (1,355,928) | 11,598,304 | |
Balances (in shares) at Dec. 31, 2014 | 339,999,578 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issued common stock to Founder | 12 | 12 | |||||
Issued common stock to Founder (in shares) | 422 | ||||||
Net loss | (506,980) | (506,980) | |||||
Other comprehensive loss | (494,751) | (494,751) | |||||
Balance at Dec. 31, 2015 | $ 340,000 | 34,287 | 9,330,000 | 2,755,206 | (1,862,908) | 10,596,585 | |
Balances (in shares) at Dec. 31, 2015 | 340,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Recapitalization | (43,831) | (43,831) | |||||
Debt forgiveness | 339,622 | 339,622 | |||||
Net loss | (1,019,111) | (1,019,111) | |||||
Other comprehensive loss | (674,226) | (674,226) | |||||
Balance at Dec. 31, 2016 | $ 340,000 | $ 34,287 | $ 9,625,791 | $ 2,080,980 | $ (2,882,019) | $ 9,199,039 | |
Balances (in shares) at Dec. 31, 2016 | 340,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (1,019,111) | $ (506,980) | $ (1,588,972) |
Adjustments to reconcile net loss to net cash from operating activities: | |||
Depreciation and amortization | 1,013,640 | 862,255 | 920,908 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 62,118 | (81,158) | 3,575,143 |
Other receivable | 77,906 | ||
Prepaid expenses and deposits | (10,643,637) | 397,262 | (196,529) |
Accounts payable and accrued liabilities | 4,554,748 | (3,115,301) | (345,743) |
Accrued interest | 1,023,238 | 566,981 | (461,329) |
Deposit receivable | (43,692) | 482,405 | (441,646) |
Tax payable | (42,074) | (215,427) | 1,034,418 |
Other liabilities | (1,107,263) | (254,642) | (9,533) |
Net cash provided by (used in) operating activities | (6,202,033) | (1,864,605) | 2,564,623 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (4,855,924) | (6,650,135) | (11,256,239) |
Payments of due from related party | (1,651,710) | (1,079,936) | |
Collection of due from related party | 298,000 | 1,213,765 | |
Net cash used in investing activities | (6,209,634) | (5,436,370) | (12,336,175) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from loans | 4,516,374 | 7,877,991 | 20,450,428 |
Repayment of loans | (1,505,458) | (2,625,997) | (430,108) |
Proceeds from related parties | 9,309,915 | 2,030,213 | |
Payments to related parties | (10,436,439) | ||
Net cash provided by financing activities | 12,320,831 | 7,282,207 | 9,583,881 |
Effects on changes in foreign exchange rate | 2,557 | (6,690) | (7,572) |
Net decrease in cash and cash equivalents | (88,279) | (25,458) | (195,243) |
Cash and cash equivalents - beginning of period | 140,438 | 165,896 | 361,139 |
Cash and cash equivalents - end of period | 52,159 | 140,438 | 165,896 |
Supplemental Cash Flow Disclosures | |||
Cash paid for interest | 65,715 | ||
Cash paid for income taxes | |||
Non-Cash Investing and Financing Activity: | |||
Related party debt forgiven | $ 339,622 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Axiom Holdings, Inc. (the “Company” or “Axiom”) is a Nevada corporation incorporated on August 7, 2013, as At Play Vacations, Inc. It is based in Kowloon, Hong Kong. The Company incorporated wholly-owned subsidiaries, Quality Resort Hotels, Inc. (“QRH”) in Florida on August 8, 2013 and Horizon Resources Co. Ltd (“Horizon”) in the Cayman Islands on September 7, 2015. On June 23, 2016, QRH was legally dissolved with the state of FL. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year end is December 31. The Share Exchange Agreement On October 10, 2016, Axiom entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with CJC (Hong Kong) Limited (“CJC”) and the two shareholders of CJC, Hu Dengyang and Yang Chuan (the “CJC Shareholders”). Pursuant to the Share Exchange Agreement, Axiom has agreed to acquire all of the issued and outstanding shares of CJC from the CJC Shareholders in exchange for the issuance to the CJC Shareholders of 200,000,000 shares of Axiom’s common stock, par value $0.001 per share (the “Common Stock”). In connection with the transactions contemplated under the Share Exchange Agreement, Axiom will cancel 200,000,000 shares of its Common Stock currently outstanding prior to the closing of the transactions, and therefore the shares of Common Stock issued to the CJC Shareholders in the transactions pursuant to the Share Exchange Agreement will represent approximately 58.8% of the issued and outstanding shares of Axiom’s Common Stock at the closing of such transactions. As of October 10, 2016, Axiom has 340,000,000 shares of Common stock issued and outstanding. The acquisition of the shares of CJC and the cancellation of the shares of Company’s Common Stock as described herein, together with the other transactions described in the Share Exchange Agreement, are collectively referred to herein as the “Transactions.” Upon completion of the closing of the Transactions, CJC will become a subsidiary of Axiom. Any party may terminate the Share Exchange Agreement if the closing of the Transactions does not occur by February 15, 2017 (unless such failure was due to a breach of the Share Exchange Agreement by such party). The Company’s obligation to close is conditioned upon, among other items, (i) certain, limited customary representations and warranties of CJC and the CJC Shareholders remaining true and correct; (ii) CJC and the CJC Shareholders having complied in all material respects with all covenants and conditions required by the Share Exchange Agreement; (iii) no order of any governmental authority being in place which prohibits the Transactions; (iv) receipt of any consents or approvals required for the closing of the Transactions under any contracts, permits, trademarks or intangibles; (v) the completion by Axiom, to its satisfaction in its sole discretion, of its due diligence investigation of CJC and its operations; (vi) CJC having provided Axiom with certain financial statements and (vii) no material adverse effect having occurred with respect to CJC. CJC and the CJC Shareholders’ obligations to close are conditioned upon, among other items, (i) certain, limited customary representations and warranties of Axiom remaining true and correct; (ii) Axiom having complied in all material respects with all covenants and conditions required by the Share Exchange Agreement; (iii) no order of any governmental authority being in place which prohibits the Transactions; (iv) no more than 340,000,000 shares of Common Stock being outstanding; (v) the completion by counsel for the CJC Shareholders, to its satisfaction in its sole discretion, of its due diligence investigation of Axiom; and (vi) no material adverse effect having occurred with respect to Axiom. As of the closing of the Transactions, the parties have agreed to execute such documents and undertake such actions as required to cause the Board of Directors of Axiom following the closing to consist of one current director of Axiom and two directors appointed by the CJC Shareholders. On December 21, 2016, Axiom, Horizon, CJC and the CJC Shareholders entered into an amendment to the Share Exchange Agreement (the “SEA Amendment”) in which Horizon agreed to acquire all of the issued and outstanding CJC’s Shares from the CJC Shareholders in exchange for the issuance by Axiom to the CJC Shareholders of 200,000,000 shares of Common Stock. The Share Exchange Agreement as amended by the SEA Amendment is collectively referred to as the “Share Exchange Agreement, as amended”. The SEA Amendment also provides for the addition of Sichuan Xing Tie Electric Power Company Limited which is an additional subsidiary of CJC to be acquired as part of the transaction. The Share Exchange Agreement as originally drafted provided for the direct acquisition by Axiom of the CJC’s Shares, and the SEA Amendment accomplishes this through the transfer of the CJC Shares to Horizon, resulting in indirect ownership by Axiom of the CJC’s Shares through Axiom’s wholly owned subsidiary Horizon. On December 21, 2016, Horizon completed the acquisition of the CJC’s Shares as provided for in the Share Exchange Agreement as amended by the SEA Amendment. Pursuant to the terms and conditions of the Share Exchange Agreement, as amended, the CJC Shareholders who collectively own 100% of the issued and outstanding shares of CJC exchanged their CJC Shares for an aggregate of 200,000,000 shares of our common stock. Pursuant to terms of the Share Exchange Agreement and immediately prior to the completion of the acquisition of CJC, Low Tuan Lee, Lim Wei and Chua Seong cancelled an aggregate of 200,000,000 shares of Axiom’s common stock. Upon completion of the closing, CJC will become a subsidiary of Axiom and the CJC Shareholders as a group will hold approximately 58.8% of Axiom’s pro-forma shares of common stock outstanding which is expected to be approximately 340,000,000 shares giving effect to the issuance of the shares to acquire CJC and the share cancellation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Consolidated Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States. The Company’s fiscal year end was September 30 and changed to December 31 on October 1, 2015. Basis of Consolidation At December 31, 2016, the Company, through its wholly owned direct and indirect subsidiaries listed below, operates in two industry segments, namely hospitality and power production, and one geographic segment, the People’s Republic of China (“China” or the “PRC”). Entity Name Entity Owned By Nature of Operation Country of Incorporation Horizon Resources Co. Ltd Axiom Investment holding Cayman Islands CJC (Hong Kong) Limited Horizon Investment holding Hong Kong, China Jin Tai Hong (Shenzhen) Hotel Management Services Company Limited (“Jin Tai Hong”) CJC Investment holding China Jin Bai Xing (Shenzhen) Clean Energy Technology Services Company Limited (“Jin Bai Xing”) CJC Investment holding China Xiao Jin County En Ze Hotel Management Company Limited ("En Ze") Jin Tai Hong Hotel management China Xiao Jin County Si Gu Niang Mountain Hotel Management Company Limited ("Si Gu Niang") Jin Tai Hong Hotel operation (under construction) China Xiaojin County Jitai Power Investment Company Limited (“Jitai”) Jin Bai Xing Hydroelectric power station operation China Xiaojin County Xin Hong Electric Power Development Company Limited (“Xin Hong”) Jin Bai Xing Hydroelectric power station operation (under construction) China Sichuan Xing Tie Electric Power Company Limited (“Xing Tie”) Jin Bai Xing Manufacturing and trading of mechanical and electrical equipment China These consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments. Foreign Currency Translation and Re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The Company’s functional currency and reporting currency is the U.S. dollar, subsidiaries’ functional currency is the Chinese Yuan Renminbi (“CNY”) and Hong Kong Dollar (“HKD”). The Company's subsidiaries, whose records are not maintained in that company's functional currency, re-measure their records into their functional currency as follows: · Monetary assets and liabilities at exchange rates in effect at the end of each period · Nonmonetary assets and liabilities at historical rates · Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company's results of operations. The Company's subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: · Assets and liabilities at the rate of exchange in effect at the balance sheet date · Equities at the historical rate · Revenue and expense items at the average rate of exchange prevailing during the period Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity. December 31, December 31, December 31, 2016 2015 2014 Spot CNY: USD exchange rate $ 0.14 $ 0.15 $ 0.16 Average CNY: USD exchange rate $ 0.15 $ 0.16 $ 0.16 Spot HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 Average HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $52,159 and $140,438 in cash and cash equivalents as at December 31, 2016 and 2015, respectively. Accounts Receivable The Company has performed an analysis on all of its accounts receivable and determined that all amounts are collectible by the Company. Accounts receivable are reflected as a current asset and no allowance for bad debt has been recorded as of December 31, 2016 and 2015. The Company’s accounts receivable consists of only trade receivables. Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. Property and Equipment Property and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: Years Power stations 35 Office equipment 8 Mechanical equipment 6-30 Transportation equipment 6-10 Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use and is not depreciated until ready for service. It is recognized based on the costs incurred, and is reclassified to property and equipment when it is available for intended use. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment losses. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. Capitalized Interest Interest is capitalized on construction in progress using the interest rate of 11.28% during the year ended December 31, 2016, and the interest rate range of 6.14% - 11.28% during the year ended December 31, 2015. Interest of $208,902 and $1,514,566 was capitalized during the years ended December 31, 2016, and 2015, respectively, and is included in construction in progress in the Company's consolidated balance sheets. Intangible Assets We account for intangible assets in accordance with ASC 350 "Intangibles-Goodwill and Other.” Due to Related Party The Company follows ASC 850, "Related Party Disclosures," Financial Instruments The Company follows ASC 820 ,"Fair Value Measurements and Disclosures," Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash and restricted cash, prepaid expense, and accounts payable and accrued liabilities and amounts due to related parties. Pursuant to ASC 820, the fair value of the Company's cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the Company's other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. Concentrations of Credit Risk The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures is limited. All of the accounts receivable were due from a single customer of Jitai. The customer is a company with the PRC Government being the major shareholder. Hence, the credit risk associated with the accounts receivable was considered to be insignificant. Revenue Recognition “Revenue Recognition. ” i) power is generated and sold to our customer, ii) the customer signs back confirmation on quantity of power generated, iii) the unit charge of power is fixed or determinable; and, iv) collection is reasonably assured. On the 24 th Concentration of Revenue All revenue of the Company during the years was earned from provision of electricity to a single customer which was unrelated to the Company. Share-based Expenses ASC 718 "Compensation – Stock Compensation," The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, "Equity – Based Payments to Non-Employees." There were no share-based expenses for the year ended December 31, 2016, 2015 and 2014. Net Loss per Share of Common Stock The Company has adopted ASC Topic 260, "Earnings per Share," The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. Commitments and Contingencies The Company follows ASC 450-20, "Loss Contingencies," An unrelated company (the “Guarantor”) has provided a guarantee for a related company of CJC (the “Related Company”) to secure a bank loan of $1,449,900 which matured in 2014. Jitai has in turn provided a guarantee to the Guarantor. Upon maturity of the loan, the Related Company failed to repay the loan. Hence, the Guarantor repaid the amount to the bank for the Related Company, but Jitai failed to fulfill its obligation for the guarantee to the Guarantor. By a court order, an agreement (the “Jitai Agreement”) between the Guarantor and Jitai was reached whereby the revenue of Jitai from June 2016 will be paid directly from the customer of Jitai to the Guarantor until a total of $1,364,620 has been repaid to the Guarantor. For the year ended December 31, 2016, the Company paid $557,019 and recorded a loss on the related party guarantee of $577,019. Except for this commitment, there were no other commitments or contingencies at December 31, 2016 and 2015. Recent Accounting Pronouncements In January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In December 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” Management has considered all other recent accounting pronouncements issued since the last audit of our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's financial statements. Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2016 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 3 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company has a net loss from operations of $1,019,111 and a net cash used in operation of $6,202,033 for the year ended December 31, 2016, and an accumulated deficit of $2,882,019 as of December 31, 2016. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ended December 31, 2017. The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings. As shown in Note 2 – Revenue Recognition, the failure of Jitai to fulfill its obligation of guarantee and the agreement between the Guarantor and Jitai will significantly affect the subsequent revenue recognized by Jitai and hence the Company. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 - ACCOUNTS RECEIVABLE Accounts receivable represents the amounts billed to the sole customer of Jitai for provision of electricity. It was overdue for less than one year as at the end of the periods presented. The sole customer is a company with the PRC Government being the major shareholder, and hence is considered to be trust worthy and no impairment is considered to be required for the amount. |
PREPAID EXPENSES
PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expense, Current [Abstract] | |
PREPAID EXPENSES | NOTE 5 - PREPAID EXPENSES The Company's prepaid expenses consist of the followings: December 31, December 31, 2016 2015 Third party suppliers for construction materials $ 258,676 $ - Third party service providers for construction services 9,776,582 - Third party suppliers for construction equipment 126,456 - Other prepaid 5,323 - $ 10,167,037 $ - |
LONG-TERM DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Deposit Assets [Abstract] | |
LONG-TERM DEPOSITS | NOTE 6 – LONG-TERM DEPOSITS The Company's long-term deposits consist of the followings: December 31, December 31, 2016 2015 The authority of the PRC government as a guarantee for the standard of the power station upon completion of construction 68,976 73,919 $ 68,976 $ 73,919 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 - PROPERTY AND EQUIPMENT Property and equipment at December 31, 2016 and 2015 consist of the following: December 31, December 31, 2016 2015 Cost: Power station $ 34,356,510 $ 36,819,085 Office equipment 17,800 19,076 Mechanical equipment 12,271 5,968 Transportation 91,288 97,831 Construction in progress 41,104,502 43,693,166 75,582,371 80,635,126 Less: accumulated depreciation (5,384,543 ) (4,741,294 ) Property and Equipment, net $ 70,197,828 $ 75,893,832 Depreciation expense for the year ended December 31, 2016, 2015 and 2014 amounted to $1,006,113, $853,485 and $912,792, respectively. Part of power station and construction in progress has been pledged to banks to secure the bank loans (Note 10) provided to the Company. During the year ended December 31, 2016 and 2015, construction in progress of $0 and $14,420,282, respectively, had been re-classified to power station upon completion of construction when the facility reached the stage of completion for its intended use. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | NOTE 8 - INTANGIBLE ASSETS The intangible assets represent land use rights in the PRC with lease terms ranging from 36 years to 50 years. December 31, December 31, 2016 2015 Cost $ 221,801 $ 237,699 Less: accumulated amortization (22,202 ) (16,093 ) Intangible assets, net $ 199,599 $ 221,606 The amortization expense for the year ended December 31, 2016, 2015 and 2014 amounted to $7,527, $7,950 and $8,100, respectively. Part of land use rights have been pledged to banks to secure for the bank loans (Note 10) provided to the Company. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 9 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The Company's accounts payable and accrued liabilities consist of the followings: December 31, December 31, 2016 2015 Accrued expense 141,796 - Construction service fees payable to third party service providers 1,361,135 1,529,487 Salaries and sundries expenses payable 4,132 12,032 $ 1,507,063 $ 1,541,519 The amounts were interest free, unsecured and to be repaid within 1 year from December 31, 2016 and 2015, respectively. |
LOANS PAYABLE AND ACCRUED INTER
LOANS PAYABLE AND ACCRUED INTEREST | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE AND ACCRUED INTEREST | NOTE 10 - LOANS PAYABLE AND ACCRUED INTEREST The components of our long-term debt from Bank and Credit Union, including the current portion, and the associated interest rates, were as follows as of December 31, 2016 and 2015: December 31, December 31, 2016 2015 Interest rate Note payable - December 29, 2011 - December 28, 2017 $ 330,510 $ 354,200 0.94% per month Note payable - November 23, 2011 - November 23, 2017 790,350 847,000 0.94% per month Note payable - August 31, 2011 - August 30, 2017 617,910 662,200 0.94% per month Note payable - June 16, 2014 - June 15, 2020 7,185,000 7,700,000 Best lending interest rate of the People's Bank of China plus 20% per annum Note payable - January 22, 2015 - January 21, 2020 2,406,975 2,579,500 11.40% per annum Note payable - November 24, 2014 - November 25, 2024 4,742,100 5,082,000 9.23% per annum Note payable - January 10, 2014 - December 20, 2032 16,669,200 19,404,000 Best lending interest rate of the People's Bank of China plus 4% per annum Note payable - June 27, 2016 - June 28, 2021 4,311,000 - 7.6% per annum $ 37,053,045 $ 36,628,900 Current portion of loans payable 3,175,770 - Long-term loans payable $ 33,877,275 $ 36,628,900 Interest expenses for the year ended December 31, 2016, 2015 and 2014 amounted to $1,088,952, $1,068,176 and $803,306, respectively. The bank loans are secured by construction in progress (December 31, 2016: $4,579,467; December 31, 2015: $4,688,317; Note 7), power station (December 31, 2016: $29,028,673; December 31, 2015: $32,120,764; Note 7) and intangible assets (December 31, 2016: $124,875; December 31, 2015: $139,524; Note 8) from part of the balances of those items shown in the balance sheet. |
DEPOSITS RECEIVED
DEPOSITS RECEIVED | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
DEPOSITS RECEIVED | NOTE 11 - DEPOSITS RECEIVED Deposits received represent the deposits received from one of the major construction service providers as a performance guarantee of the power station under construction for the year ended December 31, 2015, and from eight construction service providers as a performance guarantee for the power station under construction for the year ended December 31, 2016. Deposits received will be refunded to the service providers when the construction is completed to a satisfactory standard. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 - RELATED PARTY TRANSACTIONS Due from Related Parties Due from related parties at December 31, 2016 and 2015 consist of as follows: December 31, December 31, Related Party Name 2016 2015 Relationship with the Company Sichuan Jiuyuen Property Development Company Limited $ 484,184 $ - Under the same ultimate common control with CJC Chengdu Yongtian Machinery Company Limited 371,207 - Under the same ultimate common control with CJC $ 855,391 $ - The amounts were non-interest bearing, unsecured and had no fixed terms of repayment. Due to Related Parties As of December 31, 2016 and 2015, the Company was obligated to the following related parties: December 31, December 31, Relationship with Related Party Name 2016 2015 the Company Yeung Baigui $ 3,179,676 $ 2,963,213 Current director and former stockholder of Si Gu Niang Wu Hongguang 7,423,561 7,810,900 Current director of Jitai and former stockholder of Jitai and Xing Tie Chen Juan 1,204,493 - Current director of and former stockholder of En Ze Hu Dengyang 1,125,602 - Current director of Jin Bai Xing and former stockholder of En Ze Wu Ling Electrical Engineering Company Limited 3,550,252 1,540,924 Former stockholder of Xing Tie, currently under the same ultimate common control with CJC Sichuan Jiuyuen Property Development Company Limited - 414,351 Under the same ultimate common control with CJC Sichuan Jiuyuen Electrical Engineering Company Limited 9,754,913 7,286,028 Under the same ultimate common control with CJC Xinlong Xi Da Electrical Engineering Company Limited 270,078 289,437 Under the same ultimate common control with CJC Li Yuen Huacheng Electrical Engineering Company Limited 2,375,344 2,160,602 Under the same ultimate common control with CJC Sichuan Red Leaf Electrical Engineering Company Limited 387,846 153,846 Under the same ultimate common control with CJC $ 29,271,765 $ 22,619,301 Directors Compensation During the years ended December 31, 2016, 2015, and 2014, directors of our subsidiaries were paid salaries totalling $172,500, 182,850, and 186,300, respectively. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 13 – OTHER CURRENT LIABILITIES The Company's other payable consist of the following: December 31, December 31, 2016 2015 Sichuan Lap Yip Electronic Company Limited $ - $ 1,185,800 The PRC Government of Xiao Jin Country 114,960 123,200 $ 114,960 $ 1,309,000 The amounts are non-interest bearing, unsecured and have no fixed terms of repayment. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
EQUITY | NOTE 14 - EQUITY Preferred Stock The Company has authorized 50,000,000 preferred shares with a par value of $0.001 per share. The Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. There were no preferred shares issued and outstanding as at December 31, 2016 and 2015. Common Shares The Company has authorized 3,000,000,000 common shares with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought. As of December 31, 2016 and 2015, the Company had 340,000,000 shares of common stock issued and outstanding. The Company has no stock option plan, warrants or other dilutive securities. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | NOTE 15 - PROVISION FOR INCOME TAXES The Company provides for income taxes under ASC 740, "Income Taxes.” The Company is subject to taxation in United States, Hong Kong and the PRC. The statutory income tax rate of United States is 34%. The statutory income tax rate of Hong Kong is 16.5%. The statutory federal income tax rate of the PRC is 25%. Tax expenses of $10,487, $269,964, and $1,214,301 have been incurred during the year ended December 31, 2016, 2015, and 2014, respectively, which represent the Business Tax of the PRC charged on the addition of construction in progress during the years at an effective tax rate of approximately 3%. The tax expenses have been categorized under general and administrative expenses in the consolidated statements of operations and other comprehensive income (expenses). Tax payable in the consolidated balance sheets represents solely the provision for these tax expenses. As of December 31, 2016, the Company has loss carried forwards for United States income taxes of approximately $152,000, for Hong Kong income taxes of approximately $24,000, and for PRC income taxes of approximately $2,707,000. US Federal net operating loss carryforwards may be carried forward up to a maximum of 20 years and will begin expiring in 2036. The tax benefits of operating loss in the PRC can be carried forward up to a maximum of 5 years and will begin expiring in 2021. The tax benefits of operating loss in Hong Kong can be carried forward indefinitely. United states, China and Hong Kong components of income (loss) before income taxes were as follows: For the Years Ended December 31, 2016 2015 2014 United States $ 151,603 $ - $ - Hong Kong 12,575 10,965 - China 854,933 496,015 1,588,972 Loss before income taxes $ 1,019,111 $ 506,980 $ 1,588,972 The income tax provision/(benefit) for the years ended December 31, 2016 and 2015 consists of the following: For the Years Ended December 31, 2016 2015 2014 Income tax benefit at statutory rate: United States $ 51,545 $ - $ - Hong Kong 2,075 1,809 - China 213,733 124,004 397,243 Total 267,353 125,813 397,243 Change in valuation allowance (267,353 ) (125,813 ) (397,243 ) Income tax expense (benefit) $ - $ - $ - Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2016 2015 Net operating loss carried forward: United States $ 51,545 $ - Hong Kong 3,884 1,809 China 793,241 579,508 Total 848,670 581,317 Valuation allowance (848,670 ) (581,317 ) Net deferred tax asset $ - $ - The reconciliation of the effective income tax rate to the United States statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 34.0 % Increase in valuation allowance (34.0 %) Effective income tax rate 0.0 % The reconciliation of the effective income tax rate to the Hong Kong statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 16.5 % Increase in valuation allowance (16.5 %) Effective income tax rate 0.0 % The reconciliation of the effective income tax rate to the China statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 25.0 % Increase in valuation allowance (25.0 %) Effective income tax rate 0.0 % The Company has no uncertain tax positions as of December 31, 2016 and 2015 due to the limited nature of its operations. Income taxes for the years ended December 31, 2013 (U.S.), December 31, 2015 (Honk Kong), and December 31, 2014 (unlimited historical review for tax fraud) (PRC) remain subject to examination by tax authorities. |
INDUSTRY SEGMENTS
INDUSTRY SEGMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
INDUSTRY SEGMENTS | NOTE 16 - INDUSTRY SEGMENTS At December 31, 2016 and 2015, the Company operates in two industry segments, namely hospitality and power production, and in one geographic segment, China, where all assets and liabilities were located. Hospitality The Company provides catering and hospitality services. Power production The Company produces hydroelectric power. Segment revenue and net loss for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 Holding Company Hospitality Power production Total Consolidated Assets Current assets $ 15,408 $ 7,117,791 $ 3,955,374 $ 11,088,573 Property and Equipment - 4,579,467 65,618,361 70,197,828 Other non-current assets - 124,875 143,700 268,575 Liabilities Current liabilities 141,796 7,459,691 30,877,175 38,478,662 Long term liabilities - 4,311,000 29,566,275 33,877,275 Net assets (liabilities) $ (126,388 ) $ 51,442 $ 9,273,985 $ 9,199,039 December 31, 2015 Hospitality Power production Total Consolidated Assets Current assets $ - $ 218,970 $ 218,970 Property and Equipment 4,688,317 71,205,515 75,893,832 Other non-current assets 139,524 156,001 295,525 Liabilities Current liabilities 3,076,872 27,645,970 29,182,842 Long term liabilities 1,863,400 33,225,500 36,628,900 Net assets (liabilities) $ (112,431 ) $ 10,709,016 $ 10,596,585 Year Ended December 31, 2016 Holding Company Hospitality Power production Total Consolidated Revenue $ - $ - $ 2,234,415 $ 2,234,415 Cost of goods sold - - (992,736 ) (992,736 ) Operating expenses (164,180 ) (101,911 ) (348,309 ) (614,400 ) Other expenses, net 2 - (1,646,392 ) (1,646,390 ) Net loss $ (164,178 ) $ (101,911 ) $ (753,022 ) $ (1,019,111 ) Year Ended December 31, 2015 Hospitality Power production Total Consolidated Revenue $ - $ 1,987,464 $ 1,987,464 Cost of goods sold - (833,467 ) (833,467 ) Operating expenses (40,154 ) (528,649 ) (568,803 ) Other expenses, net - (1,092,174 ) (1,092,174 ) Net loss $ (40,154 ) $ (466,826 ) $ (506,980 ) Year Ended December 31, 2014 Hospitality Power production Total Consolidated Revenue $ - $ 2,183,113 $ 2,183,113 Cost of goods sold - (924,122 ) (924,122 ) Operating expenses (158,697 ) (1,885,928 ) (2,044,625 ) Other expenses, net - (803,338 ) (803,338 ) Net loss $ (158,697 ) $ (1,430,275 ) $ (1,588,972 ) |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 17 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Summarized quarterly financial data for the two years ended December 31, 2016 and 2015 are as follows: Quarter First Second Third Fourth Year Ended December 31, 2016 Revenues $ 314,588 $ 385,739 $ 851,088 $ 683,000 Operating income 32,318 86,658 379,435 128,868 Net loss (258,541 ) (142,504 ) (101,904 ) (516,162 ) Per share (basic) $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Per share (diluted) $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Year Ended December 31, 2015 Revenues $ - $ 199,216 $ 975,761 $ 812,487 Operating income (loss) (157,842 ) (11,924 ) 682,207 72,753 Net income (loss) (456,796 ) (166,178 ) 350,933 (234,939 ) Per share (basic) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Per share (diluted) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 - SUBSEQUENT EVENTS Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no other events have occurred that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States. The Company’s fiscal year end was September 30 and changed to December 31 on October 1, 2015. |
Basis of Consolidation | Basis of Consolidation At December 31, 2016, the Company, through its wholly owned direct and indirect subsidiaries listed below, operates in two industry segments, namely hospitality and power production, and one geographic segment, the People’s Republic of China (“China” or the “PRC”). Entity Name Entity Owned By Nature of Operation Country of Incorporation Horizon Resources Co. Ltd Axiom Investment holding Cayman Islands CJC (Hong Kong) Limited Horizon Investment holding Hong Kong, China Jin Tai Hong (Shenzhen) Hotel Management Services Company Limited (“Jin Tai Hong”) CJC Investment holding China Jin Bai Xing (Shenzhen) Clean Energy Technology Services Company Limited (“Jin Bai Xing”) CJC Investment holding China Xiao Jin County En Ze Hotel Management Company Limited ("En Ze") Jin Tai Hong Hotel management China Xiao Jin County Si Gu Niang Mountain Hotel Management Company Limited ("Si Gu Niang") Jin Tai Hong Hotel operation (under construction) China Xiaojin County Jitai Power Investment Company Limited (“Jitai”) Jin Bai Xing Hydroelectric power station operation China Xiaojin County Xin Hong Electric Power Development Company Limited (“Xin Hong”) Jin Bai Xing Hydroelectric power station operation (under construction) China Sichuan Xing Tie Electric Power Company Limited (“Xing Tie”) Jin Bai Xing Manufacturing and trading of mechanical and electrical equipment China These consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments. |
Foreign Currency Translation and Re-measurement | Foreign Currency Translation and Re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The Company’s functional currency and reporting currency is the U.S. dollar, subsidiaries’ functional currency is the Chinese Yuan Renminbi (“CNY”) and Hong Kong Dollar (“HKD”). The Company's subsidiaries, whose records are not maintained in that company's functional currency, re-measure their records into their functional currency as follows: · Monetary assets and liabilities at exchange rates in effect at the end of each period · Nonmonetary assets and liabilities at historical rates · Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company's results of operations. The Company's subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: · Assets and liabilities at the rate of exchange in effect at the balance sheet date · Equities at the historical rate · Revenue and expense items at the average rate of exchange prevailing during the period Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity. December 31, December 31, December 31, 2016 2015 2014 Spot CNY: USD exchange rate $ 0.14 $ 0.15 $ 0.16 Average CNY: USD exchange rate $ 0.15 $ 0.16 $ 0.16 Spot HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 Average HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $52,159 and $140,438 in cash and cash equivalents as at December 31, 2016 and 2015, respectively. |
Accounts Receivable | Accounts Receivable The Company has performed an analysis on all of its accounts receivable and determined that all amounts are collectible by the Company. Accounts receivable are reflected as a current asset and no allowance for bad debt has been recorded as of December 31, 2016 and 2015. The Company’s accounts receivable consists of only trade receivables. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: Years Power stations 35 Office equipment 8 Mechanical equipment 6-30 Transportation equipment 6-10 Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use and is not depreciated until ready for service. It is recognized based on the costs incurred, and is reclassified to property and equipment when it is available for intended use. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment losses. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. |
Capitalized Interest | Capitalized Interest Interest is capitalized on construction in progress using the interest rate of 11.28% during the year ended December 31, 2016, and the interest rate range of 6.14% - 11.28% during the year ended December 31, 2015. Interest of $208,902 and $1,514,566 was capitalized during the years ended December 31, 2016, and 2015, respectively, and is included in construction in progress in the Company's consolidated balance sheets. |
Intangible Assets | Intangible Assets We account for intangible assets in accordance with ASC 350 "Intangibles-Goodwill and Other.” |
Due to Related Party | Due to Related Party The Company follows ASC 850, "Related Party Disclosures," |
Financial Instruments | Financial Instruments The Company follows ASC 820 ,"Fair Value Measurements and Disclosures," Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash and restricted cash, prepaid expense, and accounts payable and accrued liabilities and amounts due to related parties. Pursuant to ASC 820, the fair value of the Company's cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the Company's other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures is limited. All of the accounts receivable were due from a single customer of Jitai. The customer is a company with the PRC Government being the major shareholder. Hence, the credit risk associated with the accounts receivable was considered to be insignificant. |
Revenue Recognition | Revenue Recognition “Revenue Recognition. ” i) power is generated and sold to our customer, ii) the customer signs back confirmation on quantity of power generated, iii) the unit charge of power is fixed or determinable; and, iv) collection is reasonably assured. On the 24 th |
Concentration of Revenue | Concentration of Revenue All revenue of the Company during the years was earned from provision of electricity to a single customer which was unrelated to the Company. |
Share-based Expenses | Share-based Expenses ASC 718 "Compensation – Stock Compensation," The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, "Equity – Based Payments to Non-Employees." There were no share-based expenses for the year ended December 31, 2016, 2015 and 2014. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock The Company has adopted ASC Topic 260, "Earnings per Share," The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding. |
Commitments and Contingencies | Commitments and Contingencies The Company follows ASC 450-20, "Loss Contingencies," An unrelated company (the “Guarantor”) has provided a guarantee for a related company of CJC (the “Related Company”) to secure a bank loan of $1,449,900 which matured in 2014. Jitai has in turn provided a guarantee to the Guarantor. Upon maturity of the loan, the Related Company failed to repay the loan. Hence, the Guarantor repaid the amount to the bank for the Related Company, but Jitai failed to fulfill its obligation for the guarantee to the Guarantor. By a court order, an agreement (the “Jitai Agreement”) between the Guarantor and Jitai was reached whereby the revenue of Jitai from June 2016 will be paid directly from the customer of Jitai to the Guarantor until a total of $1,364,620 has been repaid to the Guarantor. For the year ended December 31, 2016, the Company paid $557,019 and recorded a loss on the related party guarantee of $577,019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” In December 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” Management has considered all other recent accounting pronouncements issued since the last audit of our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's financial statements. |
Reclassification | Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of foreign currency translation and re-measurement | December 31, December 31, December 31, 2016 2015 2014 Spot CNY: USD exchange rate $ 0.14 $ 0.15 $ 0.16 Average CNY: USD exchange rate $ 0.15 $ 0.16 $ 0.16 Spot HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 Average HKD: USD exchange rate $ 0.129 $ 0.129 $ 0.129 |
Schedule of property and equipment | Years Power stations 35 Office equipment 8 Mechanical equipment 6-30 Transportation equipment 6-10 |
PREPAID EXPENSES (Tables)
PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expense, Current [Abstract] | |
Schedule of prepaid expenses | December 31, December 31, 2016 2015 Third party suppliers for construction materials $ 258,676 $ - Third party service providers for construction services 9,776,582 - Third party suppliers for construction equipment 126,456 - Other prepaid 5,323 - $ 10,167,037 $ - |
LONG-TERM DEPOSITS (Tables)
LONG-TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposit Assets [Abstract] | |
Schedule of long-term deposits | December 31, December 31, 2016 2015 The authority of the PRC government as a guarantee for the standard of the power station upon completion of construction 68,976 73,919 $ 68,976 $ 73,919 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, 2016 2015 Cost: Power station $ 34,356,510 $ 36,819,085 Office equipment 17,800 19,076 Mechanical equipment 12,271 5,968 Transportation 91,288 97,831 Construction in progress 41,104,502 43,693,166 75,582,371 80,635,126 Less: accumulated depreciation (5,384,543 ) (4,741,294 ) Property and Equipment, net $ 70,197,828 $ 75,893,832 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets | December 31, December 31, 2016 2015 Cost $ 221,801 $ 237,699 Less: accumulated amortization (22,202 ) (16,093 ) Intangible assets, net $ 199,599 $ 221,606 |
ACCOUNTS PAYABLE AND ACCRUED 31
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of company's s accounts payable and accrued liabilities | December 31, December 31, 2016 2015 Accrued expense 141,796 - Construction service fees payable to third party service providers 1,361,135 1,529,487 Salaries and sundries expenses payable 4,132 12,032 $ 1,507,063 $ 1,541,519 |
LOANS PAYABLE AND ACCRUED INT32
LOANS PAYABLE AND ACCRUED INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of components of long term debt | December 31, December 31, 2016 2015 Interest rate Note payable - December 29, 2011 - December 28, 2017 $ 330,510 $ 354,200 0.94% per month Note payable - November 23, 2011 - November 23, 2017 790,350 847,000 0.94% per month Note payable - August 31, 2011 - August 30, 2017 617,910 662,200 0.94% per month Note payable - June 16, 2014 - June 15, 2020 7,185,000 7,700,000 Best lending interest rate of the People's Bank of China plus 20% per annum Note payable - January 22, 2015 - January 21, 2020 2,406,975 2,579,500 11.40% per annum Note payable - November 24, 2014 - November 25, 2024 4,742,100 5,082,000 9.23% per annum Note payable - January 10, 2014 - December 20, 2032 16,669,200 19,404,000 Best lending interest rate of the People's Bank of China plus 4% per annum Note payable - June 27, 2016 - June 28, 2021 4,311,000 - 7.6% per annum $ 37,053,045 $ 36,628,900 Current portion of loans payable 3,175,770 - Long-term loans payable $ 33,877,275 $ 36,628,900 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | December 31, December 31, Related Party Name 2016 2015 Relationship with the Company Sichuan Jiuyuen Property Development Company Limited $ 484,184 $ - Under the same ultimate common control with CJC Chengdu Yongtian Machinery Company Limited 371,207 - Under the same ultimate common control with CJC $ 855,391 $ - |
Schedule of obligation to related parties | December 31, December 31, Relationship with Related Party Name 2016 2015 the Company Yeung Baigui $ 3,179,676 $ 2,963,213 Current director and former stockholder of Si Gu Niang Wu Hongguang 7,423,561 7,810,900 Current director of Jitai and former stockholder of Jitai and Xing Tie Chen Juan 1,204,493 - Current director of and former stockholder of En Ze Hu Dengyang 1,125,602 - Current director of Jin Bai Xing and former stockholder of En Ze Wu Ling Electrical Engineering Company Limited 3,550,252 1,540,924 Former stockholder of Xing Tie, currently under the same ultimate common control with CJC Sichuan Jiuyuen Property Development Company Limited - 414,351 Under the same ultimate common control with CJC Sichuan Jiuyuen Electrical Engineering Company Limited 9,754,913 7,286,028 Under the same ultimate common control with CJC Xinlong Xi Da Electrical Engineering Company Limited 270,078 289,437 Under the same ultimate common control with CJC Li Yuen Huacheng Electrical Engineering Company Limited 2,375,344 2,160,602 Under the same ultimate common control with CJC Sichuan Red Leaf Electrical Engineering Company Limited 387,846 153,846 Under the same ultimate common control with CJC $ 29,271,765 $ 22,619,301 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | December 31, December 31, 2016 2015 Sichuan Lap Yip Electronic Company Limited $ - $ 1,185,800 The PRC Government of Xiao Jin Country 114,960 123,200 $ 114,960 $ 1,309,000 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before taxes | For the Years Ended December 31, 2016 2015 2014 United States $ 151,603 $ - $ - Hong Kong 12,575 10,965 - China 854,933 496,015 1,588,972 Loss before income taxes $ 1,019,111 $ 506,980 $ 1,588,972 |
Schedule of income tax provision (benefit) | For the Years Ended December 31, 2016 2015 2014 Income tax benefit at statutory rate: United States $ 51,545 $ - $ - Hong Kong 2,075 1,809 - China 213,733 124,004 397,243 Total 267,353 125,813 397,243 Change in valuation allowance (267,353 ) (125,813 ) (397,243 ) Income tax expense (benefit) $ - $ - $ - |
Schedule of net deferred tax assets | As of December 31, 2016 2015 Net operating loss carried forward: United States $ 51,545 $ - Hong Kong 3,884 1,809 China 793,241 579,508 Total 848,670 581,317 Valuation allowance (848,670 ) (581,317 ) Net deferred tax asset $ - $ - |
Schedule of reconciliation of the effective income tax rate | The reconciliation of the effective income tax rate to the United States statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 34.0 % Increase in valuation allowance (34.0 %) Effective income tax rate 0.0 % The reconciliation of the effective income tax rate to the Hong Kong statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 16.5 % Increase in valuation allowance (16.5 %) Effective income tax rate 0.0 % The reconciliation of the effective income tax rate to the China statutory rate as of December 31, 2016, 2015 and 2014: Income tax rate 25.0 % Increase in valuation allowance (25.0 %) Effective income tax rate 0.0 % |
INDUSTRY SEGMENTS (Tables)
INDUSTRY SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of net assets from segments to consolidated | December 31, 2016 Holding Company Hospitality Power production Total Consolidated Assets Current assets $ 15,408 $ 7,117,791 $ 3,955,374 $ 11,088,573 Property and Equipment - 4,579,467 65,618,361 70,197,828 Other non-current assets - 124,875 143,700 268,575 Liabilities Current liabilities 141,796 7,459,691 30,877,175 38,478,662 Long term liabilities - 4,311,000 29,566,275 33,877,275 Net assets (liabilities) $ (126,388 ) $ 51,442 $ 9,273,985 $ 9,199,039 December 31, 2015 Hospitality Power production Total Consolidated Assets Current assets $ - $ 218,970 $ 218,970 Property and Equipment 4,688,317 71,205,515 75,893,832 Other non-current assets 139,524 156,001 295,525 Liabilities Current liabilities 3,076,872 27,645,970 29,182,842 Long term liabilities 1,863,400 33,225,500 36,628,900 Net assets (liabilities) $ (112,431 ) $ 10,709,016 $ 10,596,585 |
Schedule of reconciliation of operating gains and losses from segments to consolidated | Year Ended December 31, 2016 Holding Company Hospitality Power production Total Consolidated Revenue $ - $ - $ 2,234,415 $ 2,234,415 Cost of goods sold - - (992,736 ) (992,736 ) Operating expenses (164,180 ) (101,911 ) (348,309 ) (614,400 ) Other expenses, net 2 - (1,646,392 ) (1,646,390 ) Net loss $ (164,178 ) $ (101,911 ) $ (753,022 ) $ (1,019,111 ) Year Ended December 31, 2015 Hospitality Power production Total Consolidated Revenue $ - $ 1,987,464 $ 1,987,464 Cost of goods sold - (833,467 ) (833,467 ) Operating expenses (40,154 ) (528,649 ) (568,803 ) Other expenses, net - (1,092,174 ) (1,092,174 ) Net loss $ (40,154 ) $ (466,826 ) $ (506,980 ) Year Ended December 31, 2014 Hospitality Power production Total Consolidated Revenue $ - $ 2,183,113 $ 2,183,113 Cost of goods sold - (924,122 ) (924,122 ) Operating expenses (158,697 ) (1,885,928 ) (2,044,625 ) Other expenses, net - (803,338 ) (803,338 ) Net loss $ (158,697 ) $ (1,430,275 ) $ (1,588,972 ) |
QUARTERLY FINANCIAL INFORMATI37
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of summarized quarterly financial data | Quarter First Second Third Fourth Year Ended December 31, 2016 Revenues $ 314,588 $ 385,739 $ 851,088 $ 683,000 Operating income 32,318 86,658 379,435 128,868 Net loss (258,541 ) (142,504 ) (101,904 ) (516,162 ) Per share (basic) $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Per share (diluted) $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Year Ended December 31, 2015 Revenues $ - $ 199,216 $ 975,761 $ 812,487 Operating income (loss) (157,842 ) (11,924 ) 682,207 72,753 Net income (loss) (456,796 ) (166,178 ) 350,933 (234,939 ) Per share (basic) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Per share (diluted) $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) |
ORGANIZATION AND DESCRIPTION 38
ORGANIZATION AND DESCRIPTION OF BUSINESS (Detail Textuals) | Dec. 21, 2016shares | Oct. 10, 2016Shareholder$ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2015shares |
Organization And Description Of Business [Line Items] | ||||
Common stock, shares issued | 340,000,000 | 340,000,000 | ||
Common stock, shares outstanding | 340,000,000 | 340,000,000 | ||
Share Exchange Agreement | CJC | CJC Shareholders | ||||
Organization And Description Of Business [Line Items] | ||||
Number of shareholders | Shareholder | 2 | |||
Number of shares issued in exchange for shares acquired | 200,000,000 | |||
Common stock, par value per share | $ / shares | $ 0.001 | |||
Number of common stock cancelled | 200,000,000 | |||
Percentage of common stock at closing of transaction | 58.80% | |||
Common stock, shares issued | 340,000,000 | |||
Common stock, shares outstanding | 340,000,000 | |||
SEA Amendment | CJC | Horizon | ||||
Organization And Description Of Business [Line Items] | ||||
Number of shares acquired | 200,000,000 | |||
SEA Amendment | CJC | CJC Shareholders | ||||
Organization And Description Of Business [Line Items] | ||||
Percentage of shares issued and outstanding | 100.00% | |||
Percentage of common stock at closing of transaction | 58.80% | |||
Common stock, shares issued | 340,000,000 | |||
Common stock, shares outstanding | 340,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Spot CNY: USD exchange rate | |||
Foreign Currency Translation And Remeasurement [Line Items] | |||
Foreign currency exchange rate | 0.14 | 0.15 | 0.16 |
Average CNY: USD exchange rate | |||
Foreign Currency Translation And Remeasurement [Line Items] | |||
Foreign currency exchange rate | 0.15 | 0.16 | 0.16 |
Spot HKD: USD exchange rate | |||
Foreign Currency Translation And Remeasurement [Line Items] | |||
Foreign currency exchange rate | 0.129 | 0.129 | 0.129 |
Average HKD: USD exchange rate | |||
Foreign Currency Translation And Remeasurement [Line Items] | |||
Foreign currency exchange rate | 0.129 | 0.129 | 0.129 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2016 | |
Power stations | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 35 years |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Mechanical equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 6 years |
Mechanical equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 6 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) | 12 Months Ended | |||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | Segment | 2 | |||
Cash and cash equivalents | $ 52,159 | $ 140,438 | $ 165,896 | $ 361,139 |
Interest rate on construction in progress | 11.28% | |||
Interest capitalized | $ 208,902 | $ 1,514,566 | ||
Guarantee for bank loan | 1,449,900 | |||
Guarantee obligation amount | 1,364,620 | |||
Payment for guarantee obligation | 557,019 | |||
Loss on related party guarantee | $ (557,019) | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Interest rate on construction in progress | 6.14% | |||
Amortization period | 36 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Interest rate on construction in progress | 11.28% | |||
Amortization period | 50 years | |||
Land use rights | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period | 50 years |
GOING CONCERN (Detail Textuals)
GOING CONCERN (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Going Concern [Abstract] | |||||||||||
Net loss | $ (516,162) | $ (101,904) | $ (142,504) | $ (258,541) | $ (234,939) | $ 350,933 | $ (166,178) | $ (456,796) | $ (1,019,111) | $ (506,980) | $ (1,588,972) |
Net cash used in operation | (6,202,033) | (1,864,605) | $ 2,564,623 | ||||||||
Accumulated deficit | $ (2,882,019) | $ (1,862,908) | $ (2,882,019) | $ (1,862,908) |
PREPAID EXPENSES (Details)
PREPAID EXPENSES (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense, Current [Abstract] | ||
Third party suppliers for construction materials | $ 258,676 | |
Third party service providers for construction services | 9,776,582 | |
Third party suppliers for construction equipment | 126,456 | |
Other prepaid | 5,323 | |
Prepaid expenses | $ 10,167,037 |
LONG-TERM DEPOSITS (Details)
LONG-TERM DEPOSITS (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deposit Asset [Line Items] | ||
Deposit Assets | $ 68,976 | $ 73,919 |
The authority of the PRC government as a guarantee for the standard of the power station upon completion of construction | ||
Deposit Asset [Line Items] | ||
Deposit Assets | $ 68,976 | $ 73,919 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | $ 75,582,371 | $ 80,635,126 |
Less: accumulated depreciation | (5,384,543) | (4,741,294) |
Property and Equipment, net | 70,197,828 | 75,893,832 |
Power station | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | 34,356,510 | 36,819,085 |
Office equipment | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | 17,800 | 19,076 |
Mechanical equipment | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | 12,271 | 5,968 |
Transportation | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | 91,288 | 97,831 |
Construction in progress | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Property, plant and equipment, gross | $ 41,104,502 | $ 43,693,166 |
PROPERTY AND EQUIPMENT (Detail
PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,006,113 | $ 853,485 | $ 912,792 |
Construction in progress | $ 0 | $ 14,420,282 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Cost | $ 221,801 | $ 237,699 |
Less: accumulated amortization | (22,202) | (16,093) |
Intangible assets, net | $ 199,599 | $ 221,606 |
INTANGIBLE ASSETS (Detail Textu
INTANGIBLE ASSETS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization expense | $ 7,527 | $ 7,950 | $ 8,100 |
Minimum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Terms of lease | 36 years | ||
Maximum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Terms of lease | 50 years |
ACCOUNTS PAYABLE AND ACCRUED 49
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accrued expense | $ 141,796 | |
Construction service fees payable to third party service providers | 1,361,135 | 1,529,487 |
Salaries and sundries expenses payable | 4,132 | 12,032 |
Total | $ 1,507,063 | $ 1,541,519 |
ACCOUNTS PAYABLE AND ACCRUED 50
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Detail textuals) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Repayment term of accounts payable and accrued liabilities | 1 year | 1 year |
LOANS PAYABLE AND ACCRUED INT51
LOANS PAYABLE AND ACCRUED INTEREST (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 37,053,045 | $ 36,628,900 |
Current portion of loans payable | 3,175,770 | |
Long-term loans payable | 33,877,275 | 36,628,900 |
Note payable - December 29, 2011 - December 28, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 330,510 | 354,200 |
Interest rate | 0.94% per month | |
Note payable - November 23, 2011 - November 23, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 790,350 | 847,000 |
Interest rate | 0.94% per month | |
Note payable - August 31, 2011 - August 30, 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 617,910 | 662,200 |
Interest rate | 0.94% per month | |
Note payable - June 16, 2014 - June 15, 2020 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 7,185,000 | 7,700,000 |
Interest rate | Best lending interest rate of the People's Bank of China plus 20% per annum | |
Note payable - January 22, 2015 - January 21, 2020 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,406,975 | 2,579,500 |
Interest rate | 11.40% per annum | |
Note payable - November 24, 2014 - November 25, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,742,100 | 5,082,000 |
Interest rate | 9.23% per annum | |
Note payable - January 10, 2014 - December 20, 2032 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 16,669,200 | 19,404,000 |
Interest rate | Best lending interest rate of the People's Bank of China plus 4% per annum | |
Note payable - June 27, 2016 - June 28, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,311,000 | |
Interest rate | 7.6% per annum |
LOANS PAYABLE AND ACCRUED INT52
LOANS PAYABLE AND ACCRUED INTEREST (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 1,088,952 | $ 1,068,176 | $ 803,306 |
Construction in progress | |||
Debt Instrument [Line Items] | |||
Secured bank loans | 4,579,467 | 4,688,317 | |
Power station | |||
Debt Instrument [Line Items] | |||
Secured bank loans | 29,028,673 | 32,120,764 | |
Intangible assets | |||
Debt Instrument [Line Items] | |||
Secured bank loans | $ 124,875 | $ 139,524 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Due from related party | $ 855,391 | |
Sichuan Jiuyuen Property Development Company Limited | ||
Related Party Transaction [Line Items] | ||
Due from related party | 484,184 | |
Chengdu Yongtian Machinery Company Limited | ||
Related Party Transaction [Line Items] | ||
Due from related party | $ 371,207 |
RELATED PARTY TRANSACTIONS (D54
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 29,271,765 | $ 22,619,301 |
Yeung Baigui | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 3,179,676 | 2,963,213 |
Relationship with the Company | Current director and former stockholder of Si Gu Niang | |
Wu Hongguang | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 7,423,561 | 7,810,900 |
Relationship with the Company | Current director of Jitai and former stockholder of Jitai and Xing Tie | |
Chen Juan | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1,204,493 | |
Relationship with the Company | Current director of and former stockholder of En Ze | |
Hu Dengyang | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1,125,602 | |
Relationship with the Company | Current director of Jin Bai Xing and former stockholder of En Ze | |
Wu Ling Electrical Engineering Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 3,550,252 | 1,540,924 |
Relationship with the Company | Former stockholder of Xing Tie, currently under the same ultimate common control with CJC | |
Sichuan Jiuyuen Property Development Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 414,351 | |
Relationship with the Company | Under the same ultimate common control with CJC | |
Sichuan Jiuyuen Electrical Engineering Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 9,754,913 | 7,286,028 |
Relationship with the Company | Under the same ultimate common control with CJC | |
Xinlong Xi Da Electrical Engineering Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 270,078 | 289,437 |
Relationship with the Company | Under the same ultimate common control with CJC | |
Li Yuen Huacheng Electrical Engineering Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 2,375,344 | 2,160,602 |
Relationship with the Company | Under the same ultimate common control with CJC | |
Sichuan Red Leaf Electrical Engineering Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 387,846 | $ 153,846 |
Relationship with the Company | Under the same ultimate common control with CJC |
RELATED PARTY TRANSACTIONS (D55
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |||
Directors compensation | $ 172,500 | $ 182,850 | $ 186,300 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 114,960 | $ 1,309,000 |
Sichuan Lap Yip Electronic Company Limited | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | 1,185,800 | |
The PRC Government of Xiao Jin Country | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 114,960 | $ 123,200 |
EQUITY (Detail Textuals)
EQUITY (Detail Textuals) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, voting rights | one vote | |
Common stock, shares issued | 340,000,000 | 340,000,000 |
Common stock, shares outstanding | 340,000,000 | 340,000,000 |
PROVISION FOR INCOME TAXES - Su
PROVISION FOR INCOME TAXES - Summary of provision for income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Loss before income taxes | $ 1,019,111 | $ 506,980 | $ 1,588,972 |
United States | |||
Income Tax Disclosure [Line Items] | |||
Loss before income taxes | 151,603 | ||
Hong Kong | |||
Income Tax Disclosure [Line Items] | |||
Loss before income taxes | 12,575 | 10,965 | |
China | |||
Income Tax Disclosure [Line Items] | |||
Loss before income taxes | $ 854,933 | $ 496,015 | $ 1,588,972 |
PROVISION FOR INCOME TAXES - 59
PROVISION FOR INCOME TAXES - Summary of Net deferred tax assets (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax benefit at statutory rate: | |||
Total | $ 267,353 | $ 125,813 | $ 397,243 |
Change in valuation allowance | (267,353) | (125,813) | (397,243) |
Income tax expense (benefit) | |||
United States | |||
Income tax benefit at statutory rate: | |||
Total | 51,545 | ||
Hong Kong | |||
Income tax benefit at statutory rate: | |||
Total | 2,075 | 1,809 | |
China | |||
Income tax benefit at statutory rate: | |||
Total | $ 213,733 | $ 124,004 | $ 397,243 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Net operating loss carried forward: | ||
Total | $ 848,670 | $ 581,317 |
Valuation allowance | (848,670) | (581,317) |
Net deferred tax asset | ||
United States | ||
Net operating loss carried forward: | ||
Total | 51,545 | |
Hong Kong | ||
Net operating loss carried forward: | ||
Total | 3,884 | 1,809 |
China | ||
Net operating loss carried forward: | ||
Total | $ 793,241 | $ 579,508 |
PROVISION FOR INCOME TAXES (D61
PROVISION FOR INCOME TAXES (Details 3) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 34.00% | 34.00% | 34.00% |
Increase in valuation allowance | (34.00%) | (34.00%) | (34.00%) |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Hong Kong | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 16.50% | 16.50% | 16.50% |
Increase in valuation allowance | (16.50%) | (16.50%) | (16.50%) |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
China | |||
Income Tax Disclosure [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Increase in valuation allowance | (25.00%) | (25.00%) | (25.00%) |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
PROVISION FOR INCOME TAXES (D62
PROVISION FOR INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Business tax expenses | $ 10,487 | $ 269,964 | $ 1,214,301 |
Business effective tax rate | 3.00% | ||
United States | |||
Income Tax Disclosure [Line Items] | |||
Statutory federal income tax rate | 34.00% | 34.00% | 34.00% |
Loss on carried forwards | $ 152,000 | ||
Operating loss carryforwards, limitations on use | US Federal net operating loss carryforwards may be carried forward up to a maximum of 20 years and will begin expiring in 2036. | ||
Hong Kong | |||
Income Tax Disclosure [Line Items] | |||
Statutory federal income tax rate | 16.50% | 16.50% | 16.50% |
Loss on carried forwards | $ 24,000 | ||
PRC | |||
Income Tax Disclosure [Line Items] | |||
Statutory federal income tax rate | 25.00% | 25.00% | 25.00% |
Loss on carried forwards | $ 2,707,000 | ||
Operating loss carryforwards, limitations on use | The tax benefits of operating loss in the PRC can be carried forward up to a maximum of 5 years and will begin expiring in 2021. |
INDUSTRY SEGMENTS (Details)
INDUSTRY SEGMENTS (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Current assets | $ 11,088,573 | $ 218,970 |
Property and Equipment | 70,197,828 | 75,893,832 |
Other non-current assets | 268,575 | 295,525 |
Liabilities | ||
Current liabilities | 38,478,662 | 29,182,842 |
Long term liabilities | 33,877,275 | 36,628,900 |
Net assets (liabilities) | 9,199,039 | 10,596,585 |
Holding Company | ||
Assets | ||
Current assets | 15,408 | |
Property and Equipment | ||
Other non-current assets | ||
Liabilities | ||
Current liabilities | 141,796 | |
Long term liabilities | ||
Net assets (liabilities) | (126,388) | |
Hospitality | ||
Assets | ||
Current assets | 7,117,791 | |
Property and Equipment | 4,579,467 | 4,688,317 |
Other non-current assets | 124,875 | 139,524 |
Liabilities | ||
Current liabilities | 7,459,691 | 3,076,872 |
Long term liabilities | 4,311,000 | 1,863,400 |
Net assets (liabilities) | 51,442 | (112,431) |
Power Production | ||
Assets | ||
Current assets | 3,955,374 | 218,970 |
Property and Equipment | 65,618,361 | 71,205,515 |
Other non-current assets | 143,700 | 156,001 |
Liabilities | ||
Current liabilities | 30,877,175 | 27,645,970 |
Long term liabilities | 29,566,275 | 33,225,500 |
Net assets (liabilities) | $ 9,273,985 | $ 10,709,016 |
INDUSTRY SEGMENTS (Details 1)
INDUSTRY SEGMENTS (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 683,000 | $ 851,088 | $ 385,739 | $ 314,588 | $ 812,487 | $ 975,761 | $ 199,216 | $ 2,234,415 | $ 1,987,464 | $ 2,183,113 | |
Cost of goods sold | (992,736) | (833,467) | (924,122) | ||||||||
Operating expenses | (614,400) | (568,803) | (2,044,625) | ||||||||
Other expenses, net | (1,646,390) | (1,092,174) | (803,338) | ||||||||
Net loss | $ (516,162) | $ (101,904) | $ (142,504) | $ (258,541) | $ (234,939) | $ 350,933 | $ (166,178) | $ (456,796) | (1,019,111) | (506,980) | (1,588,972) |
Holding Company | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | |||||||||||
Cost of goods sold | |||||||||||
Operating expenses | (164,180) | ||||||||||
Other expenses, net | 2 | ||||||||||
Net loss | (164,178) | ||||||||||
Hospitality | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | |||||||||||
Cost of goods sold | |||||||||||
Operating expenses | (101,911) | (40,154) | (158,697) | ||||||||
Other expenses, net | |||||||||||
Net loss | (101,911) | (40,154) | (158,697) | ||||||||
Power Production | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 2,234,415 | 1,987,464 | 2,183,113 | ||||||||
Cost of goods sold | (992,736) | (833,467) | (924,122) | ||||||||
Operating expenses | (348,309) | (528,649) | (1,885,928) | ||||||||
Other expenses, net | (1,646,392) | (1,092,174) | (803,338) | ||||||||
Net loss | $ (753,022) | $ (466,826) | $ (1,430,275) |
INDUSTRY SEGMENTS (Detail Textu
INDUSTRY SEGMENTS (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of geographic segment in which entity operating | 1 |
QUARTERLY FINANCIAL INFORMATI66
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 683,000 | $ 851,088 | $ 385,739 | $ 314,588 | $ 812,487 | $ 975,761 | $ 199,216 | $ 2,234,415 | $ 1,987,464 | $ 2,183,113 | |
Operating income (loss) | 128,868 | 379,435 | 86,658 | 32,318 | 72,753 | 682,207 | (11,924) | $ (157,842) | 627,279 | 585,194 | (785,634) |
Net income (loss) | $ (516,162) | $ (101,904) | $ (142,504) | $ (258,541) | $ (234,939) | $ 350,933 | $ (166,178) | $ (456,796) | $ (1,019,111) | $ (506,980) | $ (1,588,972) |
Per share (basic) (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Per share (diluted) (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |