Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Greenpro Capital Corp. |
Entity Central Index Key | 1,597,846 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 8-K |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Entity Filer Category | Smaller Reporting Company |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current assets: | ||||
Cash and cash equivalents | $ 322,887 | $ 78,357 | $ 25,047 | |
Accounts receivable | 29,281 | |||
Prepayments and other receivables | 13,150 | $ 15,600 | 28,486 | |
Total current assets | 365,318 | 93,957 | 53,533 | |
Non-current assets: | ||||
Property, plant and equipment, net | 998,048 | 1,086,592 | 1,162,468 | |
Intangible assets, net | 3,353 | 3,428 | 3,317 | |
Cash surrender value of life insurance, net | 34,991 | $ 16,545 | 2,831 | |
Other non-current asset - related party | 38,710 | |||
TOTAL ASSETS | 1,440,420 | $ 1,200,522 | 1,222,149 | |
Current liabilities: | ||||
Amounts due to related companies | 115,583 | 48,037 | 545 | |
Amount due to directors | 472,665 | 494,253 | 481,897 | |
Current portion of long-term bank loans | 14,491 | 15,067 | 15,160 | |
Accrued liabilities and other payables | 53,999 | 60,099 | 52,288 | |
Total Current Liabilities | 656,738 | 617,456 | 549,890 | |
Non-current liabilities | ||||
Long-term bank loans | 681,197 | 742,772 | 772,700 | |
Total liabilities | $ 1,337,935 | $ 1,360,228 | $ 1,322,590 | |
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Issued capital, 50,000 shares authorized as of June 30, 2015 and December 31, 2014, US$1 par value, 2 shares issued and outstanding, as of June 30, 2015 and December 31, 2014 | $ 2 | $ 2 | $ 2 | |
Accumulated other comprehensive loss | (43,432) | (9,540) | (1,781) | |
Retained earnings (accumulated deficit) | 145,915 | (150,168) | (98,662) | |
Total stockholders' equity (deficit) | 102,485 | (159,706) | (100,441) | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,440,420 | $ 1,200,522 | $ 1,222,149 | |
Historical Greenpro Resources Ltd. [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 322,887 | |||
Accounts receivable | 29,281 | |||
Prepayments and other receivables | $ 13,150 | |||
Amount due from related companies | ||||
Total current assets | $ 365,318 | |||
Non-current assets: | ||||
Property, plant and equipment, net | 998,048 | |||
Intangible assets, net | 3,353 | |||
Cash surrender value of life insurance, net | 34,991 | |||
Other non-current asset - related party | 38,710 | |||
TOTAL ASSETS | 1,440,420 | |||
Current liabilities: | ||||
Amounts due to related companies | 115,583 | |||
Amount due to directors | $ 472,665 | |||
Loan from shareholders | ||||
Current portion of long-term bank loans | $ 14,491 | |||
Accrued liabilities and other payables | 53,999 | |||
Total Current Liabilities | 656,738 | |||
Non-current liabilities | ||||
Long-term bank loans | 681,197 | |||
Total liabilities | $ 1,337,935 | |||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Issued capital, 50,000 shares authorized as of June 30, 2015 and December 31, 2014, US$1 par value, 2 shares issued and outstanding, as of June 30, 2015 and December 31, 2014 | $ 2 | |||
Additional paid-in capital | ||||
Accumulated other comprehensive loss | $ (43,432) | |||
Retained earnings (accumulated deficit) | 145,915 | |||
Total stockholders' equity (deficit) | 102,485 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,440,420 | |||
Historical Greenpro Capital Corp. [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | $ 104,794 | |||
Accounts receivable | ||||
Prepayments and other receivables | $ 29,182 | |||
Amount due from related companies | [1] | 1,286,200 | ||
Total current assets | 1,420,176 | |||
Non-current assets: | ||||
Property, plant and equipment, net | $ 31,539 | |||
Intangible assets, net | ||||
Cash surrender value of life insurance, net | ||||
Other non-current asset - related party | ||||
TOTAL ASSETS | $ 1,451,715 | |||
Current liabilities: | ||||
Amounts due to related companies | [1] | |||
Amount due to directors | $ 954 | |||
Loan from shareholders | $ 1,170,968 | |||
Current portion of long-term bank loans | ||||
Accrued liabilities and other payables | $ 50,906 | |||
Total Current Liabilities | $ 1,222,828 | |||
Non-current liabilities | ||||
Long-term bank loans | ||||
Total liabilities | $ 1,222,828 | |||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Issued capital, 50,000 shares authorized as of June 30, 2015 and December 31, 2014, US$1 par value, 2 shares issued and outstanding, as of June 30, 2015 and December 31, 2014 | [2],[3] | $ 2,242 | ||
Additional paid-in capital | [2],[3] | $ 686,958 | ||
Accumulated other comprehensive loss | ||||
Retained earnings (accumulated deficit) | $ (460,313) | |||
Total stockholders' equity (deficit) | 228,887 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,451,715 | |||
Pro Forma Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | ||||
Accounts receivable | ||||
Prepayments and other receivables | ||||
Amount due from related companies | $ (88,848) | |||
Total current assets | $ (88,848) | |||
Non-current assets: | ||||
Property, plant and equipment, net | ||||
Intangible assets, net | ||||
Cash surrender value of life insurance, net | ||||
Other non-current asset - related party | ||||
TOTAL ASSETS | $ (88,848) | |||
Current liabilities: | ||||
Amounts due to related companies | $ (88,848) | |||
Amount due to directors | ||||
Loan from shareholders | ||||
Current portion of long-term bank loans | ||||
Accrued liabilities and other payables | ||||
Total Current Liabilities | $ (88,848) | |||
Non-current liabilities | ||||
Long-term bank loans | ||||
Total liabilities | $ (88,848) | |||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Issued capital, 50,000 shares authorized as of June 30, 2015 and December 31, 2014, US$1 par value, 2 shares issued and outstanding, as of June 30, 2015 and December 31, 2014 | $ 905 | |||
Additional paid-in capital | $ (905) | |||
Accumulated other comprehensive loss | ||||
Retained earnings (accumulated deficit) | ||||
Total stockholders' equity (deficit) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ (88,848) | |||
Pro Forma Combined [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 427,681 | |||
Accounts receivable | 29,281 | |||
Prepayments and other receivables | 42,332 | |||
Amount due from related companies | 1,197,352 | |||
Total current assets | 1,696,646 | |||
Non-current assets: | ||||
Property, plant and equipment, net | 1,029,587 | |||
Intangible assets, net | 3,353 | |||
Cash surrender value of life insurance, net | 34,991 | |||
Other non-current asset - related party | 38,710 | |||
TOTAL ASSETS | 2,803,287 | |||
Current liabilities: | ||||
Amounts due to related companies | 26,735 | |||
Amount due to directors | 473,619 | |||
Loan from shareholders | 1,170,968 | |||
Current portion of long-term bank loans | 14,491 | |||
Accrued liabilities and other payables | 104,905 | |||
Total Current Liabilities | 1,709,718 | |||
Non-current liabilities | ||||
Long-term bank loans | 681,197 | |||
Total liabilities | $ 2,471,915 | |||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Issued capital, 50,000 shares authorized as of June 30, 2015 and December 31, 2014, US$1 par value, 2 shares issued and outstanding, as of June 30, 2015 and December 31, 2014 | $ 3,149 | |||
Additional paid-in capital | 686,053 | |||
Accumulated other comprehensive loss | (43,432) | |||
Retained earnings (accumulated deficit) | (314,398) | |||
Total stockholders' equity (deficit) | 331,372 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,803,287 | |||
[1] | To eliminate the current account balances between Greenpro Capital Corp. and Greenpro Resources Limited and its subsidiary, Greenpro Holding Limited. | |||
[2] | To reclassify Greenpro Resources Limited's common stock to Additional paid-in capital. | |||
[3] | To reflect the issuance of 9,070,000 shares of common stock of Greenpro Capital Corp. for the acquisition of all of the issued and outstanding capital stock of Greenpro Resources Limited. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | |||
Common stock, value | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized | 50,000 | 50,000 | 50,000 |
Common stock, shares issued | 2 | 2 | 2 |
Common stock, shares outstanding | 2 | 2 | 2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES, NET | ||||
Rental income | $ 18,463 | $ 12,128 | $ 31,071 | |
Business consulting and advisory service income - related party | 12,389 | 15,147 | 28,672 | |
Business consulting and advisory service income - non-related party | 565,282 | 5,804 | 139,905 | $ 12,110 |
Total revenues | 596,134 | 33,079 | 199,648 | $ 12,110 |
COST OF REVENUES | ||||
Cost of rental | (3,474) | (5,835) | $ (9,706) | |
Cost of service | $ (189,240) | $ (15,544) | ||
Cost of service - related party | $ (6,295) | |||
Cost of service - non-related party | $ (106,391) | (1,344) | ||
Cost of revenues | $ (192,714) | $ (21,379) | (116,097) | (7,639) |
GROSS PROFIT | 403,420 | 11,700 | 83,551 | 4,471 |
OPERATING EXPENSES: | ||||
General and administrative | (59,321) | (41,180) | (95,898) | (86,874) |
INCOME (LOSS) FROM OPERATIONS | 344,099 | (29,480) | (12,347) | (82,403) |
OTHER EXPENSES: | ||||
Interest income | 379 | 12 | ||
Interest expense | (48,395) | (18,304) | (39,159) | (16,259) |
INCOME (LOSS) BEFORE INCOME TAX | $ 296,083 | $ (47,772) | $ (51,506) | $ (98,662) |
INCOME TAX EXPENSE | ||||
NET INCOME (LOSS) | $ 296,083 | $ (47,772) | $ (51,506) | $ (98,662) |
Other comprehensive loss: | ||||
Foreign currency translation (loss) income | (33,892) | 17,388 | (7,759) | (1,781) |
COMPREHENSIVE INCOME (LOSS) | 262,191 | $ (30,384) | (59,265) | $ (100,443) |
Historical Greenpro Resources Ltd. [Member] | ||||
REVENUES, NET | ||||
Rental income | 18,463 | 31,701 | ||
Business consulting and advisory service income - related party | 12,389 | 28,672 | ||
Business consulting and advisory service income - non-related party | 565,282 | 139,905 | ||
Total revenues | 596,134 | 199,648 | ||
COST OF REVENUES | ||||
Cost of rental | (3,474) | (9,706) | ||
Cost of service | (189,240) | (106,391) | ||
Cost of revenues | (192,714) | (116,097) | ||
GROSS PROFIT | 403,420 | 83,551 | ||
OPERATING EXPENSES: | ||||
General and administrative | (59,321) | (95,898) | ||
INCOME (LOSS) FROM OPERATIONS | 344,099 | (12,347) | ||
OTHER EXPENSES: | ||||
Interest income | 379 | |||
Interest expense | (48,395) | (39,159) | ||
OTHER INCOME (EXPENSES): | (48,016) | |||
INCOME (LOSS) BEFORE INCOME TAX | $ 296,083 | $ (51,506) | ||
INCOME TAX EXPENSE | ||||
NET INCOME (LOSS) | $ 296,083 | $ (51,506) | ||
Net income (loss) per share - Basic and diluted | ||||
Weighted average number of shares issued and outstanding - Basic and diluted | ||||
Historical Greenpro Capital Corp. [Member] | ||||
REVENUES, NET | ||||
Rental income | $ 3,097 | |||
Business consulting and advisory service income - related party | ||||
Business consulting and advisory service income - non-related party | $ 62,496 | $ 3,613 | ||
Total revenues | $ 65,593 | $ 3,613 | ||
COST OF REVENUES | ||||
Cost of rental | ||||
Cost of service | $ (1,123) | |||
Cost of revenues | (1,123) | |||
GROSS PROFIT | $ 65,593 | 2,490 | ||
OPERATING EXPENSES: | ||||
General and administrative | (324,158) | (178,351) | ||
INCOME (LOSS) FROM OPERATIONS | $ (258,565) | $ (175,861) | ||
OTHER EXPENSES: | ||||
Interest income | ||||
Interest expense | ||||
OTHER INCOME (EXPENSES): | ||||
INCOME (LOSS) BEFORE INCOME TAX | $ (258,565) | $ (175,861) | ||
INCOME TAX EXPENSE | ||||
NET INCOME (LOSS) | $ (258,565) | $ (175,861) | ||
Net income (loss) per share - Basic and diluted | $ (0.01) | $ (0.01) | ||
Weighted average number of shares issued and outstanding - Basic and diluted | 22,422,800 | 22,422,800 | ||
Pro Forma Adjustments [Member] | ||||
REVENUES, NET | ||||
Rental income | ||||
Business consulting and advisory service income - related party | ||||
Business consulting and advisory service income - non-related party | ||||
Total revenues | ||||
COST OF REVENUES | ||||
Cost of rental | ||||
Cost of service | ||||
Cost of revenues | ||||
GROSS PROFIT | ||||
OPERATING EXPENSES: | ||||
General and administrative | ||||
INCOME (LOSS) FROM OPERATIONS | ||||
OTHER EXPENSES: | ||||
Interest income | ||||
Interest expense | ||||
OTHER INCOME (EXPENSES): | ||||
INCOME (LOSS) BEFORE INCOME TAX | ||||
INCOME TAX EXPENSE | ||||
NET INCOME (LOSS) | ||||
Net income (loss) per share - Basic and diluted | ||||
Weighted average number of shares issued and outstanding - Basic and diluted | 9,070,000 | 9,070,000 | ||
Pro Forma Combined [Member] | ||||
REVENUES, NET | ||||
Rental income | $ 21,560 | $ 31,071 | ||
Business consulting and advisory service income - related party | 12,389 | 28,672 | ||
Business consulting and advisory service income - non-related party | 627,778 | 143,518 | ||
Total revenues | 661,727 | 203,261 | ||
COST OF REVENUES | ||||
Cost of rental | (3,474) | (9,706) | ||
Cost of service | (189,240) | (107,514) | ||
Cost of revenues | (192,714) | (117,220) | ||
GROSS PROFIT | 469,013 | 86,041 | ||
OPERATING EXPENSES: | ||||
General and administrative | (383,479) | (274,249) | ||
INCOME (LOSS) FROM OPERATIONS | 85,534 | (188,208) | ||
OTHER EXPENSES: | ||||
Interest income | 379 | |||
Interest expense | (48,395) | (39,159) | ||
OTHER INCOME (EXPENSES): | (48,016) | |||
INCOME (LOSS) BEFORE INCOME TAX | $ 37,518 | $ (227,367) | ||
INCOME TAX EXPENSE | ||||
NET INCOME (LOSS) | $ 37,518 | $ (227,367) | ||
Net income (loss) per share - Basic and diluted | $ 0 | $ (0.01) | ||
Weighted average number of shares issued and outstanding - Basic and diluted | 31,492,800 | 31,492,800 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 296,083 | $ (47,772) | $ (51,506) | $ (98,662) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 18,105 | $ 19,639 | 39,436 | 13,277 |
Surrender charge on life insurance, non-cash | 31,374 | $ 1,788 | $ 12,671 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (29,276) | |||
Prepayments and other receivables | 1,863 | $ 10,091 | $ 12,318 | $ (28,718) |
Accrued liabilities and other payables | (2,284) | (11,530) | 5,166 | 35,744 |
Net cash provided by (used in) operating activities | 315,865 | (29,572) | 7,202 | (65,688) |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | $ (7,890) | $ (31,054) | (32,040) | (1,232,231) |
Acquisition related costs of intangible assets | (336) | (3,374) | ||
Payment for life insurance premium | $ (49,820) | $ (15,502) | $ (15,502) | |
Investment in other non-current asset | (38,710) | |||
Net cash used in investing activities | (96,420) | $ (31,054) | $ (47,878) | $ (1,251,107) |
Cash flows from financing activities: | ||||
Advances from related companies | 69,619 | 2,682 | 49,444 | 572 |
(Repayment to) advances from directors | $ (23,525) | 5,692 | 16,855 | 512,228 |
Proceeds from bank borrowings | 32,063 | 31,994 | 830,387 | |
Repayment of bank borrowings | $ (7,162) | (4,983) | (13,741) | (3,827) |
Net cash provided by financing activities | 38,932 | 35,454 | 84,552 | 1,339,360 |
Effect of exchange rate changes in cash and cash equivalents | (13,847) | 11,110 | 9,434 | 2,482 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 244,530 | (14,062) | 53,310 | $ 25,047 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 78,357 | 25,047 | 25,047 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 322,887 | $ 10,985 | $ 78,357 | $ 25,047 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for income tax | ||||
Cash paid for interest | $ 17,049 | $ 18,304 | $ 37,385 | $ 3,588 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Share capital | Accumulated other comprehensive loss | Accumulated deficit | Total |
Beginning Balence, Shares at Dec. 31, 2012 | 2 | |||
Beginning Balence, Amount at Dec. 31, 2012 | $ 2 | $ 2 | ||
Foreign currency translation adjustment | $ (1,781) | (1,781) | ||
Net loss | $ (98,662) | (98,662) | ||
Ending Balence, Shares at Dec. 31, 2013 | 2 | |||
Ending Balence, Amount at Dec. 31, 2013 | $ 2 | (1,781) | (98,662) | (100,441) |
Foreign currency translation adjustment | (7,759) | (7,759) | ||
Net loss | (51,506) | (51,506) | ||
Ending Balence, Shares at Dec. 31, 2014 | 2 | |||
Ending Balence, Amount at Dec. 31, 2014 | $ 2 | $ (9,540) | $ (150,168) | (159,706) |
Foreign currency translation adjustment | (33,892) | |||
Net loss | 296,083 | |||
Ending Balence, Amount at Jun. 30, 2015 | $ 102,485 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ORGANIZATION AND BUSINESS BACKGROUND | NOTE—1 ORGANIZATION AND BUSINESS BACKGROUND Greenpro Resources Limited (the “Company” or “GRBV”) was incorporated under the laws of the British Virgin Islands on July 3, 2012 with 50,000 ordinary shares authorized at a par value of $1 per share. As of December 31, 2014, GRBV has 2 ordinary shares issued and outstanding. The Company and its subsidiaries mainly engage in the provision of business consulting and advisory services and investment in land and buildings located in Asia Pacific Region, including Hong Kong, China and Malaysia. Summary of the Company’s subsidiaries: Company name Place/date of incorporation Particulars of issued capital Principal activities 1. Greenpro Holding Limited (“GHL”) Hong Kong July 22, 2013 100 issued shares of ordinary shares of HK$ 1 each Investment holding 2. Greenpro Financial Consulting Limited (“GFCL”) Belize July 26, 2012 1 issued share of US$ 1 each Provision of business consulting and advisory services and investment holding 3. Greenpro Resources (HK) Limited (“GRL(HK)”) Hong Kong April 5, 2012 1,075,002 issued share of HK$ 1 each Investment holding 4. Greenpro Resources Sdn. Bhd. (“GRSB”) Malaysia April 26, 2013 1,000,000 issued shares of ordinary shares of MYR 1 each Provision of business consulting and advisory services and investment in land and buildings 5. Greenpro Global Advisory Sdn. Bhd. (“GGASB”) Malaysia January 23, 2013 100,000 issued shares of ordinary shares of MYR 1 each Provision of business consulting and advisory services 6. Greenpro Management Consultancy (Shenzhen) Limited (“GMC(SZ)”) The People’s of Republic China (“PRC”) August 30, 2013 RMB100,000 paid-in capital Provision of corporate consulting services GRBV and its subsidiaries are hereinafter referred to as the “Company”. | 1. ORGANIZATION AND BUSINESS BACKGROUND Greenpro Resources Limited (the “Company” or “GRBV”) was incorporated under the laws of the British Virgin Islands on July 3, 2012 with 50,000 ordinary shares authorized at a par value of $1 per share. As of December 31, 2014, GRBV has 2 ordinary shares issued and outstanding. The Company and its subsidiaries mainly engage in the provision of business consulting and advisory services and investment in land and buildings located in Asia Pacific Region, including Hong Kong, China and Malaysia. Summary of the Company’s subsidiaries: Company name Place/date of incorporation Particulars of issued capital Principal activities 1. Greenpro Holding Limited (“GHL”) Hong Kong July 22, 2013 100 issued shares of ordinary shares of HK$ 1 each Investment holding 2. Greenpro Financial Consulting Limited (“GFCL”) Belize July 26, 2012 1 issued share of US$ 1 each Provision of business consulting and advisory services and investment holding 3. Greenpro Resources (HK) Limited (“GRL(HK)”) Hong Kong April 5, 2012 1,075,002 issued share of HK$ 1 each Investment holding 4. Greenpro Resources Sdn. Bhd. (“GRSB”) Malaysia April 26, 2013 1,000,000 issued shares of ordinary shares of MYR 1 each Provision of business consulting and advisory services and investment in land and buildings 5. Greenpro Global Advisory Sdn. Bhd. (“GGASB”) Malaysia January 23, 2013 100,000 issued shares of ordinary shares of MYR 1 each Provision of business consulting and advisory services 6. Greenpro Management Consultancy (Shenzhen) Limited (“GMC(SZ)”) The People’s of Republic China (“PRC”) August 30, 2013 RMB100,000 paid-in capital Provision of corporate consulting services GRBV and its subsidiaries are hereinafter referred to as the “Company”. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2014 | |
Going Concern Uncertainties | |
GOING CONCERN UNCERTAINTIES | 2. GOING CONCERN UNCERTAINTIES The accompanying consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2014, the Company suffered an accumulated deficit of $150,168 and working capital deficit of $523,499. The continuation of the Company as a going concern through December 31, 2015 is dependent upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the CompanyÂ’s obligations as they become due. These and other factors raise substantial doubt about the CompanyÂ’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE—2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. • Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). • Basis of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. • Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. • Accounts receivable Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. • Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. Depreciation expense for the six months ended June 30, 2015 and 2014 were $18,030 and $19,639, respectively. • Intangible assets Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trade marks registered in Hong Kong, the PRC, and Malaysia, which are amortized on a straight-line basis over a useful live of ten years. Amortization expense for the six months ended June 30, 2015 and 2014 were $75 and $0, respectively. • Impairment of long-lived assets Long-lived assets primarily include property, plant and equipment, intangible assets, life insurance and other non-current assets. In accordance with the provision of ASC Topic 360-10-5, “ Impairment or Disposal of Long-Lived Assets • Cash value of life insurance The cash value of life insurance relates to the Company-owned life insurance policies on the general manager and executive corporate advisor of the Company, which is stated at the cash surrender value of the contract. • Other non-current asset - related party Investments in certain companies over which the Company exerts significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which the Company do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method investments are included as Other Non-current Assets in the Condensed Consolidated Balance Sheets. As of June 30, 2015, the Company invested $38,710 in a related company, which was incorporated in Hong Kong, with 3,400,000 ordinary shares authorized, issued and outstanding at a par value of HK$1 per share. The Company owns 8.8% equity interest in this related company with Mr. Lee Chong Kuang and Mr. Loke Che Chan, Gilbert as common directors. • Comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive loss consists of cumulative foreign currency translation adjustments. • Revenue recognition The Company recognizes its revenue in accordance with ASC Topic 605, “ Revenue Recognition Revenue from rental of leasehold land and buildings are recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased assets. The Company leases its commercial office premises in Malaysia under various non-cancelable operating leases with terms of two to three years and renewal options. For the six months ended June 30, 2015, the Company has recorded $18,463 in rental revenue, based upon its annual rental over the life of the lease under operating lease, using straight-line method. As of June 30, 2015, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Period ending June 30: 2016 $ 31,358 2017 9,534 Total $ 40,892 Revenue from the provision of business consulting and advisory services is recognized when services are rendered and the collection of relevant receivables is probable. • Cost of revenues Cost of revenue on rental shown on the accompanying statements of operations include costs associated with government rent and rates, repairs and maintenance, property insurance, and other related administrative costs. Property management fee and utility expenses are paid directly by tenants. Costs of revenue on business consulting and advisory services primarily consist of employee compensation and related payroll benefits, company formation cost and professional fees directly attributable to cost in related to the business consulting and advisory services rendered. • Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in BVI, Belize, Hong Kong, Malaysia and China and is subject to tax in its own jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries maintain their books and record in a local currency, Malaysian Ringgit (“MYR”), Renminbi (“RMB”), and Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the six months ended June 30, 2015 2014 Period-end MYR : US$1 exchange rate 3.7758 3.2112 Period-average MYR : US$1 exchange rate 3.6352 3.2653 Period-end RMB : US$1 exchange rate 6.0888 6.1552 Period-average RMB : US$1 exchange rate 6.1128 6.1397 Period-end HK$ : US$1 exchange rate 7.7522 7.7511 Period-average HK$ : US$1 exchange rate 7.7535 7.7557 • Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. • Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, deposits, prepayments and other receivables, amount due to directors, amount due to related companies, accrued liabilities and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures - Level 1 - Level 2 - Level 3 • Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after January December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term “substantial doubt” and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2014-15 on the Company’s financial statement presentation and disclosures. In January 2015, the FASB issued ASU No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items. ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted. As of June 30, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Companies’ consolidated financial statements. | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. • Basis of presentation The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). • Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. • Use of estimates In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. • Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. Depreciation expense for the years ended December 31, 2014 and 2013 were $39,209 and $13,219, respectively. • Intangible assets Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trade marks registered in Hong Kong, the PRC, and Malaysia, which are amortized on a straight-line basis over a useful live of ten years. Amortization expense for the years ended December 31, 2014 and 2013 were $227 and $58, respectively. • Impairment of long-lived assets Long-lived assets primarily include property, plant and equipment, and intangible assets. In accordance with the provision of ASC Topic 360-10-5, “ Impairment or Disposal of Long-Lived Assets • Cash value of life insurance The cash value of life insurance relates to the Company-owned life insurance policy on a general manager of the Company, which is stated at the cash surrender value of the contract. • Comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive loss consists of cumulative foreign currency translation adjustments. • Revenue recognition The Company recognizes its revenue in accordance with ASC Topic 605, “ Revenue Recognition Revenue from rental of leasehold land and buildings are recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased assets. The Company leases its commercial office premises in Malaysia under various non-cancelable operating leases with terms of two to three years and renewal options. For the year ended December 31, 2014, the Company has recorded $31,988 in rental revenue, based upon its annual rental over the life of the lease under operating lease, using straight-line method. As of December 31, 2014, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Years ending December 31: 2015 $ 39,194 2016 25,596 Total $ 64,790 Revenue from the provision of business consulting and advisory services is recognized when services are rendered and the collection of relevant receivables is probable. • Cost of revenues Cost of revenue on rental shown on the accompanying statements of operations include costs associated with government rent and rates, repairs and maintenance, property insurance, and other related administrative costs. Property management fee and utility expenses are paid directly by tenants. Costs of revenue on business consulting and advisory services primarily consist of employee compensation and related payroll benefits, company formation cost and professional fees directly attributable to cost in related to the business consulting and advisory services rendered. • Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in BVI, Belize, Hong Kong, Malaysia and China and is subject to tax in its own jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries maintain their books and record in a local currency, Malaysian Ringgit (“MYR”), Renminbi (“RMB”), and Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the year ended December 31, 2014 2013 Year-end MYR : US$1 exchange rate 3.5000 3.2913 Year-average MYR : US$1 exchange rate 3.2724 3.1372 Year-end RMB : US$1 exchange rate 6.1460 6.1104 Year -average RMB : US$1 exchange rate 6.1457 6.1905 Year -end HK$ : US$1 exchange rate 7.7577 7.7544 Year -average HK$ : US$1 exchange rate 7.7547 7.7564 • Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided. • Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. • Segment reporting The Company follows ASC 280 “ Segment Reporting • Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, deposits, prepayments and other receivables, amount due to directors, amount due to related companies, accrued liabilities and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures - Level 1 - Level 2 - Level 3 • Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after January December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term “substantial doubt” and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2014-15 on the Company’s financial statement presentation and disclosures. In January 2015, the FASB issued ASU No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items. ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted. As of December 31, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY, PLANT AND EQUIPMENT | NOTE—4 PROPERTY, PLANT AND EQUIPMENT As of June 30, 2015 December 31, 2014 (Audited) Leasehold buildings $ 1,044,213 $ 1,044,213 Furniture and fixtures 71,561 69,418 Office equipment 10,359 10,359 Leasehold improvement 88,865 83,118 1,214,998 1,207,108 Less: Accumulated depreciation (70,458 ) (52,428 ) Foreign exchange translation (146,492 ) (68,088 ) Total $ 998,048 $ 1,086,592 Depreciation expense was $18,030 and $19,639 for the six months ended June 30, 2015 and 2014, respectively. | 4. PROPERTY, PLANT AND EQUIPMENT, NET As of December 31, 2014 2013 Leasehold buildings $ 1,044,213 $ 1,013,227 Furniture and fixtures 69,418 69,418 Office equipment 10,359 9,809 Leasehold improvement 83,118 82,614 1,207,108 1,175,068 Less: Accumulated depreciation (52,428 ) (13,219 ) Foreign exchange translation (68,088 ) 619 Total $ 1,086,592 $ 1,162,468 Depreciation expense was $39,209 and $13,219 for the years ended December 31, 2014 and 2013, respectively. |
CASH SURRENDER VALUE OF LIFE IN
CASH SURRENDER VALUE OF LIFE INSURANCE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Cash Surrender Value Of Life Insurance | ||
CASH SURRENDER VALUE OF LIFE INSURANCE | NOTE—5 CASH SURRENDER VALUE OF LIFE INSURANCE On September 9, 2013, the Company purchased insurance on the life of the General Manager of the Company. As beneficiary, the Company receives the cash surrender value if the policy is terminated and, upon death of the insured, receives all benefits payable. Net cash surrender value of this life insurance is presented in the accompanying financial statement, net of surrender charge. On May 15, 2015, the Company purchased additional insurance on the life of an executive Corporate Advisor of the Company. As beneficiary, the Company receives the cash surrender value if the policy is terminated and, upon death of the insured, receives all benefits payable. The cash surrender value of this life insurance is pledged as collateral against $116,473 (approximately HK$903,000) credit facility with Hang Seng Bank Limited. Cash value of this life insurance is presented in the accompanying financial statement, net of the policy loan. The loan carry interest at an effective rate of 1.75% per annum over 1 months Hong Kong Interbank Offered Rate (“HIBOR”), payable with one lump sum on maturity in May 2016, which are secured by the cash value of the life insurance policy and personally guaranteed by Mr. Lee Chong Kuang and Mr. Loke Che Chan, the directors of the Company. A summary of net cash surrender value of life insurance as of June 30, 2015 is reported as below: Cash surrender value of life insurance $ 151,464 Less: policy loan balance outstanding (116,473 ) Cash surrender value of life insurance, net $ 34,991 | 5. CASH SURRENDER VALUE OF LIFE INSURANCE The Company has purchased insurance on the life of the General Manager of the Company. As beneficiary, the Company receives the cash surrender value if the policy is terminated and, upon death of the insured, receives all benefits payable. Net cash value of this life insurance is presented in the accompanying financial statement, net of surrender charge. |
AMOUNTS DUE TO RELATED COMPANIE
AMOUNTS DUE TO RELATED COMPANIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
AMOUNT DUE FROM A RELATED COMPANY [Abstract] | ||
AMOUNTS DUE TO RELATED COMPANIES | NOTE—6 AMOUNTS DUE TO RELATED COMPANIES As of June 30, 2015, the balances represented temporary advances made to the Company by various related companies controlled by the spouse of a director of the Company for working capital purpose. The amounts are unsecured, bears no interest and is payable upon demand. | 6. AMOUNTS DUE TO RELATED COMPANIES As of December 31, 2014 and 2013, the balances represented temporary advances made to the Company by various related companies controlled by the spouse of a director of the Company for working capital purpose. The amounts are unsecured, bears no interest and is payable upon demand. |
AMOUNTS DUE TO DIRECTORS
AMOUNTS DUE TO DIRECTORS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Amounts Due To Directors | ||
AMOUNTS DUE TO DIRECTORS | NOTE—7 AMOUNTS DUE TO DIRECTORS As of June 30, 2015, the directors of the Company advanced the amount of $472,665 to the Company, which is unsecured, bears no interest and is payable upon demand, for working capital purpose. | 7. AMOUNTS DUE TO DIRECTORS As of December 31, 2014 and 2013, the directors of the Company advanced the amount of $494,253 and $481,897, respectively to the Company, which is unsecured, bears no interest and is payable upon demand, for working capital purpose. |
LONG-TERM BANK LOANS
LONG-TERM BANK LOANS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
LONG-TERM BANK LOANS | NOTE—8 LONG-TERM BANK LOANS As of June 30, 2015 December 31, 2014 Bank loans from financial institutions in Malaysia (Audited) Standard Chartered Saadiq Berhad $ 415,690 $ 453,556 United Overseas Bank (Malaysia) Berhad 279,998 304,283 695,688 757,839 Less: current portion (14,491 ) (15,067 ) Bank loan, net of current portion $ 681,197 $ 742,772 In May 2013, the Company obtained a loan in the principal amount of $495,170 (approximately MYR1,630,000) from Standard Chartered Saadiq Berhad, a financial institution in Malaysia to finance the acquisition of leasehold office units at Skypark One City, Selangor in Kulua Lumpur, Malaysia which bears interest at the base lending rate less 2.1% per annum with 300 monthly installments of $2,840 (approximately MYR9,300) each and will mature in May 2038. The mortgage loan is secured by (i) the first legal charge over the property, (ii) personally guaranteed by Mr. Lee Chong Kuang and Mr. Loke Che Chan Gilbert, the directors of the Company, and (iii) corporate guaranteed by a related company which controlled by the directors of the Company. In August 2013, the Company, through Mr. Lee Chong Kuang, the director of the Company, obtained a loan in the principal amount of $326,530 (approximately MYR1,075,000) from United Overseas Bank (Malaysia) Berhad, a financial institution in Malaysia to finance the acquisition of a leasehold office unit at Northpoint, Mid Valley City in Kulua Lumpur, Malaysia which bears interest at the base lending rate less 2.2% per annum with 360 monthly installments of $1,645 (approximately MYR5,400) each and will mature in August 2043. The mortgage loan is secured by the first legal charge over the property. Maturities of the long-term bank loans for each of the five years and thereafter following June 30, 2015 are as follows: Period ending June 30: 2016 $ 14,491 2017 15,271 2018 16,000 2019 16,764 2020 17,483 Thereafter 615,679 Total $ 695,688 For the six months ended June 30, 2015 and 2014, the base lending rate is 6.85% per annum. | 8. LONG-TERM BANK LOANS As of December 31, 2014 2013 Bank loans from financial institutions in Malaysia Standard Chartered Saadiq Berhad $ 453,556 $ 491,519 United Overseas Bank (Malaysia) Berhad 304,283 296,341 757,839 787,860 Less: current portion (15,067 ) (15,160 ) Bank loan, net of current portion $ 742,772 $ 772,700 In May 2013, the Company obtained a loan in the principal amount of $495,170 (approximately MYR1,630,000) from Standard Chartered Saadiq Berhad, a financial institution in Malaysia to finance the acquisition of leasehold office units at Skypark One City, Selangor in Kulua Lumpur, Malaysia which bears interest at the base lending rate less 2.1% per annum with 300 monthly installments of $2,840 (approximately MYR9,300) each and will mature in May 2038. The mortgage loan is secured by (i) the first legal charge over the property, (ii) personally guaranteed by Mr. Lee Chong Kuang and Mr. Loke Che Chan Gilbert, the directors of the Company, and (iii) corporate guaranteed by a related company which controlled by the directors of the Company. In August 2013, the Company, through Mr. Lee Chong Kuang, the director of the Company, obtained a loan in the principal amount of $326,530 (approximately MYR1,075,000) from United Overseas Bank (Malaysia) Berhad, a financial institution in Malaysia to finance the acquisition of a leasehold office unit at Northpoint, Mid Valley City in Kulua Lumpur, Malaysia which bears interest at base lending rate less 2.2% per annum with 360 monthly installments of $1,645 (approximately MYR5,400) each and will mature in August 2043. The mortgage loan is secured by the first legal charge over the property. Maturities of the long-term bank loans for each of the five years and thereafter following December 31, 2014 are as follows: Years ending December 31: 2015 $ 15,067 2016 16,002 2017 16,864 2018 17,669 2019 18,512 Thereafter 673,725 Total $ 757,839 For the years ended December 31, 2014 and 2013, the base lending rate is 6.85% per annum. |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | NOTE—9 INCOME TAXES The income (loss) before income taxes of the Company for the six months ended June 30, 2015 and 2014 were comprised of the following: For the six months ended June 30, 2015 2014 Tax jurisdictions from: – BVI $ 171,613 $ (110 ) – Belize 199,669 — – Malaysia (35,166 ) (37,396 ) – Hong Kong (32,400 ) (1,946 ) – The PRC (7,633 ) (8,320 ) Income (loss) before income taxes $ 296,083 $ (47,772 ) The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. During the periods presented, the Company has subsidiaries that operate in BVI, Belize, Hong Kong, the PRC, and Malaysia that are subject to tax in the jurisdictions in which they operate, as follows: British Virgin Islands Under the current BVI law, GRBV is not subject to tax on income. For the six months ended June 30, 2014 and 2014, GRL incurred an operating income of $171,613 and operating loss of $110, respectively. Belize Under the current Laws of Belize, GFCL is registered as a Belizean International Business Corporation which is subject to 0%. For the six months ended June 30, 2015 and 2014, GFCL generated a net operating income of $199,669 and $0, respectively. Hong Kong GHL and GRL(HK) are subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income. For the six months ended June 30, 2015 and 2014, GHL and GRL(HK) incurred an aggregated operating loss of $32,400 and $1,946, respectively which can be carried forward indefinitely to offset its taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $9,484 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. The PRC GMC(SZ) is subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. . For the six months ended June 30, 2015 and 2014, GMC(SZ) incurred an operating loss of $7,633 and $8,320, respectively which can be carried forward to offset its taxable income. The net operating loss carryforwards begin to expire in 2018, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $9,840 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Malaysia GRSB and GGASB are subject to the Malaysia Corporate Tax Laws at a progressive income tax rate starting from 20% on the assessable income for its tax year. For the six months ended June 30, 2015 and 2014, GRSB and GGASB incurred an aggregated operating loss of $35,166 and $37,396, respectively which can be carried forward indefinitely to offset its taxable income.. The Company has provided for a full valuation allowance against the deferred tax assets of $17,9244 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of June 30, 2014 and December 31, 2014: As of June 30, 2015 December 31, 2014 Deferred tax assets: Net operating loss carryforwards – Hong Kong $ 9,484 $ 4,150 – The PRC 9,840 8,203 – Malaysia 17,924 15,480 37,248 27,833 Less: valuation allowance (37,248 ) (27,833 ) Deferred tax assets $ — $ — Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $37,248 as of June 30, 2015. During the six months ended June 30, 2015, the valuation allowance increased by $9,415, primarily relating to net operating loss carryforwards from the various tax regime. | 9. INCOME TAXES The income (loss) before income taxes of the Company for the years ended December 31, 2014 and 2013 were comprised of the following: For the year ended December 31, 2014 2013 Tax jurisdictions from: – BVI $ (187 ) $ (761 ) – Belize 45,919 — – Malaysia (77,192 ) (57,024 ) – Hong Kong (4,341 ) (21,094 ) – The PRC (15,705 ) (19,783 ) Income (loss) before income taxes $ (51,506 ) $ (98,662 ) The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. During the periods presented, the Company has subsidiaries that operate in BVI, Belize, Hong Kong, the PRC, and Malaysia that are subject to tax in the jurisdictions in which they operate, as follows: British Virgin Islands Under the current BVI law, GRBV is not subject to tax on income. For the years ended December 31, 2014 and 2013, GRL incurred an operating loss of $187 and $761, respectively. Belize Under the current Laws of Belize, GFCL is registered as a Belizean International Business Corporation which is subject to 0%. For the years ended December 31, 2014 and 2013, GFCL generated a net operating income of $45,919 and $0, respectively. Hong Kong GHL and GRL(HK) are subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income. For the years ended December 31, 2014 and 2013, GHL and GRL(HK) incurred an aggregated operating loss of $4,341 and $21,094, respectively which can be carried forward indefinitely to offset its taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $4,150 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. The PRC GMC(SZ) is subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. For the years ended December 31, 2014 and 2013, GMC(SZ) incurred an operating loss of $15,705 and $19,783, respectively which can be carried forward to offset its taxable income. The net operating loss carryforwards begin to expire in 2018, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $8,203 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Malaysia GRSB and GGASB are subject to the Malaysia Corporate Tax Laws at a progressive income tax rate starting from 20% on the assessable income for its tax year. For the years ended December 31, 2014 and 2013, GRSB and GGASB incurred an aggregated operating loss of $77,192 and $57,024, respectively which can be carried forward indefinitely to offset its taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $15,480 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2014 and 2013: As of December 31, 2014 2013 Deferred tax assets: Net operating loss carryforwards – Hong Kong $ 4,150 $ 3,471 – The PRC 8,203 5,010 – Malaysia 15,480 8,350 27,833 16,831 Less: valuation allowance (27,833 ) (16,831 ) Deferred tax assets $ — $ — Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $27,833 as of December 31, 2014. During the year ended December 31, 2014, the valuation allowance increased by $11,002, primarily relating to net operating loss carryforwards from the various tax regime. |
PENSION COST
PENSION COST | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION COST | 10. PENSION COST The Company is required to make contribution to their employees under a government-mandated defined contribution pension scheme for its eligible full-times employees in Malaysia and the PRC. The Company is required to contribute a specified percentage of the participantsÂ’ relevant income based on their ages and wages level. The total contributions made by the Company were $2,734 and $1,078 for the years ended December 31, 2014 and 2013, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE—10 RELATED PARTY TRANSACTIONS Six months ended June 30, 2015 2014 Business consulting and advisory service income - Related party A $ 10,324 $ 6,352 - Related party B 2,065 8,795 12,389 15,147 Related party A and B are under common control of Ms. Chen Yanhong, the director of GMC(SZ), a wholly-owned subsidiary of the Company. All of these related party transactions are generally transacted in an arm-length basis at the current market value in the normal course of business. | 11. RELATED PARTY TRANSACTIONS Years ended December 31, 2014 2013 Business consulting and advisory service income - Related party A $ 18,853 $ — - Related party B 8,787 — - Related party C 1,032 28,672 — Cost of service - Related party D $ — $ 6,295 Related party A and B are under common control of Ms. Chen Yanhong, the director of GMC(SZ), a wholly-owned subsidiary of the Company. Related party C is under common control of Mr. Loke Che Chan Gilbert, the director of the Company. Related party D is under common control of Ms. Yap Pei Ling, the spouse of the director of the Company. All of these related party transactions are generally transacted in an arm-length basis at the current market value in the normal course of business. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | ||
SEGMENT INFORMATION | NOTE—11 SEGMENT INFORMATION The Company operates two reportable business segments, as defined by ASC Topic 280: • Rental business – leasing of properties • Service business – provision of business consulting and advisory services The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below: Six months ended June 30, 2015 Rental business Service business Corporate Total Revenues - related party $ — $ 12,389 $ — $ 12,389 - non-related party 18,463 565,282 — 583,745 Total revenues 18,463 577,671 — 596,134 Cost of revenues (3,474 ) (189,240 ) — (192,714 ) Gross income 14,989 388,431 — 403,420 Depreciation and amortization 16,162 1,868 75 18,105 Net (loss) income (20,347 ) 348,830 (32,400 ) 296,083 Total assets 1,176,923 223,713 39,784 1,440,420 Expenditure for long-lived assets $ 7,890 $ 38,710 $ 49,820 $ 96,420 Six months ended June 30, 2014 Rental business Service business Corporate Total Revenues - related party $ — $ 15,147 $ — $ 15,147 - non-related party 12,128 5,804 — 17,932 Total revenues 12,128 20,951 — 33,079 Cost of revenues (5,835 ) (15,544 ) — (21,379 ) Gross income 6,293 5,407 — 11,700 Depreciation and amortization 17,754 1,885 — 19,639 Net loss (33,993 ) (11,723 ) (2,056 ) (47,772 ) Total assets 1,199,039 30,693 8,854 1,238,586 Expenditure for long-lived assets $ 31,054 $ — $ — $ 31,054 | 12. SEGMENT INFORMATION The Company operates two reportable business segments, as defined by ASC Topic 280: • Rental business – leasing of properties • Service business – provision of business consulting and advisory services The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 3). The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below: Year ended December 31, 2014 Rental business Service business Corporate Total Revenues - related party $ — $ 28,672 $ — $ 28,672 - non-related party 31,071 139,905 — 170,976 Total revenues 31,071 168,577 — 199,648 Cost of revenues - related party — — — — - non-related party (9,706 ) (106,391 ) — (116,097 ) Gross income 21,365 62,186 — 83,551 Depreciation and amortization 35,440 3,769 225 39,434 Net (loss) income (61,662 ) 14,685 (4,529 ) (51,506 ) Total assets 1,091,422 82,414 26,686 1,200,522 Expenditure for long-lived assets $ 31,490 $ 550 $ 15,838 $ 47,878 Year ended December 31, 2013 Rental business Service business Corporate Total Revenues - related party $ — $ — $ — $ — - non-related party — 12,110 — 12,110 Total revenues — 12,110 — 12,110 Cost of revenues - related party — (6,295 ) — (6,295 ) - non-related party — (1,344 ) — (1,344 ) Gross income — 4,471 — 4,471 Depreciation and amortization 12,232 987 58 13,277 Net (loss) income (21,802 ) (55,005 ) (21,855 ) (98,662 ) Total assets 1,154,565 41,430 26,154 1,222,149 Expenditure for long-lived assets $ 1,213,519 $ 18,712 $ 18,876 $ 1,251,107 Most of the long-lived assets are located in Malaysia. |
CONCENTRATIONS OF RISKS
CONCENTRATIONS OF RISKS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | ||
CONCENTRATIONS OF RISKS | NOTE—12 CONCENTRATIONS OF RISKS (a) Major customers For the six months ended June 30, 2015, the customers who accounted for 10% or more of the Company’s revenues is presented as follows: Six months ended June 30, 2015 June 30, 2015 Revenues Percentage of revenues Trade accounts receivable Customer A $ 174,547 29 % $ — Customer B 150,000 25 % — Customer C 140,000 23 % — Total: $ 464,547 77 % $ — For the six months ended June 30, 2014, the customer who accounted for 10% or more of the Company’s revenues is presented as follows: Six months ended June 30, 2014 June 30, 2014 Revenues Percentage of revenues Trade accounts receivable Customer D, related party $ 8,795 27 % $ — Customer E, related party 6,352 19 % — Customer F 6,125 18 % — Customer G 6,003 18 % — Total: $ 27,275 82 % $ — (b) Major vendors For the six months ended June 30, 2015 and 2014, there was no vendor who accounted for 10% or more of the Company’s cost of revenues with no accounts payable balance at period-end. (c) Exchange rate risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in MYR and RMB and a significant portion of the assets and liabilities are denominated in MYR and RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$, MYR and RMB. If MYR and RMB depreciates against US$, the value of MYR and RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose it to substantial market risk. (d) Economic and political risks Substantially all of the Company’s services are conducted in Malaysia, the PRC and Asian region. The Company’s operations are subject to various political, economic, and other risks and uncertainties inherent in Malaysia. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Malaysia. The Company‘s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company‘s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. | 13. CONCENTRATIONS OF RISKS (a) Major customers For the year ended December 31, 2014, there was a single customer who accounted for 60% of the Company’s revenues with no accounts receivable balance at year-end. For the year ended December 31, 2013, the customer who accounted for 10% or more of the Company’s revenues is presented as follows: Year ended December 31, 2013 December 31, 2013 Revenues Percentage of revenues Trade accounts receivable Customer A $ 4,590 38 % $ — Customer B 1,753 14 % — Customer C 1,250 10 % — Customer D 1,250 10 % — Total: $ 8,843 72 % $ — (b) Major vendors For the year ended December 31, 2014, there was no vendor who accounted for 10% or more of the Company’s cost of revenues with no accounts payable balance at year-end. For the year ended December 31, 2013, there was a single vendor who accounted for 82% of the Company’s cost of revenues with no accounts payable balance at year-end. (c) Exchange rate risk The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in MYR and RMB and a significant portion of the assets and liabilities are denominated in MYR and RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$, MYR and RMB. If MYR and RMB depreciates against US$, the value of MYR and RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose it to substantial market risk. (d) Economic and political risks Substantially all of the Company’s services are conducted in Malaysia, the PRC and Asian region. The Company’s operations are subject to various political, economic, and other risks and uncertainties inherent in Malaysia. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations in Malaysia. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | NOTE—13 COMMITMENTS AND CONTINGENCIES The Company leases certain office premises in Malaysia and the PRC under operating leases that expire at various dates through August 2015. The leases, which cover a term of two years, generally provide for renewal options at specified rental amounts. The aggregate lease expense for the six months ended June 30, 2015 and 2014 were $12,760 and $12,704, respectively. As of June 30, 2015, the Company has future minimum rental payments of $4,270 for office premises due under various operating leases in the next twelve months. | 14. COMMITMENTS AND CONTINGENCIES The Company leases certain office premises in Malaysia and the PRC under operating leases that expire at various dates through August 2015. The leases, which cover a term of two years, generally provide for renewal options at specified rental amounts. The aggregate lease expense for the years ended December 31, 2014 and 2013 were $21,153 and $19,967, respectively. As of December 31, 2014, the Company has future minimum rental payments of $16,922 for office premises due under various operating leases in the next twelve months. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE—14 SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events | 15. SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Basis Of Presentation | |
BASIS OF PRESENTATION | NOTE — 1 BASIS OF PRESENTATION Acquisition of Greenpro Resources Limited recognized as an acquisition under common control On July 29, 2015, GRNQ entered into a Sale and Purchase Agreement (the “Agreement”) with GRBV and the stockholders of GRBV to purchase 100% of the issued and outstanding shares and the assets of GRBV. Pursuant to the Agreement, GRNQ agreed to issue 9,070,000 shares of its restricted common stock at $0.35 per share to the stockholders of GRBV and pay $25,500 in cash, representing an aggregate purchase consideration of $3,200,000. The number of common shares issued represented approximately 28.8% of the issued and outstanding common stock immediately after the consummation of the Agreement. Mr. Lee Chong Kuang is the Chief Executive Officer, director and shareholder of GRNQ and GRBV. Mr. Loke Che Chan, Gilbert is the Chief Financial Officer, director and shareholder of GRNQ and GRBV. As a result of this common ownership and in accordance with the FASB Accounting Standards Codification Section 805 “Business Combination” Assumptions of pro forma combined financial statements The unaudited pro forma condensed combined balance sheets is based on the historical balance sheets of GRNQ and GRBV, giving effect to GRNQ’s acquisition of GRBV as if the transaction had occurred on June 30, 2015. The unaudited pro form condensed combined statement of operations for the year ended December 31, 2014 and the six months ended June 30. 2015 are based on the historical statements of operations of GRNQ and GRBV, giving effect GRNQ’s acquisition of GRBV as if the transaction had occurred on January 1, 2014. The historical information is derived from the audited financial statements of GRNQ and GRBV for the year ended December 31, 2014 and the unaudited financial statements for the six months ended June 30, 2015. The unaudited pro forma condensed combined financial statements have been prepared by management for illustrative purposes only and are not necessarily indicative of the combined financial position or combined results of operations in future periods or the results that actually would have been realized had GRBV and GRNQ been a combined entity during the specified periods. The unaudited pro forma adjustments are based on the preliminary information available at the time of the preparation of this document and assumptions that management believes are reasonable. The unaudited pro forma condensed combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with GRBV’s historical consolidated financial statements for the years ended December 31, 2014 and 2013 included elsewhere in this Current Report on Amendment No. 1 to Form 8-K as an exhibit filed with SEC herewith and the financial statements of GRNQ included in its Quarterly Transition Report on Form 10-QT for the two months ended December 31, 2014 and its Annual Report on Form 10-K for the year ended October 31, 2014. The unaudited pro forma condensed combined financial statements do not purport to represent what the results of operations or financial position of the combined entity would actually have been if the merger had in fact occurred on June 30, 2015, nor do the purport to project the results of operations or financial position of the combined entity for any future period or as of any date, respectively. These unaudited pro forma condensed combined financial statements do not give effect to any restructuring costs or to any potential cost savings or other operating efficiencies that could result from the merger between GRBV and GRNQ since such amounts, if any, are not presently determinable. |
PRO FORMA ADJUSTMENTS
PRO FORMA ADJUSTMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Pro Forma Adjustments | |
PRO FORMA ADJUSTMENTS | NOTE —2 PRO FORMA ADJUSTMENTS The unaudited pro forma condensed combined financial statements have been prepared as if the acquisition was completed on June 30, 2015 for combined balance sheet purpose and for the six months ended June 30, 2015 for combined statement of operations and comprehensive income purpose and reflects the following pro form adjustments: (a) To reclassify Greenpro Resources Limited’s common stock to Additional paid-in capital. Common stock: $0.0001 par value (2) Additional paid-in capital 2 (b) To reflect the issuance of 9,070,000 shares of common stock of Greenpro Capital Corp. for the acquisition of all of the issued and outstanding capital stock of Greenpro Resources Ltd. Common stock: $0.0001 par value 907 Additional paid-in capital (907) (c) To eliminate the current account balances between Greenpro Capital Corp. and Greenpro Resources Limited and its subsidiaries, Greenpro Holding Limited and Greenpro Financial Consulting Limited. Amount due from related companies (88,848) Amounts due to related companies 88,848 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Basis of presentation | • Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). | • Basis of presentation The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of consolidation | • Basis of consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | • Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Use of estimates | • Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. | • Use of estimates In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Cash and cash equivalents | • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. | • Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Accounts receivable | • Accounts receivable Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Property, plant and equipment | • Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. Depreciation expense for the six months ended June 30, 2015 and 2014 were $18,030 and $19,639, respectively. | • Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations. Depreciation expense for the years ended December 31, 2014 and 2013 were $39,209 and $13,219, respectively. |
Intangible assets | • Intangible assets Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trade marks registered in Hong Kong, the PRC, and Malaysia, which are amortized on a straight-line basis over a useful live of ten years. Amortization expense for the six months ended June 30, 2015 and 2014 were $75 and $0, respectively. | • Intangible assets Intangible assets are stated at cost less accumulated amortization. Intangible assets represented the registration costs of trade marks registered in Hong Kong, the PRC, and Malaysia, which are amortized on a straight-line basis over a useful live of ten years. Amortization expense for the years ended December 31, 2014 and 2013 were $227 and $58, respectively. |
Impairment of long-lived assets | • Impairment of long-lived assets Long-lived assets primarily include property, plant and equipment, intangible assets, life insurance and other non-current assets. In accordance with the provision of ASC Topic 360-10-5, “ Impairment or Disposal of Long-Lived Assets | • Impairment of long-lived assets Long-lived assets primarily include property, plant and equipment, and intangible assets. In accordance with the provision of ASC Topic 360-10-5, “ Impairment or Disposal of Long-Lived Assets |
Cash value of life insurance | • Cash value of life insurance The cash value of life insurance relates to the Company-owned life insurance policies on the general manager and executive corporate advisor of the Company, which is stated at the cash surrender value of the contract. | • Cash value of life insurance The cash value of life insurance relates to the Company-owned life insurance policy on a general manager of the Company, which is stated at the cash surrender value of the contract. |
Other non-current asset - related party | • Other non-current asset - related party Investments in certain companies over which the Company exerts significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which the Company do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method investments are included as Other Non-current Assets in the Condensed Consolidated Balance Sheets. As of June 30, 2015, the Company invested $38,710 in a related company, which was incorporated in Hong Kong, with 3,400,000 ordinary shares authorized, issued and outstanding at a par value of HK$1 per share. The Company owns 8.8% equity interest in this related company with Mr. Lee Chong Kuang and Mr. Loke Che Chan, Gilbert as common directors. | |
Comprehensive loss | • Comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive loss consists of cumulative foreign currency translation adjustments. | • Comprehensive loss Comprehensive loss is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s accumulated other comprehensive loss consists of cumulative foreign currency translation adjustments. |
Revenue recognition | • Revenue recognition The Company recognizes its revenue in accordance with ASC Topic 605, “ Revenue Recognition Revenue from rental of leasehold land and buildings are recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased assets. The Company leases its commercial office premises in Malaysia under various non-cancelable operating leases with terms of two to three years and renewal options. For the six months ended June 30, 2015, the Company has recorded $18,463 in rental revenue, based upon its annual rental over the life of the lease under operating lease, using straight-line method. As of June 30, 2015, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Period ending June 30: 2016 $ 31,358 2017 9,534 Total $ 40,892 Revenue from the provision of business consulting and advisory services is recognized when services are rendered and the collection of relevant receivables is probable. | • Revenue recognition The Company recognizes its revenue in accordance with ASC Topic 605, “ Revenue Recognition Revenue from rental of leasehold land and buildings are recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased assets. The Company leases its commercial office premises in Malaysia under various non-cancelable operating leases with terms of two to three years and renewal options. For the year ended December 31, 2014, the Company has recorded $31,988 in rental revenue, based upon its annual rental over the life of the lease under operating lease, using straight-line method. As of December 31, 2014, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Years ending December 31: 2015 $ 39,194 2016 25,596 Total $ 64,790 Revenue from the provision of business consulting and advisory services is recognized when services are rendered and the collection of relevant receivables is probable. |
Cost of revenues | • Cost of revenues Cost of revenue on rental shown on the accompanying statements of operations include costs associated with government rent and rates, repairs and maintenance, property insurance, and other related administrative costs. Property management fee and utility expenses are paid directly by tenants. Costs of revenue on business consulting and advisory services primarily consist of employee compensation and related payroll benefits, company formation cost and professional fees directly attributable to cost in related to the business consulting and advisory services rendered. | • Cost of revenues Cost of revenue on rental shown on the accompanying statements of operations include costs associated with government rent and rates, repairs and maintenance, property insurance, and other related administrative costs. Property management fee and utility expenses are paid directly by tenants. Costs of revenue on business consulting and advisory services primarily consist of employee compensation and related payroll benefits, company formation cost and professional fees directly attributable to cost in related to the business consulting and advisory services rendered. |
Income taxes | • Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in BVI, Belize, Hong Kong, Malaysia and China and is subject to tax in its own jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. | • Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in BVI, Belize, Hong Kong, Malaysia and China and is subject to tax in its own jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. |
Foreign currencies translation | • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries maintain their books and record in a local currency, Malaysian Ringgit (“MYR”), Renminbi (“RMB”), and Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the six months ended June 30, 2015 2014 Period-end MYR : US$1 exchange rate 3.7758 3.2112 Period-average MYR : US$1 exchange rate 3.6352 3.2653 Period-end RMB : US$1 exchange rate 6.0888 6.1552 Period-average RMB : US$1 exchange rate 6.1128 6.1397 Period-end HK$ : US$1 exchange rate 7.7522 7.7511 Period-average HK$ : US$1 exchange rate 7.7535 7.7557 | • Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s operating subsidiaries maintain their books and record in a local currency, Malaysian Ringgit (“MYR”), Renminbi (“RMB”), and Hong Kong Dollars (“HK$”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the year ended December 31, 2014 2013 Year-end MYR : US$1 exchange rate 3.5000 3.2913 Year-average MYR : US$1 exchange rate 3.2724 3.1372 Year-end RMB : US$1 exchange rate 6.1460 6.1104 Year -average RMB : US$1 exchange rate 6.1457 6.1905 Year -end HK$ : US$1 exchange rate 7.7577 7.7544 Year -average HK$ : US$1 exchange rate 7.7547 7.7564 |
Retirement plan costs | • Retirement plan costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated statements of operation as the related employee service is provided. | |
Related parties | • Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. | • Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Segment reporting | • Segment reporting The Company follows ASC 280 “ Segment Reporting | |
Fair value of financial instruments | • Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, deposits, prepayments and other receivables, amount due to directors, amount due to related companies, accrued liabilities and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures - Level 1 - Level 2 - Level 3 | • Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, deposits, prepayments and other receivables, amount due to directors, amount due to related companies, accrued liabilities and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures - Level 1 - Level 2 - Level 3 |
Recent accounting pronouncements | • Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after January December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term “substantial doubt” and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2014-15 on the Company’s financial statement presentation and disclosures. In January 2015, the FASB issued ASU No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items. ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted. As of June 30, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Companies’ consolidated financial statements. | • Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after January December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and, if so, to provide related footnote disclosures. ASU 2014-15 provides a definition of the term “substantial doubt” and requires an assessment for a period of one year after the date that the financial statements are issued or available to be issued. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for the annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2014-15 on the Company’s financial statement presentation and disclosures. In January 2015, the FASB issued ASU No. 2015-01 (Subtopic 225-20) - Income Statement - Extraordinary and Unusual Items. ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted. As of December 31, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Property, plant and equipment | Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — | Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Residual value Leasehold land and buildings 50 years — Furniture and fixtures 3 - 10 years 5% Office equipment 3 - 10 years 5% Leasehold improvement 10 years — |
Aggregate future minimum rental receivable under the non-cancelable leases | As of June 30, 2015, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Period ending June 30: 2016 $ 31,358 2017 9,534 Total $ 40,892 | As of December 31, 2014, the Company has the aggregate future minimum rental receivable under the non-cancelable leases over the next two years consisted of the followings: Years ending December 31: 2015 $ 39,194 2016 25,596 Total $ 64,790 |
Foreign currencies translation exchange rates | Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the six months ended June 30, 2015 2014 Period-end MYR : US$1 exchange rate 3.7758 3.2112 Period-average MYR : US$1 exchange rate 3.6352 3.2653 Period-end RMB : US$1 exchange rate 6.0888 6.1552 Period-average RMB : US$1 exchange rate 6.1128 6.1397 Period-end HK$ : US$1 exchange rate 7.7522 7.7511 Period-average HK$ : US$1 exchange rate 7.7535 7.7557 | Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: As of and for the year ended December 31, 2014 2013 Year-end MYR : US$1 exchange rate 3.5000 3.2913 Year-average MYR : US$1 exchange rate 3.2724 3.1372 Year-end RMB : US$1 exchange rate 6.1460 6.1104 Year -average RMB : US$1 exchange rate 6.1457 6.1905 Year -end HK$ : US$1 exchange rate 7.7577 7.7544 Year -average HK$ : US$1 exchange rate 7.7547 7.7564 |
CASH SURRENDER VALUE OF LIFE 26
CASH SURRENDER VALUE OF LIFE INSURANCE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Cash Surrender Value Of Life Insurance Tables | |
Cash surrender value of life insurance, net | A summary of net cash surrender value of life insurance as of June 30, 2015 is reported as below: Cash surrender value of life insurance $ 151,464 Less: policy loan balance outstanding (116,473 ) Cash surrender value of life insurance, net $ 34,991 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of property, plant and equipment | As of June 30, 2015 December 31, 2014 (Audited) Leasehold buildings $ 1,044,213 $ 1,044,213 Furniture and fixtures 71,561 69,418 Office equipment 10,359 10,359 Leasehold improvement 88,865 83,118 1,214,998 1,207,108 Less: Accumulated depreciation (70,458 ) (52,428 ) Foreign exchange translation (146,492 ) (68,088 ) Total $ 998,048 $ 1,086,592 | As of December 31, 2014 2013 Leasehold buildings $ 1,044,213 $ 1,013,227 Furniture and fixtures 69,418 69,418 Office equipment 10,359 9,809 Leasehold improvement 83,118 82,614 1,207,108 1,175,068 Less: Accumulated depreciation (52,428 ) (13,219 ) Foreign exchange translation (68,088 ) 619 Total $ 1,086,592 $ 1,162,468 |
LONG-TERM BANK LOANS (Tables)
LONG-TERM BANK LOANS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Long term bank loans | As of June 30, 2015 December 31, 2014 Bank loans from financial institutions in Malaysia (Audited) Standard Chartered Saadiq Berhad $ 415,690 $ 453,556 United Overseas Bank (Malaysia) Berhad 279,998 304,283 695,688 757,839 Less: current portion (14,491 ) (15,067 ) Bank loan, net of current portion $ 681,197 $ 742,772 | As of December 31, 2014 2013 Bank loans from financial institutions in Malaysia Standard Chartered Saadiq Berhad $ 453,556 $ 491,519 United Overseas Bank (Malaysia) Berhad 304,283 296,341 757,839 787,860 Less: current portion (15,067 ) (15,160 ) Bank loan, net of current portion $ 742,772 $ 772,700 |
Maturities of the long-term bank loans | Maturities of the long-term bank loans for each of the five years and thereafter following June 30, 2015 are as follows: Period ending June 30: 2016 $ 14,491 2017 15,271 2018 16,000 2019 16,764 2020 17,483 Thereafter 615,679 Total $ 695,688 | Maturities of the long-term bank loans for each of the five years and thereafter following December 31, 2014 are as follows: Years ending December 31: 2015 $ 15,067 2016 16,002 2017 16,864 2018 17,669 2019 18,512 Thereafter 673,725 Total $ 757,839 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | The income (loss) before income taxes of the Company for the six months ended June 30, 2015 and 2014 were comprised of the following: For the six months ended June 30, 2015 2014 Tax jurisdictions from: – BVI $ 171,613 $ (110 ) – Belize 199,669 — – Malaysia (35,166 ) (37,396 ) – Hong Kong (32,400 ) (1,946 ) – The PRC (7,633 ) (8,320 ) Income (loss) before income taxes $ 296,083 $ (47,772 ) | The income (loss) before income taxes of the Company for the years ended December 31, 2014 and 2013 were comprised of the following: For the year ended December 31, 2014 2013 Tax jurisdictions from: – BVI $ (187 ) $ (761 ) – Belize 45,919 — – Malaysia (77,192 ) (57,024 ) – Hong Kong (4,341 ) (21,094 ) – The PRC (15,705 ) (19,783 ) Income (loss) before income taxes $ (51,506 ) $ (98,662 ) |
Schedule of deferred tax assets | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of June 30, 2014 and December 31, 2014: As of June 30, 2015 December 31, 2014 Deferred tax assets: Net operating loss carryforwards – Hong Kong $ 9,484 $ 4,150 – The PRC 9,840 8,203 – Malaysia 17,924 15,480 37,248 27,833 Less: valuation allowance (37,248 ) (27,833 ) Deferred tax assets $ — $ — | The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2014 and 2013: As of December 31, 2014 2013 Deferred tax assets: Net operating loss carryforwards – Hong Kong $ 4,150 $ 3,471 – The PRC 8,203 5,010 – Malaysia 15,480 8,350 27,833 16,831 Less: valuation allowance (27,833 ) (16,831 ) Deferred tax assets $ — $ — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Related party transactions | Six months ended June 30, 2015 2014 Business consulting and advisory service income - Related party A $ 10,324 $ 6,352 - Related party B 2,065 8,795 12,389 15,147 | Years ended December 31, 2014 2013 Business consulting and advisory service income - Related party A $ 18,853 $ — - Related party B 8,787 — - Related party C 1,032 28,672 — Cost of service - Related party D $ — $ 6,295 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | ||
Business segment reporting | The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below: Six months ended June 30, 2015 Rental business Service business Corporate Total Revenues - related party $ — $ 12,389 $ — $ 12,389 - non-related party 18,463 565,282 — 583,745 Total revenues 18,463 577,671 — 596,134 Cost of revenues (3,474 ) (189,240 ) — (192,714 ) Gross income 14,989 388,431 — 403,420 Depreciation and amortization 16,162 1,868 75 18,105 Net (loss) income (20,347 ) 348,830 (32,400 ) 296,083 Total assets 1,176,923 223,713 39,784 1,440,420 Expenditure for long-lived assets $ 7,890 $ 38,710 $ 49,820 $ 96,420 Six months ended June 30, 2014 Rental business Service business Corporate Total Revenues - related party $ — $ 15,147 $ — $ 15,147 - non-related party 12,128 5,804 — 17,932 Total revenues 12,128 20,951 — 33,079 Cost of revenues (5,835 ) (15,544 ) — (21,379 ) Gross income 6,293 5,407 — 11,700 Depreciation and amortization 17,754 1,885 — 19,639 Net loss (33,993 ) (11,723 ) (2,056 ) (47,772 ) Total assets 1,199,039 30,693 8,854 1,238,586 Expenditure for long-lived assets $ 31,054 $ — $ — $ 31,054 | The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below: Year ended December 31, 2014 Rental business Service business Corporate Total Revenues - related party $ — $ 28,672 $ — $ 28,672 - non-related party 31,071 139,905 — 170,976 Total revenues 31,071 168,577 — 199,648 Cost of revenues - related party — — — — - non-related party (9,706 ) (106,391 ) — (116,097 ) Gross income 21,365 62,186 — 83,551 Depreciation and amortization 35,440 3,769 225 39,434 Net (loss) income (61,662 ) 14,685 (4,529 ) (51,506 ) Total assets 1,091,422 82,414 26,686 1,200,522 Expenditure for long-lived assets $ 31,490 $ 550 $ 15,838 $ 47,878 Year ended December 31, 2013 Rental business Service business Corporate Total Revenues - related party $ — $ — $ — $ — - non-related party — 12,110 — 12,110 Total revenues — 12,110 — 12,110 Cost of revenues - related party — (6,295 ) — (6,295 ) - non-related party — (1,344 ) — (1,344 ) Gross income — 4,471 — 4,471 Depreciation and amortization 12,232 987 58 13,277 Net (loss) income (21,802 ) (55,005 ) (21,855 ) (98,662 ) Total assets 1,154,565 41,430 26,154 1,222,149 Expenditure for long-lived assets $ 1,213,519 $ 18,712 $ 18,876 $ 1,251,107 |
CONCENTRATIONS OF RISKS (Tables
CONCENTRATIONS OF RISKS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | ||
Major customers revenue and accounts receivable | For the six months ended June 30, 2015, the customers who accounted for 10% or more of the Company’s revenues is presented as follows: Six months ended June 30, 2015 June 30, 2015 Revenues Percentage of revenues Trade accounts receivable Customer A $ 174,547 29 % $ — Customer B 150,000 25 % — Customer C 140,000 23 % — Total: $ 464,547 77 % $ — For the six months ended June 30, 2014, the customer who accounted for 10% or more of the Company’s revenues is presented as follows: Six months ended June 30, 2014 June 30, 2014 Revenues Percentage of revenues Trade accounts receivable Customer D, related party $ 8,795 27 % $ — Customer E, related party 6,352 19 % — Customer F 6,125 18 % — Customer G 6,003 18 % — Total: $ 27,275 82 % $ — | For the year ended December 31, 2013, the customer who accounted for 10% or more of the Company’s revenues is presented as follows: Year ended December 31, 2013 December 31, 2013 Revenues Percentage of revenues Trade accounts receivable Customer A $ 4,590 38 % $ — Customer B 1,753 14 % — Customer C 1,250 10 % — Customer D 1,250 10 % — Total: $ 8,843 72 % $ — |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Going Concern Uncertainties Details Narrative | |||
Accumulated deficit | $ (145,915) | $ 150,168 | $ 98,662 |
Working capital deficit | $ 523,499 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Leasehold buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 50 years | 50 years |
Residual Value | 0.00% | 0.00% |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Residual Value | 5.00% | 5.00% |
Furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 3 years | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 10 years | 10 years |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Residual Value | 5.00% | 5.00% |
Office equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 3 years | 3 years |
Office equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 10 years | 10 years |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life | 10 years | 10 years |
Residual Value | 0.00% | 0.00% |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Aggregate future minimum rental receivable under the non-cancelable leases | ||
2,015 | $ 39,194 | |
2,016 | $ 31,358 | 25,596 |
2,017 | 9,534 | |
Total | $ 40,892 | $ 64,790 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Period-end MYR : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 3.7758 | 3.2112 | ||
Period-average MYR : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 3.6352 | 3.2653 | ||
Period-end RMB : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 6.0888 | 6.1552 | ||
Period-average RMB : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 6.1128 | 6.1397 | ||
Period-end HK$ : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 7.7522 | 7.7511 | ||
Period-average HK$ : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 7.7535 | 7.7557 | ||
Year-end MYR : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 3.5000 | 3.2913 | ||
Year-average MYR : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 3.2724 | 3.1372 | ||
Year-end RMB : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 6.1460 | 6.1104 | ||
Year -average RMB : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 6.1457 | 6.1905 | ||
Year -end HK$ : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 7.7577 | 7.7544 | ||
Year -average HK$ : US$1 exchange rate [Member] | ||||
Foreign currencies translation exchange rate | 7.7547 | 7.7564 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation expense | $ 18,030 | $ 19,639 | $ 39,209 | $ 13,219 |
Amortization expense | $ 75 | $ 0 | $ 227 | $ 58 |
Ordinary shares authorized | 50,000 | 50,000 | 50,000 | |
Ordinary shares issued | 2 | 2 | 2 | |
Ordinary shares outstanding | 2 | 2 | 2 | |
Ordinary shares par value | $ 1 | $ 1 | $ 1 | |
Rental revenue | $ 18,463 | $ 31,988 | ||
Mr. Lee Chong Kuang and Mr. Loke Che Chan, Gilbert [Member] | ||||
Equity interest | 8.80% | |||
Hong Kong [Memebr] | ||||
Investments | $ 38,710 | |||
Ordinary shares authorized | 3,400,000 | |||
Ordinary shares issued | 3,400,000 | |||
Ordinary shares outstanding | 3,400,000 | |||
Ordinary shares par value | $ 1 |
PROPERTY, PLANT AND EQUIPMENT38
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Plant and equipment, Gross | $ 1,214,998 | $ 1,207,108 | $ 1,175,068 | |
Less: Accumulated depreciation | (70,458) | (52,428) | (13,219) | |
Foreign exchange translation | (146,492) | (68,088) | 619 | |
Total | 998,048 | 1,086,592 | 1,162,468 | |
Depreciation expense | 18,030 | $ 19,639 | 39,209 | 13,219 |
Leasehold buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Plant and equipment, Gross | 1,044,213 | 1,044,213 | 1,013,227 | |
Furniture and fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Plant and equipment, Gross | 71,561 | 69,418 | 69,418 | |
Office equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Plant and equipment, Gross | 10,359 | 10,359 | 9,809 | |
Leasehold improvement [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Plant and equipment, Gross | $ 88,865 | $ 83,118 | $ 82,614 |
CASH SURRENDER VALUE OF LIFE 39
CASH SURRENDER VALUE OF LIFE INSURANCE (Details) | Jun. 30, 2015USD ($) |
Cash Surrender Value Of Life Insurance Details | |
Cash surrender value of life insurance | $ 151,464 |
Less: policy loan balance outstanding | (116,473) |
Cash surrender value of life insurance, net | $ 34,991 |
AMOUNTS DUE TO DIRECTORS (Detai
AMOUNTS DUE TO DIRECTORS (Details Narrative) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Amounts Due To Directors | |||
Amounts due to directors | $ 472,665 | $ 494,253 | $ 481,897 |
LONG-TERM BANK LOANS (Details)
LONG-TERM BANK LOANS (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Bank loan, gross of current portion | $ 695,688 | $ 757,839 | $ 787,860 |
Less: current portion | (14,491) | (15,067) | (15,160) |
Bank loan, net of current portion | 681,197 | 742,772 | 772,700 |
Standard Chartered Saadiq Berhad [Member] | |||
Bank loan, gross of current portion | 415,690 | 453,556 | 491,519 |
United Overseas Bank (Malaysia) Berhad [Member] | |||
Bank loan, gross of current portion | $ 279,998 | $ 304,283 | $ 296,341 |
LONG-TERM BANK LOANS (Details 1
LONG-TERM BANK LOANS (Details 1) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Maturities of the long-term bank loans | ||
2,015 | $ 15,067 | |
2,016 | $ 14,491 | 16,002 |
2,017 | 15,271 | 16,864 |
2,018 | 16,000 | 17,669 |
2,019 | 16,764 | $ 18,512 |
2,020 | 17,483 | |
Thereafter | 615,679 | $ 673,725 |
Total | $ 695,688 | $ 757,839 |
LONG-TERM BANK LOANS (Details N
LONG-TERM BANK LOANS (Details Narrative) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||||
Base lending rate | 6.85% | 6.85% | 6.85% | 6.85% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) before income taxes | $ 296,083 | $ (47,772) | $ (51,506) | $ (98,662) |
BVI [Memebr] | ||||
Income (loss) before income taxes | 171,613 | $ (110) | (187) | $ (761) |
Belize [Memebr] | ||||
Income (loss) before income taxes | 199,669 | 45,919 | ||
Malaysia [Memebr] | ||||
Income (loss) before income taxes | (35,166) | $ (37,396) | (77,192) | $ (57,024) |
Hong Kong [Memebr] | ||||
Income (loss) before income taxes | (32,400) | (1,946) | (4,341) | (21,094) |
The PRC [Memebr] | ||||
Income (loss) before income taxes | $ (7,633) | $ (8,320) | $ (15,705) | $ (19,783) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | |||
Deferred tax assets, gross | $ 37,248 | $ 27,833 | $ 16,831 |
Less: valuation allowance | $ (37,248) | $ (27,833) | $ (16,831) |
Deferred tax assets | |||
Hong Kong [Memebr] | |||
Deferred tax assets: | |||
Net operating loss carryforwards | $ 9,484 | $ 4,150 | $ 3,471 |
The PRC [Memebr] | |||
Deferred tax assets: | |||
Net operating loss carryforwards | 9,840 | 8,203 | 5,010 |
Malaysia [Memebr] | |||
Deferred tax assets: | |||
Net operating loss carryforwards | $ 17,924 | $ 15,480 | $ 8,350 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes (Textual) | ||||
Valuation allowance increased | $ 9,415 | $ 11,002 | ||
BVI [Memebr] | ||||
Income Taxes (Textual) | ||||
Operating income loss | 171,613 | $ 110 | 187 | $ 761 |
Belize [Memebr] | ||||
Income Taxes (Textual) | ||||
Operating income loss | 199,669 | 0 | 45,919 | 0 |
Hong Kong [Memebr] | ||||
Income Taxes (Textual) | ||||
Operating income loss | 32,400 | 1,946 | 4,341 | 21,094 |
The PRC [Memebr] | ||||
Income Taxes (Textual) | ||||
Operating income loss | 7,633 | 8,320 | 15,705 | 19,783 |
Malaysia [Memebr] | ||||
Income Taxes (Textual) | ||||
Operating income loss | $ 35,166 | $ 37,396 | $ 77,192 | $ 57,024 |
PENSION COST (Details Narrative
PENSION COST (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Contributions made by the Company | $ 2,734 | $ 1,078 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business consulting and advisory service income | $ 12,389 | $ 15,147 | $ 28,672 | |
Cost of service | $ (6,295) | |||
Related party A [Member] | ||||
Business consulting and advisory service income | 10,324 | 6,352 | $ 18,853 | |
Related party B [Member] | ||||
Business consulting and advisory service income | $ 2,065 | $ 8,795 | 8,787 | |
Related party C [Member] | ||||
Business consulting and advisory service income | $ 1,032 | |||
Related party D [Member] | ||||
Cost of service | $ 6,295 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | ||||
Revenues - related party | $ 12,389 | $ 15,147 | $ 28,672 | |
Revenues - non-related party | 565,282 | 5,804 | 139,905 | $ 12,110 |
Total revenues | $ 596,134 | $ 33,079 | $ 199,648 | 12,110 |
Cost of revenues | ||||
Cost of revenues- related party | (6,295) | |||
Cost of revenues- non - related party | $ 106,391 | 1,344 | ||
Cost of revenues | $ 192,714 | $ 21,379 | 116,097 | 7,639 |
Gross income | 403,420 | 11,700 | 83,551 | 4,471 |
Depreciation and amortization | 18,105 | 19,639 | 39,436 | 13,277 |
Net (loss) income | 296,083 | (47,772) | (51,506) | (98,662) |
Total assets | 1,440,420 | 1,238,586 | 1,200,522 | 1,222,149 |
Expenditure for long-lived assets | $ 96,420 | $ 31,054 | $ 47,878 | $ 1,251,107 |
Rental business [Member] | ||||
Revenues | ||||
Revenues - related party | ||||
Revenues - non-related party | $ 18,463 | $ 12,128 | $ 31,071 | |
Total revenues | 18,463 | 12,128 | $ 31,071 | |
Cost of revenues | ||||
Cost of revenues- related party | ||||
Cost of revenues- non - related party | $ (9,706) | |||
Cost of revenues | (3,474) | (5,835) | ||
Gross income | 14,989 | 6,293 | 21,365 | |
Depreciation and amortization | 16,162 | 17,754 | 35,440 | $ 12,232 |
Net (loss) income | (20,347) | (33,993) | (61,662) | (21,802) |
Total assets | 1,176,923 | 1,199,039 | 1,091,422 | 1,154,565 |
Expenditure for long-lived assets | 7,890 | 31,054 | 31,490 | $ 1,213,519 |
Service business [Member] | ||||
Revenues | ||||
Revenues - related party | 12,389 | 15,147 | 28,672 | |
Revenues - non-related party | 565,282 | 5,804 | 139,905 | $ 12,110 |
Total revenues | 577,671 | 20,951 | $ 168,577 | 12,110 |
Cost of revenues | ||||
Cost of revenues- related party | (6,295) | |||
Cost of revenues- non - related party | $ (106,391) | (1,344) | ||
Cost of revenues | (189,240) | (15,544) | ||
Gross income | 388,431 | 5,407 | 62,186 | 4,471 |
Depreciation and amortization | 1,868 | 1,885 | 3,769 | 987 |
Net (loss) income | 348,830 | (11,723) | 14,685 | (55,005) |
Total assets | 223,713 | $ 30,693 | 82,414 | 41,430 |
Expenditure for long-lived assets | $ 38,710 | $ 550 | $ 18,712 | |
Corporate [Member] | ||||
Revenues | ||||
Revenues - related party | ||||
Revenues - non-related party | ||||
Total revenues | ||||
Cost of revenues | ||||
Cost of revenues- related party | ||||
Cost of revenues- non - related party | ||||
Cost of revenues | ||||
Gross income | ||||
Depreciation and amortization | $ 75 | $ 225 | $ 58 | |
Net (loss) income | (32,400) | $ (2,056) | (4,529) | (21,855) |
Total assets | 39,784 | $ 8,854 | 26,686 | 26,154 |
Expenditure for long-lived assets | $ 49,820 | $ 15,838 | $ 18,876 |
CONCENTRATIONS OF RISKS (Detail
CONCENTRATIONS OF RISKS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | |
Revenues | $ 464,547 | $ 27,275 | $ 8,843 |
Percentage of revenues | 77.00% | 82.00% | 72.00% |
Trade accounts receivable | |||
Customer A [Member] | |||
Revenues | $ 174,547 | $ 4,590 | |
Percentage of revenues | 29.00% | 38.00% | |
Trade accounts receivable | |||
Customer B [Member] | |||
Revenues | $ 150,000 | $ 1,753 | |
Percentage of revenues | 25.00% | 14.00% | |
Trade accounts receivable | |||
Customer C [Member] | |||
Revenues | $ 140,000 | $ 1,250 | |
Percentage of revenues | 23.00% | 10.00% | |
Trade accounts receivable | |||
Customer D, related party [Member] | |||
Revenues | $ 8,795 | ||
Percentage of revenues | 27.00% | ||
Trade accounts receivable | |||
Customer E, related party [Member] | |||
Revenues | $ 6,352 | ||
Percentage of revenues | 19.00% | ||
Trade accounts receivable | |||
Customer F [Member] | |||
Revenues | $ 6,125 | ||
Percentage of revenues | 18.00% | ||
Trade accounts receivable | |||
Customer G [Member] | |||
Revenues | $ 6,003 | ||
Percentage of revenues | 18.00% | ||
Trade accounts receivable | |||
Customer D [Member] | |||
Revenues | $ 1,250 | ||
Percentage of revenues | 10.00% | ||
Trade accounts receivable |
CONCENTRATIONS OF RISKS (Deta51
CONCENTRATIONS OF RISKS (Details Narrative) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ||||
Company's cost of revenues with no accounts payable, percentage of major vendors | 10.00% | 10.00% | 10.00% | 82.00% |
Company's revenues with no accounts receivable balance, percentage of major customers | 60.00% | 10.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies (Textual) | ||||
Lease term | 2 years | 2 years | ||
Operating lease expiration date | Aug. 31, 2015 | Aug. 31, 2015 | ||
Future minimum rental payments in next twelve months | $ 4,270 | $ 16,922 | ||
Lease expense | $ 12,760 | $ 12,704 | $ 21,153 | $ 19,967 |
PRO FORMA ADJUSTMENTS (Details)
PRO FORMA ADJUSTMENTS (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Amounts due to related companies | $ 115,583 | $ 48,037 | $ 545 |
Greenpro Resources Limited [Member] | |||
Common stock: $0.0001 par value | (2) | ||
Additional paid-in capital | $ 2 | ||
Greenpro Capital Corp [Member] | |||
Common stock: $0.0001 par value | 907 | ||
Additional paid-in capital | $ (907) | ||
Greenpro Holding Limited and Greenpro Financial Consulting Limited [Member] | |||
Amount due from related companies | (88,848) | ||
Amounts due to related companies | $ 88,848 |