Image Chain Group Limited (ICGL) 10-Q 26 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 15, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Image Chain Group Limited, Inc.
Entity Central Index Key	1,598,924
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		507,270,882
Trading Symbol	ICGL
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 16,525	$ 64,856
Accounts receivable, net	26,728	89,689
Other receivables and other current assets		24,629
Inventories	26,734	78,357
Advances and prepayment to suppliers	65,377	10,523
Prepaid taxes and taxes recoverable	94,614	99,863
Total Current assets	229,978	367,917
Plant and equipment, net	10,490,752	11,107,392
Construction in progress and prepayment for equipment	477,942	504,459
Intangible assets, net	457,604	524,547
Other assets	134,566	142,032
Total Assets	11,790,842	12,646,347
Current Liabilities
Short-term bank loans	2,164,180	2,304,222
Long-term bank loans - current portion	436,620	460,844
Accounts payable	1,021,896	837,159
Accrued liabilities and other payables	1,596,314	1,409,572
Customers advances and deposits	55,829	58,926
Due to related parties	4,923,946	4,998,751
Total Current Liabilities	10,198,785	10,069,474
Long-term bank loans	1,678,852	1,771,997
Total Liabilities	11,877,637	11,841,471
Stockholders' Equity (Deficit)
Preferred Stock, $0.001 par value, 50,000 shares authorized, issued and outstanding	50	50
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 507,270,882 issued and outstanding	507,271	507,271
Additional paid in capital	5,333,834	5,333,834
Accumulated other comprehensive loss	(351,469)	(390,246)
Accumulated deficit	(5,576,481)	(4,646,033)
Total Stockholders' Equity (Deficit)	(86,795)	804,876
Total Liabilities and Stockholders' Equity (Deficit)	$ 11,790,842	$ 12,646,347

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017	May 01, 2017	Feb. 13, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000	50,000	50,000
Preferred stock, shares issued	50,000	50,000		5,000,000
Preferred stock, shares outstanding	50,000	50,000		5,000,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000	3,950,000
Common stock, shares issued	507,270,882	507,270,882		395,000,000
Common stock, shares outstanding	507,270,882	507,270,882		395,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net revenues		$ 40,981	$ 253,859	$ 1,209,107
Cost of revenues		45,991	438,160	1,206,693
Gross Loss		(5,010)	(184,301)	2,414
Operating Expenses
Selling and marketing expenses			46,560	18,473
General and administrative expenses	243,664	67,962	478,587	286,819
Total Operating Expenses	243,664	67,962	525,147	305,292
Operating Loss	(243,664)	(72,972)	(709,448)	(302,878)
Other income (expense)
Government subsidy		61		6,098
Interest income				40
Other income			20,776
Interest expense	(89,749)	(56,129)	(241,190)	(182,240)
Other expense		(29,387)	(52)	(29,387)
Total Other Expense	(89,749)	(85,455)	(220,466)	(205,489)
Loss Before Income Taxes	(333,413)	(158,427)	(929,915)	(508,367)
Provision for income taxes			534
Net Loss	(333,413)	(158,427)	(930,448)	(508,367)
Other Comprehensive Income (Loss)
Foreign currency translation gain	(29,678)	69,909	38,777	159,889
Total Comprehensive Loss	$ (363,091)	$ (88,518)	$ (891,671)	$ (348,478)
Basic and Diluted Loss per Common Share	$ 0	$ 0	$ 0	$ 0
Basic and Diluted Weighted Average Common Shares Outstanding	507,270,882	507,270,882	507,270,882	507,270,882

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (930,448)	$ (508,367)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of intangible assets	41,574	5,305
Depreciation of fixed assets	177,416	491,480
Changes in operating assets and liabilities:
Accounts receivables	61,506	(1,251,991)
Other receivables	24,641	(400,601)
Inventories	50,162	(183,076)
Advances and prepayments to suppliers	(58,508)	(464,464)
Prepaid expenses		444
Prepaid taxes and taxes recoverable		(4,289)
Other assets		(4,128)
Accounts payables	241,157	174,884
Accrued liabilities and other payables	275,801	741,393
Customers advances and deposits		13,823
Tax payable		42,904
Net cash used in operating activities	(116,699)	(1,346,683)
Cash flows from investing activities
Purchase of plant and equipment	(149,139)	(475,906)
Payments for building construction		(72,589)
Addition of intangible assets		(24,274)
Net cash used in investing activities	(149,139)	(572,769)
Cash flows from financing activities
Repayment of bank borrowings	(19,979)
Borrowing of bank loan		1,216,980
Proceeds from related parties	231,230	702,440
Net cash provided by financing activities	211,251	1,919,420
Effect of foreign currency translation on cash and cash equivalents	6,256	159,889
Net (decrease) increase of cash and cash equivalents	(48,331)	159,857
Cash and cash equivalents - beginning of period	64,856	1,667
Cash and cash equivalents - end of period	16,525	161,524
Supplementary cash flow information:
Interest paid	241,190	182,200
Income taxes paid

The Company and Principal Busin

The Company and Principal Business Activities	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Principal Business Activities	1. THE COMPANY AND PRINCIPAL BUSINESS ACTIVITIES Business Image Chain Group Limited, Inc. (formerly Have Gun Will Travel Entertainment, Inc.) (“ICGL” or the “Company”) was incorporated under the laws of Nevada on December 18, 2013. From inception through the date of the Share Exchange as defined below, the Company was an emerging forward-thinking full-service television pre-production company dedicated to the creation of original concepts and programming with a bold and innovative edge in the reality television space for sale, option and licensure to independent producers, cable television networks, syndication companies, and other entities. On June 11, 2015, the Company amended its Articles of Incorporation with the State of Nevada in order to change its name to Image Chain Group Limited, Inc. and to increase the authorized shares of common stock from 70,000,000 to 400,000,000 (the “Amendments”). The name change was undertaken in order to more closely align with the operations of the Company’s wholly-owned subsidiary, Fortune Delight Holdings Group Ltd (“FDHG”). The increase in authorized shares was undertaken to allow the Company to utilize the newly available shares to raise capital. The board of directors and the stockholders of the Company approved the Amendments on May 8, 2015. On February 13, 2017, the Company filed with the Secretary of State of the State of Nevada a Certificate of Correction (the “Certificate of Correction”) to correct a mistake made in the Company’s original Articles of Incorporation with regard to the preferred stock issued in connection with the FDHG Exchange Agreement. As a result, ICGL had 395,000,000 shares of common stock and 5,000,000 shares of preferred stock issued and outstanding. The Company subsequently entered into an agreement pursuant to which the holder of the preferred stock agreed to retire the preferred stock in exchange for receiving an equal number of shares of common stock of the Company . Effective May 1, 2017, the Company increased the authorized shares of Common Stock from 3,950,000 to 2,000,000,000 shares with a par value of $0.001 per share, and to decrease the authorized shares of Preferred Stock from 50,000 to zero (0). As of the date of this Report, the decrease in shares of Preferred Stock is still in process. FDHG, previously, through its wholly-owned operating subsidiaries, was in the business of promoting and distributing its own branded teas that are grown, harvested, cured, and packaged in the People’s Republic of China (“PRC”). The Company’s headquarters was previously located in Guangzhou, Guangdong Province, PRC. Share Exchange and Reorganization On November 14, 2017, the Company entered into a share exchange agreement (the “SEA”) with Image P2P Trading Group Limited (“Image P2P”) and Image P2P’s shareholders whereby the Company issued 500,000,000 new common shares in exchange for all of the issued and outstanding ordinary shares of Image P2P, which totaled 50,000. Image P2P is an investment holding company incorporated and domiciled in the British Virgin Islands.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Notes to the unaudited interim condensed consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal year 2017 have been omitted. This report should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2017 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on April 17, 2018. Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries. The Company’s subsidiaries are listed as follows: Name of Company Place of incorporation Attributable equity interest % Authorized capital Image P2P Trading Group Limited (“BVI”) British Virgin Islands 100 USD 50,000 Asia Grand Will Limited (“AGWL”) Hong Kong 100 HKD 1 Fuzhi Yuan (Shenzhen) Holdings Limited (“FZHL”) PRC 100 RMB 500,000 Jiangxi Fu Zhi Yuan Biotechnology Co., Limited (“FZY”) PRC 100 RMB 50,000,000 Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Foreign currency translation The accompanying financial statements are presented in United States dollars (“USD”). The functional currency of the Company is the USD. The functional currency of AGW is the Hong Kong dollar (“HKD”). The functional currency of SZFY and JXFZYBL is the Renminbi (“RMB”). The financial statements of the Companies subsidiaries have been translated into United States dollars from RMB and HKD at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Exchange Rates 9/30/2018 12/31/2017 9/30/2017 Spot rate RMB : US$ exchange rate 0.1455 0.1536 0.1451 Average year RMB : US$ exchange rate 0.1537 0.1480 0.1452 Year end HKD : US$ exchange rate 0.129 0.129 0.129 Average year HKD : US$ exchange rate 0.129 0.129 0.129 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of for the nine months ended September 30, 2018 and 2017, the Company did not have any potentially dilutive securities outstanding. Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities and due to stockholders. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. Revenue Recognition Our revenue recognition policies are in compliance with SEC Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of exist on our part and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). Effective January 1, 2018, the Company adopted ASC 606, “Revenue from Contracts with Customers.” The Company has evaluated the new guidance and its adoption did not have a significant impact on the Company’s financial statements and a cumulative effect adjustment under the modified retrospective method of adoption will not be necessary. The will be no change to the Company’s accounting policies. Cost of revenue Cost of revenue includes the following expenses; inventory and various expenses related to make the products. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation. Recent Accounting Pronouncements The Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements.

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	3. GOING CONCERN These financial statements have been prepared assuming that Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of September 30, 2018, the Company had accumulated deficits of $5,576,481 and incurred losses to maintain its listing as an U.S. public company. There was substantial doubt regarding the Company’s ability to continue as going concern at September 30, 2018. Management continues to employ its previous plan to support the Company’s operations and maintain its business strategy by raising additional funds through public and private offerings, or loans from related parties, or to rely on officers and directors to perform essential functions with minimal compensation was unsuccessful. If the Company does not raise additional money via public or private offerings or related party loans, the Company may be unable to continue as going concern. Additional financing may not become available on acceptable terms and there can be no assurance that any additional financing that the Company does obtain will be sufficient to meet its needs in the long term. The accompanying financial statements have been adjusted to the expected recoverable amounts. Management believes no further adjustments for recoverability and classification of assets or liabilities are necessary.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Accounts Receivable	4. ACCOUNTS RECEIVABLE Accounts receivable at September 30, 2018 and December 31, 2017, consist of the following: September 30, 2018 December 31, 2017 Accounts receivable $ 26,728 $ 1,387,241 Less: Allowance for doubtful accounts - (1,297,552 ) $ 26,728 $ 89,689

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	5. INVENTORIES Inventories at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Raw materials $ 37,227 $ 72,516 Finished goods (includes write down) 60,736 5,841 Inventory allowance (71,229 ) (75,181 ) $ 26,734 $ 78,357

Plant and Equipment

Plant and Equipment	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Plant and Equipment	6. PLANT AND EQUIPMENT Plant and equipment at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 At Cost: Buildings $ 5,949,292 $ 6,279,367 Equipment 6,373,633 6,281,133 Motor vehicles 48,985 51,702 Furniture and fixtures 21,624 22,824 $ 12,393,534 $ 12,635,026 Less: Accumulated depreciation (1,902,781 ) (1,527,634 ) $ 10,490,752 $ 11,107,392 Depreciation expenses translated at the average exchange rates for the nine months ended September 30, 2018 and 2017 were $177,416 and $491,480, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	7. INTANGIBLE ASSETS Intangible assets at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Land use rights, at cost $ 509,148 $ 557,821 Less: Accumulated amortization (51,544 ) (33,274 ) $ 457,604 $ 524,547 Amortization expenses translated at the average exchange rates for the nine months ended September 30, 2018 and 2017 were $41,574 and $5,305, respectively.

Loans and Interest

Loans and Interest	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Loans and Interest	8. LOANS AND INTEREST Bank loans at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Short-term bank loan $ 2,164,180 $ 2,304,222 Long-term bank loans – current portion 436,620 563,766 Long-term bank loans 1,678,852 1,669,075 $ 4,279,651 $ 4,537,063 Interest expenses translated at the average exchange rates for the nine months ended September 30, 2018 and 2017 were $241,190 and $182,200, respectively. Short term loans On March 30, 2017, FZY entered into a short-term loan with Jiangxi Rural Credit Union & Rural Commercial Bank due on March 28, 2018. The loan was for general working capital purposes in the amount $1,536,148 (RMB 10,000,000). The loan carried an interest rate of 6.30% and was secured by personal guarantee of Mr. Peng Qiu, the authorized representative of FZY and Director of the Company and Mr. Ming Guang Li, a friend of Mr. Peng Qiu. During the three months ended March 31, 2018, the Company repaid $334,109. The Company is negotiating an extension for the short-term loan with Jiangxi Rural Credit Union & Rural Commercial Bank. Long term loans On October 30, 2015, the Company entered into a loan agreement with Industrial and Commercial Bank of China – Wan An County Branch for an interest only construction loan in the amount of approximately $2,403,808 (RMB 15,000,000). The loan bares an adjustable interest rate, at the time origination was 4.75%. The interest rates are adjustable every twelve months. The interest-only construction loan was collateralized by the lands and buildings off the Company with variable maturity dates of up to 5 years. On April 28, 2017, FZY entered into a bank loan with Bank of Beijing due on April 25, 2021. The loan was for construction of a new Polyphenols production line in the amount of $307,230 (RMB 2,000,000). The loan carried an interest rate of 4.35% and was secured by personal guarantee of Mr. Peng Qiu, the authorized representative of FZY and Ms. Huang Min, spouse of Mr. Qiu Peng. On April 28, 2017, FZY entered into a bank loan with Jiangxi Rural Credit Union & Rural Commercial Bank due on April 25, 2020. The loan was for general working capital purposes in the amount of $768,074 (RMB 5,000,000). The loan carried an interest rate of 4.35% and was secured by personal guarantee of Mr Peng Qiu, the authorized representative of FZY and Director of the Company and Mr. Ming Guang Li, a friend of Mr. Peng Qiu. Loan maturity schedule as of December 31, 2017: Loan Maturity schedule Due in 2018 $ 2,867,988 Due in 2019 717,381 Due in 2020 644,464 Due in 2021 307,230 Due in 2022 - Due in greater than five years - $ 4,537,063

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	9. RELATED PARTY TRANSACTIONS Related parties’ relationships are as follows: David Po Director, CEO and Majority Shareholder of the Company Peng Qiu Shareholder of the Company Min Huang Mr. Peng Qiu’s spouse Yi Sheng Qiu Mr. Peng Qiu’s father Wan An Fu Zhi Yuan Cha Ye Ltd. Co. Mr. Peng Qiu, CEO of the Company as shareholder and officer. Wu Junrui Former management of the Company Amounts due to related parties at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Peng Qiu $ 3,762,755 $ 4,031,991 David Po 644,079 412,647 Yi Sheng Qiu 517,112 554,113 $ 4,923,946 $ 4,998,751 The owing to related parties consist of working capital advances and borrowings. These amounts are due on demand and are non-interest bearing.

Stockholders' Deficit

Stockholders' Deficit	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Stockholders' Deficit	10. Stockholders’ Deficit Preferred Stock The Company is authorized to issue 50,000 shares, with a stated par value of $0.001 per share with such powers, preferences, rights and restrictions which shall be determined by the Corporation’s Board of Directors in its sole discretion, and which designations and issuances shall not require the approval of the shareholders of the Corporation. During the nine months ended September 30, 2018, there were no issuances of Preferred Stock. As of September 30, 2018 and December 31, 2017, 50,000 shares of preferred stock were issued and outstanding. Common Stock The Company is authorized to issue 2,000,000,000 shares of common stock at a par value of $0.001. During the nine months ended September 30, 2018, there were no issuances of common stock. As of September 30, 2018 and December 31, 2017, 507,270,882 shares of common stock were issued and outstanding.

Risks

Risks	9 Months Ended
	Sep. 30, 2018
Risks and Uncertainties [Abstract]
Risks	11. RISKS A. Credit risk The Company is subject to risk borne from credit extended to customers. FZY’s bank deposits are with banks located in the PRC. These banks do not carry federal deposit insurance. B. Interest risk The Company is subject to interest rate risk when its loans become due and require refinancing. C. Economic and political risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. D. Inflation risk Management monitors changes in prices levels. Historically inflation has not materially impacted the company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed on the Company’s customers could adversely impact the Company’s results of operations. F. Concentrations risks The Company had a concentration of risk in demand for its products. During the nine months ended September 30, 2018, three customers representing 20.8%, 24.8% and 27.4% of the Company’s sales. During the nine months ended September 30, 2018, the Company had a concentration of risk in supply for raw materials, one vendor that supplied tea comprised 100% of the Company’s purchases. Additionally, as single vendor that supplied ethyl acetate to the Company comprised 5% of the Company’s purchases.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date which the financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2018 have been incorporated into these financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Notes to the unaudited interim condensed consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal year 2017 have been omitted. This report should be read in conjunction with the audited consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2017 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on April 17, 2018.
Principles of Consolidation	Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries. The Company’s subsidiaries are listed as follows: Name of Company Place of incorporation Attributable equity interest % Authorized capital Image P2P Trading Group Limited (“BVI”) British Virgin Islands 100 USD 50,000 Asia Grand Will Limited (“AGWL”) Hong Kong 100 HKD 1 Fuzhi Yuan (Shenzhen) Holdings Limited (“FZHL”) PRC 100 RMB 500,000 Jiangxi Fu Zhi Yuan Biotechnology Co., Limited (“FZY”) PRC 100 RMB 50,000,000
Use of Estimates	Use of estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates.
Foreign Currency Translation	Foreign currency translation The accompanying financial statements are presented in United States dollars (“USD”). The functional currency of the Company is the USD. The functional currency of AGW is the Hong Kong dollar (“HKD”). The functional currency of SZFY and JXFZYBL is the Renminbi (“RMB”). The financial statements of the Companies subsidiaries have been translated into United States dollars from RMB and HKD at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Exchange Rates 9/30/2018 12/31/2017 9/30/2017 Spot rate RMB : US$ exchange rate 0.1455 0.1536 0.1451 Average year RMB : US$ exchange rate 0.1537 0.1480 0.1452 Year end HKD : US$ exchange rate 0.129 0.129 0.129 Average year HKD : US$ exchange rate 0.129 0.129 0.129 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.
Earnings Per Share	Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of for the nine months ended September 30, 2018 and 2017, the Company did not have any potentially dilutive securities outstanding.
Financial Instruments	Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities and due to stockholders. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.
Revenue Recognition	Revenue Recognition Our revenue recognition policies are in compliance with SEC Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of exist on our part and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). Effective January 1, 2018, the Company adopted ASC 606, “Revenue from Contracts with Customers.” The Company has evaluated the new guidance and its adoption did not have a significant impact on the Company’s financial statements and a cumulative effect adjustment under the modified retrospective method of adoption will not be necessary. The will be no change to the Company’s accounting policies. Cost of revenue Cost of revenue includes the following expenses; inventory and various expenses related to make the products.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Identities of Consolidated Subsidiaries	The Company’s subsidiaries are listed as follows: Name of Company Place of incorporation Attributable equity interest % Authorized capital Image P2P Trading Group Limited (“BVI”) British Virgin Islands 100 USD 50,000 Asia Grand Will Limited (“AGWL”) Hong Kong 100 HKD 1 Fuzhi Yuan (Shenzhen) Holdings Limited (“FZHL”) PRC 100 RMB 500,000 Jiangxi Fu Zhi Yuan Biotechnology Co., Limited (“FZY”) PRC 100 RMB 50,000,000
Schedule of Foreign Currency Translation	Exchange Rates 9/30/2018 12/31/2017 9/30/2017 Spot rate RMB : US$ exchange rate 0.1455 0.1536 0.1451 Average year RMB : US$ exchange rate 0.1537 0.1480 0.1452 Year end HKD : US$ exchange rate 0.129 0.129 0.129 Average year HKD : US$ exchange rate 0.129 0.129 0.129

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable at September 30, 2018 and December 31, 2017, consist of the following: September 30, 2018 December 31, 2017 Accounts receivable $ 26,728 $ 1,387,241 Less: Allowance for doubtful accounts - (1,297,552 ) $ 26,728 $ 89,689

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Raw materials $ 37,227 $ 72,516 Finished goods (includes write down) 60,736 5,841 Inventory allowance (71,229 ) (75,181 ) $ 26,734 $ 78,357

Plant and Equipment (Tables)

Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of Plant and Equipment	Plant and equipment at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 At Cost: Buildings $ 5,949,292 $ 6,279,367 Equipment 6,373,633 6,281,133 Motor vehicles 48,985 51,702 Furniture and fixtures 21,624 22,824 $ 12,393,534 $ 12,635,026 Less: Accumulated depreciation (1,902,781 ) (1,527,634 ) $ 10,490,752 $ 11,107,392

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Land use rights, at cost $ 509,148 $ 557,821 Less: Accumulated amortization (51,544 ) (33,274 ) $ 457,604 $ 524,547

Loans and Interest (Tables)

Loans and Interest (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Bank Loans	Bank loans at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Short-term bank loan $ 2,164,180 $ 2,304,222 Long-term bank loans – current portion 436,620 563,766 Long-term bank loans 1,678,852 1,669,075 $ 4,279,651 $ 4,537,063
Schedule of Maturity of Loan Payable	Loan maturity schedule as of December 31, 2017: Loan Maturity schedule Due in 2018 $ 2,867,988 Due in 2019 717,381 Due in 2020 644,464 Due in 2021 307,230 Due in 2022 - Due in greater than five years - $ 4,537,063

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Schedule of Related Parties' Relationships	Related parties’ relationships are as follows: David Po Director, CEO and Majority Shareholder of the Company Peng Qiu Shareholder of the Company Min Huang Mr. Peng Qiu’s spouse Yi Sheng Qiu Mr. Peng Qiu’s father Wan An Fu Zhi Yuan Cha Ye Ltd. Co. Mr. Peng Qiu, CEO of the Company as shareholder and officer. Wu Junrui Former management of the Company
Schedule of Due to Related Parties	Amounts due to related parties at September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 Peng Qiu $ 3,762,755 $ 4,031,991 David Po 644,079 412,647 Yi Sheng Qiu 517,112 554,113 $ 4,923,946 $ 4,998,751

The Company and Principal Bus_2

The Company and Principal Business Activities (Details Narrative) - USD ($)	Nov. 14, 2017	Sep. 30, 2018	Dec. 31, 2017	May 01, 2017	Feb. 13, 2017	Jun. 11, 2015
Common stock, shares authorized		2,000,000,000	2,000,000,000	3,950,000
Common stock, shares issued		507,270,882	507,270,882		395,000,000
Common stock, shares outstanding		507,270,882	507,270,882		395,000,000
Preferred stock, shares issued		50,000	50,000		5,000,000
Preferred stock, shares outstanding		50,000	50,000		5,000,000
Common stock, excess shares authorized				2,000,000,000
Common stock, par or stated value per share		$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized		50,000	50,000	50,000
Preferred stock change in authorized number of shares				0
Recapitalization	$ 500,000,000
Recapitalization, shares	50,000
Amendments Reported [Member]
Common stock, shares authorized						400,000,000
Previously Reported [Member]
Common stock, shares authorized						70,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Percentage of assets, liabilities and net income or loss of wholly-owned subsidiaries	100.00%
Antidilutive securities outstanding

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Identities of Consolidated Subsidiaries (Details)	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018CNY (¥)
Attributable equity interest %	100.00%	100.00%
Image P2P Trading Group Limited [Member]
Place of incorporation	British Virgin Islands
Attributable equity interest %	100.00%	100.00%
Authorized capital | $	$ 50,000
Asia Grand Will Limited [Member]
Place of incorporation	Hong Kong
Attributable equity interest %	100.00%	100.00%
Asia Grand Will Limited [Member] | HKD [Member]
Authorized capital | $	$ 1
Fuzhi Yuan (Shenzhen) Holdings Limited [Member]
Place of incorporation	PRC
Attributable equity interest %	100.00%	100.00%
Fuzhi Yuan (Shenzhen) Holdings Limited [Member] | RMB Currency [Member]
Authorized capital | ¥		¥ 500,000
Jiangxi Fu Zhi Yuan Biotechnology Co., Limited [Member]
Place of incorporation	PRC
Attributable equity interest %	100.00%	100.00%
Jiangxi Fu Zhi Yuan Biotechnology Co., Limited [Member] | RMB Currency [Member]
Authorized capital | ¥		¥ 50,000,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Foreign Currency Translation (Details)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Spot Rate RMB [Member]
Foreign Currency Exchange Rate, Translation	0.1455	0.1536	0.1451
Average Year RMB [Member]
Foreign Currency Exchange Rate, Translation	0.1537	0.1480	0.1452
Year End HKD [Member]
Foreign Currency Exchange Rate, Translation	0.129	0.129	0.129
Average Year HKD [Member]
Foreign Currency Exchange Rate, Translation	0.129	0.129	0.129

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 5,576,481	$ 4,646,033

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 26,728	$ 1,387,241
Less: Allowance for doubtful accounts		(1,297,552)
Accounts receivable, Net	$ 26,728	$ 89,689

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 37,227	$ 72,516
Finished goods (includes write down)	60,736	5,841
Inventory allowance	(71,229)	(75,181)
Inventories, Net	$ 26,734	$ 78,357

Plant and Equipment (Details Na

Plant and Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 177,416	$ 491,480

Plant and Equipment - Schedule

Plant and Equipment - Schedule of Plant and Equipment (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 12,393,534	$ 12,635,026
Less: Accumulated depreciation	(1,902,781)	(1,527,634)
Property, plant and equipment, net	10,490,752	11,107,392
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,949,292	6,279,367
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,373,633	6,281,133
Motor Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	48,985	51,702
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 21,624	$ 22,824

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 41,574	$ 5,305

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Land use rights, at cost	$ 509,148	$ 557,821
Less: Accumulated amortization	(51,544)	(33,274)
Intangible assets, net	$ 457,604	$ 524,547

Loans and Interest (Details Nar

Loans and Interest (Details Narrative)	Apr. 28, 2017USD ($)	Mar. 30, 2017USD ($)	Oct. 30, 2015USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Apr. 28, 2017CNY (¥)	Mar. 30, 2017CNY (¥)	Oct. 30, 2015CNY (¥)
Interest expenses					$ 241,190	$ 182,200
Short term loan					2,164,180		$ 2,304,222
Repayment of bank loans					$ 19,979
Jiangxi Rural Credit Union & Rural Commercial Bank [Member]
Loan due date	Apr. 25, 2020	Mar. 28, 2018
Short term loan	$ 768,074	$ 1,536,148
Loan carried interest rate	4.35%	6.30%						4.35%	6.30%
Repayment of bank loans				$ 334,109
Jiangxi Rural Credit Union & Rural Commercial Bank [Member] | RMB Currency [Member]
Short term loan | ¥								¥ 5,000,000	¥ 10,000,000
Industrial and Commercial Bank of China [Member] | Loan Agreement [Member]
Short term loan			$ 2,403,808
Loan carried interest rate			4.75%							4.75%
Loan maturity term			5 years
Industrial and Commercial Bank of China [Member] | RMB Currency [Member] | Loan Agreement [Member]
Short term loan | ¥										¥ 15,000,000
Bank of Beijing [Member]
Loan due date	Apr. 25, 2021
Short term loan	$ 307,230
Loan carried interest rate	4.35%							4.35%
Bank of Beijing [Member] | RMB Currency [Member]
Short term loan | ¥								¥ 2,000,000

Loans and Interest - Schedule o

Loans and Interest - Schedule of Bank Loans (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Short-term bank loans	$ 2,164,180	$ 2,304,222
Long-term bank loans - current portion	436,620	460,844
Long-term bank loans	1,678,852	1,771,997
Bank loans, net	$ 4,279,651	$ 4,537,063

Loans and Interest - Schedule_2

Loans and Interest - Schedule of Maturity of Loan Payable (Details)	Sep. 30, 2018USD ($)
Debt Disclosure [Abstract]
Due in 2018	$ 2,867,988
Due in 2019	717,381
Due in 2020	644,464
Due in 2021	307,230
Due in 2022
Due in greater than five years
Long-term debt	$ 4,537,063

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Parties' Relationships (Details)	9 Months Ended
	Sep. 30, 2018
David Po [Member]
Related parties' relationships	Director, CEO and Majority Shareholder of the Company
Peng Qiu [Member]
Related parties' relationships	Shareholder of the Company
Min Huang [Member]
Related parties' relationships	Mr. Peng Qiu's spouse
Yi Sheng Qiu [Member]
Related parties' relationships	Mr. Peng Qiu's father
Wan An Fu Zhi Yuan Cha Ye Ltd. Co [Member]
Related parties' relationships	Mr. Peng Qiu, CEO of the Company as shareholder and officer.
Wu Junrui [Member]
Related parties' relationships	Former management of the Company

Related Party Transactions - _2

Related Party Transactions - Schedule of Due to Related Parties (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Amounts due to related parties	$ 4,923,946	$ 4,998,751
Peng Qiu [Member]
Amounts due to related parties	3,762,755	4,031,991
David Po [Member]
Amounts due to related parties	644,079	412,647
Yi Sheng Qiu [Member]
Amounts due to related parties	$ 517,112	$ 554,113

Stockholders' Deficit (Details

Stockholders' Deficit (Details Narrative) - $ / shares	Sep. 30, 2018	Dec. 31, 2017	May 01, 2017	Feb. 13, 2017
Equity [Abstract]
Preferred stock, shares authorized	50,000	50,000	50,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	50,000	50,000		5,000,000
Preferred stock, shares outstanding	50,000	50,000		5,000,000
Common stock, shares authorized	2,000,000,000	2,000,000,000	3,950,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Common stock, shares issued	507,270,882	507,270,882		395,000,000
Common stock, shares outstanding	507,270,882	507,270,882		395,000,000

Risks (Details Narrative)

Risks (Details Narrative)	9 Months Ended
	Sep. 30, 2018
Sales Revenue, Net [Member] | Customer One [Member]
Concentration risk percentage	20.80%
Sales Revenue, Net [Member] | Customer Two [Member]
Concentration risk percentage	24.80%
Sales Revenue, Net [Member] | Customer Three [Member]
Concentration risk percentage	27.40%
Purchases [Member] | One Vendor [Member]
Concentration risk percentage	100.00%
Purchases [Member] | Single Vendor [Member]
Concentration risk percentage	5.00%