Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | China Customer Relations Centers, Inc. |
Entity Central Index Key | 0001620664 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Shell Company | false |
Entity File Number | 001-37655 |
Entity Common Stock, Shares Outstanding | 18,329,600 |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | VA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 25,328,486 | $ 24,419,912 |
Accounts receivable, net | 42,606,485 | 30,050,506 |
Prepayments | 2,396,646 | 1,689,835 |
Prepayment, related party | 90,429 | 91,618 |
Due from related party, current | 199,994 | |
Income taxes recoverable | 712,459 | 527,995 |
Other current assets | 3,408,704 | 1,959,923 |
Total current assets | 74,543,209 | 58,939,783 |
Equity investments | 3,446,346 | 3,491,653 |
Property and equipment, net | 10,115,782 | 8,290,460 |
Deferred tax assets | 242,863 | 486,009 |
Due from related party, non-current | 215,307 | |
Operating lease right-of-use assets | 9,827,114 | |
Operating lease right-of-use assets - related party | 172,121 | |
Total non-current assets | 24,019,533 | 12,268,122 |
Total assets | 98,562,742 | 71,207,905 |
LIABILITIES AND EQUITY | ||
Accounts payable | 2,602,972 | 610,724 |
Accounts payable - related parties | 149,658 | 162,112 |
Accrued liabilities and other payables | 4,641,892 | 5,673,159 |
Deferred revenue | 456,331 | 361,636 |
Wages payable | 10,472,596 | 7,082,138 |
Income taxes payable | 452,961 | 364,157 |
Operating lease liabilities, current | 3,797,069 | |
Operating lease liabilities - related party, current | 163,995 | |
Short term loans | 4,306,138 | 3,635,623 |
Total current liabilities | 27,043,612 | 17,889,549 |
Operating lease liabilities, non-current | 6,068,702 | |
Total non-current liabilities | 6,068,702 | |
Total liabilities | 33,112,314 | 17,889,549 |
Equity | ||
Common shares, $0.001 par value, 100,000,000 shares authorized, 18,329,600 shares issued and outstanding as of December 31, 2019 and December 31, 2018 | 18,330 | 18,330 |
Additional paid-in capital | 15,074,267 | 11,202,396 |
Retained earnings | 47,347,781 | 40,065,822 |
Statutory reserves | 5,818,330 | 3,916,149 |
Accumulated other comprehensive loss | (3,411,744) | (2,592,289) |
Total China Customer Relations Centers, Inc. shareholders' equity | 64,846,964 | 52,610,408 |
Noncontrolling interest | 603,464 | 707,948 |
Total equity | 65,450,428 | 53,318,356 |
Total liabilities and equity | $ 98,562,742 | $ 71,207,905 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 18,329,600 | 18,329,600 |
Common stock, shares outstanding | 18,329,600 | 18,329,600 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues, net | $ 173,409,113 | $ 141,433,641 | $ 88,971,787 |
Cost of revenues | 134,504,540 | 102,567,896 | 65,562,563 |
Gross profit | 38,904,573 | 38,865,745 | 23,409,224 |
Operating expenses: | |||
Selling, general & administrative expenses | 26,318,771 | 21,329,908 | 14,766,524 |
Total operating expenses | 26,318,771 | 21,329,908 | 14,766,524 |
Income from operations | 12,585,802 | 17,535,837 | 8,642,700 |
Interest expense | (190,808) | (404,958) | (1,609) |
Government grants | 1,825,402 | 1,709,297 | 1,885,340 |
Other income | 1,547,788 | 552,205 | 175,995 |
Other expense | (202,688) | (124,370) | (331,641) |
Total other income | 2,979,694 | 1,732,174 | 1,728,085 |
Income before provision for income taxes | 15,565,496 | 19,268,011 | 10,370,785 |
Income tax provision | 2,391,371 | 2,966,880 | 1,255,654 |
Net income | 13,174,125 | 16,301,131 | 9,115,131 |
Less: net income attributable to noncontrolling interest | 118,114 | 208,593 | 341,672 |
Net income attributable to China Customer Relations Centers, Inc. | 13,056,011 | 16,092,538 | 8,773,459 |
Comprehensive income | |||
Net income | 13,174,125 | 16,301,131 | 9,115,131 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | (828,331) | (2,741,283) | 2,141,796 |
Total Comprehensive income | 12,345,794 | 13,559,848 | 11,256,927 |
Less: Comprehensive income attributable to noncontrolling interest | 109,238 | 140,467 | 401,324 |
Comprehensive income attributable to China Customer Relations Centers, Inc. | $ 12,236,556 | $ 13,419,381 | $ 10,855,603 |
Earnings per share attributable to China Customer Relations Centers, Inc. | |||
Basic | $ 0.71 | $ 0.88 | $ 0.48 |
Diluted | $ 0.71 | $ 0.88 | $ 0.48 |
Weighted average common shares outstanding | |||
Basic | 18,329,600 | 18,329,600 | 18,329,600 |
Diluted | 18,329,600 | 18,329,600 | 18,329,600 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserves | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Balance at Dec. 31, 2016 | $ 18,330 | $ 11,178,774 | $ 2,067,835 | $ 17,226,261 | $ (1,987,968) | $ 28,503,232 | |
Balance, Shares at Dec. 31, 2016 | 18,329,600 | ||||||
Net income | 8,773,459 | 341,672 | 9,115,131 | ||||
Foreign currency translation adjustment | 2,082,144 | 59,652 | 2,141,796 | ||||
Contribution from noncontrolling investor | 23,622 | (178,122) | (13,308) | 521,389 | 353,581 | ||
Transfer to reserve | 529,196 | (529,196) | |||||
Balance at Dec. 31, 2017 | $ 18,330 | 11,202,396 | 2,597,031 | 25,292,402 | 80,868 | 922,713 | 40,113,740 |
Balance, Shares at Dec. 31, 2017 | 18,329,600 | ||||||
Net income | 16,092,538 | 208,593 | 16,301,131 | ||||
Foreign currency translation adjustment | (2,673,157) | (68,126) | (2,741,283) | ||||
Distribution of dividend to noncontrolling investor | (355,232) | (355,232) | |||||
Transfer to reserve | 1,319,118 | (1,319,118) | |||||
Balance at Dec. 31, 2018 | $ 18,330 | 11,202,396 | 3,916,149 | 40,065,822 | (2,592,289) | 707,948 | 53,318,356 |
Balance, Shares at Dec. 31, 2018 | 18,329,600 | ||||||
Net income | 13,056,011 | 118,114 | 13,174,125 | ||||
Foreign currency translation adjustment | (819,455) | (8,876) | (828,331) | ||||
Distribution of dividend to noncontrolling investor | (213,722) | (213,722) | |||||
Capital increase from retained earnings | 3,871,871 | (3,871,871) | |||||
Transfer to reserve | 1,902,181 | (1,902,181) | |||||
Balance at Dec. 31, 2019 | $ 18,330 | $ 15,074,267 | $ 5,818,330 | $ 47,347,781 | $ (3,411,744) | $ 603,464 | $ 65,450,428 |
Balance, Shares at Dec. 31, 2019 | 18,329,600 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 13,174,125 | $ 16,301,131 | $ 9,115,131 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 3,404,912 | 2,635,242 | 1,852,152 |
Allowance for doubtful accounts | 952,439 | 429,803 | |
Loss on disposal of property and equipment | 19,091 | 34,166 | 2,416 |
Deferred income taxes | 238,883 | (196,909) | (230,043) |
Non-cash lease expense | 3,501,753 | ||
Changes in assets and liabilities: | |||
Accounts receivable | (13,057,615) | (7,937,804) | (9,269,755) |
Prepayments | (2,097,963) | (887,778) | (1,313,830) |
Prepayment, related party | (95,244) | ||
Other current assets | (1,510,847) | (970,199) | 25,925 |
Operating lease liabilities | (3,037,030) | ||
Accounts payable | 2,017,431 | 147,818 | (505,372) |
Accounts payable - related parties | (10,440) | 122,630 | (88,136) |
Wages payable | 3,511,093 | 1,884,440 | 2,393,214 |
Income taxes recoverable | (192,965) | (548,893) | |
Income taxes payable | 94,336 | (153,896) | (386,825) |
Deferred revenue | 100,245 | (221,771) | (38,813) |
Accrued liabilities and other payables | (941,772) | 1,077,098 | 1,016,373 |
Net cash provided by operating activities | 5,213,237 | 12,142,470 | 3,002,240 |
Cash flows from investing activities | |||
Purchase of property and equipment | (4,481,450) | (4,768,139) | (2,082,719) |
Proceeds from sale of property and equipment | 36,693 | 9,197 | 108 |
Payments for equity investments | (1,461) | (3,509,404) | |
Repayments from third parties | 233,596 | ||
Advance to related parties | (214,111) | (105,827) | (7,400) |
Repayment from related parties | 198,017 | 117,802 | |
Net cash used in investing activities | (4,460,851) | (4,748,428) | (5,365,819) |
Cash flows from financing activities | |||
Contribution from noncontrolling investor in subsidiary | 353,581 | ||
Dividend distributed to noncontrolling investor in subsidiary | (213,722) | (355,232) | |
Repayments to related parties | (473,914) | ||
Borrowings from short term loans | 4,452,368 | 3,891,596 | 3,780,490 |
Repayment of short term loans | (3,694,345) | (3,625,448) | |
Net cash provided by (used in) financing activities | 544,301 | (89,084) | 3,660,157 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (388,113) | (1,513,411) | 884,519 |
Net change in cash, cash equivalents and restricted cash | 908,574 | 5,791,547 | 2,181,097 |
Cash, cash equivalents and restricted cash, beginning of the year | 24,419,912 | 18,628,365 | 16,447,268 |
Cash, cash equivalents and restricted cash, end of the year | 25,328,486 | 24,419,912 | 18,628,365 |
Supplemental cash flow information | |||
Interest paid | 190,808 | 404,958 | 1,609 |
Income taxes paid | 2,993,733 | 3,929,237 | 1,767,983 |
Non-cash investing and financing activities | |||
Transfer from prepayments to property and equipment | 904,309 | 392,637 | 866,940 |
Liabilities assumed in connection with purchase of property and equipment | 24,512 | 88,112 | 252,317 |
Property and equipment purchased by related party | 15,539 | ||
Advance to related party settled through service | 52,215 | ||
Settlement of notes receivable from a third party | $ 328,783 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | Note 1 – ORGANIZATION China Customer Relations Centers, Inc. (the "Company"), was incorporated on March 6, 2014 under the laws of British Virgin Islands. China BPO Holdings Limited ("CBPO"), the Company's 100% owned subsidiary, was established in Hong Kong on March 28, 2014 as a limited liability company. Other than the equity interest in CBPO, the Company does not own any material assets or liabilities or conduct any operations. CBPO holds all of the outstanding equity interest in Shandong Juncheng Information Technology Co., Ltd., a company established on August 19, 2014 in the People's Republic of China ("PRC") as a wholly foreign owned enterprise ("WFOE"). Other than the equity interest in WFOE, CBPO does not own any material assets or liabilities or conduct any operations. Shandong Taiying Technology Co., Ltd ("Taiying") was incorporated on December 18, 2007 as a domestic Chinese corporation. Taiying and its wholly owned or majority owned subsidiaries are engaged in business process outsourcing ("BPO"), acting as a service provider focusing on the complex voice-based and online-based segment of customer care services, including customer relationship management, sales, customer retention, marketing surveys and research for some of China's big enterprises. The Company does not conduct any substantive operations of its own, rather, it conducts its primary business operations through WFOE, which in turn, conducts its business substantially through Taiying. Effective control over Taiying was transferred to the Company through the series of contractual arrangements without transferring legal ownership in Taiying ("reorganization"). As a result of these contractual arrangements, the Company maintained the ability to approve decisions made by Taiying and was entitled to substantially all of the economic benefits of Taiying. Under the laws and regulations of the PRC, foreign persons and foreign companies are restricted from investing directly in certain businesses within the PRC. Call center businesses are subject to these restrictions on foreign investment. In order to comply with these laws and regulations, on September 3, 2014, Taiying and its sole shareholder, Beijing Taiying Anrui Holding Co., Ltd. ("Beijing Taiying"), entered into an entrusted management agreement with WFOE, which provides that WFOE will be entitled to the full guarantee for the performance of such contracts, agreements or transactions entered into by Taiying. WFOE is also entitled to receive the residual return of Taiying. As a result of the agreement, WFOE will absorb 100% of the expected losses and gains of Taiying. WFOE also entered into a pledge of equity agreement with Taiying's sole shareholder, Beijing Taiying, who pledged all its equity interest in these entities to WFOE. The pledge of equity agreement, which was entered into by Beijing Taiying, pledged its equity interest in WFOE as a guarantee for the entrustment payment under the Entrusted Management Agreement. The provincial Administration for Industry and Commerce approved and registered such pledge of equity by which WFOE owns the right of pledge legally. In addition, WFOE entered into an option agreement to acquire its sole shareholder's equity interest in these entities at such times as it may wish to do so. The followings are brief descriptions of contracts entered between WFOE, Taiying and its sole shareholder, Beijing Taiying: (1) Entrusted Management Agreement. (2) Exclusive Option Agreement. (3) Shareholder's Voting Proxy Agreement. (4) Pledge of Equity Agreement Upon executing the above agreements, Taiying is considered a Variable Interest Entity ("VIE") and WFOE is the primary beneficiary. Accordingly, Taiying is consolidated into WFOE under the guidance of FASB Accounting Standards Codification ("ASC") 810, Consolidation. Except for the disclosed above, there are no arrangements that could require the Company to provide financial support to Taiying, including events or circumstances that could expose the Company to a loss. As stated in the disclosure of various agreements between the Company and Taiying, the Company has rights to acquire any portion of the equity interests of Taiying. Also, the Company may allocate its available funds to Taiying for business purposes. There are no fixed terms of such arrangements. Although the structure the Company has adopted is consistent with longstanding industry practice, and is commonly adopted by comparable companies in China, the PRC government may not agree that these arrangements comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. There are uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the Company's contractual arrangements, which could limit the Company's ability to enforce these contractual arrangements. If the Company or any of its variable interest entities are found to be in violation of any existing or future PRC laws, rules or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including levying fines, revoking business and other licenses of the Company's variable interest entities, requiring the Company to discontinue or restrict its operations, restricting its right to collect revenue, requiring the Company to restructure its operations or taking other regulatory or enforcement actions against the Company. In addition, it is unclear what impact the PRC government actions would have on the Company and on its ability to consolidate the financial results of its variable interest entities in the consolidated financial statements, if the PRC government authorities were to find the Company's legal structure and contractual arrangements to be in violation of PRC laws, rules and regulations. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of Taiying and through Taiying's equity interest in its subsidiaries or the right to receive their economic benefits, the Company would no longer be able to consolidate the Taiying and its subsidiaries. Immediately before and after the reorganization, the shareholder of Taiying controlled Taiying and the Company; therefore, for accounting purposes, the reorganization is accounted for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods presented. As of the filing date, the Company's subsidiaries and variable interest entities are as follows: Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities China BPO Holdings Limited, ("CBPO") March 28, 2014 Hong Kong 100% Holding company of WFOE Shandong Juncheng Information Technology Co., Ltd. ("WFOE") August 19, 2014 PRC 100% Holding company Shandong Taiying Technology Co., Ltd. ("Taiying") December 18, 2007 PRC Contractual arrangements (1) BPO service provider principally serves North China Chongqing Central BPO Industry Co., Ltd. ("Central BPO") January 28, 2010 PRC 100% (2) BPO service provider principally serves South China Jiangsu Taiying Technology Co., Ltd. ("JTTC") February 25, 2010 PRC 100% (2) BPO service provider which principally serves East China Hebei Taiying Communication BPO Co., Ltd. ("HTCC") April 20, 2010 PRC 51% (4) BPO service provider which principally serves North China Shandong Central BPO Industry Co., Ltd. ("SCBI") August 9, 2012 PRC 100% (5) BPO service provider which principally serves North China Shandong Taiying Technology Chongqing Branch Company ("STTCB") February 22, 2013 PRC 100% (2) BPO service provider principally serves South China Jiangsu Central Information Service Co., Ltd. ("JCBI") December 12, 2013 PRC 100% (2) BPO service provider principally serves East China Anhui Taiying Information Technology Co., Ltd. ("ATIT") December 26, 2013 PRC 100% (2) BPO service provider principally serves East China Jiangsu Taiying Information Service Co., Ltd. ("JTIS") July 1, 2014 PRC 100% (2) BPO service provider principally serves East China Nanjing Taiying E-Commercial Business Co., Ltd. ("NTEB") December 25, 2014 PRC 100% (2) BPO service provider principally serves East China Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities Jiangxi Taiying Technology Co., Ltd. ("JXTT") January 8, 2015 PRC 100% (2) BPO service provider principally serves Southeast China Xinjiang Taiying Technology Co., Ltd ("XTTC") March 20, 2015 PRC 100% (2) BPO service provider principally serves Northwest, China Beijing Taiying Technology Co., Ltd. ("BTTC") June 30, 2015 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Shenggu E-commerce Co., Ltd. ("ZSEC") June 16, 2016 PRC 100% (3) E-commerce service provider for the Company Baoding Taiying Information Technology Service Co., Ltd. ("BTIT") June 16, 2017 PRC 100% (2) BPO service provider principally serves Hebei Province, China Sichuan Taiying Technology Co., Ltd. ("STTC") November 8, 2017 PRC 100% (2) BPO service provider principally serves Sichuan Province, China Guangxi Taiying Information Technology Co., Ltd. ("GTTC") March 28, 2018 PRC 100% (2) BPO service provider principally serves Guangxi Zhuang Autonomous Region, China Guangdong Taiying Technology Co., Ltd. ("GDTT") September 6, 2018 PRC 100% (2) BPO service provider principally serves Guangdong Province Shandong Taiying Technology Wuhan Branch Company ("STTWB") November 8, 2018 PRC 100% (2) BPO service provider principally serves Hubei Province Shandong Taiying Technology Chuzhou Branch Company ("STTCZB") January 28, 2019 PRC 100% (2) In the process of dissolution Shandong Taiying Technology Bozhou Branch Company ("STTBB") March 18, 2019 PRC 100% (2) In the process of dissolution Yangzhou Taiying Information Technology Co., Ltd. ("YTIT") July 8, 2019 PRC 100% (2) BPO service provider principally serves Jiangshu Province Ganjiang New District Taiying Information Services Co., Ltd. ("GNDT") July 25, 2019 PRC 100% (2) BPO service provider principally serves Jiangxi Province Shandong Taiying Technology Hefei Branch Company ("STTHB") November 28, 2019 PRC 100% (2) BPO service provider principally serves Anhui Province Shandong Taiying Technology Jiangxi Branch Company ("STTJB") December 6, 2019 PRC 100% (2) BPO service provider principally serves Jiangxi Province Shandong Taiying Technology Guangdong Branch Company ("STTGB") January 22, 2020 PRC 100% (2) BPO service provider principally serves Guangdong Province Tianjin Taiying Zhongbao Network Technology Co., Ltd. ("TTZN") May 18, 2020 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Taiying Technology Co., Ltd. ("ZTTC") March 19, 2020 PRC 100% (2) BPO service provider principally serves Hebei Province (1) VIE effectively controlled by WFOE through a series of contractual agreements (2) Wholly-owned subsidiaries of Taiying (3) Wholly-owned subsidiary of BTTC (4) 49% owned by Beijing Jiate Information Technology Co., Ltd. (5) Wholly-owned subsidiary of Central BPO As of December 31, 2019 and 2018, the assets and liabilities in the Company's balance sheets relate to CCRC, CBPO, and WOFE are as follows: December 31, 2019 December 31, 2018 Held by CCRC Held by CBPO Held by WFOE Held by CCRC Held by CBPO Held by WFOE Assets Cash and cash equivalents $ 119,778 $ 17,125 $ 4,793,416 $ 579,490 $ 17,219 $ 4,729,713 Other receivables 24,000 - - 2,035 - 73 Prepayments 22,740 - - 109,583 - 9,730 Income taxes recoverable - - 46,579 - - 11,942 Long term investment - 5,000,000 - - 5,000,000 - Property and equipment, net - - - - - 15,084 Liabilities Other payables $ - $ 52,000 $ 2,017 $ 34,797 $ 57,000 $ 34,809 Wages payable 100,000 - 100,000 - 130,882 As of December 31, 2019 and 2018, the carrying amount and classification of the assets and liabilities in the Company's balance sheets that relate to the Company's VIE and VIE's subsidiaries is as follows: December 31, December 31, ASSETS Cash and cash equivalents $ 20,398,167 $ 19,093,490 Accounts receivable, net 42,606,485 30,050,506 Prepayments 2,373,906 1,570,522 Prepayment, related party 90,429 91,618 Due from related party, current - 199,994 Income taxes recoverable 665,880 516,053 Other current assets 3,384,704 1,957,815 Total current assets of VIE and its subsidiaries 69,519,571 53,479,998 Equity investments 3,446,346 3,491,653 Property and equipment, net 10,115,782 8,275,376 Operating lease right-of-use assets 9,827,114 - Operating lease right-of-use asset, related party 172,121 - Due from related party, non-current 215,307 - Deferred tax assets 242,863 486,009 Total non-current assets of VIE and its subsidiaries 24,019,533 12,253,038 Total assets of VIE and its subsidiaries $ 93,539,104 $ 65,733,036 LIABILITIES Accounts payable $ 2,602,972 $ 610,724 Accounts payable - related parties 149,658 162,112 Accrued liabilities and other payables 4,587,875 5,546,553 Operating lease liabilities – current 3,797,069 - Operating lease liabilities – current, related party 163,995 - Deferred revenue 456,331 361,636 Wages payable 10,372,596 6,851,256 Income taxes payable 452,961 364,157 Short term loans 4,306,138 3,635,623 Total current liabilities of VIE and its subsidiaries 26,889,595 17,532,061 Operating lease liabilities, non-current 6,068,702 - Total non-current liabilities of VIE and its subsidiaries 6,068,702 - Total liabilities of VIE and its subsidiaries $ 32,958,297 $ 17,532,061 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principals of Consolidation The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the accounts of the Company and Taiying, which is a variable interest entity with the Company as the primary beneficiary. In accordance with U.S. GAAP regarding "Consolidation of Variable Interest Entities ("VIE")", the Company identifies entities for which control is achieved through means other than through voting rights, and determines when and which business enterprise, if any, should consolidate the VIE. The Company evaluated its participating interest in Taiying and concluded it is the primary beneficiary of Taiying, a VIE. The Company consolidated Taiying and all significant intercompany transactions and balances have been eliminated. Noncontrolling Interest Noncontrolling interest on the consolidated balance sheets is resulted from the consolidation of HTCC, a 51% owned subsidiary starting from January 31, 2017. The portion of the income or loss applicable to the noncontrolling interest in subsidiary is reflected in the consolidated statements of income and comprehensive income. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar ("$"), which is the reporting currency of the Company. The functional currency of China Customer Relations Centers, Inc. and CBPO is United States dollar. The functional currency of the Company's subsidiary and VIEs located in the PRC is Renminbi ("RMB"). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income. Transaction gains and losses are reflected in the consolidated statements of income and comprehensive income. For the years ended December 31, 2019, 2018 and 2017, the Company had gain (loss) of $77,348, $231,928 and ($283,343), respectively, resulted from foreign currency transactions, which was included in other income (other expense) in the consolidated statements of income and comprehensive income. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, impairment of equity investments, allowance for doubtful accounts, income taxes including the valuation allowance for deferred tax assets, estimated amounts of variable consideration in the Company's revenue recognition, and estimate on the execution of right of renewal and termination of lease arrangements. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer's financial condition and collateral is not generally required. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments or to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client's account to identify any specific customer collection issues. Impairment of Long-Lived Assets The Company's long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management's estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and include expenditures for additions and major improvements. Significant improvements and betterments are capitalized where it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. Routine repairs and maintenance are expensed when incurred. The Company disposes property and equipment once the Company determines the possibility of receiving future benefit from such property or equipment is remote. Substantially all of the property and equipment are abandoned when disposed. Gains and losses on disposal are included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income based on the net disposal proceeds less the carrying amount of the assets. Certain call center decoration projects were still under construction as of December 31, 2019 and 2018, and the costs of construction were reported as construction in progress. No provision for depreciation is made on the assets under construction until such time as the relevant assets are completed and ready for their intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Electronic equipment 3-5 years Furniture and fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 3-5 years Fair Value of Financial Instruments For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, net, prepayments, income taxes recoverable, other current assets, accounts payable, accrued liabilities and other payables, deferred revenue, wages payable, income taxes payable, current portion of operating lease liability, and short term loans, the carrying amounts approximate their fair values due to the short maturities. Lease Commitments Recent adoption of accounting pronouncement ASU 2016-02 On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (together with all amendments subsequently issued thereto, "ASC Topic 842"), using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance within ASC Topic 842, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company's incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. The primary impact of applying ASC Topic 842 is the initial recognition of approximately $7.9 million of operating lease liabilities, approximately $324,000 of which was associated with a related party lease, and approximately $8.1 million of corresponding right-of-use assets, approximately $327,000 of which was associated with a related party lease, on the Company's consolidated balance sheet as of January 1, 2019, for leases classified as operating leases under ASC Topic 840, as well as enhanced disclosure of the Company's leasing arrangements. There is no cumulative effect to retained earnings or other components of equity recognized as of January 1, 2019 and the adoption of this standard did not impact the consolidated statement of income and comprehensive income or consolidated statement of cash flows of the Company. The Company does not have finance lease arrangements as of December 31, 2019. See Note 14 for further discussion. Payments made under operating leases are charged to the consolidated statements of income and comprehensive income on a straight-line basis over the lease period. Earnings Per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common stock outstanding and dilutive potential common stock during the period. Revenue Recognition The Company operates call centers and generates revenues primarily by providing BPO services, which focus on complex, voice-based and online-based segment of customer care services. Under ASC 606, revenue is recognized when control of the promised services is transferred to the Company's customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those services, net of value-added tax. The Company determines revenue recognition through the following steps: · Identify the contract with a customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when (or as) the entity satisfies a performance obligation. The Company provides BPO service, such as i) inbound call service, which includes directory assistance, mobile phone service plan, billing questions, hotline consultation, complaints, customer feedbacks and customer relationship management, and ii) outbound call service, which includes products selling, marketing surveys, new products informing, plans expiration and bills overdue notification, etc., for its customers. The Company makes arrangement and provides service to its customer pursuant to a master agreement that specifies service content and the price of an individual performance of each service, generally on monthly basis. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. For outbound call service, certain business successful rate was obtained. The fee is determined on a per call basis where the Company receives a basic standard fee for each call plus an extra fee for such things as successfully selling a product or completing a survey. The nature of the Company's contracts with customers gives rise to certain types of variable consideration. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. The Company includes estimated amounts of variable consideration in the transaction price to the extent that it is probable there will not be a significant reversal of revenue. Estimates are based on historical or anticipated performance and represent the Company's best judgment at the time. Revenues are recognized as the performance obligations are satisfied over time over the service period as the service is rendered. The Company's chief operating decision maker reviews results analyzed by customers and the analysis is only presented at the revenue level with no allocation of direct or indirect costs. The Company determines that it has only one operating segment. Consequently, the Company does not disaggregate revenue recognized from contracts with customers. Contract liabilities represented receipt in advance from customers. As of December 31, 2019, receipt in advance from customers was $456,331. As of December 31, 2018, receipt in advance from customers was $361,636, of which $361,636 was recognized as revenue during the year ended December 31, 2019. Receipt in advance from customers is included in deferred revenue in the consolidated balance sheets. The Company does not have any contract assets. Government Grants Government grants include cash subsidies as well as other subsidies received from various government agencies by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when the relevant performance criteria specified in the grant are met, for instance, locating contact centers in their jurisdictions or helping local employment needs. Grants applicable to purchase of property and equipment are credited to deferred revenue upon receipt and are amortized over the life of depreciable assets. Research and Development Expenses Research and development expenses consist primarily of wage expense incurred to personnel to continuously upgrade the Company's existing software products. For the years ended December 31, 2019, 2018, and 2017, research and development expenses of $3,994,464, $4,069,794 and $3,551,629 were included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. Income Taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customer and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Equity Investments The Company's equity investments consist of investments in equity securities of privately held companies without readily determinable fair value, where the Company's level of ownership is such that it cannot exercise significant influence over the investees. Investments are initially recorded at the amount of the Company's initial investment and adjusted for declines in fair value that are considered other than temporary. Subsequent to the Company's adoption of ASC 321 on January 1, 2018, the Company elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The Company makes a qualitative assessment of whether the investments is impaired at each reporting date. If a qualitative assessment indicates that an investment is impaired, the Company estimates the investment's fair value in accordance with ASC 820. If the fair value is less than the investment's carrying value, the Company has to recognize an impairment loss in net income equal to the difference between the carrying value and fair value. Segment Reporting The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consoliated financial statements. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTEREST | Note 3 – NONCONTROLLING INTEREST Beijing Jiate Information Technology Co., Ltd. ("Jiate") holds 49% of the equity interest in HTCC effective January 31, 2017 pursuant to an investment agreement entered into in July 2016 between HTCC, its parent company Taiying and Jiate. On May 6, 2019 and April 10, 2018, HTCC declared a dividend of RMB 3 million and RMB 5 million to Taiying and HTCC, respectively. The dividend was allocated based on the equity interest percentage as of the date of declaration. As a result, $213,722 and $355,232 was distributed to Jiate on May 6, 2019 and December 14, 2018, respectively. |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
EQUITY INVESTMENTS | Note 4 – EQUITY INVESTMENTS The Company presents its investments in Beijing Ling Ban Future Technology Co., Ltd. ("Ling Ban"), Beijing Ling Ban Intelligence Online Services Co., Ltd. ("Ling Ban Online") and Tai'an Taiying Wealth and Equity Investment and Management Co., Ltd. ("TWIC") as equity investments. During the year ended December 31, 2019, the Company conducted various transactions with Ling Ban Online. As of December 31, 2019, service performed but uncollected in the amount of approximately $109,000 from Ling Ban Online was included in accounts receivable, net. On January 15, 2020, the Company and Ling Ban Online entered into a loan agreement, where the Company agreed to lend approximately $430,000 to Ling Ban Online. The loan matures on June 15, 2020, bears an interest of 6.5% per annum, and is guaranteed by the CEO of Ling Ban and Ling Ban Online and pledged by a portion of Ling Ban Online's equity interest, worth approximately $1.29 million on the date of the agreement. The Company makes a qualitative assessment of whether the investments are impaired at each reporting date. No impairment loss was identified during the years ended December 31, 2019, 2018 and 2017. The following table entails the carrying value and change of the Company's investments in Ling Ban, Ling Ban Online and TWIC made in the years ended December 31, 2019, 2018 and 2017. For the Years Ended 2019 2018 2017 Beginning Balance $ 3,491,653 $ 3,688,676 $ - Investment made to Ling Ban - - 2,645,672 Investment made to Ling Ban Online - - 863,732 Investment made to TWIC - 1,461 - Translation adjustment (45,307 ) (198,484 ) 179,272 Ending Balance $ 3,446,346 $ 3,491,653 $ 3,688,676 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 5 – ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consists of the following: December 31, 2019 2018 Accounts receivable $ 42,606,485 $ 30,472,846 Less: Allowance for doubtful accounts - (422,340 ) Accounts receivable, net $ 42,606,485 $ 30,050,506 The changes in allowance for doubtful accounts consist of the following: For the Years Ended December 31, 2019 2018 2017 Balance, beginning of the year $ 422,340 $ 446,357 $ - Provision for doubtful accounts - - 429,803 Recovery of allowance for doubtful account (420,456 ) - - Translation adjustments (1,884 ) (24,017 ) 16,554 Balance, end of the year $ - $ 422,340 $ 446,357 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | Note 6 – OTHER CURRENT ASSETS Other current assets mainly consist of other receivables and deposits. Other receivables principally include advances to employees for business travel or business development purposes, deferred VAT deductions and other miscellaneous receivables such as utility fees, social insurances, and personal income tax paid in advance on behalf of employees. Deposits include guarantee deposits, rent deposits, and security deposits for bidding on customer projects. As of December 31, 2019 and 2018, other current assets consist of the following: December 31, 2019 2018 Other receivables $ 844,173 $ 557,401 Deposits 2,564,531 1,402,522 Total other current assets $ 3,408,704 $ 1,959,923 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 7 – PROPERTY AND EQUIPMENT, NET As of December 31, 2019 and 2018, property and equipment consist of the following: December 31, 2019 2018 Electronic equipment $ 12,714,533 $ 11,512,111 Office furniture and equipment 3,760,690 2,272,278 Motor vehicles 760,635 694,844 Construction in progress 438,709 344,348 Computer software 1,121,528 713,021 Leasehold improvements 3,466,295 2,704,269 Total property and equipment 22,262,390 18,240,871 Accumulated depreciation (12,146,608 ) (9,950,411 ) Property and equipment, net $ 10,115,782 $ 8,290,460 Depreciation expenses for the years ended December 31, 2019, 2018 and 2017 were $3,404,912, $2,635,242, and $1,852,152, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company acquired property and equipment on credit in the amount of $24,512, $88,112 and $267,856, among which $0, $0 and $15,539 were acquired through a related party, respectively. |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES AND OTHER PAYABLES | Note 8 – ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables mainly consist of bonus payables, VAT and other taxes payables, and other accrued liabilities. Other accrued liabilities principally include accrued network rental expense in the telecommunication industry, unpaid travel expense, accrued professional service expense, and accrued employee welfares and benefits. December 31, 2019 2018 Bonus payables $ 1,258,449 $ 2,121,957 VAT and other taxes payables 830,795 774,290 Other accrued liabilities 2,552,648 2,776,912 Total accrued liabilities and other payables $ 4,641,892 $ 5,673,159 |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES | Note 9 – DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES The components of the deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets Revenue and expense cutoff $ 57,497 $ 204,904 Allowance for doubtful accounts 250,906 359,789 Loss carryforward 1,623,542 526,855 1,931,945 1,091,548 Less: valuation allowance (1,623,542 ) (526,855 ) $ 308,403 $ 564,693 Deferred tax liability Depreciation of property and equipment $ 65,540 $ 78,684 For the purpose of presentation in the consolidated balance sheets, certain deferred income tax assets and liabilities have been offset. The following is the analysis of the deferred income tax balances for financial reporting purpose: December 31, 2019 2018 Deferred tax assets $ 242,863 $ 486,009 Deferred tax liabilities $ - $ - |
Short Term Loans
Short Term Loans | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
SHORT TERM LOANS | Note 10 – SHORT TERM LOANS Loans from Bank of China ("BOC") On January 18, 2018, the Company borrowed a one-year loan of approximately $3,890,000 from BOC, bears an annual interest rate of 5.22%. The loan was repaid on January 17, 2019. On March 19, 2019, the Company borrowed a one-year loan of approximately $3,730,000 from BOC, which had an effective annual interest rate of 4.79%. The loan was repaid on March 17, 2020. All loans borrowed from BOC are guaranteed by Gary Wang, David Wang, Guoan Xu, and their family spouses. Line of Credit ("LOC") from China Merchants Bank ("CMB") On July 2, 2019, the Company obtained a LOC from CMB, pursuant to which the Company is able to obtain revolving loans and issue letters of credit, which, upon borrowing, reduces the amount available for other extensions of credit. Accordingly, the total amount outstanding under the letters of credit and indebtedness incurred under the LOC cannot exceed RMB100 million (approximately $14 million). The interest rate and purpose of each borrowing under the LOC are approved by CMB separately. CMB has the right to perform annual evaluations of the Company's business and financial performance, and the total line of credit available under the LOC may be adjusted based on the result of such evaluations. The LOC terminates on July 1, 2020 and is guaranteed by Gary Wang, the Chief Executive Officer of the Company. During the year ended December 31, 2019, the Company borrowed approximately $730,000 under the LOC at an effective annual interest rate of 4.35%. The borrowing matures on January 18, 2020. The interest expenses for the years ended December 31, 2019, 2018 and 2017 were $190,808, $404,958 and $1,609, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 11 – RELATED PARTY TRANSACTIONS The related parties had transactions for the years ended December 31, 2019, 2018 and 2017 consist of the following: Name of Related Party Nature of Relationship Beijing Taiying Anrui Holding Co., Ltd. ("Beijing Taiying") Sole Shareholder Shandong Luk Information Technology Co., Ltd. ("Shandong Luk") Controlled by the brother of Gary Wang, the Chief Executive Officer of the Company Chongqing Shenggu Human Resources Co., Ltd. ("CSHR") Controlled by Beijing Taiying Chongqing Taiying Shiye Development Co., Ltd. ("Shiye") David Wang, the Chief Financial Officer of the Company, being a 5% shareholder Shenzhen Shenggu Human Resources Management Co., Ltd. ("SSHR") Controlled by Beijing Taiying and David Wang being a 15% shareholder Beijing Jiate Information Technology Co., Ltd. ("Jiate") Noncontrolling shareholder of HTCC Jiangsu Sound Valley Human Resource Management Co., Ltd. ("JSVH") Controlled by Gary Wang Jinan Shenggu Human Resources Management Co., Ltd. ("JSHR") Controlled by Gary Wang Beijing Shenggu Education Investment Co., Ltd. ("BSEI") Controlled by Gary Wang Shenzhen Shenggu Human Resources Management Co., Ltd. ("SSHR") Controlled by Gary Wang Tai'an Taiying Wealth and Equity Investment and Management Co., Ltd. ("TWIC") David Wang being the legal person of TWIC Significant balances and transactions with related parties are as follows: December 31, Name of Related Party 2019 2018 Nature of Transaction Associated with the Balance PREPAYMENT - RELATED PARTY Beijing Taiying $ 90,429 $ 91,618 Prepayment of services Prepayment - related party, total $ 90,429 $ 91,618 DUE FROM RELATED PARTY, CURRENT CSHR $ - $ 199,994 Non-secured and interest free short-term loan Due from related party, current, total $ - $ 199,994 DUE FROM RELATED PARTY, NON-CURRENT JSVH $ 215,307 $ - A loan bearing annual interest rate of 4.35% Due from related party, non-current, total $ 215,307 $ - ACCOUNTS PAYABLE - RELATED PARTIES JSVH $ 60,664 $ 73,020 Outstanding unpaid human resource service fee JSHR - 33,753 Outstanding unpaid human resource service fee SSHR 88,994 - Outstanding unpaid human resource service fee Jiate - 55,339 Outstanding unpaid customer referral commission Accounts payable - related parties, total $ 149,658 $ 162,112 EQUITY INVESTMENT TWIC $ 1,435 $ 1,454 Equity investment (See Note 4) Equity investment, total $ 1,435 $ 1,454 Related party lease BSEI leased certain office space at Zaozhuang Software and Service Industrial Park with a total area of 18,000 square meters, of which 6,500 square meters were subleased to ZSEC at a price of RMB0.5 per square meter per day, from July 1, 2018 to January 1, 2021. Lease expense incurred associated with the BSEI lease for the years ended December 31, 2019 and 2018 was approximately $164,000 and $88,000, respectively. The Company does not have any outstanding balance owed to BSEI as of December 31, 2019 and 2018. Notes receivable from related party, net The Company had certain notes receivable from Shiye in relation to a loan made in 2013. During the year ended December 31, 2018, the Company reserved an allowance for all the outstanding balance from Shiye as the Company does not expect to collect from Shiye within a reasonable period of time. |
Major Customers and Credit Risk
Major Customers and Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS AND CREDIT RISK | Note 12 – MAJOR CUSTOMERS AND CREDIT RISK The Company had one customer for the year ended December 31, 2019 that contributed 10% or more of total net revenues and one customer for the year ended December 31, 2019 that contributed 10% or more of total net accounts receivable. The Company had two customers for the year ended December 31, 2018 that contributed 10% or more of total net revenues. The account receivable balance due from each of these two customers also accounted for 10% or more of accounts receivable as of December 31, 2018. The Company had one customer including its provincial subsidiaries for the year ended December 31, 2017 that contributed 10% or more of total net revenues. The account receivable balance due from this customer also accounted for 10% or more of accounts receivable as of December 31, 2017. The loss of one or more of its significant customers could have a material adverse effect on the Company's business, operating results, or financial condition. The Company does not require collateral from its customers. To limit the Company's credit risk, management performs periodic credit evaluations of its customers and maintains allowances for uncollectible accounts. Although the Company's accounts receivable could increase dramatically as the Company grows its sales, management does not believe significant credit risk exists as of December 31, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 13 – INCOME TAXES British Virgin Islands ("BVI") Under the current laws of BVI, China Customer Relations Centers, Inc. is not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject to withholding tax in the BVI. Hong Kong The Company's subsidiary, CBPO, is incorporated in Hong Kong and has no operating profit or tax liabilities during the period. CBPO is subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong. PRC The Company's subsidiary, VIE and VIE's subsidiaries registered in the PRC are subject to PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income tax laws. On March 16, 2007, the National People's Congress enacted a new enterprise income tax law, which took effect on January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According to the tax law, entities that qualify as high and new technology enterprises ("HNTE") supported by the PRC government are allowed a 15% preferential tax rate instead of the uniform tax rate of 25%. The qualification of HNTE will be renewed after evaluation by relevant government authorities every three years. On April 6, 2012, State Administration of Taxation circulated the Announcement on Enterprise Income Tax Regarding Further Implementing the Western China Development Strategy (the "Announcement"), effective retroactively on January 1, 2011, pursuant to which a qualified enterprise will be granted for a preferential tax rate of 15%. For the years ended December 31, 2019, 2018 and 2017, the following subsidiaries were entitled to a 15% preferential tax rate pursuant to being either a HNTE or a qualified enterprise as indicated in the Announcement: For the Years Ended December 31, 2019 2018 2017 Taiying Taiying Taiying Central BPO Central BPO Central BPO JTTC JTTC JTTC SCBI SCBI SCBI JTIS JTIS JTIS HTCC HTCC HTCC JXTT JXTT JXTT ZSEC ZSEC XTTC XTTC ATIT GTTC STTC Other PRC entities are subject to the 25% EIT rate of their taxable income. The provision for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current $ 2,152,488 $ 3,163,789 $ 1,539,515 Deferred 238,883 (196,909 ) (283,861 ) Total $ 2,391,371 $ 2,966,880 $ 1,255,654 The reconciliations of the PRC statutory income tax rate and the Company's effective income tax rate are as follows: For the Years Ended December 31, 2019 2018 2017 PRC statutory income tax rate 25 % 25 % 25 % Effect of income tax exemptions and reliefs (2.84 )% (2.84 )% (14.59 )% Effect of expenses not deductible for tax purposes 2.82 % 0.72 % 0.47 % Effect of additional deduction allowed for tax purposes (14.40 )% (8.74 )% (0.22 )% Effect of valuation allowance on deferred income tax assets 3.90 % 1.20 % 2.66 % Effect of income tax rate difference under different tax jurisdictions - 0.91 % 1.13 % Others 0.88 % (0.85 )% (2.34 )% Total 15.36 % 15.40 % 12.11 % Accounting for Uncertainty in Income Taxes The tax authority of the PRC Government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company's PRC entities' tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company's PRC entities' tax filings, which may lead to additional tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a "more-likely-than-not" approach. The management evaluated the Company's tax positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2019 and 2018. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
OPERATING LEASES | Notes 14 – OPERATING LEASES The Company occupies most of its facilities under operating leases. The Company entered into various operating lease agreements for offices and certain of its staff dormitories. The remaining lease term of the Company's leases ranges from approximately 0.1 to 5 years. The estimated effect of lease renewal and termination options, as applicable, was included in the consolidated financial statements in current period. The Components of lease expense were as follows: For the year ended 2019 Operating lease Cost: Amortization of right-of-use assets $ 3,471,796 Interest on lease liabilities 501,918 Total operating lease cost $ 3,973,714 Short term operating lease cost $ 1,033,398 Supplemental cash flow information related to leases was as follows: For the year ended 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,558,887 Right-of-use assets obtained in exchange for new lease obligations Operating leases $ 5,496,939 Supplemental balance sheet information related to leases was as follows: December 31, Operating lease right-of-use assets $ 9,827,114 Operating lease right-of-use asset, related party 172,121 $ 9,999,235 Operating lease liabilities-current $ 3,797,069 Operating lease liability-current, related party 163,995 Operating lease liabilities, non-current 6,068,702 Total operating lease liabilities $ 10,029,766 Weighted-average remaining lease term 2.79 years Weighted-average discount rate 5.22 % The following table summarizes the maturity of our operating lease liabilities as of December 31, 2019: 2020 $ 4,495,299 2021 2,749,750 2022 1,778,855 2023 890,428 2024 166,791 Thereafter - Total 10,081,123 Less imputed interest 51,357 Total lease liabilities $ 10,029,766 |
Contingency
Contingency | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCY | Note 15 – CONTINGENCY The Company issued an approximately $140,000 letter of credit under the LOC obtained from CMB to Bank of Communication ("BOCM") pursuant to a performance guarantee made in connection with a revenue project arranged between the Company and BOCM, in which the Company agreed to provide BPO service to BOCM. Upon the occurrence of a default or nonperformance event, BOCM has the ability to seek damage through the letter of credit, under which circumstance, the Company is obligated to make repayment to CMB plus certain charges including interest. Estimate of such charges cannot currently be made. |
Statutory Reserves and Increase
Statutory Reserves and Increase in Capital | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Reserves [Abstract] | |
STATUTORY RESERVES AND INCREASE IN CAPITAL | Note 16 – STATUTORY RESERVES AND INCREASE IN CAPITAL According to the Company Law in the PRC, companies are required to set aside 10% of their after-tax profit to general reserves each year, based on the PRC accounting standards, until the cumulative total of such reserves reaches 50% of the registered capital. These general reserves are not distributable as cash dividends to equity owners. The Company had appropriated $5,818,330 and $3,916,149 to statutory reserves as of December 31, 2019 and 2018, respectively. On March 29, 2019, the Company increased the registered capital of Taiying using funds from its retained earnings. As a result, $3,871,871 of retained earnings was transferred to additional paid-in capital during the year ended December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 17 – SUBSEQUENT EVENTS On March 19, 2020, the Company borrowed a one-year loan in the amount of RMB 25 million from Bank of China, which bears an effective annual interest rate of 4.57% per annum. The loan is guaranteed by Gary Wang, David Wang, Guoan Xu, and their family spouses. On January 20, 2020, the Company borrowed a revolving loan from its LOC of RMB 5 million at an interest rate of LPR plus 0.2%. The outbreak of the COVID-19 pandemic in China starting from the beginning of 2020 has posed limitations to the Company's normal operating routine. The Company followed the restrictive measures implemented in China, by suspending onsite operation and having employees work remotely until late March 2020, when the Company started to gradually resume normal operation. Consequently, the COVID-19 pandemic may adversely affect the Company's business operations, financial condition and operating results for 2020, including but not limited to material negative impact to the Company's total revenues, slower collection of accounts receivables and significant impairment to the Company's equity investments. Due to the high uncertainty of the evolving situation, the Company has limited visibility on the full impact brought upon by the COVID-19 pandemic and the related financial impact cannot be estimated at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principals of Consolidation | Basis of Presentation and Principals of Consolidation The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and Taiying, which is a variable interest entity with the Company as the primary beneficiary. In accordance with U.S. GAAP regarding “Consolidation of Variable Interest Entities (“VIE”)”, the Company identifies entities for which control is achieved through means other than through voting rights, and determines when and which business enterprise, if any, should consolidate the VIE. The Company evaluated its participating interest in Taiying and concluded it is the primary beneficiary of Taiying, a VIE. The Company consolidated Taiying and all significant intercompany transactions and balances have been eliminated. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest on the consolidated balance sheets is resulted from the consolidation of HTCC, a 51% owned subsidiary starting from January 31, 2017. The portion of the income or loss applicable to the noncontrolling interest in subsidiary is reflected in the consolidated statements of income and comprehensive income. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar ("$"), which is the reporting currency of the Company. The functional currency of China Customer Relations Centers, Inc. and CBPO is United States dollar. The functional currency of the Company's subsidiary and VIEs located in the PRC is Renminbi ("RMB"). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income. Transaction gains and losses are reflected in the consolidated statements of income and comprehensive income. For the years ended December 31, 2019, 2018 and 2017, the Company had gain (loss) of $77,348, $231,928 and ($283,343), respectively, resulted from foreign currency transactions, which was included in other income (other expense) in the consolidated statements of income and comprehensive income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, impairment of equity investments, allowance for doubtful accounts, income taxes including the valuation allowance for deferred tax assets, estimated amounts of variable consideration in the Company's revenue recognition, and estimate on the execution of right of renewal and termination of lease arrangements. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not generally required. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments or to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client’s account to identify any specific customer collection issues. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and include expenditures for additions and major improvements. Significant improvements and betterments are capitalized where it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. Routine repairs and maintenance are expensed when incurred. The Company disposes property and equipment once the Company determines the possibility of receiving future benefit from such property or equipment is remote. Substantially all of the property and equipment are abandoned when disposed. Gains and losses on disposal are included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income based on the net disposal proceeds less the carrying amount of the assets. Certain call center decoration projects were still under construction as of December 31, 2019 and 2018, and the costs of construction were reported as construction in progress. No provision for depreciation is made on the assets under construction until such time as the relevant assets are completed and ready for their intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Electronic equipment 3-5 years Furniture and fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 3-5 years |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, net, prepayments, income taxes recoverable, other current assets, accounts payable, accrued liabilities and other payables, deferred revenue, wages payable, income taxes payable, current portion of operating lease liability, and short term loans, the carrying amounts approximate their fair values due to the short maturities. |
Lease Commitments | Lease Commitments Recent adoption of accounting pronouncement ASU 2016-02 On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (together with all amendments subsequently issued thereto, "ASC Topic 842"), using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance within ASC Topic 842, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company's incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. The primary impact of applying ASC Topic 842 is the initial recognition of approximately $7.9 million of operating lease liabilities, approximately $324,000 of which was associated with a related party lease, and approximately $8.1 million of corresponding right-of-use assets, approximately $327,000 of which was associated with a related party lease, on the Company's consolidated balance sheet as of January 1, 2019, for leases classified as operating leases under ASC Topic 840, as well as enhanced disclosure of the Company's leasing arrangements. There is no cumulative effect to retained earnings or other components of equity recognized as of January 1, 2019 and the adoption of this standard did not impact the consolidated statement of income and comprehensive income or consolidated statement of cash flows of the Company. The Company does not have finance lease arrangements as of December 31, 2019. See Note 14 for further discussion. Payments made under operating leases are charged to the consolidated statements of income and comprehensive income on a straight-line basis over the lease period. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common stock outstanding and dilutive potential common stock during the period. |
Revenue Recognition | Revenue Recognition The Company operates call centers and generates revenues primarily by providing BPO services, which focus on complex, voice-based and online-based segment of customer care services. Under ASC 606, revenue is recognized when control of the promised services is transferred to the Company's customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those services, net of value-added tax. The Company determines revenue recognition through the following steps: · Identify the contract with a customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when (or as) the entity satisfies a performance obligation. The Company provides BPO service, such as i) inbound call service, which includes directory assistance, mobile phone service plan, billing questions, hotline consultation, complaints, customer feedbacks and customer relationship management, and ii) outbound call service, which includes products selling, marketing surveys, new products informing, plans expiration and bills overdue notification, etc., for its customers. The Company makes arrangement and provides service to its customer pursuant to a master agreement that specifies service content and the price of an individual performance of each service, generally on monthly basis. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. For outbound call service, certain business successful rate was obtained. The fee is determined on a per call basis where the Company receives a basic standard fee for each call plus an extra fee for such things as successfully selling a product or completing a survey. The nature of the Company's contracts with customers gives rise to certain types of variable consideration. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. The Company includes estimated amounts of variable consideration in the transaction price to the extent that it is probable there will not be a significant reversal of revenue. Estimates are based on historical or anticipated performance and represent the Company's best judgment at the time. Revenues are recognized as the performance obligations are satisfied over time over the service period as the service is rendered. The Company's chief operating decision maker reviews results analyzed by customers and the analysis is only presented at the revenue level with no allocation of direct or indirect costs. The Company determines that it has only one operating segment. Consequently, the Company does not disaggregate revenue recognized from contracts with customers. Contract liabilities represented receipt in advance from customers. As of December 31, 2019, receipt in advance from customers was $456,331. As of December 31, 2018, receipt in advance from customers was $361,636, of which $361,636 was recognized as revenue during the year ended December 31, 2019. Receipt in advance from customers is included in deferred revenue in the consolidated balance sheets. The Company does not have any contract assets. |
Government Grants | Government Grants Government grants include cash subsidies as well as other subsidies received from various government agencies by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when the relevant performance criteria specified in the grant are met, for instance, locating contact centers in their jurisdictions or helping local employment needs. Grants applicable to purchase of property and equipment are credited to deferred revenue upon receipt and are amortized over the life of depreciable assets. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of wage expense incurred to personnel to continuously upgrade the Company's existing software products. For the years ended December 31, 2019, 2018, and 2017, research and development expenses of $3,994,464, $4,069,794 and $3,551,629 were included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. |
Income Taxes | Income Taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customer and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Related Parties Transactions | Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Equity Investments | Equity Investments The Company's equity investments consist of investments in equity securities of privately held companies without readily determinable fair value, where the Company's level of ownership is such that it cannot exercise significant influence over the investees. Investments are initially recorded at the amount of the Company's initial investment and adjusted for declines in fair value that are considered other than temporary. Subsequent to the Company's adoption of ASC 321 on January 1, 2018, the Company elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The Company makes a qualitative assessment of whether the investments is impaired at each reporting date. If a qualitative assessment indicates that an investment is impaired, the Company estimates the investment's fair value in accordance with ASC 820. If the fair value is less than the investment's carrying value, the Company has to recognize an impairment loss in net income equal to the difference between the carrying value and fair value. |
Segment Reporting | Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consoliated financial statements. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of subsidiaries and variable interest entities | Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities China BPO Holdings Limited, ("CBPO") March 28, 2014 Hong Kong 100% Holding company of WFOE Shandong Juncheng Information Technology Co., Ltd. ("WFOE") August 19, 2014 PRC 100% Holding company Shandong Taiying Technology Co., Ltd. ("Taiying") December 18, 2007 PRC Contractual arrangements (1) BPO service provider principally serves North China Chongqing Central BPO Industry Co., Ltd. ("Central BPO") January 28, 2010 PRC 100% (2) BPO service provider principally serves South China Jiangsu Taiying Technology Co., Ltd. ("JTTC") February 25, 2010 PRC 100% (2) BPO service provider which principally serves East China Hebei Taiying Communication BPO Co., Ltd. ("HTCC") April 20, 2010 PRC 51% (4) BPO service provider which principally serves North China Shandong Central BPO Industry Co., Ltd. ("SCBI") August 9, 2012 PRC 100% (5) BPO service provider which principally serves North China Shandong Taiying Technology Chongqing Branch Company ("STTCB") February 22, 2013 PRC 100% (2) BPO service provider principally serves South China Jiangsu Central Information Service Co., Ltd. ("JCBI") December 12, 2013 PRC 100% (2) BPO service provider principally serves East China Anhui Taiying Information Technology Co., Ltd. ("ATIT") December 26, 2013 PRC 100% (2) BPO service provider principally serves East China Jiangsu Taiying Information Service Co., Ltd. ("JTIS") July 1, 2014 PRC 100% (2) BPO service provider principally serves East China Nanjing Taiying E-Commercial Business Co., Ltd. ("NTEB") December 25, 2014 PRC 100% (2) BPO service provider principally serves East China Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities Jiangxi Taiying Technology Co., Ltd. ("JXTT") January 8, 2015 PRC 100% (2) BPO service provider principally serves Southeast China Xinjiang Taiying Technology Co., Ltd ("XTTC") March 20, 2015 PRC 100% (2) BPO service provider principally serves Northwest, China Beijing Taiying Technology Co., Ltd. ("BTTC") June 30, 2015 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Shenggu E-commerce Co., Ltd. ("ZSEC") June 16, 2016 PRC 100% (3) E-commerce service provider for the Company Baoding Taiying Information Technology Service Co., Ltd. ("BTIT") June 16, 2017 PRC 100% (2) BPO service provider principally serves Hebei Province, China Sichuan Taiying Technology Co., Ltd. ("STTC") November 8, 2017 PRC 100% (2) BPO service provider principally serves Sichuan Province, China Guangxi Taiying Information Technology Co., Ltd. ("GTTC") March 28, 2018 PRC 100% (2) BPO service provider principally serves Guangxi Zhuang Autonomous Region, China Guangdong Taiying Technology Co., Ltd. ("GDTT") September 6, 2018 PRC 100% (2) BPO service provider principally serves Guangdong Province Shandong Taiying Technology Wuhan Branch Company ("STTWB") November 8, 2018 PRC 100% (2) BPO service provider principally serves Hubei Province Shandong Taiying Technology Chuzhou Branch Company ("STTCZB") January 28, 2019 PRC 100% (2) In the process of dissolution Shandong Taiying Technology Bozhou Branch Company ("STTBB") March 18, 2019 PRC 100% (2) In the process of dissolution Yangzhou Taiying Information Technology Co., Ltd. ("YTIT") July 8, 2019 PRC 100% (2) BPO service provider principally serves Jiangshu Province Ganjiang New District Taiying Information Services Co., Ltd. ("GNDT") July 25, 2019 PRC 100% (2) BPO service provider principally serves Jiangxi Province Shandong Taiying Technology Hefei Branch Company ("STTHB") November 28, 2019 PRC 100% (2) BPO service provider principally serves Anhui Province Shandong Taiying Technology Jiangxi Branch Company ("STTJB") December 6, 2019 PRC 100% (2) BPO service provider principally serves Jiangxi Province Shandong Taiying Technology Guangdong Branch Company ("STTGB") January 22, 2020 PRC 100% (2) BPO service provider principally serves Guangdong Province Tianjin Taiying Zhongbao Network Technology Co., Ltd. ("TTZN") May 18, 2020 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Taiying Technology Co., Ltd. ("ZTTC") March 19, 2020 PRC 100% (2) BPO service provider principally serves Hebei Province (1) VIE effectively controlled by WFOE through a series of contractual agreements (2) Wholly-owned subsidiaries of Taiying (3) Wholly-owned subsidiary of BTTC (4) 49% owned by Beijing Jiate Information Technology Co., Ltd. (5) Wholly-owned subsidiary of Central BPO |
Summary of balance sheet | December 31, 2019 December 31, 2018 Held by CCRC Held by CBPO Held by WFOE Held by CCRC Held by CBPO Held by WFOE Assets Cash and cash equivalents $ 119,778 $ 17,125 $ 4,793,416 $ 579,490 $ 17,219 $ 4,729,713 Other receivables 24,000 - - 2,035 - 73 Prepayments 22,740 - - 109,583 - 9,730 Income taxes recoverable - - 46,579 - - 11,942 Long term investment - 5,000,000 - - 5,000,000 - Property and equipment, net - - - - - 15,084 Liabilities Other payables $ - $ 52,000 $ 2,017 $ 34,797 $ 57,000 $ 34,809 Wages payable 100,000 - 100,000 - 130,882 December 31, December 31, ASSETS Cash and cash equivalents $ 20,398,167 $ 19,093,490 Accounts receivable, net 42,606,485 30,050,506 Prepayments 2,373,906 1,570,522 Prepayment, related party 90,429 91,618 Due from related party, current - 199,994 Income taxes recoverable 665,880 516,053 Other current assets 3,384,704 1,957,815 Total current assets of VIE and its subsidiaries 69,519,571 53,479,998 Equity investments 3,446,346 3,491,653 Property and equipment, net 10,115,782 8,275,376 Operating lease right-of-use assets 9,827,114 - Operating lease right-of-use asset, related party 172,121 - Due from related party, non-current 215,307 - Deferred tax assets 242,863 486,009 Total non-current assets of VIE and its subsidiaries 24,019,533 12,253,038 Total assets of VIE and its subsidiaries $ 93,539,104 $ 65,733,036 LIABILITIES Accounts payable $ 2,602,972 $ 610,724 Accounts payable - related parties 149,658 162,112 Accrued liabilities and other payables 4,587,875 5,546,553 Operating lease liabilities – current 3,797,069 - Operating lease liabilities – current, related party 163,995 - Deferred revenue 456,331 361,636 Wages payable 10,372,596 6,851,256 Income taxes payable 452,961 364,157 Short term loans 4,306,138 3,635,623 Total current liabilities of VIE and its subsidiaries 26,889,595 17,532,061 Operating lease liabilities, non-current 6,068,702 - Total non-current liabilities of VIE and its subsidiaries 6,068,702 - Total liabilities of VIE and its subsidiaries $ 32,958,297 $ 17,532,061 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of property and equipment estimated useful lives | Electronic equipment 3-5 years Furniture and fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 3-5 years |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Summary of carrying value and change of the company's investments | For the Years Ended 2019 2018 2017 Beginning Balance $ 3,491,653 $ 3,688,676 $ - Investment made to Ling Ban - - 2,645,672 Investment made to Ling Ban Online - - 863,732 Investment made to TWIC - 1,461 - Translation adjustment (45,307 ) (198,484 ) 179,272 Ending Balance $ 3,446,346 $ 3,491,653 $ 3,688,676 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of accounts receivable, net | December 31, 2019 2018 Accounts receivable $ 42,606,485 $ 30,472,846 Less: Allowance for doubtful accounts - (422,340 ) Accounts receivable, net $ 42,606,485 $ 30,050,506 |
Schedule of changes in allowance for doubtful accounts | For the Years Ended December 31, 2019 2018 2017 Balance, beginning of the year $ 422,340 $ 446,357 $ - Provision for doubtful accounts - - 429,803 Recovery of allowance for doubtful account (420,456 ) - - Translation adjustments (1,884 ) (24,017 ) 16,554 Balance, end of the year $ - $ 422,340 $ 446,357 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | December 31, 2019 2018 Other receivables $ 844,173 $ 557,401 Deposits 2,564,531 1,402,522 Total other current assets $ 3,408,704 $ 1,959,923 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2019 2018 Electronic equipment $ 12,714,533 $ 11,512,111 Office furniture and equipment 3,760,690 2,272,278 Motor vehicles 760,635 694,844 Construction in progress 438,709 344,348 Computer software 1,121,528 713,021 Leasehold improvements 3,466,295 2,704,269 Total property and equipment 22,262,390 18,240,871 Accumulated depreciation (12,146,608 ) (9,950,411 ) Property and equipment, net $ 10,115,782 $ 8,290,460 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other payables | December 31, 2019 2018 Bonus payables $ 1,258,449 $ 2,121,957 VAT and other taxes payables 830,795 774,290 Other accrued liabilities 2,552,648 2,776,912 Total accrued liabilities and other payables $ 4,641,892 $ 5,673,159 |
Deferred Tax Assets and Defer_2
Deferred Tax Assets and Deferred Tax Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | December 31, 2019 2018 Deferred tax assets Revenue and expense cutoff $ 57,497 $ 204,904 Allowance for doubtful accounts 250,906 359,789 Loss carryforward 1,623,542 526,855 1,931,945 1,091,548 Less: valuation allowance (1,623,542 ) (526,855 ) $ 308,403 $ 564,693 Deferred tax liability Depreciation of property and equipment $ 65,540 $ 78,684 |
Schedule of analysis of the deferred income tax balances for financial reporting purpose | December 31, 2019 2018 Deferred tax assets $ 242,863 $ 486,009 Deferred tax liabilities $ - $ - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | Name of Related Party Nature of Relationship Beijing Taiying Anrui Holding Co., Ltd. ("Beijing Taiying") Sole Shareholder Shandong Luk Information Technology Co., Ltd. ("Shandong Luk") Controlled by the brother of Gary Wang, the Chief Executive Officer of the Company Chongqing Shenggu Human Resources Co., Ltd. ("CSHR") Controlled by Beijing Taiying Chongqing Taiying Shiye Development Co., Ltd. ("Shiye") David Wang, the Chief Financial Officer of the Company, being a 5% shareholder Shenzhen Shenggu Human Resources Management Co., Ltd. ("SSHR") Controlled by Beijing Taiying and David Wang being a 15% shareholder Beijing Jiate Information Technology Co., Ltd. ("Jiate") Noncontrolling shareholder of HTCC Jiangsu Sound Valley Human Resource Management Co., Ltd. ("JSVH") Controlled by Gary Wang Jinan Shenggu Human Resources Management Co., Ltd. ("JSHR") Controlled by Gary Wang Beijing Shenggu Education Investment Co., Ltd. ("BSEI") Controlled by Gary Wang Shenzhen Shenggu Human Resources Management Co., Ltd. ("SSHR") Controlled by Gary Wang Tai'an Taiying Wealth and Equity Investment and Management Co., Ltd. ("TWIC") David Wang being the legal person of TWIC |
Schedule of related party | December 31, Name of Related Party 2019 2018 Nature of Transaction Associated with the Balance PREPAYMENT - RELATED PARTY Beijing Taiying $ 90,429 $ 91,618 Prepayment of services Prepayment - related party, total $ 90,429 $ 91,618 DUE FROM RELATED PARTY, CURRENT CSHR $ - $ 199,994 Non-secured and interest free short-term loan Due from related party, current, total $ - $ 199,994 DUE FROM RELATED PARTY, NON-CURRENT JSVH $ 215,307 $ - A loan bearing annual interest rate of 4.35% Due from related party, non-current, total $ 215,307 $ - ACCOUNTS PAYABLE - RELATED PARTIES JSVH $ 60,664 $ 73,020 Outstanding unpaid human resource service fee JSHR - 33,753 Outstanding unpaid human resource service fee SSHR 88,994 - Outstanding unpaid human resource service fee Jiate - 55,339 Outstanding unpaid customer referral commission Accounts payable - related parties, total $ 149,658 $ 162,112 EQUITY INVESTMENT TWIC $ 1,435 $ 1,454 Equity investment (See Note 4) Equity investment, total $ 1,435 $ 1,454 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | For the Years Ended December 31, 2019 2018 2017 Current $ 2,152,488 $ 3,163,789 $ 1,539,515 Deferred 238,883 (196,909 ) (283,861 ) Total $ 2,391,371 $ 2,966,880 $ 1,255,654 |
Schedule of reconciliations of company's effective income tax rate | For the Years Ended December 31, 2019 2018 2017 PRC statutory income tax rate 25 % 25 % 25 % Effect of income tax exemptions and reliefs (2.84 )% (2.84 )% (14.59 )% Effect of expenses not deductible for tax purposes 2.82 % 0.72 % 0.47 % Effect of additional deduction allowed for tax purposes (14.40 )% (8.74 )% (0.22 )% Effect of valuation allowance on deferred income tax assets 3.90 % 1.20 % 2.66 % Effect of income tax rate difference under different tax jurisdictions - 0.91 % 1.13 % Others 0.88 % (0.85 )% (2.34 )% Total 15.36 % 15.40 % 12.11 % |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Schedule of components of lease expense | For the year ended 2019 Operating lease Cost: Amortization of right-of-use assets $ 3,471,796 Interest on lease liabilities 501,918 Total operating lease cost $ 3,973,714 Short term operating lease cost $ 1,033,398 |
Schedule of supplemental cash flow information related lease | For the year ended 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,558,887 Right-of-use assets obtained in exchange for new lease obligations Operating leases $ 5,496,939 |
Schedule of balance sheet information related to leases | December 31, Operating lease right-of-use assets $ 9,827,114 Operating lease right-of-use asset, related party 172,121 $ 9,999,235 Operating lease liabilities-current $ 3,797,069 Operating lease liability-current, related party 163,995 Operating lease liabilities, non-current 6,068,702 Total operating lease liabilities $ 10,029,766 Weighted-average remaining lease term 2.79 years Weighted-average discount rate 5.22 % |
Schedule of maturity of our operating lease liabilities | 2020 $ 4,495,299 2021 2,749,750 2022 1,778,855 2023 890,428 2024 166,791 Thereafter - Total 10,081,123 Less imputed interest 51,357 Total lease liabilities $ 10,029,766 |
Organization (Details)
Organization (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
China BPO Holdings Limited, ("CBPO") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 28, 2014 | |
Entity Incorporation, State Country Name | Hong Kong | |
Percentage of effective ownership | 100.00% | |
Principal Activities | Holding company of WFOE | |
Shandong Juncheng Information Technology Co., Ltd. (''WFOE'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Aug. 19, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | |
Principal Activities | Holding company | |
Shandong Taiying Technology Co., Ltd. ("Taiying") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 18, 2007 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership, description | Contractual arrangements | [1] |
Principal Activities | BPO service provider principally serves North China | |
Chongqing Central BPO Industry Co., Ltd. ("Central BPO") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 28, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves South China | |
Jiangsu Taiying Technology Co., Ltd. ("JTTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Feb. 25, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider which principally serves East China | |
Hebei Taiying Communication BPO Co., Ltd. ("HTCC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Apr. 20, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 51.00% | [3] |
Principal Activities | BPO service provider which principally serves North China | |
Shandong Central BPO Industry Co., Ltd. ("SCBI") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Aug. 9, 2012 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [4] |
Principal Activities | BPO service provider which principally serves North China | |
Shandong Taiying Technology Chongqing Branch Company ("STTCB") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Feb. 22, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves South China | |
Jiangsu Central Information Service Co., Ltd. ("JCBI") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 12, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Anhui Taiying Information Technology Co., Ltd. ("ATIT") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 26, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Jiangsu Taiying Information Service Co., Ltd. (''JTIS'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jul. 1, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Nanjing Taiying E-Commercial Business Co., Ltd. (''NTEB'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 25, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | |
Principal Activities | BPO service provider principally serves East China | |
Jiangxi Taiying Technology Co., Ltd. (''JXTT'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 8, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | |
Principal Activities | BPO service provider principally serves Southeast China | |
Xinjiang Taiying Technology Co., Ltd ("XTTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 20, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Northwest, China | |
Beijing Taiying Technology Co., Ltd. (''BTTC'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jun. 30, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves North China | |
Zaozhuang Shenggu E-commerce Co., Ltd. ("ZSEC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jun. 16, 2016 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [5] |
Principal Activities | E-commerce service provider for the Company | |
Baoding Taiying Information Technology Service Co.,Ltd("BTIT") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jun. 16, 2017 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Hebei Province, China | |
Sichuan Taiying Technology Co., Ltd.("STTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Nov. 8, 2017 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Sichuan Province, China | |
Guangxi Taiying Information Technology Co., Ltd.("GTTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 28, 2018 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Guangxi Zhuang Autonomous Region, China | |
Guangdong Taiying Technology Co.,Ltd("GDTT") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Sep. 6, 2018 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Guangdong Province | |
Shandong Taiying Technology Wuhan Branch Company ("STTWB") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Nov. 8, 2018 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Hubei Province | |
Shandong Taiying Technology Chuzhou Branch Company (“STTCZB”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 28, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | In the process of dissolution | |
Shandong Taiying Technology Bozhou Branch Company (“STTBB”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 18, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | In the process of dissolution | |
Yangzhou Taiying Information Technology Co., Ltd. (“YTIT”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jul. 8, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Jiangshu Province | |
Ganjiang New District Taiying Information Services Co., Ltd. (“GNDT”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jul. 25, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Jiangxi Province | |
Shandong Taiying Technology Hefei Branch Company (“STTHB”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Nov. 28, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Anhui Province | |
Shandong Taiying Technology Jiangxi Branch Company (“STTJB”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 6, 2019 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Jiangxi Province | |
Shandong Taiying Technology Guangdong Branch Company (“STTGB”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 22, 2020 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Guangdong Province | |
Tianjin Taiying Zhongbao Network Technology Co., Ltd. (“TTZN”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | May 18, 2020 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves North China | |
Zaozhuang Taiying Technology Co., Ltd. (“ZTTC”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 19, 2020 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Hebei Province | |
[1] | VIE effectively controlled by WFOE through a series of contractual agreements | |
[2] | Wholly-owned subsidiaries of Taiying | |
[3] | 49% owned by Beijing Jiate Information Technology Co., Ltd. | |
[4] | Wholly-owned subsidiary of Central BPO | |
[5] | Wholly-owned subsidiary of BTTC |
Organization (Details 1)
Organization (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 25,328,486 | $ 24,419,912 | $ 18,628,365 | $ 16,447,268 |
Property and equipment, net | 10,115,782 | 8,290,460 | ||
Liabilities | ||||
Wages payable | 10,472,596 | 7,082,138 | ||
CBPO [Member] | ||||
Assets | ||||
Cash and cash equivalents | 17,125 | 17,219 | ||
Other receivables | ||||
Prepayments | ||||
Income taxes recoverable | ||||
Long term investment | 5,000,000 | 5,000,000 | ||
Property and equipment, net | ||||
Liabilities | ||||
Other payables | 52,000 | 57,000 | ||
Wages payable | ||||
WFOE [Member] | ||||
Assets | ||||
Cash and cash equivalents | 4,793,416 | 4,729,713 | ||
Other receivables | 73 | |||
Prepayments | 9,730 | |||
Income taxes recoverable | 46,579 | 11,942 | ||
Long term investment | ||||
Property and equipment, net | 15,084 | |||
Liabilities | ||||
Other payables | 2,017 | 34,809 | ||
Wages payable | 130,882 | |||
CCRC [Member] | ||||
Assets | ||||
Cash and cash equivalents | 119,778 | 579,490 | ||
Other receivables | 24,000 | 2,035 | ||
Prepayments | 22,740 | 109,583 | ||
Income taxes recoverable | ||||
Long term investment | ||||
Property and equipment, net | ||||
Liabilities | ||||
Other payables | 34,797 | |||
Wages payable | $ 100,000 | $ 100,000 |
Organization (Details 2)
Organization (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 25,328,486 | $ 24,419,912 | $ 18,628,365 | $ 16,447,268 |
Accounts receivable, net | 42,606,485 | 30,050,506 | ||
Prepayments | 2,396,646 | 1,689,835 | ||
Prepayment, related party | 90,429 | 91,618 | ||
Due from related party, current | 199,994 | |||
Income taxes recoverable | 712,459 | 527,995 | ||
Other current assets | 3,408,704 | 1,959,923 | ||
Total current assets of VIE and its subsidiaries | 74,543,209 | 58,939,783 | ||
Equity investments | 3,446,346 | 3,491,653 | ||
Property and equipment, net | 10,115,782 | 8,290,460 | ||
Operating lease right-of-use assets | 9,827,114 | |||
Operating lease right-of-use asset, related party | 172,121 | |||
Due from related party, non-current | 215,307 | |||
Deferred tax assets | 242,863 | 486,009 | ||
Total non-current assets of VIE and its subsidiaries | 24,019,533 | 12,268,122 | ||
Total assets of VIE and its subsidiaries | 98,562,742 | 71,207,905 | ||
LIABILITIES | ||||
Accounts payable | 2,602,972 | 610,724 | ||
Accounts payable - related parties | 149,658 | 162,112 | ||
Operating lease liabilities - current | 3,797,069 | |||
Operating lease liabilities - current, related party | 163,995 | |||
Deferred revenue | 456,331 | 361,636 | ||
Wages payable | 10,472,596 | 7,082,138 | ||
Income taxes payable | 452,961 | 364,157 | ||
Short term loans | 4,306,138 | 3,635,623 | ||
Total current liabilities of VIE and its subsidiaries | 27,043,612 | 17,889,549 | ||
Operating lease liabilities, non-current | 6,068,702 | |||
Total liabilities of VIE and its subsidiaries | 33,112,314 | 17,889,549 | ||
VIE and VIE's subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 20,398,167 | 19,093,490 | ||
Accounts receivable, net | 42,606,485 | 30,050,506 | ||
Prepayments | 2,373,906 | 1,570,522 | ||
Prepayment, related party | 90,429 | 91,618 | ||
Due from related party, current | 199,994 | |||
Income taxes recoverable | 665,880 | 516,053 | ||
Other current assets | 3,384,704 | 1,957,815 | ||
Total current assets of VIE and its subsidiaries | 69,519,571 | 53,479,998 | ||
Equity investments | 3,446,346 | 3,491,653 | ||
Property and equipment, net | 10,115,782 | 8,275,376 | ||
Operating lease right-of-use assets | 9,827,114 | |||
Operating lease right-of-use asset, related party | 172,121 | |||
Due from related party, non-current | 215,307 | |||
Deferred tax assets | 242,863 | 486,009 | ||
Total non-current assets of VIE and its subsidiaries | 24,019,533 | 12,253,038 | ||
Total assets of VIE and its subsidiaries | 93,539,104 | 65,733,036 | ||
LIABILITIES | ||||
Accounts payable | 2,602,972 | 610,724 | ||
Accounts payable - related parties | 149,658 | 162,112 | ||
Accrued liabilities and other payables | 4,587,875 | 5,546,553 | ||
Operating lease liabilities - current | 3,797,069 | |||
Operating lease liabilities - current, related party | 163,995 | |||
Deferred revenue | 456,331 | 361,636 | ||
Wages payable | 10,372,596 | 6,851,256 | ||
Income taxes payable | 452,961 | 364,157 | ||
Short term loans | 4,306,138 | 3,635,623 | ||
Total current liabilities of VIE and its subsidiaries | 26,889,595 | 17,532,061 | ||
Operating lease liabilities, non-current | 6,068,702 | |||
Total non-current liabilities of VIE and its subsidiaries | 6,068,702 | |||
Total liabilities of VIE and its subsidiaries | $ 32,958,297 | $ 17,532,061 |
Organization (Details Textual)
Organization (Details Textual) | Dec. 31, 2019 | |
China BPO Holdings Limited, ("CBPO") [Member] | ||
Organization (Textual) | ||
Percentage of effective ownership | 100.00% | |
Beijing TaiyingAnrui Holding Co., Ltd [Member] | ||
Organization (Textual) | ||
Percentage of effective ownership | 100.00% | [1] |
[1] | Wholly-owned subsidiaries of Taiying |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Computer software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||||
Capital leases, description | The primary impact of applying ASC Topic 842 is the initial recognition of $7.9million and $8.1 million of operating lease liabilities and corresponding right-of-use assets, $327,000 and $324,000 of which was associated with related party lease, respectively, on the Company’s consolidated balance sheet as of January 1, 2019, for leases classified as operating leases under ASC Topic 840, as well as enhanced disclosure of the Company’s leasing arrangements. There is no cumulative effect to retained earnings or other components of equity recognized as of January 1, 2019 and the adoption of this standard did not impact the consolidated statement of income and comprehensive income or consolidated statement of cash flows of the Company. The Company does not have finance lease arrangements as of December 31, 2019. See Note 14 for further discussion. | |||
Related party, description | (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. | |||
Foreign currency transactions | $ 77,348 | $ 231,928 | $ 283,343 | |
Research and development expenses | 3,994,464 | 4,069,794 | $ 3,551,629 | |
Advance from customers | 456,331 | $ 361,636 | ||
Revenue recognized | 361,636 | |||
Operating lease liabilities | $ 10,029,766 | |||
Owned subsidiary [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Noncontrolling interest, ownership percentage | 51.00% |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) | May 06, 2019USD ($) | May 06, 2019CNY (¥) | Dec. 14, 2018USD ($) | Apr. 10, 2018CNY (¥) | Jan. 31, 2017 |
Noncontrolling Interest (Textual) | |||||
Dividends declared | ¥ | ¥ 3,000,000 | ¥ 5,000,000 | |||
Beijing Jiate Information Technology [Member] | |||||
Noncontrolling Interest (Textual) | |||||
Percentage of effective ownership | 49.00% | ||||
Dividends declared | $ | $ 213,722 | $ 355,232 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |||
Beginning Balance | $ 3,491,653 | $ 3,688,676 | |
Investment made to Ling Ban | 2,645,672 | ||
Investment made to Ling Ban Online | 863,732 | ||
Investment made to TWIC | 1,461 | ||
Translation adjustment | (45,307) | (198,484) | 179,272 |
Ending Balance | $ 3,446,346 | $ 3,491,653 | $ 3,688,676 |
Equity Investments (Details Tex
Equity Investments (Details Textual) - USD ($) | Jan. 15, 2020 | Mar. 19, 2019 | Jan. 19, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Maturity date | Mar. 17, 2020 | Jan. 17, 2019 | Jan. 18, 2020 | |||
Impairment loss | ||||||
Ling Ban Online [Member] | ||||||
Equity investments | $ 430,000 | |||||
Equity interest, percentage | 6.50% | |||||
Uncollected service including accounts receivable, net | $ 109,000 | |||||
Maturity date | Jun. 15, 2020 | |||||
Ling Ban Online [Member] | Chief Executive Officer [Member] | ||||||
Equity investments | $ 1,290,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 42,606,485 | $ 30,472,846 |
Less: Allowance for doubtful accounts | (422,340) | |
Accounts receivable, net | $ 42,606,485 | $ 30,050,506 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Balance, beginning of the year | $ 422,340 | $ 446,357 | |
Provision for doubtful accounts | 429,803 | ||
Recovery of allowance for doubtful account | (420,456) | ||
Translation adjustments | (1,884) | (24,017) | 16,554 |
Balance, end of the year | $ 422,340 | $ 446,357 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other receivables | $ 844,173 | $ 557,401 |
Deposits | 2,564,531 | 1,402,522 |
Total other current assets | $ 3,408,704 | $ 1,959,923 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 22,262,390 | $ 18,240,871 |
Accumulated depreciation | (12,146,608) | (9,950,411) |
Property and equipment, net | 10,115,782 | 8,290,460 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,714,533 | 11,512,111 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,760,690 | 2,272,278 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 760,635 | 694,844 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 438,709 | 344,348 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,121,528 | 713,021 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 3,466,295 | $ 2,704,269 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment, Net (Textual) | |||
Depreciation expense | $ 3,404,912 | $ 2,635,242 | $ 1,852,152 |
Purchase of property and equipment | 24,512 | 88,112 | 267,856 |
Related party [Member] | |||
Property and Equipment, Net (Textual) | |||
Purchase of property and equipment | $ 0 | $ 0 | $ 15,539 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of accrued liabilities and other payables | ||
Bonus payables | $ 1,258,449 | $ 2,121,957 |
VAT and other taxes payables | 830,795 | 774,290 |
Other accrued liabilities | 2,552,648 | 2,776,912 |
Total accrued liabilities and other payables | $ 4,641,892 | $ 5,673,159 |
Deferred Tax Assets and Defer_3
Deferred Tax Assets and Deferred Tax Liabilities (Details) - Deferred Tax [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Revenue and expense cutoff | $ 57,497 | $ 204,904 |
Allowance for doubtful accounts | 250,906 | 359,789 |
Loss carryforward | 1,623,542 | 526,855 |
Deferred tax assets, non-current, Gross | 1,931,945 | 1,091,548 |
Less: valuation allowance | (1,623,542) | (526,855) |
Deferred tax assets, non-current, Net | 308,403 | 564,693 |
Deferred tax liability | ||
Depreciation of property and equipment | $ 65,540 | $ 78,684 |
Deferred Tax Assets and Defer_4
Deferred Tax Assets and Deferred Tax Liabilities (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 242,863 | $ 486,009 |
Deferred tax liabilities |
Short Term Loans (Details)
Short Term Loans (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 19, 2019USD ($) | Jan. 19, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 02, 2018USD ($) | Jul. 02, 2018CNY (¥) | |
Short Term Loans (Textual) | |||||||
Short term loans, term | One year | One year | |||||
Short-term loans borrowed | $ 3,730,000 | $ 3,890,000 | $ 730,000 | ||||
Short term loans, repaid date | Mar. 17, 2020 | Jan. 17, 2019 | Jan. 18, 2020 | ||||
Annual interest rate | 4.79% | 5.22% | 4.35% | ||||
Interest expenses | $ 190,808 | $ 404,958 | $ 1,609 | ||||
Letters of credit outstanding, amount | $ 14,000,000 | ||||||
RMB [Member] | |||||||
Short Term Loans (Textual) | |||||||
Letters of credit outstanding, amount | ¥ | ¥ 100,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Beijing Taiying Anrui Holding Co., Ltd. [Member] | |||
Nature of relationship of related parties | Sole Shareholder | Sole Shareholder | Sole Shareholder |
Shandong Luk Information Technology Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by the brother of Gary Wang, the Chief Executive Officer of the Company | Controlled by the brother of Gary Wang, the Chief Executive Officer of the Company | Controlled by the brother of Gary Wang, the Chief Executive Officer of the Company |
Chongqing Shenggu Human Resources Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Beijing Taiying | Controlled by Beijing Taiying | Controlled by Beijing Taiying |
Chongqing Taiying Shiye Development Co., Ltd. [Member] | |||
Nature of relationship of related parties | David Wang, the Chief Financial Officer of the Company, being a 5% shareholder | David Wang, the Chief Financial Officer of the Company, being a 5% shareholder | David Wang, the Chief Financial Officer of the Company, being a 5% shareholder |
Shenzhen Shenggu Human Resources Management Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Beijing Taiying and David Wang being a 15% shareholder | Controlled by Beijing Taiying and David Wang being a 15% shareholder | Controlled by Beijing Taiying and David Wang being a 15% shareholder |
Beijing Jiate Information Technology Co., Ltd. [Member] | |||
Nature of relationship of related parties | Noncontrolling shareholder of HTCC | Noncontrolling shareholder of HTCC | Noncontrolling shareholder of HTCC |
Jiangsu Sound Valley Human Resource Management Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Gary Wang | Controlled by Gary Wang | Controlled by Gary Wang |
Jinan Shenggu Human Resources Management Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Gary Wang | Controlled by Gary Wang | Controlled by Gary Wang |
Beijing Shenggu Education Investment Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Gary Wang | Controlled by Gary Wang | Controlled by Gary Wang |
Shenzhen Shenggu Human Resources Management Co., Ltd. [Member] | |||
Nature of relationship of related parties | Controlled by Gary Wang | Controlled by Gary Wang | Controlled by Gary Wang |
Tai’an Taiying Wealth and Equity Investment and Management Co., Ltd. [Member] | |||
Nature of relationship of related parties | David Wang being the legal person of TWIC | David Wang being the legal person of TWIC | David Wang being the legal person of TWIC |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
PREPAYMENT - RELATED PARTY | ||
Prepayment - related party, total | $ 90,429 | $ 91,618 |
DUE FROM RELATED PARTY, CURRENT | ||
Due from related party, current, total | 199,994 | |
DUE FROM RELATED PARTY, NON-CURRENT | ||
Due from related party, non-current, total | 215,307 | |
ACCOUNTS PAYABLE - RELATED PARTIES | ||
Accounts payable - related parties, total | 149,658 | 162,112 |
EQUITY INVESTMENT | ||
Equity investment, total | $ 1,435 | 1,454 |
Beijing Taiying [Member] | ||
PREPAYMENT - RELATED PARTY | ||
Nature of Transaction Associated with the Balance, related party | Prepayment of services | |
Prepayment - related party, total | $ 90,429 | 91,618 |
CSHR [Member] | ||
DUE FROM RELATED PARTY, CURRENT | ||
Nature of balance, due from related parties current | Non-secured and interest free short-term loan | |
Due from related party, current, total | 199,994 | |
JSVH [Member] | ||
DUE FROM RELATED PARTY, NON-CURRENT | ||
Nature of balance, due from related parties non-current | A loan bearing annual interest rate of 4.35% | |
Due from related party, non-current, total | $ 215,307 | |
ACCOUNTS PAYABLE - RELATED PARTIES | ||
Nature of balance, accounts payable - related parties | Outstanding unpaid human resource service fee | |
Accounts payable - related parties, total | $ 60,664 | 73,020 |
JSHR [Member] | ||
ACCOUNTS PAYABLE - RELATED PARTIES | ||
Nature of balance, accounts payable - related parties | Outstanding unpaid human resource service fee | |
Accounts payable - related parties, total | 33,753 | |
SSHR [Member] | ||
ACCOUNTS PAYABLE - RELATED PARTIES | ||
Nature of balance, accounts payable - related parties | Outstanding unpaid human resource service fee | |
Accounts payable - related parties, total | $ 88,994 | |
Jiate [Member] | ||
ACCOUNTS PAYABLE - RELATED PARTIES | ||
Nature of balance, accounts payable - related parties | Outstanding unpaid customer referral commission | |
Accounts payable - related parties, total | 55,339 | |
TWIC [Member] | ||
EQUITY INVESTMENT | ||
Nature of balance, equity investment | Equity investment (See Note 4) | |
Equity investment, total | $ 1,435 | $ 1,454 |
Related Party Transactions (D_3
Related Party Transactions (Details Texual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lease expense | $ 164,000 | $ 88,000 |
BSEI [Member] | ||
Ground lease description | BSEI leased certain office space at Zaozhuang Software and Service Industrial Park with a total area of 18,000 square meters, of which 6,500 square meters were subleased to ZSEC at a price of RMB0.5 per square meter per day, from July 1, 2018 to January 1, 2021. |
Major Customers and Credit Ri_2
Major Customers and Credit Risk (Details) - Customers | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues [Member] | |||
Major Customers and Credit Risk (Textual) | |||
Number of customers | 1 | 2 | 1 |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Accounts Receivable [Member] | |||
Major Customers and Credit Risk (Textual) | |||
Number of customers | 1 | 2 | |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 2,152,488 | $ 3,163,789 | $ 1,539,515 |
Deferred | 238,883 | (196,909) | (230,043) |
Total | $ 2,391,371 | $ 2,966,880 | $ 1,255,654 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of reconciliations of the PRC statutory income tax rate | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Effect of income tax exemptions and reliefs | (2.84%) | (2.84%) | (14.59%) |
Effect of expenses not deductible for tax purposes | 2.82% | 0.72% | 0.47% |
Effect of additional deduction allowed for tax purposes | (14.40%) | (8.74%) | (0.22%) |
Effect of valuation allowance on deferred income tax assets | 3.90% | 1.20% | 2.66% |
Effect of income tax rate difference under different tax jurisdictions | 0.91% | 1.13% | |
Others | 0.88% | (0.85%) | (2.34%) |
Total | 15.36% | 15.40% | 12.11% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Mar. 16, 2007 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2011 | |
Income Taxes (Textual) | |||||
PRC enterprise income tax description | The National People's Congress enacted a new enterprise income tax law, which took effect on January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According to the tax law, entities that qualify as high and new technology enterprises ("HNTE") supported by the PRC government are allowed a 15% preferential tax rate instead of the uniform tax rate of 25%. The qualification of HNTE will be renewed after evaluation by relevant government authorities every three years. | ||||
Preferential tax rate | 15.00% | ||||
HNTE [Member] | |||||
Income Taxes (Textual) | |||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | ||
Other PRC [Member] | |||||
Income Taxes (Textual) | |||||
Tax percentage | 25.00% | ||||
Hong Kong [Member] | |||||
Income Taxes (Textual) | |||||
Tax percentage | 16.50% |
Operating Leases (Details)
Operating Leases (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease Cost: | |
Amortization of right-of-use assets | $ 3,471,796 |
Interest on lease liabilities | 501,918 |
Total operating lease cost | 3,973,714 |
Short term operating lease cost | $ 1,033,398 |
Operating Leases (Details 1)
Operating Leases (Details 1) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flow from operating leases | $ 3,558,887 |
Operating leases | $ 5,496,939 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Leases, Operating [Abstract] | ||
Operating lease right-of-use assets | $ 9,827,114 | |
Operating lease right-of-use asset, related party | 172,121 | |
Total operating lease assets | 9,999,235 | |
Operating lease liabilities-current | 3,797,069 | |
Operating lease liability-current, related party | 163,995 | |
Operating lease liabilities, non-current | 6,068,702 | |
Total operating lease liabilities | $ 10,029,766 | |
Weighted-average remaining lease term | 2 years 9 months 14 days | |
Weighted-average discount rate | 5.22% |
Operating Leases (Details 3)
Operating Leases (Details 3) | Dec. 31, 2019USD ($) |
Summarizes the maturity of our operating lease liabilities | |
2020 | $ 4,495,299 |
2021 | 2,749,750 |
2022 | 1,778,855 |
2023 | 890,428 |
2024 | 166,791 |
Thereafter | |
Total | 10,081,123 |
Less imputed interest | 51,357 |
Total lease liabilities | $ 10,029,766 |
Operating Leases (Details Textu
Operating Leases (Details Textual) | Dec. 31, 2019 |
Operating Leases (Textual) | |
Remaining lease term | 2 years 9 months 14 days |
Minimum [Member] | |
Operating Leases (Textual) | |
Remaining lease term | 1 month 6 days |
Maximum [Member] | |
Operating Leases (Textual) | |
Remaining lease term | 5 years |
Contingency (Details)
Contingency (Details) | Dec. 31, 2019USD ($) |
BOCM [Member] | |
Contingency (Textual) | |
Letter of credit under LOC | $ 140,000 |
Statutory Reserves and Increa_2
Statutory Reserves and Increase in Capital (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Statutory Reserves (Textual) | |||
General reserves, description | According to the Company Law in the PRC, companies are required to set aside 10% of their after-tax profit to general reserves each year, based on the PRC accounting standards, until the cumulative total of such reserves reaches 50% of the registered capital. | ||
Statutory reserves | $ 5,818,330 | $ 3,916,149 | |
Retained earnings | $ 47,347,781 | $ 3,871,871 | $ 40,065,822 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | 1 Months Ended | |
Mar. 19, 2020 | Jan. 20, 2020 | |
Loan borrowed, description | The Company borrowed a one-year loan in the amount of RMB 25 million from Bank of China, which bears an effective annual interest rate of 4.57% per annum. The loan is guaranteed by Gary Wang, David Wang, Guoan Xu, and their family spouses. | |
Interest rate | 0.20% | |
CNY [Member] | ||
Revolving loans | $ 5,000,000 |