Cover
Cover | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No. 1 |
Entity Registrant Name | Fortune Valley Treasures, Inc. |
Entity Central Index Key | 0001626745 |
Entity Primary SIC Number | 2080 |
Entity Tax Identification Number | 32-0439333 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | B1601 Oriental Impression Building |
Entity Address, Address Line Two | Liansheng Road, Humen Town |
Entity Address, Address Line Three | Dongguan |
Entity Address, City or Town | Guangdong |
Entity Address, Postal Zip Code | 523900 |
City Area Code | 86 |
Local Phone Number | (769) 8572-9133 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Current assets | ||||||
Cash and cash equivalents | $ 150,189 | $ 249,837 | $ 38,137 | |||
Accounts receivable | 2,003,170 | 2,468,038 | 146 | |||
Inventories | 353,549 | 144,565 | 28,502 | |||
Prepayments and other current assets | 2,352,728 | 383,808 | 7,185 | |||
Due from related parties | 27,025 | 984,806 | ||||
Total current assets | 4,886,661 | 4,231,054 | 73,970 | |||
Non-current assets | ||||||
Deposits paid | 1,883,447 | 671,921 | ||||
Property and equipment, net | 149,213 | 47,815 | 8,611 | |||
Operating lease right-of-use assets | 400,415 | 153,251 | ||||
Operating lease right-of-use assets, related parties | 100,991 | 160,013 | 110,456 | |||
Intangible assets, net | 2,444,493 | 3,028,490 | ||||
Goodwill | 1,386,323 | 1,368,915 | ||||
Total Assets | 11,251,543 | 9,661,459 | 193,037 | |||
Current liabilities | ||||||
Operating lease obligations – current | 134,589 | 67,915 | ||||
Operating lease obligations, related parties - current | 25,304 | 160,238 | 13,715 | |||
Accounts payable | 321,528 | 251,541 | ||||
Accrued liabilities | 121,451 | 277,531 | 32,860 | |||
Income tax payable | 222,183 | 321,670 | ||||
Customer advances | 538,829 | 580,151 | ||||
Due to related parties | 744,231 | 337,400 | 808,777 | |||
Total current liabilities | 2,108,115 | 1,996,446 | 855,352 | |||
Non-current liabilities | ||||||
Operating lease obligations – non-current | 258,580 | 85,764 | ||||
Operating lease obligations, related parties – non-current | 81,304 | 93,332 | 98,189 | |||
Bank and other borrowings | 224,259 | 254,266 | ||||
Total Liabilities | 2,672,258 | 2,429,808 | 953,541 | |||
Stockholders’ Equity | ||||||
Common stock (150,000,000 shares authorized, 15,655,038 issued and outstanding as of September 30, 2021 and December 31, 2020)* | 15,655 | [1] | 15,655 | [1],[2] | 15,388 | [2] |
Additional paid in capital* | 11,061,233 | [1] | 11,061,233 | [1],[2] | 292,362 | [2] |
Accumulated deficit | (3,231,700) | (4,341,417) | (1,085,853) | |||
Accumulated other comprehensive income | 394,351 | 300,265 | 17,599 | |||
Total Fortune Valley Treasures, Inc. stockholders’ equity | 8,239,539 | 7,035,736 | (760,504) | |||
Noncontrolling interests | 339,746 | 195,915 | ||||
Total Stockholders’ Equity | 8,579,285 | 7,231,651 | [3] | (760,504) | [4] | |
Total Liabilities and Stockholders’ Equity | $ 11,251,543 | $ 9,661,459 | $ 193,037 | |||
[1] | Given effect of the Reverse Stock Split, see Note 10. | |||||
[2] | Given effect of the Reverse Stock Split, see Note 13. | |||||
[3] | Given effect of the Reverse Stock Split, see Note 13. | |||||
[4] | Given effect of the Reverse Stock Split, see Note 10. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 29, 2018 |
Statement of Financial Position [Abstract] | ||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,655,038 | 15,655,038 | 15,387,632 | |
Common stock, shares outstanding | 15,655,038 | 15,655,038 | 15,387,632 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||||||
Income Statement [Abstract] | ||||||||||||
Revenues from related parties | $ 782 | $ 1,957 | $ 13,046 | $ 1,957 | ||||||||
Revenues from third parties | 2,004,608 | 281,603 | 5,461,848 | 372,830 | ||||||||
Net Revenues | 2,005,390 | 283,560 | 5,474,894 | 374,787 | $ 5,005,694 | $ 275,219 | ||||||
Cost of revenues | 875,418 | 245,504 | 2,402,685 | 299,847 | 1,673,367 | 216,222 | ||||||
Gross profit | 1,129,972 | 38,056 | 3,072,209 | 74,940 | 3,332,327 | 58,997 | ||||||
Other operating income | 166 | 35,164 | ||||||||||
Operating expenses: | ||||||||||||
Selling and distribution expenses | 21,964 | 1,530 | 69,122 | 1,530 | 23,191 | |||||||
General and administrative expenses | 499,928 | 183,571 | 1,431,377 | 422,063 | 873,505 | 439,340 | ||||||
Other operating expenses | 30,812 | |||||||||||
Impairment loss on goodwill | 5,594,692 | |||||||||||
Operating income (loss) | 608,080 | (147,045) | 1,571,876 | (348,653) | (3,154,709) | (380,343) | ||||||
Other income (expense): | ||||||||||||
Other income | 2,309 | 78,525 | 2,429 | 80,631 | 26,878 | 2,474 | ||||||
Loss from conversion of related party loan | (199,030) | |||||||||||
Interest income | 203 | 16 | 851 | 96 | 761 | 206 | ||||||
Interest expense | (4,327) | (5,221) | (13,814) | (10,201) | (14,325) | (11) | ||||||
Other income (expense), net | (1,815) | 73,320 | (10,534) | 70,526 | (185,716) | 2,669 | ||||||
Income (loss) before income tax | 606,265 | (73,725) | 1,561,342 | (278,127) | (3,340,425) | (377,674) | ||||||
Income tax expense | 156,402 | 3,415 | 319,024 | 3,415 | 306,928 | 82 | ||||||
Net income (loss) | 449,863 | (77,140) | 1,242,318 | (281,542) | (3,647,353) | (377,756) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 59,875 | (2,518) | 132,601 | (17,187) | (391,789) | |||||||
Net income (loss) attributable to Fortune Valley Treasures, Inc. | 389,988 | (74,622) | 1,109,717 | (264,355) | (3,255,564) | (377,756) | ||||||
Other comprehensive income: | ||||||||||||
Foreign currency translation gain | 23,945 | 49,945 | 105,316 | 55,228 | 321,337 | 4,480 | ||||||
Total comprehensive income (loss) | 473,808 | (27,195) | 1,347,634 | (226,314) | (3,326,016) | (373,276) | ||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 63,637 | (1,864) | 143,831 | (16,830) | (353,118) | |||||||
Comprehensive income (loss) attributable to Fortune Valley Treasures, Inc. | $ 410,171 | $ (25,331) | $ 1,203,803 | $ (209,484) | $ (2,972,898) | $ (373,276) | ||||||
Earnings (loss) per share | ||||||||||||
Basic and diluted earnings (loss) per share* | $ 0.02 | [1] | $ 0 | [1] | $ 0.07 | [1] | $ (0.02) | [1] | $ (0.21) | [2] | $ (0.02) | [2] |
Basic and diluted weighted average shares outstanding* | 15,655,038 | [1] | 15,387,632 | [1] | 15,655,038 | [1] | 15,387,632 | [1] | 15,390,620 | [2] | 15,387,632 | [2] |
[1] | Given effect of the Reverse Stock Split, See Note 10. | |||||||||||
[2] | Given effect of the Reverse Stock Split, see Note 13. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (loss) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Related party revenue | $ 273,677 | $ 245,392 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |||
Beginning balance, value at Dec. 31, 2018 | [1] | $ 15,388 | $ 292,362 | $ (708,097) | $ 13,119 | $ (387,228) | |||
Beginning balance, shares at Dec. 31, 2018 | [1] | 15,387,632 | |||||||
Net income (loss) | [1] | [1] | (377,756) | (377,756) | |||||
Foreign currency translation adjustment | [1] | [1] | 4,480 | 4,480 | |||||
Ending balance, value at Dec. 31, 2019 | [2] | $ 15,388 | [1] | 292,362 | [1] | (1,085,853) | 17,599 | (760,504) | |
Ending balance, shares at Dec. 31, 2019 | [1],[2] | 15,387,632 | |||||||
Net income (loss) | [2] | [2] | (102,568) | (102,568) | |||||
Foreign currency translation adjustment | [2] | [2] | 7,218 | 7,218 | |||||
Ending balance, value at Mar. 31, 2020 | [2] | $ 15,388 | 292,362 | (1,188,421) | 24,817 | (855,854) | |||
Ending balance, shares at Mar. 31, 2020 | [2] | 15,387,632 | |||||||
Beginning balance, value at Dec. 31, 2019 | [2] | $ 15,388 | [1] | 292,362 | [1] | (1,085,853) | 17,599 | (760,504) | |
Beginning balance, shares at Dec. 31, 2019 | [1],[2] | 15,387,632 | |||||||
Net income (loss) | (281,542) | ||||||||
Foreign currency translation adjustment | 55,228 | ||||||||
Ending balance, value at Sep. 30, 2020 | [2] | $ 15,388 | 292,362 | (1,350,208) | 72,470 | 549,245 | (420,743) | ||
Ending balance, shares at Sep. 30, 2020 | [2] | 15,387,632 | |||||||
Beginning balance, value at Dec. 31, 2019 | [2] | $ 15,388 | [1] | 292,362 | [1] | (1,085,853) | 17,599 | (760,504) | |
Beginning balance, shares at Dec. 31, 2019 | [1],[2] | 15,387,632 | |||||||
Noncontrolling interests arising from acquisition of subsidiary | [1] | [1] | 549,033 | 549,033 | |||||
Net income (loss) | [1] | [1] | (3,255,564) | (391,789) | (3,647,353) | ||||
Foreign currency translation adjustment | [1] | [1] | 282,666 | 38,671 | 321,337 | ||||
Shares issued for conversion of related party loan* | [1] | $ 24 | 995,125 | 995,149 | |||||
Shares issued for conversion of related party loan ,shares | [1] | 24,272 | |||||||
Shares issued for acquisition of subsidiary* | [1] | $ 243 | 9,773,746 | 9,773,989 | |||||
Shares issued for acquisition of subsidiary, shares | [1] | 243,134 | |||||||
Ending balance, value at Dec. 31, 2020 | [1] | $ 15,655 | 11,061,233 | (4,341,417) | 300,265 | 195,915 | 7,231,651 | ||
Ending balance, shares at Dec. 31, 2020 | [1] | 15,655,038 | |||||||
Beginning balance, value at Mar. 31, 2020 | [2] | $ 15,388 | 292,362 | (1,188,421) | 24,817 | (855,854) | |||
Beginning balance, shares at Mar. 31, 2020 | [2] | 15,387,632 | |||||||
Noncontrolling interests arising from acquisition of subsidiary | [2] | [2] | 17,042 | 17,042 | |||||
Net income (loss) | [2] | [2] | (87,165) | (14,669) | (101,834) | ||||
Foreign currency translation adjustment | [2] | [2] | (1,638) | (297) | (1,935) | ||||
Ending balance, value at Jun. 30, 2020 | [2] | $ 15,388 | 292,362 | (1,275,586) | 23,179 | 2,076 | (942,581) | ||
Ending balance, shares at Jun. 30, 2020 | [2] | 15,387,632 | |||||||
Noncontrolling interests arising from acquisition of subsidiary | [2] | [2] | 549,033 | 549,033 | |||||
Net income (loss) | [2] | [2] | (74,622) | (2,518) | (77,140) | ||||
Foreign currency translation adjustment | [2] | [2] | 49,291 | 654 | 49,945 | ||||
Ending balance, value at Sep. 30, 2020 | [2] | $ 15,388 | 292,362 | (1,350,208) | 72,470 | 549,245 | (420,743) | ||
Ending balance, shares at Sep. 30, 2020 | [2] | 15,387,632 | |||||||
Beginning balance, value at Dec. 31, 2020 | [1] | $ 15,655 | $ 11,061,233 | $ (4,341,417) | $ 300,265 | $ 195,915 | 7,231,651 | ||
Beginning balance, shares at Dec. 31, 2020 | [1] | 15,655,038 | |||||||
Net income (loss) | 1,242,318 | ||||||||
Foreign currency translation adjustment | 105,316 | ||||||||
Ending balance, value at Sep. 30, 2021 | $ 8,579,285 | ||||||||
[1] | Given effect of the Reverse Stock Split, see Note 13. | ||||||||
[2] | Given effect of the Reverse Stock Split, see Note 10. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||||
Net income (loss) | $ 1,242,318 | $ (281,542) | $ (3,647,353) | $ (377,756) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Depreciation and amortization expense | 638,099 | 78,629 | 282,795 | 1,073 |
Non-cash lease expense | 83,211 | 87,351 | 124,542 | 15,241 |
Impairment loss on goodwill | 5,594,692 | |||
Loss from conversion of related party loan | 199,030 | |||
Changes in operating assets and liabilities | ||||
Accounts receivable | 494,352 | (121,170) | (2,311,261) | 7,512 |
Inventories | (206,348) | (92,804) | (28,659) | 206,785 |
Prepayments and other current assets | (1,956,481) | (139,492) | (74,427) | 2,854 |
Deposits paid | (1,198,351) | (635,902) | ||
Accounts payable | 66,530 | 87,045 | 199,520 | |
Customer advances | (48,514) | 8,498 | 549,051 | |
Accrued liabilities | 373,916 | 25,627 | 740,652 | (1,702) |
Income tax payable | (103,180) | 298,039 | ||
Operating lease obligations | (97,752) | (15,743) | (54,454) | (27,653) |
Net cash used in operating activities | (712,200) | (363,601) | 1,236,265 | (173,646) |
Cash flows from investing activities | ||||
Advance to related parties | (3,136,194) | (12,099) | (936,192) | |
Purchase of intangible asset | (23,488) | |||
Proceeds from acquisition of subsidiary | 7,672 | 7,672 | ||
Repayment of advance to related parties | 3,642,059 | 168 | 46,388 | |
Purchase of property and equipment | (119,446) | (56,852) | (65,899) | |
Net cash provided by (used in) investing activities | 362,931 | (61,111) | (948,031) | |
Cash flows from financing activities | ||||
Repayments to related parties | (1,622,380) | (194,902) | (920,457) | |
Borrowings from related parties | 1,867,770 | 561,107 | 571,453 | 182,306 |
Borrowings from and repayments to bank loans, net | (33,112) | 99,981 | ||
Borrowings from a third party | 108,721 | |||
Proceeds from bank borrowings, net | 131,915 | |||
Net cash provided by financing activities | 212,278 | 466,186 | (108,368) | 182,306 |
Effect of exchange rate changes on cash and cash equivalents | 37,343 | (56,514) | 31,834 | (522) |
Net changes in cash and cash equivalents | (99,648) | (15,040) | 211,700 | 8,138 |
Cash and cash equivalents–beginning of the period | 249,837 | 38,137 | 38,137 | 29,999 |
Cash and cash equivalents–end of the period | 150,189 | 23,097 | 249,837 | 38,137 |
Supplementary cash flow information: | ||||
Interest paid | 13,814 | 10,201 | 14,325 | 11 |
Interest received | 761 | 206 | ||
Income taxes paid | 446,755 | 82 | ||
Non-cash investing and financing activities | ||||
Expenses paid by related parties on behalf of the Company | 532,912 | 277,081 | 498,549 | |
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 307,550 | 172,022 | 256,804 | |
Shares issued for acquisition of subsidiary | 9,773,989 | |||
Related party loan settled with issuance of shares | $ 769,119 | |||
Remeasurement of operating lease obligation and right-of-use asset due to lease termination | 40,888 | |||
Shares payable for acquisition of subsidiary | $ 9,773,989 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) (“FVTI” or the “Company”) was incorporated in the State of Nevada on March 21, 2014. The Company’s current primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors, and drinking water distribution and delivery are conducted through its subsidiaries in the People’s Republic of China (“PRC”). On January 5, 2018, the Company changed its fiscal year end from August 31 to December 31. On January 29, 2018, the Company filed a Certificate of Amendment with the State of Nevada to increase its authorized shares to 150,000,000 On April 11, 2018, the Company entered into a share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd whereby the Company newly issued 15,000,000 DIGLS was incorporated with limited liability in the Republic of Seychelles on July 4, 2016, with share capital of $ 100,000 divided into 250,000,000 ordinary shares with $ 0.0004 par value. DIGLS wholly owns DaXingHuaShang Investment (Hong Kong) Limited (“DILHK”). DILHK was incorporated in Hong Kong on June 22, 2016 as an investment holding company with limited liability. DILHK was previously wholly owned by Mr. Yumin Lin. On November 11, 2016, Mr. Yumin Lin, transferred 100 % of his ownership in DILHK to DIGLS. DILHK wholly owns Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. (“QHDX”) which was incorporated with limited liability on November 3, 2016 in the PRC as a wholly foreign-owned enterprise. QHDX wholly owns Dongguan City FVT Supply Chain Technology Co., Ltd. (“FVTL or FVT Supply Chain”). FTVL was incorporated on May 31, 2011 in the PRC with limited liability. FTVL was previously owned and controlled by Mr. Yumin Lin. FTVL has a license to sell foods up through September 10, 2022. On November 20, 2016, Mr. Yumin Lin transferred his ownership in FTVL to QHDX for nominal consideration. The share transfers detailed above by and among Mr. Yumin Lin, DIGLS, DILHK, QHDX, and FVTL have been accounted for as a series of business combinations of entities under common control; accordingly, the values in these financial statements reflect the carrying values of those entities, and no goodwill was recorded as a result of these transactions. On March 1, 2019, the Company entered into a sale and purchase agreement (the “SP Agreement”) to acquire 100% of the equity interest of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction closed on March 1, 2019. Pursuant to the SP Agreement, the Company issued 5 shares (given effect of the Reverse Stock Split, see Note 13) of its common stock to JJGS to acquire 100 150 On July 13, 2019, FVTI and QHDX entered into an equity interest transfer agreement (the “Makaweng Agreement”), which was later amended on September 12, 2019, with Xingwen Wang, a shareholder and legal representative of Yunnan Makaweng Wine & Spirits Co., Ltd. (“Makaweng”), a PRC limited liability company formed in 2015. Pursuant to the Makaweng Agreement, QHDX agreed to purchase 51 51 On December 3, 2020, QHDX and Xingwen Wang, an original shareholder of Makaweng, signed a share transfer agreement (the “Share Transfer Agreement”) pursuant to which the parties agreed that QHDX would transfer all of the 51 On June 22, 2020, the Company entered into a sale and purchase agreement along with Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a company incorporated in the PRC and a wholly-owned subsidiary of FVTI (“QHDX”), to acquire 90 243,134 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) (“FVTI” or the “Company”) was incorporated in the State of Nevada on March 21, 2014. The Company’s current primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors, and drinking water distribution and delivery are conducted through its subsidiaries in the People’s Republic of China (“PRC”). On April 11, 2018, the Company entered into a share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd whereby the Company newly issued 300,000,000 On March 1, 2019, the Company entered into a sale and purchase agreement (the “SP Agreement”) to acquire 100% of the shares of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction closed on March 1, 2019. Pursuant to the SP Agreement, the Company issued 100 100 150 On June 22, 2020, the Company entered into a sale and purchase agreement along with Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a company incorporated in China and a wholly-owned subsidiary of FVTI (“QHDX”), to acquire 90 % of the shares of Dongguan Xixingdao Technology Co., Ltd. (“Xixingdao”), a company incorporated in the PRC, from certain shareholders of Xixingdao in exchange for 243,134 shares (given effect of the Reverse Stock Split, see Note 10) of the Company’s common stock. The Company obtained the control of Xixingdao and Xixingdao became the Company’s subsidiary on August 31, 2020. The shares were issued on December 28, 2020. On January 6, 2021, FVTI, JJGS, Valley Holding Limited (“Valley Holdings”) and Angel International Investment Holdings Limited (the “Valley Holdings Seller”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on March 16, 2020. On the same date, FVTI, DILHK, Valley Holdings and the Valley Holdings Seller entered into a new equity interest transfer agreement, pursuant to which DILHK agreed to purchase 70 12 subject to adjustments in the event Valley Holdings’ net profit is more than HK$5 million (approximately US$0.6 million) or less than HK$3 million (approximately US$0.4 million) for the fiscal year ended December 31, 2020 On February 28, 2021, FVTI, QHDX and the original shareholders of Foshan BaiTaFeng Beverage Development Co., Ltd. (“BTF”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on December 31, 2019 (“BTF Agreement”). The BTF Agreement was terminated effective February 28, 2021 and the parties have no further rights or obligations under the BTF Agreement. The parties further agreed to waive their rights to any claims that may arise under the BTF Agreement. As of the date of the termination agreement, no equity interest of BTF had been transferred to QHDX. Basis of presentation The accompanying unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2021 and 2020, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. The condensed consolidated balance sheet information as of December 31, 2020 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2020, filed with the SEC on April 26, 2021 (the “report”). These unaudited condensed consolidated financial statements should be read in conjunction with the report. The accompanying financial statements have been prepared in conformity with U.S. GAAP which contemplates continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of business at amounts disclosed in the financial statements. Although the Company has generated a negative operating cash flow of $ 712,200 1,242,318 2,778,546 Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. As of September 30, 2021, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of doubtful accounts, allowance of deferred tax asset, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION As of and for the nine months ended September 30, 2021 2020 Period-end RMB:US$1 exchange rate 0.15512 0.14703 Period-average RMB:US$1 exchange rate 0.15452 0.14298 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation. Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did not recognize any impairment of long-lived assets during the nine months ended September 30, 2021 and 2020. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. The Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. During the nine months ended September 30, 2021, the Company did not record any impairment of goodwill. Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of wine, water and oil directly to agents, wholesalers and end users. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Sales of wine $ 639,635 $ 156,340 $ 2,036,423 $ 247,567 Sales of water 1,099,586 127,220 2,827,732 127,220 Sales of oil 14 - 217,131 - Others 266,155 - 393,608 - Total $ 2,005,390 $ 283,560 $ 5,474,894 $ 374,787 Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of September 30, 2021 and December 31, 2020, the Company had customer advances of $ 538,829 580,151 353,033 Related party transaction 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. Recent accounting pronouncements adopted In December 2020, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. On January 1, 2021, the Company adopted ASU 2019-12 on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements. | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars. Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Tai Food Trade Ltd (“FTFL”) October 23, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to going concern, allowance of doubtful accounts, allowance of deferred tax asset, useful lives and impairment of long-lived assets, valuation of intangible assets acquired and impairment of goodwill. Actual results may materially differ from these estimates. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity. SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION December 31, 2020 December 31,2019 Spot RMB: USD exchange rate $ 0.15317 $ 0.14334 Average RMB: USD exchange rate $ 0.14496 $ 0.14505 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. The Company’s primary bank deposits are located in the Hong Kong and the PRC. Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. Inventories Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages and water. The selling price of alcoholic beverages tend to increase over time, however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. Property and equipment Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Office equipment 3 20 Leasehold improvements 3 The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. Intangible asset, net Intangible assets with definite lives are stated at cost less accumulated amortization and consist mainly of distribution channel that was acquired in the acquisition of Xixingdao. Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 Operating leases The Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the 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 Company elected the short-term lease exemption for contracts with lease terms of 12 Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did no Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim reporting periods beginning after December 15, 2022 for smaller reporting companies. The Company has early adopted ASU 2017-04 on January 1, 2020. During the year ended December 31, 2020, the Company has recorded impairment of goodwill in the amount of $ 5,594,692 Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of wine, water and oil directly to agents, wholesalers and end users. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE For the years ended December 31, 2020 December 31, 2019 Sales of wine $ 2,704,662 $ 275,219 Sales of water 1,297,554 - Sales of oil 493,284 - Others 510,194 - Total $ 5,005,694 $ 275,219 Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of December 31, 2020 and 2019, the Company had customer advances of $ 580,151 Nil Sales and distribution expenses Sales and distribution expenses amounted to $ 23,191 Nil General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17 16 13 3 3 1 Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognizable tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10 50 Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities, which primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts payable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Comprehensive income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment. Segment reporting The Company reports each material operating segment in accordance with ASC 280, “Segment Reporting”. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company has determined that it has only one operating segment. Significant risk Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company’s also exposure to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery of the goods within 60 to 90 days. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. During the year ended December 31, 2019, the Company had a concentration of risk in its demand for goods, as a single customer, whom is also a related party accounted for $ 220,203 Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure. Related party transaction 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. 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. Business combination The purchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred. The purchase price is allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill. These fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price allocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period in which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 will be effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements and does not expect the adoption to have a material impact. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this standard has removed, modified and added certain disclosures under ASC Topic 820, Fair Value Measurement, with the objective of improving disclosure effectiveness. On January 1, 2020, the Company adopted ASU 2018-13 on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements. In December 2020, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public entities for annual reporting periods and interim periods within those years beginning after December 15, 2020, and early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 - GOING CONCERN The accompanying financial statements have been prepared in conformity with U.S. GAAP which contemplates continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon its ability to market and sell its products to generate positive operating cash flows. Although positive operating cash flow has been generated in the year ended December 31, 2020, the Company had recurring negative operating cash flows historically. In addition, for the years ended December 31, 2020 and 2019, the Company reported recurring net losses of $ 3,647,353 377,756 In an effort to improve its financial position, the Company is working to obtain new working capital through improving its operation and obtaining loans from banks or other financial institutes. The Company also relies on relates parties to provided financing and management services at cost that may not be the prevailing market rate for such services. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
ACCOUNTS RECEIVABLE, NET | NOTE 2 - ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF ACCOUNTS RECEIVABLE September 30, December 31, Accounts receivable $ 2,003,170 $ 2,468,038 Less: Allowance for doubtful accounts - - Accounts receivable, net $ 2,003,170 $ 2,468,038 | NOTE 4 - ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF ACCOUNTS RECEIVABLE 2020 2019 Accounts receivable $ 2,468,038 $ 146 Less: Allowance for doubtful accounts - - Account receivable, net $ 2,468,038 $ 146 |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Other Current Assets | ||
PREPAYMENTS AND OTHER CURRENT ASSETS | NOTE 3 – PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS September 30, December 31, Prepayments $ 2,345,959 $ 376,746 Other current assets 6,769 7,062 Total prepayments and other receivables $ 2,352,728 $ 383,808 As of September 30 2,345,959 376,746 | NOTE 5 – PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS 2020 2019 Prepayments $ 376,746 $ 7,185 Other current assets 7,062 - Total prepayments and other receivables $ 383,808 $ 7,185 As of December 31, 2020 and 2019, the balance of $ 376,746 7,185 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY AND EQUIPMENT, NET | NOTE 4 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF PROPERTY AND EQUIPMENT, NET September 30, December 31, Office equipment $ 113,558 $ 69,158 Leasehold improvement 125,161 54,146 Property and equipment 238,719 123,304 Less: Accumulated depreciation (89,506 ) (75,489 ) Property and equipment, net $ 149,213 $ 47,815 Depreciation expense, which was included in general and administrative expenses, for the nine months ended September 30, 2021 and 2020 was $ 14,017 14,467 | NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF PROPERTY AND EQUIPMENT, NET 2020 2019 Office equipment $ 69,158 $ 61,510 Leasehold improvement 54,146 - Property and equipment 123,304 61,510 Less: Accumulated depreciation (75,489 ) (52,899 ) Property and equipment, net $ 47,815 $ 8,611 Depreciation expense, which was included in general and administrative expenses, for the years ended December 31, 2020 and 2019 was $ 22,590 1,072 |
BUSINESS COMBINATION AND GOODWI
BUSINESS COMBINATION AND GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION AND GOODWILL | NOTE 7 – BUSINESS COMBINATION AND GOODWILL On August 31, 2020, FVTI completed the acquisition of 90 9,773,989 243,134 The determination of fair values involves the use of significant judgment and estimates and in the case of Xixingdao, this is with specific reference to acquired intangible asset. The judgments used to determine the estimated fair value assigned to assets acquired and liabilities assumed, as well as the intangible asset life and the expected future cash flows and related discount rate, can materially impact the Company’s consolidated financial statements. Significant inputs and assumptions used for the model included the amount and timing of expected future cash flows and discount rate. The Company utilized the assistance of a third-party valuation appraiser to determine the fair value as of the date of acquisition. The purchase price was allocated on the acquisition date of Xixingdao as follows: SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED Account and other receivables $ 305,866 Inventories 79,332 Other net assets (12,884 ) Distribution channel 3,145,260 Due to related party (135,080 ) Noncontrolling interest (549,033 ) Goodwill 6,940,530 Total purchase price $ 9,773,991 The results of operations, financial position, and cash flows of Xixingdao have been included in the Company’s consolidated financial statements since the date of acquisition. Goodwill arising from this business combination is not tax deductible. The following unaudited pro forma information presents the combined results of operations for the years ended December 31, 2020 and 2019 as if the acquisition of Xixingdao had occurred as of January 1, 2020 and May 31, 2019, the inception date of Xixingdao. These unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Company consummated the acquisition on January 1, 2020 or May 31, 2019, nor are they indicative of future results of operations: SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION 2020 2019 For the years ended December 31 2020 2019 Pro forma net revenues $ 5,327,633 $ 853,926 Pro forma net loss 3,634,335 159,007 Pro forma net loss attributable to Fortune Valley Treasures, Inc. 3,243,848 180,882 The Company’s policy is to perform its annual impairment testing on goodwill for its reporting unit on December 31, of each fiscal year or more frequently if events or changes in circumstances indicate that an impairment may exist. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of Xixingdao to its carrying value. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation appraiser to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. The impairment loss on goodwill of $ 5,594,692 1,368,915 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
INTANGIBLE ASSETS | NOTE 5 – INTANGIBLE ASSETS Intangible assets and related accumulated amortization were as follows : SCHEDULE OF INTANGIBLE ASSETS September 30, December 31, Distributor channel $ 3,181,312 $ 3,299,329 Other 8,138 4,105 Total intangible assets 3,189,450 3,303,434 Less: Accumulated amortization (744,957 ) (274,944 ) Total $ 2,444,493 $ 3,028,490 Amortization expense for the nine months ended September 30, 2021 and 2020 was $ 624,082 64,162 Other intangible assets mainly consist of internal-used software under development, which is not yet ready for use. As of September 30 SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS 2021 (remaining) $ 208,830 2022 835,321 2023 835,321 2024 556,883 Thereafter - Total $ 2,436,355 | NOTE 8 – INTANGIBLE ASSETS Intangible assets and related accumulated amortization were as follows : SCHEDULE OF INTANGIBLE ASSETS 2020 2019 Distributor channel $ 3,299,329 $ - Other 4,105 - Total intangible assets 3,303,434 - Less: Accumulated amortization (274,944 ) - Total $ 3,028,490 $ - Amortization expense for the years ended December 31, 2020 and 2019 was $ 260,205 0 Other intangible assets mainly consist of internal-used software under development, which is not yet ready for use. As of December 31, 2020, the future estimated amortization costs for distribution channel are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS 2021 $ 824,832 2022 824,832 2023 824,832 2024 549,889 Thereafter - Total $ 3,024,385 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | NOTE 7 - INCOME TAXES United States of America The Company is registered in the State of Nevada and is subject to United States of America tax law. The U.S federal income tax rate is 21 Seychelles Under the current laws of the Seychelles, DIGLS and JJGS are registered as an international business company which governed by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles. Hong Kong From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25 2,000,000 289,855 16.5 2,000,000 The PRC The Company’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) with the statutory income tax rate of 25% with the following exceptions. On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $ 142,209 25 20 1,000,000 142,209 3,000,000 426,627 10 The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION Nine Months Ended Nine Months Ended Current: – United States of America $ 154,485 $ - – Seychelles - - – Hong Kong - - – The PRC 164,539 3,415 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Total $ 319,024 $ 3,415 The effective tax rate was 20.4 (1.2) | NOTE 9 - INCOME TAXES United States of America The Company is registered in the State of Nevada and is subject to United States of America tax law. The U.S federal income tax rate is 21 Seychelles Under the current laws of the Seychelles, DIGLS and JJGS are registered as an international business company which governed by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles. Hong Kong From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25 2,000,000 289,855 16.5 2,000,000 The PRC The Company’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) with the statutory income tax rate of 25 On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $ 142,209 25 20 1,000,000 142,209 3,000,000 426,627 10 The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION As of As of December 31, 2020 December 31, 2019 Current: – United States of America $ 46,621 $ - – Seychelles - - – Hong Kong - - – The PRC 260,307 82 Current Income Tax Expense (Benefit) 260,307 82 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred Income Tax Expense (Benefit) - - Total $ 306,928 $ 82 Income Tax Expense (Benefit) $ 306,928 $ 82 A summary of United States and foreign income (loss) before income taxes was composed of the following: SCHEDULE OF UNITED STATES AND FOREIGN INCOME (LOSS) BEFORE INCOME TAXES 2020 2019 Loss attributed to PRC operations $ (2,861,595 ) $ (183,120 ) Income (loss) attributed to Seychelles and Hong Kong 873 (1,820 ) Loss attributed to U.S. (479,703 ) (192,734 ) Loss before tax $ (3,340,425 ) $ (377,674 ) The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the years ended December 31, 2020 and 2019: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % Higher rates in PRC, net - % 4.0 % Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset - % -25.0 % Income tax difference under different tax jurisdictions -3.9 % - % PRC tax exemption for qualified small-scale and low-profit enterprises 17.7 % - % Valuation allowance on deferred income tax assets -1.5 % - % Amortization of intangible asset and impairment of goodwill not deductible for tax purposes -36.8 % - % Impact of GILTI -4.4 % - % Others -1.3 % - % The Company’s effective tax rate -9.2 % 0.0 % The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The significant components of deferred taxes of the Company are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS December 31, 2020 December 31, 2019 As of December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carry forwards $ - - -United States - - -Hong Kong - - -PRC 54,598 - Gross deferred tax assets 54,598 - Less: valuation allowance (54,598 ) - Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE 6- RELATED PARTY TRANSACTIONS Amounts due from related parties as of September 30, 2021 and December 31, 2020 SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES September 30, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ - $ 45,662 Mr. Kaihong Lin Chief Financial Officer and Treasurer 204 215,973 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife - 360,273 Mr. Huagen Li Manager of a subsidiary - 123,456 Mr. Zhipeng Zuo Manager of a subsidiary - 133,658 Mr. Deqin Ke Manager of a subsidiary 26,765 - Ms. Shuqin Chen Manager of a subsidiary - 105,784 Mr. Hongwei Ye Manager of a subsidiary 56 $ 27,025 $ 984,806 Amounts due to related parties as of September 30, 2021 and December 31, 2020 September 30, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 153,587 $ - Ms. Huagen Li Manager of a subsidiary 2,482 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 1,141 - Mr. Yuwen Li Vice President 295,331 292,024 Ms. Lihua Li Mr. Yuwen Li’s wife - 677 Mr. Zihao Ye Manager of a subsidiary - 12,958 Mr. Zhipeng Zuo Manager of a subsidiary 3,878 - Mr. Weihua Zuo Manager of a subsidiary - 2,298 Mr. Deqin Ke Manager of a subsidiary - 9,274 Ms. Shuqin Chen Manager of a subsidiary 4,956 - Ms. Xiuyun Wang Manager of a subsidiary 5,935 1,483 Mr. Shengpin Liu Manager of a subsidiary - 306 Mr. Aisheng Zhang Manager of a subsidiary 11,944 3,063 Mr. Zhihua Liao Manager of a subsidiary 4,654 12,254 Mr. Meng Xue Manager of a subsidiary 776 - Mr. Minghua Cheng Director 155,120 - Mr. Anping Chen Manager of a subsidiary 3,878 - Ms. Chunxiang Zhang Manager of a subsidiary 6,205 - Mr. Youliang Ma Manager of a subsidiary 1,551 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 92,793 3,063 $ 744,231 $ 337,400 Revenues generated from related parties during the nine months ended September 30 SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES For the nine months ended 2021 2020 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 391 $ - Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 302 327 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 52 42 Mr. Naiyong Luo Manager of a subsidiary 5,742 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder 6,451 823 Mr. Zihao Ye Manager of a subsidiary 108 - Mr. Yuwen Li Vice President - 765 $ 13,046 $ 1,957 Due from related parties mainly consists of funds advanced to related parties as borrowings or funds advanced to pay off the Company’s expenses. The balances are unsecured, non-interest bearing. During the nine months ended September 30 3,136,194 12,099 to its related parties, and collected $ 3,642,059 and $ 168 repayments, respectively. Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. During the nine months ended September 30 1,867,770 and $ 561,107 from its related parties, and repaid $ 1,622,380 and $ 194,902 , respectively. In addition, during the nine months ended September 30, 2021 and 2020, the Company’s related parties paid expenses on the Company’s behalf in amounts of $ 532,912 277,081 | NOTE 10- RELATED PARTY TRANSACTIONS Amounts due from related parties as of December 31, 2020 and 2019 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2020 2019 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 45,662 $ - Mr. Kaihong Lin Chief Financial Officer and Treasurer 215,973 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 360,273 - Mr. Huagen Li Manager of a subsidiary 123,456 - Mr. Zhipeng Zuo Manager of a subsidiary 133,658 - Mr. Deqin Ke Manager of a subsidiary 26,765 - Ms. Shuqin Chen Subsidiary’s manager 105,784 - Mr. Hongwei Ye Manager of a subsidiary 56 $ 984,806 $ - Amounts due to related parties as of December 31, 2020 and 2019 are as follows: 2020 2019 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ - $ 791,576 Ms. Huagen Li Manager of a subsidiary 2,482 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 1,141 - Ms. Qingmei Lin Mr. Yumin Lin’s former wife - 17,201 Mr. Yuwen Li Vice President 292,024 - Ms. Lihua Li Mr. Yuwen Li’s wife 677 - Mr. Zihao Ye Manager of a subsidiary 12,958 - Mr. Zhipeng Zuo Manager of a subsidiary 3,878 - Mr. Weihua Zuo Manager of a subsidiary 2,298 - Mr. Deqin Ke Manager of a subsidiary 9,274 - Ms. Shuqin Chen Manager of a subsidiary 4,956 - Ms. Xiuyun Wang Manager of a subsidiary 1,483 - Mr. Shengpin Liu Manager of a subsidiary 306 - Mr. Aisheng Zhang Manager of a subsidiary 3,063 - Mr. Zhihua Liao Manager of a subsidiary 12,254 - Mr. Meng Xue Manager of a subsidiary 776 - Mr. Minghua Cheng Director 155,120 - Mr. Anping Chen Manager of a subsidiary 3,878 - Ms. Chunxiang Zhang Manager of a subsidiary 6,205 - Mr. Youliang Ma Manager of a subsidiary 1,551 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 3,063 - $ 337,400 $ 808,777 Revenues generated from related parties during the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2020 2019 Mr. Yuwen Li Vice President $ 627 $ - Mr. Kaihong Lin Chief Financial Officer and Treasurer 51 - Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 332 - Mr. Naiyong Luo Manager of a subsidiary - 220,203 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 42 - Shenzhen DaXingHuaShang Industry Development Ltd Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 1,257 - Shenzhen DaXingHuaShang Supplychain Service Co. Subsidiary of Shenzhen DaXingHuaShang Industry Development Ltd 269,552 - Guangdong Shuiyijia Distribution Co. Ms. Lihua Li is the supervisor of this company 149 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder 1,225 25,189 Mr. Zihao Ye Manager of a subsidiary 442 - $ 273,677 $ 245,392 Due from related parties mainly consists of funds advanced to related parties as borrowings or funds advanced to pay off the Company’s expenses. The balances are unsecured, non-interest bearing. During the year ended December 31, 2020, the Company advanced $ 936,192 46,388 Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. During the year ended December 31, 2020, the Company borrowed $ 571,453 920,457 In addition, during the year ended December 31, 2020, these related parties paid expenses on the Company’s behalf in an amount of $ 498,549 During the year ended December 31, 2020, the Company has also settled its balance due to Yumin Lin in an amount of $ 796,119 24,272 199,030 |
OPERATING LEASES
OPERATING LEASES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Operating Leases | ||
OPERATING LEASES | NOTE 8 - OPERATING LEASES As of September 30, 2021, the Company has sixteen separate operating lease agreements for three office spaces, one warehouse and twelve stores in PRC with remaining lease terms of from 12 months to 67 months. Two of these leases were entered with related parties. The Company has an operating lease agreement with Qingmei Lin, Yumin Lin’s former wife The agreement covers the period from January 1, 2019 to April 30, 2027. 10,000 1,450 The agreement covers the period from September 27, 2020 to September 30, 2023. 960 139 The Company terminated an operating lease agreement with a subsidiary of Shenzhen DaXingHuaShang Industry Development Ltd., a related party, for the premise in Shenzhen City, PRC on February 28, 2021. The monthly rent expense for this lease was RMB 30,000 4,349 The components of lease expense and supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) For the nine months ended 2021 2020 Related parties $ 27,944 $ 85,212 Non-related parties 79,471 2,139 Total $ 107,415 $ 87,351 Other information for the nine months ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease obligations $ 101,203 $ 11,152 Weighted average remaining lease term (in years) 3.92 3.91 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of September 30, 2021 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2021 (remaining) $ 49,076 2021 $ - 2022 159,387 2023 108,676 2024 83,439 2025 81,311 Thereafter 53,523 Total lease payment 535,412 Less: Imputed interest (35,635 ) Operating lease obligations $ 499,777 | NOTE 11 – OPERATING LEASES As of December 31, 2020, the Company has twelve separate operating lease agreements for three office spaces, one warehouse and eight stores in PRC with remaining lease terms of from 21 months to 76 months. Three of these leases were entered with related parties. The Company has an operating lease agreement with Qingmei Lin, a related party, for the premises in Dongguan City, PRC. The agreement covers the period from January 1, 2019 to April 30, 2027. 10,000 1,450 30,000 4,349 The agreement covers the period from September 27, 2020 to September 30, 2023. 960 139 The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) for the years ended December 31, 2020 December 31, 2019 Related parties $ 100,302 $ 18,870 Non-related parties 15,197 - Total $ 107,415 $ 87,351 Other information for the years ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease obligations $ 57,115 $ 17,406 Weighted average remaining lease term (in years) 3.48 7.25 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of December 31, 2020 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2021 (remaining) $ - 2021 $ 235,811 2022 84,477 2023 42,986 2024 18,381 2025 18,381 Thereafter 24,507 Total lease payment 424,543 Less: Imputed interest (17,294 ) Operating lease obligations $ 407,249 Lease expenses were $ 115,499 18,870 |
BANK AND OTHER BORROWINGS
BANK AND OTHER BORROWINGS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
BANK AND OTHER BORROWINGS | NOTE 9 – BANK AND OTHER BORROWINGS In December 2020, the Company obtained a revolving credit line in the principal amount of RMB 750,000 115,000 interest at the base Loan Prime Rate of 3.85% plus 8.75%. December 21, 2022 In August 2020, the Company obtained a revolving credit line in the principal amount of RMB 910,000 (approximately $ 141,000 ) from China Construction Bank, which bears interest at the base Loan Prime Rate of 3.85% plus 0.4%. The credit line is guaranteed by Xiulan Zhou, a related party, and pledged by her property. The maturity date is on July 21, 2023 . The balance of the loans borrowed under these credit lines as of September 30 SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES September 30, December 31, Loan from a trust in PRC $ 83,100 $ 114,879 China Construction Bank 141,159 139,387 Total non-current borrowings $ 224,259 $ 254,266 The total interest expense was $ 13,814 and $ 10,201 for the nine months ended September 30, 2021 and 2020, respectively. | NOTE 12 – BANK AND OTHER BORROWINGS In December 2020, the Company obtained a revolving credit line in the principal amount of RMB 750,000 115,000 Huaneng Guicheng Trust Co., Ltd interest at the base Loan Prime Rate of 3.85% plus 8.75%. December 21, 2022 In August 2020, the Company obtained a revolving credit line in the principal amount of RMB 910,000 139,000 interest at the base Loan Prime Rate of 3.85% plus 0.4%. July 21, 2023 The balance of the loans borrowed under these credit lines as of December 31, 2020 and 2019 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES 2020 2019 Bank loan from the trust in PRC $ 114,879 $ - China Construction Bank 139,387 - Total non-current borrowings $ 254,266 $ - In July 2020, the Company obtained a loan from Hua Hui (Shenzhen) Education Management Ltd., which is a related party with Hongwei Ye being the supervisor, who is also the manager of one of the Company’s subsidiaries, in the total principal amount of RMB 1,300,000 199,000 The loan bears interest at the rate of 0.7% per month. 12,789 The total interest expense was $ 14,325 12,789 1,536 11 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS During the subsequent period, the Company advanced a total amount of $ 70,245 2,620 26,153 Effective on October 21, 2021, the Company has approved a reverse stock split of the Company’s authorized and issued and outstanding shares of common stock, par value $ 0.001 at a ratio of 1-for-20 150,000,000 313,098,220 15,655,038 0.001 | NOTE 13 - SUBSEQUENT EVENTS During the subsequent period through April 26, 2021, the Company advanced a total amount of $ 2,368,228 3,302,329 95,260 On January 6, 2021, FVTI, JJGS, Valley Holding Limited (“Valley Holdings”) and Angel International Investment Holdings Limited (the “Valley Holdings Seller”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on March 16, 2020. On the same date, FVTI, DILHK, Valley Holdings and the Valley Holdings Seller entered into a new equity interest transfer agreement, pursuant to which DILHK agreed to purchase 70 15 On February 28, 2021, FVTI, QHDX and the original shareholders of Foshan BaiTaFeng Beverage Development Co., Ltd. (“BTF”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on December 31, 2019 (“BTF Agreement”). The BTF Agreement was terminated effective February 28, 2021 and the parties have no further rights or obligations under the BTF Agreement. The parties further agreed to waive their rights to any claims that may arise under the BTF Agreement. As of the date of the termination agreement, no equity interest of BTF had been transferred to QHDX. Effective October 21, 2021, the Company has approved a reverse stock split of the Company’s authorized, issued and outstanding shares of common stock, par value $ 0.001 at a ratio of 1-for-20 150,000,000 313,098,220 15,655,038 0.001 |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2021 and 2020, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. The condensed consolidated balance sheet information as of December 31, 2020 was derived from the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2020, filed with the SEC on April 26, 2021 (the “report”). These unaudited condensed consolidated financial statements should be read in conjunction with the report. The accompanying financial statements have been prepared in conformity with U.S. GAAP which contemplates continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of business at amounts disclosed in the financial statements. Although the Company has generated a negative operating cash flow of $ 712,200 1,242,318 2,778,546 | Basis of presentation These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. As of September 30, 2021, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC | Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Tai Food Trade Ltd (“FTFL”) October 23, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of doubtful accounts, allowance of deferred tax asset, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to going concern, allowance of doubtful accounts, allowance of deferred tax asset, useful lives and impairment of long-lived assets, valuation of intangible assets acquired and impairment of goodwill. Actual results may materially differ from these estimates. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. |
Foreign currency translation and re-measurement | Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION As of and for the nine months ended September 30, 2021 2020 Period-end RMB:US$1 exchange rate 0.15512 0.14703 Period-average RMB:US$1 exchange rate 0.15452 0.14298 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation. | Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity. SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION December 31, 2020 December 31,2019 Spot RMB: USD exchange rate $ 0.15317 $ 0.14334 Average RMB: USD exchange rate $ 0.14496 $ 0.14505 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US dollars at the rates used in translation. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. The Company’s primary bank deposits are located in the Hong Kong and the PRC. | |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. | |
Inventories | Inventories Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages and water. The selling price of alcoholic beverages tend to increase over time, however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. | |
Property and equipment | Property and equipment Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Office equipment 3 20 Leasehold improvements 3 The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. | |
Intangible asset, net | Intangible asset, net Intangible assets with definite lives are stated at cost less accumulated amortization and consist mainly of distribution channel that was acquired in the acquisition of Xixingdao. Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 | |
Operating leases | Operating leases The Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the 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 Company elected the short-term lease exemption for contracts with lease terms of 12 | |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did not recognize any impairment of long-lived assets during the nine months ended September 30, 2021 and 2020. | Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did no |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. The Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. During the nine months ended September 30, 2021, the Company did not record any impairment of goodwill. | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim reporting periods beginning after December 15, 2022 for smaller reporting companies. The Company has early adopted ASU 2017-04 on January 1, 2020. During the year ended December 31, 2020, the Company has recorded impairment of goodwill in the amount of $ 5,594,692 |
Revenue recognition | Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of wine, water and oil directly to agents, wholesalers and end users. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Sales of wine $ 639,635 $ 156,340 $ 2,036,423 $ 247,567 Sales of water 1,099,586 127,220 2,827,732 127,220 Sales of oil 14 - 217,131 - Others 266,155 - 393,608 - Total $ 2,005,390 $ 283,560 $ 5,474,894 $ 374,787 | Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of wine, water and oil directly to agents, wholesalers and end users. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE For the years ended December 31, 2020 December 31, 2019 Sales of wine $ 2,704,662 $ 275,219 Sales of water 1,297,554 - Sales of oil 493,284 - Others 510,194 - Total $ 5,005,694 $ 275,219 |
Contract liabilities | Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of September 30, 2021 and December 31, 2020, the Company had customer advances of $ 538,829 580,151 353,033 | Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of December 31, 2020 and 2019, the Company had customer advances of $ 580,151 Nil |
Sales and distribution expenses | Sales and distribution expenses Sales and distribution expenses amounted to $ 23,191 Nil | |
General and administrative expenses | General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. | |
Value-added taxes | Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 17 16 13 3 3 1 | |
Income taxes | Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognizable tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. | |
Statutory reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10 50 | |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. | |
Financial instruments | Financial instruments The Company accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities, which primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts payable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |
Commitments and contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | |
Comprehensive income | Comprehensive income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment. | |
Segment reporting | Segment reporting The Company reports each material operating segment in accordance with ASC 280, “Segment Reporting”. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company has determined that it has only one operating segment. | |
Significant risk | Significant risk Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company’s also exposure to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery of the goods within 60 to 90 days. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. During the year ended December 31, 2019, the Company had a concentration of risk in its demand for goods, as a single customer, whom is also a related party accounted for $ 220,203 Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure. | |
Related party transaction | Related party transaction 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. | Related party transaction 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. 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. |
Business combination | Business combination The purchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred. The purchase price is allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill. These fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price allocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period in which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred. | |
Recent accounting pronouncements adopted | Recent accounting pronouncements adopted In December 2020, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. On January 1, 2021, the Company adopted ASU 2019-12 on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements. | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 will be effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements and does not expect the adoption to have a material impact. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this standard has removed, modified and added certain disclosures under ASC Topic 820, Fair Value Measurement, with the objective of improving disclosure effectiveness. On January 1, 2020, the Company adopted ASU 2018-13 on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements. In December 2020, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public entities for annual reporting periods and interim periods within those years beginning after December 15, 2020, and early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES | As of September 30, 2021, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC | SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK Investment holding PRC FVTL May 31, 2011 QHDX Trading of food and platform PRC JJGS August 17, 2017 FVTI Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK Trading of food PRC Xixingdao August 28, 2019 QHDX Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL Trading of alcoholic beverages PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYDL”) November 12, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Tai Food Trade Ltd (“FTFL”) October 23, 2020 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao Drinking water distribution and delivery PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Trading of food, domestic appliance, plastic products PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao Trading of primary agricultural products, household appliances and plastic products; and Software technology development PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Providing supply chain management service, and trading of food, domestic appliance, and plastic products PRC |
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION | Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION As of and for the nine months ended September 30, 2021 2020 Period-end RMB:US$1 exchange rate 0.15512 0.14703 Period-average RMB:US$1 exchange rate 0.15452 0.14298 | SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION December 31, 2020 December 31,2019 Spot RMB: USD exchange rate $ 0.15317 $ 0.14334 Average RMB: USD exchange rate $ 0.14496 $ 0.14505 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT | Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Office equipment 3 20 Leasehold improvements 3 | |
SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION | Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 | |
SCHEDULE OF DISAGGREGATION REVENUE | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Sales of wine $ 639,635 $ 156,340 $ 2,036,423 $ 247,567 Sales of water 1,099,586 127,220 2,827,732 127,220 Sales of oil 14 - 217,131 - Others 266,155 - 393,608 - Total $ 2,005,390 $ 283,560 $ 5,474,894 $ 374,787 | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE For the years ended December 31, 2020 December 31, 2019 Sales of wine $ 2,704,662 $ 275,219 Sales of water 1,297,554 - Sales of oil 493,284 - Others 510,194 - Total $ 5,005,694 $ 275,219 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF ACCOUNTS RECEIVABLE September 30, December 31, Accounts receivable $ 2,003,170 $ 2,468,038 Less: Allowance for doubtful accounts - - Accounts receivable, net $ 2,003,170 $ 2,468,038 | Accounts receivable consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF ACCOUNTS RECEIVABLE 2020 2019 Accounts receivable $ 2,468,038 $ 146 Less: Allowance for doubtful accounts - - Account receivable, net $ 2,468,038 $ 146 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Prepayments And Other Current Assets | ||
SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS | Prepayments and other current assets consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS September 30, December 31, Prepayments $ 2,345,959 $ 376,746 Other current assets 6,769 7,062 Total prepayments and other receivables $ 2,352,728 $ 383,808 | Prepayments and other current assets consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS 2020 2019 Prepayments $ 376,746 $ 7,185 Other current assets 7,062 - Total prepayments and other receivables $ 383,808 $ 7,185 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property and equipment consisted of the following as of September 30, 2021 and December 31, 2020 SCHEDULE OF PROPERTY AND EQUIPMENT, NET September 30, December 31, Office equipment $ 113,558 $ 69,158 Leasehold improvement 125,161 54,146 Property and equipment 238,719 123,304 Less: Accumulated depreciation (89,506 ) (75,489 ) Property and equipment, net $ 149,213 $ 47,815 | Property and equipment consisted of the following as of December 31, 2020 and 2019: SCHEDULE OF PROPERTY AND EQUIPMENT, NET 2020 2019 Office equipment $ 69,158 $ 61,510 Leasehold improvement 54,146 - Property and equipment 123,304 61,510 Less: Accumulated depreciation (75,489 ) (52,899 ) Property and equipment, net $ 47,815 $ 8,611 |
BUSINESS COMBINATION AND GOOD_2
BUSINESS COMBINATION AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED | The purchase price was allocated on the acquisition date of Xixingdao as follows: SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED Account and other receivables $ 305,866 Inventories 79,332 Other net assets (12,884 ) Distribution channel 3,145,260 Due to related party (135,080 ) Noncontrolling interest (549,033 ) Goodwill 6,940,530 Total purchase price $ 9,773,991 |
SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION | SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION 2020 2019 For the years ended December 31 2020 2019 Pro forma net revenues $ 5,327,633 $ 853,926 Pro forma net loss 3,634,335 159,007 Pro forma net loss attributable to Fortune Valley Treasures, Inc. 3,243,848 180,882 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets and related accumulated amortization were as follows : SCHEDULE OF INTANGIBLE ASSETS September 30, December 31, Distributor channel $ 3,181,312 $ 3,299,329 Other 8,138 4,105 Total intangible assets 3,189,450 3,303,434 Less: Accumulated amortization (744,957 ) (274,944 ) Total $ 2,444,493 $ 3,028,490 | Intangible assets and related accumulated amortization were as follows : SCHEDULE OF INTANGIBLE ASSETS 2020 2019 Distributor channel $ 3,299,329 $ - Other 4,105 - Total intangible assets 3,303,434 - Less: Accumulated amortization (274,944 ) - Total $ 3,028,490 $ - |
SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS | As of September 30 SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS 2021 (remaining) $ 208,830 2022 835,321 2023 835,321 2024 556,883 Thereafter - Total $ 2,436,355 | As of December 31, 2020, the future estimated amortization costs for distribution channel are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS 2021 $ 824,832 2022 824,832 2023 824,832 2024 549,889 Thereafter - Total $ 3,024,385 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION | The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION Nine Months Ended Nine Months Ended Current: – United States of America $ 154,485 $ - – Seychelles - - – Hong Kong - - – The PRC 164,539 3,415 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Total $ 319,024 $ 3,415 | The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION As of As of December 31, 2020 December 31, 2019 Current: – United States of America $ 46,621 $ - – Seychelles - - – Hong Kong - - – The PRC 260,307 82 Current Income Tax Expense (Benefit) 260,307 82 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred Income Tax Expense (Benefit) - - Total $ 306,928 $ 82 Income Tax Expense (Benefit) $ 306,928 $ 82 |
SCHEDULE OF UNITED STATES AND FOREIGN INCOME (LOSS) BEFORE INCOME TAXES | A summary of United States and foreign income (loss) before income taxes was composed of the following: SCHEDULE OF UNITED STATES AND FOREIGN INCOME (LOSS) BEFORE INCOME TAXES 2020 2019 Loss attributed to PRC operations $ (2,861,595 ) $ (183,120 ) Income (loss) attributed to Seychelles and Hong Kong 873 (1,820 ) Loss attributed to U.S. (479,703 ) (192,734 ) Loss before tax $ (3,340,425 ) $ (377,674 ) | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE | The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the years ended December 31, 2020 and 2019: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % Higher rates in PRC, net - % 4.0 % Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset - % -25.0 % Income tax difference under different tax jurisdictions -3.9 % - % PRC tax exemption for qualified small-scale and low-profit enterprises 17.7 % - % Valuation allowance on deferred income tax assets -1.5 % - % Amortization of intangible asset and impairment of goodwill not deductible for tax purposes -36.8 % - % Impact of GILTI -4.4 % - % Others -1.3 % - % The Company’s effective tax rate -9.2 % 0.0 % | |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS | The significant components of deferred taxes of the Company are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS December 31, 2020 December 31, 2019 As of December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carry forwards $ - - -United States - - -Hong Kong - - -PRC 54,598 - Gross deferred tax assets 54,598 - Less: valuation allowance (54,598 ) - Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES | Amounts due from related parties as of September 30, 2021 and December 31, 2020 SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES September 30, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ - $ 45,662 Mr. Kaihong Lin Chief Financial Officer and Treasurer 204 215,973 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife - 360,273 Mr. Huagen Li Manager of a subsidiary - 123,456 Mr. Zhipeng Zuo Manager of a subsidiary - 133,658 Mr. Deqin Ke Manager of a subsidiary 26,765 - Ms. Shuqin Chen Manager of a subsidiary - 105,784 Mr. Hongwei Ye Manager of a subsidiary 56 $ 27,025 $ 984,806 Amounts due to related parties as of September 30, 2021 and December 31, 2020 September 30, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 153,587 $ - Ms. Huagen Li Manager of a subsidiary 2,482 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 1,141 - Mr. Yuwen Li Vice President 295,331 292,024 Ms. Lihua Li Mr. Yuwen Li’s wife - 677 Mr. Zihao Ye Manager of a subsidiary - 12,958 Mr. Zhipeng Zuo Manager of a subsidiary 3,878 - Mr. Weihua Zuo Manager of a subsidiary - 2,298 Mr. Deqin Ke Manager of a subsidiary - 9,274 Ms. Shuqin Chen Manager of a subsidiary 4,956 - Ms. Xiuyun Wang Manager of a subsidiary 5,935 1,483 Mr. Shengpin Liu Manager of a subsidiary - 306 Mr. Aisheng Zhang Manager of a subsidiary 11,944 3,063 Mr. Zhihua Liao Manager of a subsidiary 4,654 12,254 Mr. Meng Xue Manager of a subsidiary 776 - Mr. Minghua Cheng Director 155,120 - Mr. Anping Chen Manager of a subsidiary 3,878 - Ms. Chunxiang Zhang Manager of a subsidiary 6,205 - Mr. Youliang Ma Manager of a subsidiary 1,551 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 92,793 3,063 $ 744,231 $ 337,400 | Amounts due from related parties as of December 31, 2020 and 2019 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2020 2019 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 45,662 $ - Mr. Kaihong Lin Chief Financial Officer and Treasurer 215,973 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 360,273 - Mr. Huagen Li Manager of a subsidiary 123,456 - Mr. Zhipeng Zuo Manager of a subsidiary 133,658 - Mr. Deqin Ke Manager of a subsidiary 26,765 - Ms. Shuqin Chen Subsidiary’s manager 105,784 - Mr. Hongwei Ye Manager of a subsidiary 56 $ 984,806 $ - Amounts due to related parties as of December 31, 2020 and 2019 are as follows: 2020 2019 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ - $ 791,576 Ms. Huagen Li Manager of a subsidiary 2,482 - Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 1,141 - Ms. Qingmei Lin Mr. Yumin Lin’s former wife - 17,201 Mr. Yuwen Li Vice President 292,024 - Ms. Lihua Li Mr. Yuwen Li’s wife 677 - Mr. Zihao Ye Manager of a subsidiary 12,958 - Mr. Zhipeng Zuo Manager of a subsidiary 3,878 - Mr. Weihua Zuo Manager of a subsidiary 2,298 - Mr. Deqin Ke Manager of a subsidiary 9,274 - Ms. Shuqin Chen Manager of a subsidiary 4,956 - Ms. Xiuyun Wang Manager of a subsidiary 1,483 - Mr. Shengpin Liu Manager of a subsidiary 306 - Mr. Aisheng Zhang Manager of a subsidiary 3,063 - Mr. Zhihua Liao Manager of a subsidiary 12,254 - Mr. Meng Xue Manager of a subsidiary 776 - Mr. Minghua Cheng Director 155,120 - Mr. Anping Chen Manager of a subsidiary 3,878 - Ms. Chunxiang Zhang Manager of a subsidiary 6,205 - Mr. Youliang Ma Manager of a subsidiary 1,551 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 3,063 - $ 337,400 $ 808,777 |
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES | Revenues generated from related parties during the nine months ended September 30 SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES For the nine months ended 2021 2020 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 391 $ - Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 302 327 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 52 42 Mr. Naiyong Luo Manager of a subsidiary 5,742 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder 6,451 823 Mr. Zihao Ye Manager of a subsidiary 108 - Mr. Yuwen Li Vice President - 765 $ 13,046 $ 1,957 | Revenues generated from related parties during the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2020 2019 Mr. Yuwen Li Vice President $ 627 $ - Mr. Kaihong Lin Chief Financial Officer and Treasurer 51 - Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 332 - Mr. Naiyong Luo Manager of a subsidiary - 220,203 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 42 - Shenzhen DaXingHuaShang Industry Development Ltd Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 1,257 - Shenzhen DaXingHuaShang Supplychain Service Co. Subsidiary of Shenzhen DaXingHuaShang Industry Development Ltd 269,552 - Guangdong Shuiyijia Distribution Co. Ms. Lihua Li is the supervisor of this company 149 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder 1,225 25,189 Mr. Zihao Ye Manager of a subsidiary 442 - $ 273,677 $ 245,392 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Operating Leases | ||
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION | The components of lease expense and supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) For the nine months ended 2021 2020 Related parties $ 27,944 $ 85,212 Non-related parties 79,471 2,139 Total $ 107,415 $ 87,351 Other information for the nine months ended September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease obligations $ 101,203 $ 11,152 Weighted average remaining lease term (in years) 3.92 3.91 Weighted average discount rate 3.23 % 3.23 % | The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) for the years ended December 31, 2020 December 31, 2019 Related parties $ 100,302 $ 18,870 Non-related parties 15,197 - Total $ 107,415 $ 87,351 Other information for the years ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease obligations $ 57,115 $ 17,406 Weighted average remaining lease term (in years) 3.48 7.25 Weighted average discount rate 3.23 % 3.23 % |
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS | Maturities of the Company’s lease obligations as of September 30, 2021 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2021 (remaining) $ 49,076 2021 $ - 2022 159,387 2023 108,676 2024 83,439 2025 81,311 Thereafter 53,523 Total lease payment 535,412 Less: Imputed interest (35,635 ) Operating lease obligations $ 499,777 | Maturities of the Company’s lease obligations as of December 31, 2020 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2021 (remaining) $ - 2021 $ 235,811 2022 84,477 2023 42,986 2024 18,381 2025 18,381 Thereafter 24,507 Total lease payment 424,543 Less: Imputed interest (17,294 ) Operating lease obligations $ 407,249 |
BANK AND OTHER BORROWINGS (Tabl
BANK AND OTHER BORROWINGS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES | The balance of the loans borrowed under these credit lines as of September 30 SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES September 30, December 31, Loan from a trust in PRC $ 83,100 $ 114,879 China Construction Bank 141,159 139,387 Total non-current borrowings $ 224,259 $ 254,266 | The balance of the loans borrowed under these credit lines as of December 31, 2020 and 2019 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES 2020 2019 Bank loan from the trust in PRC $ 114,879 $ - China Construction Bank 139,387 - Total non-current borrowings $ 254,266 $ - |
SCHEDULE OF ENTITIES AND ITS SU
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
DIGLS [Member] | ||
Entity name | DIGLS | DIGLS |
Entity incorporation date | Jul. 4, 2016 | Jul. 4, 2016 |
Nature of operation | Investment holding | Investment holding |
Country of incorporation | Republic of Seychelles | Republic of Seychelles |
DILHK [Member] | ||
Entity name | DILHK | DILHK |
Entity incorporation date | Jun. 22, 2016 | Jun. 22, 2016 |
Nature of operation | Investment holding | Investment holding |
Country of incorporation | Hong Kong, PRC | Hong Kong, PRC |
QHDX [Member] | ||
Entity name | QHDX | QHDX |
Entity incorporation date | Nov. 3, 2016 | Nov. 3, 2016 |
Nature of operation | Investment holding | Investment holding |
Country of incorporation | PRC | PRC |
FVTL [Member] | ||
Entity name | FVTL | FVTL |
Entity incorporation date | May 31, 2011 | May 31, 2011 |
Nature of operation | Trading of food and platform | Trading of food and platform |
Country of incorporation | PRC | PRC |
JJGS [Member] | ||
Entity name | JJGS | JJGS |
Entity incorporation date | Aug. 17, 2017 | Aug. 17, 2017 |
Nature of operation | Investment holding | Investment holding |
Country of incorporation | Republic of Seychelles | Republic of Seychelles |
JJHK [Member] | ||
Entity name | JJHK | JJHK |
Entity incorporation date | Aug. 24, 2017 | Aug. 24, 2017 |
Nature of operation | Investment holding | Investment holding |
Country of incorporation | Hong Kong, PRC | Hong Kong, PRC |
JJSZ [Member] | ||
Entity name | JJSZ | JJSZ |
Entity incorporation date | Nov. 16, 2018 | Nov. 16, 2018 |
Nature of operation | Trading of food | Trading of food |
Country of incorporation | PRC | PRC |
Xixingdao [Member] | ||
Entity name | Xixingdao | Xixingdao |
Entity incorporation date | Aug. 28, 2019 | Aug. 28, 2019 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
FLTT [Member] | ||
Entity name | Dongguan City Fu La Tu Trade Ltd (“FLTT”) | Dongguan City Fu La Tu Trade Ltd (“FLTT”) |
Entity incorporation date | Sep. 27, 2020 | Sep. 27, 2020 |
Nature of operation | Trading of alcoholic beverages | Trading of alcoholic beverages |
Country of incorporation | PRC | PRC |
FXGT [Member] | ||
Entity name | Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) | Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) |
Entity incorporation date | Dec. 2, 2020 | Dec. 2, 2020 |
Nature of operation | Trading of alcoholic beverages | Trading of alcoholic beverages |
Country of incorporation | PRC | PRC |
Dongguan City Fu Lai Food Ltd ("FLFL") [Member] | ||
Entity name | Dongguan City Fu Lai Food Ltd (“FLFL”) | Dongguan City Fu Lai Food Ltd (“FLFL”) |
Entity incorporation date | Sep. 27, 2020 | Sep. 27, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
FXGT [Member] | ||
Entity name | Dongguan City Fu Xin Technology Ltd (“FXTL”) | Dongguan City Fu Xin Technology Ltd (“FXTL”) |
Entity incorporation date | Nov. 12, 2020 | Nov. 12, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
FGHL [Member] | ||
Entity name | Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) | Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) |
Entity incorporation date | Dec. 21, 2020 | Dec. 21, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
FJTL [Member] | ||
Entity name | Dongguan City Fu Jing Technology Ltd (“FJTL”) | Dongguan City Fu Jing Technology Ltd (“FJTL”) |
Entity incorporation date | Nov. 17, 2020 | Nov. 17, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
Dongguan City Fu Xiang Technology Ltd ("FGTL") [Member] | ||
Entity name | Dongguan City Fu Xiang Technology Ltd (“FGTL”) | Dongguan City Fu Xiang Technology Ltd (“FGTL”) |
Entity incorporation date | Nov. 16, 2020 | Nov. 16, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
Dongguan City Fu Ji Food & Beverage Ltd ("FJFL") [Member] | ||
Entity name | Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) | Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) |
Entity incorporation date | Nov. 9, 2020 | Nov. 9, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
Dongguan City Fu Yi Beverage Ltd ("FYDL") [Member] | ||
Entity name | Dongguan City Fu Yi Beverage Ltd (“FYDL”) | Dongguan City Fu Yi Beverage Ltd (“FYDL”) |
Entity incorporation date | Nov. 12, 2020 | Nov. 12, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
Dongguan City Fu Tai Food Trade Ltd ("FTFL") [Member] | ||
Entity name | Dongguan City Fu Tai Food Trade Ltd (“FTFL”) | |
Entity incorporation date | Oct. 23, 2020 | |
Nature of operation | Drinking water distribution and delivery | |
Country of incorporation | PRC | |
F S W L [Member] | ||
Entity name | Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) | |
Entity incorporation date | Mar. 29, 2021 | |
Nature of operation | Drinking water distribution and delivery | |
Country of incorporation | PRC | |
F J W L [Member] | ||
Entity name | Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) | |
Entity incorporation date | Mar. 29, 2021 | |
Nature of operation | Drinking water distribution and delivery | |
Country of incorporation | PRC | |
F X W L [Member] | ||
Entity name | Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) | |
Entity incorporation date | Mar. 17, 2021 | |
Nature of operation | Drinking water distribution and delivery | |
Country of incorporation | PRC | |
F L T L [Member] | ||
Entity name | Dongguan City Fu Li Trading Ltd (“FLTL”) | |
Entity incorporation date | Sep. 10, 2021 | |
Nature of operation | Trading of food, domestic appliance, plastic products | |
Country of incorporation | PRC | |
F J S T L [Member] | ||
Entity name | Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) | |
Entity incorporation date | Jun. 7, 2021 | |
Nature of operation | Trading of primary agricultural products, household appliances and plastic products; and Software technology development | |
Country of incorporation | PRC | |
F G G C [Member] | ||
Entity name | Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) | |
Entity incorporation date | Sep. 13, 2021 | |
Nature of operation | Providing supply chain management service, and trading of food, domestic appliance, and plastic products | |
Country of incorporation | PRC |
SCHEDULE OF FOREIGN CURRENCY EX
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION (Details) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Spot RMB [Member] | ||||
Offsetting Assets [Line Items] | ||||
Foreign currency exchange rate translation | 0.15317 | 0.14334 | ||
Average RMB [Member] | ||||
Offsetting Assets [Line Items] | ||||
Foreign currency exchange rate translation | 0.15452 | 0.14496 | 0.14298 | 0.14505 |
R M B [Member] | ||||
Offsetting Assets [Line Items] | ||||
Foreign currency exchange rate translation | 0.15512 | 0.14703 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 20 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Distribution Channels [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($) | Jun. 22, 2020 | Mar. 01, 2019 | Apr. 11, 2018 | Nov. 11, 2016 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 03, 2020 | Dec. 31, 2019 | Aug. 28, 2019 | Jul. 13, 2019 | Jun. 22, 2019 | Jan. 29, 2018 | Jul. 04, 2016 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Common stock shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
Value of shares issued for acquisition | [1] | $ 9,773,989 | ||||||||||||
DaXingHuaShang Investment Group Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Common stock shares authorized | 250,000,000 | |||||||||||||
Banking Regulation, Total Capital, Actual | $ 100,000 | |||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0004 | |||||||||||||
Jiujiu Group Stock Co., Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 100.00% | |||||||||||||
Number of shares issued for acquisition | 100 | |||||||||||||
Share Exchange Agreement [Member] | DaXingHuaShang Investment Group Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of common stock shares issued | 15,000,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||||||||||||
Sale and Purchase Agreement [Member] | Jiujiu Group Stock Co., Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 100.00% | |||||||||||||
Value of shares issued for acquisition | $ 150 | |||||||||||||
Makaweng Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Makaweng Agreement [Member] | Makaweng to QHDX [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Share Transfer Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Xixingdao Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of shares issued for acquisition | 243,134 | |||||||||||||
Xixingdao Agreement [Member] | QHDX [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 90.00% | 90.00% | ||||||||||||
[1] | Given effect of the Reverse Stock Split, see Note 13. |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | ||||||
Total revenue | $ 2,005,390 | $ 283,560 | $ 5,474,894 | $ 374,787 | $ 5,005,694 | $ 275,219 |
Sales of Wine [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenue | 639,635 | 156,340 | 2,036,423 | 247,567 | 2,704,662 | 275,219 |
Sales of Water [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenue | 1,099,586 | 127,220 | 2,827,732 | 127,220 | 1,297,554 | |
Sales of Oil [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenue | 14 | 217,131 | 493,284 | |||
Others Product [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenue | $ 510,194 | |||||
Others [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenue | $ 266,155 | $ 393,608 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Apr. 11, 2021shares | Jan. 06, 2021USD ($) | Jun. 22, 2020shares | Apr. 30, 2019 | Mar. 01, 2019USD ($)shares | Apr. 11, 2018shares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Apr. 30, 2018 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2019 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Jun. 22, 2019 | May 02, 2015CNY (¥) |
Product Information [Line Items] | ||||||||||||||||||||
Impairment of long-lived assets | ||||||||||||||||||||
Impairment of goodwill | 5,594,692 | |||||||||||||||||||
Customer advances | $ 538,829 | $ 538,829 | $ 580,151 | 580,151 | ||||||||||||||||
Sales and marketing expenses | 21,964 | $ 1,530 | 69,122 | $ 1,530 | 23,191 | |||||||||||||||
Value added tax | 13.00% | 17.00% | 16.00% | |||||||||||||||||
Revenues | 13,046 | 1,957 | 273,677 | 245,392 | ||||||||||||||||
Common shares value equivalents | $ 12,000,000 | |||||||||||||||||||
Equity investment description | subject to adjustments in the event Valley Holdings’ net profit is more than HK$5 million (approximately US$0.6 million) or less than HK$3 million (approximately US$0.4 million) for the fiscal year ended December 31, 2020 | |||||||||||||||||||
Net cash operating activities | 712,200 | 363,601 | (1,236,265) | 173,646 | ||||||||||||||||
Net income loss | 449,863 | $ (77,140) | $ (101,834) | $ (102,568) | 1,242,318 | $ (281,542) | (3,647,353) | $ (377,756) | ||||||||||||
Working capital | 2,778,546 | 2,778,546 | ||||||||||||||||||
Customer advances in opening balance | $ 353,033 | $ 353,033 | ||||||||||||||||||
DILHK [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 70.00% | |||||||||||||||||||
Xixingdao Agreement [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Stock issued during period, shares, acquisitions | shares | 243,134 | |||||||||||||||||||
Gaosheng Group Co Ltd [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Stock issued new issued shares | shares | 300,000,000 | |||||||||||||||||||
China Kaipeng Group Co Ltd [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Stock issued new issued shares | shares | 300,000,000 | |||||||||||||||||||
Yumin Lin [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Stock issued new issued shares | shares | 300,000,000 | |||||||||||||||||||
Jiujiu Group Stock Co., Ltd [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Stock issued during period, shares, acquisitions | shares | 100 | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||||||||||||||||
Stock issued during period acquisitions cost | $ 150 | |||||||||||||||||||
QHDX [Member] | Xixingdao Agreement [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 90.00% | 90.00% | ||||||||||||||||||
Related Party [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Revenues | $ 220,203 | |||||||||||||||||||
VAT Small Taxpayers [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Value added tax | 1.00% | 3.00% | 3.00% | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Lease terms | 12 months | 12 months | ||||||||||||||||||
Maximum [Member] | China Deposit Insurance System [Member] | RMB Currency [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Cash insured amount | ¥ | ¥ 500,000 | |||||||||||||||||||
Maximum [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Percentage of statutory reserves | 50.00% | |||||||||||||||||||
Minimum [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||||||||||||||||||
Product Information [Line Items] | ||||||||||||||||||||
Percentage of statutory reserves | 10.00% |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Net losses | $ (449,863) | $ 77,140 | $ 101,834 | $ 102,568 | $ (1,242,318) | $ 281,542 | $ 3,647,353 | $ 377,756 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Accounts receivable | $ 2,003,170 | $ 2,468,038 | $ 146 |
Less: Allowance for doubtful accounts | |||
Accounts receivable, net | $ 2,003,170 | $ 2,468,038 | $ 146 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Prepayments And Other Current Assets | |||
Prepayments | $ 2,345,959 | $ 376,746 | $ 7,185 |
Other current assets | 6,769 | 7,062 | |
Total prepayments and other receivables | $ 2,352,728 | $ 383,808 | $ 7,185 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Advanced payments | $ 2,345,959 | $ 376,746 | $ 7,185 |
Suppliers [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Advanced payments | $ 2,345,959 | $ 376,746 | $ 7,185 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 238,719 | $ 123,304 | $ 61,510 |
Less: Accumulated depreciation | (89,506) | (75,489) | (52,899) |
Property and equipment, net | 149,213 | 47,815 | 8,611 |
Property and equipment, net | 149,213 | 47,815 | 8,611 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 113,558 | 69,158 | 61,510 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 125,161 | $ 54,146 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 14,017 | $ 14,467 | $ 22,590 | $ 1,072 |
SCHEDULE OF RECOGNIZED IDENTIFI
SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | Dec. 31, 2020USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Account and other receivables | $ 305,866 |
Inventories | 79,332 |
Other net assets | (12,884) |
Distribution channel | 3,145,260 |
Due to related party | (135,080) |
Noncontrolling interest | (549,033) |
Goodwill | 6,940,530 |
Total purchase price | $ 9,773,991 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | ||
Pro forma net revenues | $ 5,327,633 | $ 853,926 |
Pro forma net loss | 3,634,335 | 159,007 |
Pro forma net loss attributable to Fortune Valley Treasures, Inc. | $ 3,243,848 | $ 180,882 |
BUSINESS COMBINATION AND GOOD_3
BUSINESS COMBINATION AND GOODWILL (Details Narrative) - USD ($) | Aug. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,368,915 | $ 1,386,323 | ||
Xixingdao [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity interest percentage | 90.00% | |||
Purchase consideration | $ 9,773,989 | |||
Business acquisition, share issued | 243,134 | |||
Impairment loss on goodwill | 5,594,692 | |||
Goodwill | $ 1,368,915 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | $ 3,189,450 | $ 3,303,434 | |
Less: Accumulated amortization | (744,957) | (274,944) | |
Total intangible assets, net | 2,444,493 | 3,028,490 | |
Distribution Right [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | 3,299,329 | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | 8,138 | 4,105 | |
Distributor Channel [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | $ 3,181,312 | $ 3,299,329 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSE FOR DISTRIBUTION CHANNELS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 2,444,493 | $ 3,028,490 | |
Distribution Channels [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
2022 | 835,321 | 824,832 | |
2023 | 835,321 | 824,832 | |
2024 | 556,883 | 824,832 | |
2024 | 549,889 | ||
Thereafter | |||
Total | 2,436,355 | $ 3,024,385 | |
2021 (remaining) | 208,830 | ||
Thereafter |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 624,082 | $ 64,162 | $ 260,205 | $ 0 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 156,402 | $ 3,415 | $ 319,024 | $ 3,415 | $ 306,928 | $ 82 |
UNITED STATES | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Current Income Tax Expense (Benefit) | 154,485 | 46,621 | ||||
Deferred Income Tax Expense (Benefit) | ||||||
Seychelles [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Current Income Tax Expense (Benefit) | ||||||
Deferred Income Tax Expense (Benefit) | ||||||
HONG KONG | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Current Income Tax Expense (Benefit) | ||||||
Deferred Income Tax Expense (Benefit) | ||||||
People's Republic of China [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Current Income Tax Expense (Benefit) | 164,539 | 3,415 | 260,307 | 82 | ||
Deferred Income Tax Expense (Benefit) |
SCHEDULE OF UNITED STATES AND F
SCHEDULE OF UNITED STATES AND FOREIGN INCOME (LOSS) BEFORE INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Loss before tax | $ (3,340,425) | $ (377,674) |
People's Republic of China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss before tax | (2,861,595) | (183,120) |
Seychelles and HongKong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss before tax | 873 | (1,820) |
UNITED STATES | ||
Operating Loss Carryforwards [Line Items] | ||
Loss before tax | $ (479,703) | $ (192,734) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Higher rates in PRC, net | 4.00% | ||
Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset | (25.00%) | ||
Income tax difference under different tax jurisdictions | (3.90%) | ||
PRC tax exemption for qualified small-scale and low-profit enterprises | 17.70% | ||
Valuation allowance on deferred income tax assets | (1.50%) | ||
Amortization of intangible asset and impairment of goodwill not deductible for tax purposes | (36.80%) | ||
Impact of GILTI | (4.40%) | ||
Others | (1.30%) | ||
The Company’s effective tax rate | (9.20%) | 0.00% |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
-PRC | ||
Gross deferred tax assets | 54,598 | |
Less: valuation allowance | (54,598) | |
Total deferred tax assets, net | ||
UNITED STATES | ||
Deferred tax assets: | ||
-PRC | ||
HONG KONG | ||
Deferred tax assets: | ||
-PRC | ||
People's Republic of China [Member] | ||
Deferred tax assets: | ||
-PRC | $ 54,598 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | Jan. 17, 2019 | Jan. 17, 2019USD ($) | Jan. 17, 2019CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021HKD ($) | Sep. 30, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | |||||||||
U.S federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | ||||
Statutory income tax rate | (9.20%) | (9.20%) | 0.00% | ||||||
People's Republic of China [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 20.40% | 20.40% | (1.20%) | ||||||
Statutory income tax rate | 25.00% | 25.00% | |||||||
Income tax preferential policies | On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises. | On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises. | On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises. | ||||||
Up To HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 8.25% | 8.25% | 8.25% | 8.25% | |||||
Income tax assessable profit | $ 289,855 | $ 2,000,000 | $ 289,855 | $ 2,000,000 | |||||
Over HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 16.50% | 16.50% | 16.50% | 16.50% | |||||
Income tax assessable profit | $ 2,000,000 | $ 2,000,000 | |||||||
25% to the Taxable Income [Member] | People's Republic of China [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Statutory income tax rate | 20.00% | 20.00% | |||||||
Annual taxable income | $ 142,209 | ||||||||
25% to the Taxable Income [Member] | People's Republic of China [Member] | Maximum [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Statutory income tax rate | 10.00% | 10.00% | |||||||
Annual taxable income | $ 426,627 | ||||||||
25% to the Taxable Income [Member] | People's Republic of China [Member] | R M B [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Annual taxable income | ¥ | ¥ 1,000,000 | ||||||||
25% to the Taxable Income [Member] | People's Republic of China [Member] | R M B [Member] | Maximum [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Annual taxable income | ¥ | ¥ 3,000,000 |
SCHEDULE OF AMOUNT DUE FROM AND
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 27,025 | $ 984,806 | |
Due to related parties | 744,231 | 337,400 | 808,777 |
President, Chief Executive Officer, Secretary, Director [Member] | Mr. Yumin Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 45,662 | ||
Due to related parties | 153,587 | 791,576 | |
President, Chief Executive Officer, Secretary, Director [Member] | Ms Huagen Li [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,482 | ||
Chief Financial Officer and Treasurer [Member] | Mr. Kaihong Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 204 | 215,973 | |
Manager of a Subsidiary, Mr. Yumin Lin's wife [Member] | Ms. Xiulan Zhou [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 360,273 | ||
Due to related parties | 1,141 | ||
Manager of a Subsidiary [Member] | Mr. Huagen Li [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 123,456 | ||
Manager of a Subsidiary [Member] | Mr. Zhipeng Zuo [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 133,658 | ||
Due to related parties | 3,878 | ||
Manager of a Subsidiary [Member] | Mr. Deqin Ke [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 26,765 | ||
Due to related parties | 9,274 | ||
Manager of a Subsidiary [Member] | Ms. Shuqin Chen [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 105,784 | ||
Due to related parties | 4,956 | ||
Manager of a Subsidiary [Member] | Mr. Hongwei Ye [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 56 | ||
Manager of a Subsidiary [Member] | Mr. Zihao Ye [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 12,958 | ||
Manager of a Subsidiary [Member] | Mr. Weihua Zuo [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,298 | ||
Manager of a Subsidiary [Member] | Ms. Xiuyun Wang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 5,935 | 1,483 | |
Manager of a Subsidiary [Member] | Mr. Shengpin Liu [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 306 | ||
Manager of a Subsidiary [Member] | Mr. Aisheng Zhang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 11,944 | 3,063 | |
Manager of a Subsidiary [Member] | Mr. Zhihua Liao [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 4,654 | 12,254 | |
Manager of a Subsidiary [Member] | Mr Meng Xue [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 776 | ||
Manager of a Subsidiary [Member] | Mr Minghua Cheng [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 155,120 | ||
Manager of a Subsidiary [Member] | Mr Anping Chen [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 3,878 | ||
Manager of a Subsidiary [Member] | Ms Chunxiang Zhang [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 6,205 | ||
Manager of a Subsidiary [Member] | Mr Youliang Ma [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,551 | ||
Mr. Yumin Lin's former wife [Member] | Ms. Qingmei Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 17,201 | ||
Vice President [Member] | Mr. Yuwen Li [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 295,331 | 292,024 | |
Mr. Yuwen Li's Wife [Member] | Mr. Lihua Li [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 677 | ||
Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd [Member] | Shenzhen DaXingHuaShang Industry Development Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 92,793 | $ 3,063 |
SCHEDULE OF REVENUE GENERATED F
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | $ 13,046 | $ 1,957 | $ 273,677 | $ 245,392 |
Shenzhen DaXingHuaShang Industry Development Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 1,257 | |||
Shenzhen DaXingHuaShang Supplychain Service Co. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 269,552 | |||
Guangdong Shuiyijia Distribution Co. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 149 | |||
Vice President [Member] | Mr. Yuwen Li [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 765 | 627 | ||
Chief Financial Officer and Treasurer [Member] | Mr. Kaihong Lin [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 391 | 51 | ||
President, Chief Executive Officer, Secretary, Director [Member] | Mr. Yumin Lin [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 302 | 327 | 332 | |
Manager of a Subsidiary [Member] | Mr Naiyong Luo [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 5,742 | 220,203 | ||
Manager of a Subsidiary [Member] | Mr. Zihao Ye [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 108 | 442 | ||
Manager of a Subsidiary, Mr. Yumin Lin's wife [Member] | Ms. Xiulan Zhou [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 42 | |||
Manager of a Subsidiary, Shareholder [Member] | Mr. Hongwei Ye [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 6,451 | $ 823 | $ 1,225 | $ 25,189 |
Manager Of A Subsidiary Ms Xiulan Zhou [Member] | Ms. Xiulan Zhou [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | $ 52 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Payment advance to related parties | $ 3,136,194 | $ 12,099 | $ 936,192 | |
Proceeds from Related Party Debt | 1,867,770 | 561,107 | 571,453 | $ 182,306 |
Yumin Lin [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due amount | $ 796,119 | |||
Shares issued for conversion | 24,272 | |||
Loss on conversion | $ 199,030 | |||
Related Party Transaction [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment advance to related parties | 3,136,194 | 12,099 | 936,192 | |
Collection of related party debt | 3,642,059 | 168 | 46,388 | |
Proceeds from Related Party Debt | 1,867,770 | 561,107 | 571,453 | |
Repayments of Related Party Debt | 1,622,380 | 194,902 | 920,457 | |
Related party transaction, expenses from transactions with related party | $ 532,912 | $ 277,081 | $ 498,549 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Total | $ 107,415 | $ 87,351 | ||
Cash paid for amounts included in the measurement of lease obligations | $ 101,203 | $ 11,152 | $ 57,115 | $ 17,406 |
Weighted average remaining lease term (in years) | 3 years 11 months 1 day | 3 years 10 months 28 days | 3 years 5 months 23 days | 7 years 3 months |
Weighted average discount rate | 3.23% | 3.23% | 3.23% | 3.23% |
Related Parties [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Total | $ 27,944 | $ 85,212 | $ 100,302 | $ 18,870 |
Non-Related Parties [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Total | $ 79,471 | $ 2,139 | $ 15,197 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (remaining) | $ 49,076 | |
2021 | 235,811 | |
2022 | 159,387 | 84,477 |
2023 | 108,676 | 42,986 |
2024 | 83,439 | 18,381 |
2025 | 81,311 | 18,381 |
Thereafter | 53,523 | 24,507 |
Total lease payment | 535,412 | 424,543 |
Less: Imputed interest | (35,635) | (17,294) |
Operating lease obligations | $ 499,777 | $ 407,249 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Agreement term | the Company has sixteen separate operating lease agreements for three office spaces, one warehouse and twelve stores in PRC with remaining lease terms of from 12 months to 67 months. | the Company has sixteen separate operating lease agreements for three office spaces, one warehouse and twelve stores in PRC with remaining lease terms of from 12 months to 67 months. | the Company has twelve separate operating lease agreements for three office spaces, one warehouse and eight stores in PRC with remaining lease terms of from 21 months to 76 months. | the Company has twelve separate operating lease agreements for three office spaces, one warehouse and eight stores in PRC with remaining lease terms of from 21 months to 76 months. | |
Lease expenses | $ | $ 115,499 | $ 18,870 | |||
Qingmei Lin [Member] | Operating Lease Agreement [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Agreement term | The agreement covers the period from January 1, 2019 to April 30, 2027. | The agreement covers the period from January 1, 2019 to April 30, 2027. | The agreement covers the period from January 1, 2019 to April 30, 2027. | The agreement covers the period from January 1, 2019 to April 30, 2027. | |
Payments for Rent | $ 1,450 | $ 1,450 | ¥ 10,000 | ||
Qingmei Lin [Member] | Operating Lease Agreement [Member] | R M B [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Payments for Rent | ¥ 10,000 | ||||
Shenzhen Industry Development Ltd [Member] | Operating Lease Agreement [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Payments for Rent | $ 4,349 | $ 4,349 | ¥ 30,000 | ||
Shenzhen Industry Development Ltd [Member] | Operating Lease Agreement [Member] | R M B [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Payments for Rent | ¥ 30,000 | ||||
Hongwei Ye [Member] | Operating Lease Agreement [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Agreement term | The agreement covers the period from September 27, 2020 to September 30, 2023. | The agreement covers the period from September 27, 2020 to September 30, 2023. | The agreement covers the period from September 27, 2020 to September 30, 2023. | The agreement covers the period from September 27, 2020 to September 30, 2023. | |
Payments for Rent | $ 139 | $ 139 | ¥ 960 | ||
Hongwei Ye [Member] | Operating Lease Agreement [Member] | R M B [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Payments for Rent | ¥ 960 |
SCHEDULE OF BALANCE OF LOAN BOR
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | |||
Total non-current borrowings | $ 224,259 | $ 254,266 | |
Bank Loan From Financial Institutions In PRC [Member] | |||
Line of Credit Facility [Line Items] | |||
Total non-current borrowings | 83,100 | 114,879 | |
China Construction Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Total non-current borrowings | $ 141,159 | $ 139,387 |
BANK AND OTHER BORROWINGS (Deta
BANK AND OTHER BORROWINGS (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | Aug. 31, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | |
Line of Credit Facility [Line Items] | ||||||||||||
Interest expense | $ 4,327 | $ 5,221 | $ 13,814 | $ 10,201 | $ 14,325 | $ 11 | ||||||
Interest Expense, Debt | $ 13,814 | $ 10,201 | ||||||||||
Non-Financial Institutions [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest expense | 12,789 | |||||||||||
Bank and Financial Institutions [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Interest expense | 1,536 | |||||||||||
China Construction Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | $ 139,000 | ¥ 910,000 | ||||||||||
Interest rate | interest at the base Loan Prime Rate of 3.85% plus 0.4%. | |||||||||||
Maturity date | Jul. 21, 2023 | |||||||||||
Huaneng Guicheng Trust Co., Ltd [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | $ 115,000 | $ 115,000 | ¥ 750,000 | |||||||||
Interest rate | interest at the base Loan Prime Rate of 3.85% plus 8.75%. | |||||||||||
Maturity date | Dec. 21, 2022 | |||||||||||
Huaneng Guicheng Trust Co., Ltd [Member] | R M B [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | ¥ | ¥ 750,000 | |||||||||||
Hua Hui (Shenzhen) Education Management Ltd [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | $ 199,000 | ¥ 1,300,000 | ||||||||||
Interest rate | The loan bears interest at the rate of 0.7% per month. | |||||||||||
China Construction Bank [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | $ 141,000 | |||||||||||
Interest rate | interest at the base Loan Prime Rate of 3.85% plus 0.4%. | |||||||||||
Maturity date | Jul. 21, 2023 | |||||||||||
China Construction Bank [Member] | R M B [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Principal amount | ¥ | ¥ 910,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Nov. 15, 2021 | Oct. 21, 2021 | Apr. 26, 2021 | Jan. 06, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 29, 2018 |
Subsequent Event [Line Items] | |||||||||
Advance to related parties | $ 744,231 | $ 337,400 | $ 808,777 | ||||||
Due from related parties, current | $ 27,025 | $ 984,806 | |||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | |||||
Common stock, shares, issued | 15,655,038 | 15,655,038 | 15,387,632 | ||||||
Common stock, shares, outstanding | 15,655,038 | 15,655,038 | 15,387,632 | ||||||
Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||
Common stock, shares, issued | 15,655,038 | 15,655,038 | |||||||
Common stock, shares, outstanding | 15,655,038 | 15,655,038 | |||||||
Common Stock [Member] | Prior Reverse Stock Split [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares, issued | 313,098,220 | 313,098,220 | |||||||
Common stock, shares, outstanding | 313,098,220 | 313,098,220 | |||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Advance to related parties | $ 2,368,228 | ||||||||
Repayment of related parties | 3,302,329 | ||||||||
Due from related parties, current | $ 26,153 | $ 95,260 | |||||||
Due from related parties | 70,245 | ||||||||
Proceeds from (repayments of) related party debt | $ 2,620 | ||||||||
Subsequent Event [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business combination, consideration transferred, | $ 15,000,000 | ||||||||
Common stock, par value | $ 0.001 | ||||||||
Reverse stock split | at a ratio of 1-for-20 | ||||||||
Common stock, shares authorized | 150,000,000 | ||||||||
Subsequent Event [Member] | Termination Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 70.00% |