Cover
Cover | 3 Months Ended |
Mar. 31, 2022 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No. 3 |
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 2 |
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 ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Current assets | |||||
Cash and cash equivalents | $ 150,613 | $ 123,163 | $ 249,837 | ||
Accounts receivable (including $19,044, $43,477 and $239,468 from related parties as of March 31, 2022 and December 31, 2021 and 2020, respectively) | 1,881,892 | 2,662,168 | 2,468,038 | ||
Inventories | 148,004 | 81,073 | 144,565 | ||
Prepayments and other current assets (including $1,731,874, $1,813,904 and $298,383 to related parties as of March 31, 2022 and December 31, 2021 and 2020, respectively) | 2,628,902 | 2,176,713 | 383,808 | ||
Due from related party | 26,255 | 26,364 | 984,806 | ||
Total current assets | 4,835,666 | 5,069,481 | 4,231,054 | ||
Non-current assets | |||||
Deposits paid (including $1,778,143, $1,596,075 and $526,101 to related parties as of March 31, 2022 and December 31, 2021 and 2020, respectively) | 2,639,012 | 2,306,160 | 671,921 | ||
Property and equipment, net | 128,224 | 140,394 | 47,815 | ||
Operating lease right-of-use assets | 341,900 | 385,896 | 153,251 | ||
Operating lease right-of-use assets, related parties | 93,923 | 98,626 | 160,013 | ||
Intangible assets, net | 2,074,630 | 2,281,790 | 3,028,490 | ||
Goodwill | 1,409,390 | 1,406,289 | 1,368,915 | ||
Total Assets | 11,522,745 | 11,688,636 | 9,661,459 | ||
Current liabilities | |||||
Operating lease obligations – current | 124,023 | 133,586 | 67,915 | ||
Operating lease obligations, related parties - current | 18,130 | 22,666 | 160,238 | ||
Accounts payable (including $29,181, $17,789 and $87,469 to related parties as of March 31, 2022 and December 31, 2021 and 2020, respectively) | 165,432 | 239,492 | 251,541 | ||
Accrued liabilities | 158,961 | 128,343 | 277,531 | ||
Bank and other borrowings - current | 95,815 | 101,207 | |||
Income tax payable | 25,726 | 321,670 | |||
Customer advances | 351,412 | 382,518 | 580,151 | ||
Due to related parties | 491,016 | 683,981 | 337,400 | ||
Total current liabilities | 1,404,789 | 1,717,519 | 1,996,446 | ||
Non-current liabilities | |||||
Operating lease obligations– non-current | 216,053 | 240,611 | 85,764 | ||
Operating lease obligations, related parties– non-current | 73,519 | 77,934 | 93,332 | ||
Bank and other borrowings | 177,351 | 188,218 | 254,266 | ||
Total Liabilities | 1,871,712 | 2,224,282 | 2,429,808 | ||
Stockholders’ Equity | |||||
Common stock (150,000,000 shares authorized, 15,655,038 shares issued and outstanding as of March 31, 2022 and December 31, 2021 and 2020) | 15,655 | 15,655 | [1] | 15,655 | [1] |
Additional paid in capital | 11,061,233 | 11,061,233 | [1] | 11,061,233 | [1] |
Accumulated deficit and statutory reserves | (2,413,005) | (2,561,681) | (4,341,417) | ||
Accumulated other comprehensive income | 553,277 | 544,305 | 300,265 | ||
Total Fortune Valley Treasures, Inc. stockholders’ equity | 9,217,160 | 9,059,512 | 7,035,736 | ||
Noncontrolling interests | 433,873 | 404,842 | 195,915 | ||
Total Stockholders’ Equity | 9,651,033 | 9,464,354 | 7,231,651 | [2] | |
Total Liabilities and Stockholders’ Equity | $ 11,522,745 | $ 11,688,636 | $ 9,661,459 | ||
[1] | Given effect of the Reverse Stock Split, See Note 12 | ||||
[2] | Given effect of the Reverse Stock Split, see Note 10 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Accounts receivable related parties | $ 19,044 | $ 43,477 | $ 239,468 |
Prepaid assets related parties | 1,731,874 | 1,813,904 | 298,383 |
Deposit assets, related parties | 1,778,143 | 1,596,075 | 526,101 |
Accounts receivable related parties | $ 29,181 | 17,789 | 87,469 |
Customer advances related parties | $ 15,011 | ||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,655,038 | 15,655,038 | 15,655,038 |
Common stock, shares outstanding | 15,655,038 | 15,655,038 | 15,655,038 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Income Statement [Abstract] | ||||||||
Net Revenues (including $725, $268,978, $495,330 and $843,828 from related parties for the three months ended March 31, 2022 and 2021, and for the years ended December 31, 2021 and 2020, respectively) | $ 1,261,810 | $ 1,644,160 | $ 8,021,823 | $ 5,005,694 | ||||
Cost of revenues (including $136,912, $130,600, $663,976 and $308,381 from related parties for the three months ended March 31, 2022 and 2021, and for the years ended December 31, 2021 and 2020, respectively) | 518,462 | 729,743 | 3,659,805 | 1,673,367 | ||||
Gross profit | 743,348 | 914,417 | 4,362,018 | 3,332,327 | ||||
Other operating income | 35,164 | |||||||
Operating expenses: | ||||||||
Selling and distribution expenses | 18,155 | 27,554 | 89,416 | 23,191 | ||||
General and administrative expenses | 527,286 | 481,577 | 2,095,488 | 873,505 | ||||
Other operating expenses | 30,812 | |||||||
Impairment loss on goodwill | 5,594,692 | |||||||
Operating income | 197,907 | 405,286 | 2,177,114 | (3,154,709) | ||||
Other income (expense): | ||||||||
Other income | 6,207 | 31 | 52,025 | 26,878 | ||||
Loss from conversion of related party loan | (199,030) | |||||||
Interest income | 77 | 165 | 983 | 761 | ||||
Interest expense | (5,825) | (3,553) | (17,816) | (14,325) | ||||
Other income (expense), net | 459 | (3,357) | 35,192 | (185,716) | ||||
Income before income tax | 198,366 | 401,929 | 2,212,306 | (3,340,425) | ||||
Income tax expense | 22,407 | 66,355 | 248,837 | 306,928 | ||||
Net income | 175,959 | 335,574 | 1,963,469 | (3,647,353) | ||||
Less: Net income attributable to noncontrolling interests | 27,283 | 30,320 | 183,733 | (391,789) | ||||
Net income attributable to Fortune Valley Treasures, Inc. | 148,676 | 305,254 | 1,779,736 | (3,255,564) | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation income (loss) | 10,720 | (6,670) | 269,234 | 321,337 | ||||
Total comprehensive income | 186,679 | 328,904 | 2,232,703 | (3,326,016) | ||||
Less: comprehensive income attributable to noncontrolling interests | 29,031 | 29,717 | 208,927 | (353,118) | ||||
Comprehensive income attributable to Fortune Valley Treasures, Inc. | $ 157,648 | $ 299,187 | $ 2,023,776 | $ (2,972,898) | ||||
Earnings per share | ||||||||
Basic and diluted earnings per share | $ 0.01 | [1] | $ 0.02 | [1] | $ 0.11 | [2] | $ (0.21) | [2] |
Basic and diluted weighted average shares outstanding | 15,655,038 | [1] | 15,655,038 | [1] | 15,655,038 | [2] | 15,390,620 | [2] |
[1] | Given effect of the Reverse Stock Split, see Note 10 | |||||||
[2] | Given effect of the Reverse Stock Split, see Note 12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
Related party revenue | $ 725 | $ 268,978 | $ 495,330 | $ 843,828 |
Cost of revenue related parties | $ 136,912 | $ 130,600 | $ 663,976 | $ 308,381 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | |||
Balance at Dec. 31, 2019 | $ 15,388 | [1] | $ 292,362 | [1] | $ (1,085,853) | $ 17,599 | $ (760,504) | ||
Balance, shares at Dec. 31, 2019 | [1] | 15,387,632 | |||||||
Shares issued for conversion of related party loan | $ 24 | [1] | 995,125 | [1] | 995,149 | ||||
Shares issued for conversion of related party loan, shares | [1] | 24,272 | |||||||
Shares issued for acquisition of subsidiary | $ 243 | [1] | 9,773,746 | [1] | 9,773,989 | ||||
Shares issued for acquisition of subsidiary, shares | [1] | 243,134 | |||||||
Noncontrolling interests arising from acquisition of subsidiary | [1] | [1] | 549,033 | 549,033 | |||||
Net income | [1] | [1] | (3,255,564) | (391,789) | (3,647,353) | ||||
Foreign currency translation adjustment | [1] | [1] | 282,666 | 38,671 | 321,337 | ||||
Balance at Dec. 31, 2020 | [2] | $ 15,655 | [1] | 11,061,233 | [1] | (4,341,417) | 300,265 | 195,915 | 7,231,651 |
Balance shares at Dec. 31, 2020 | [1] | 15,655,038 | |||||||
Net income | 305,254 | 30,320 | 335,574 | ||||||
Foreign currency translation adjustment | (6,067) | (603) | (6,670) | ||||||
Balance at Mar. 31, 2021 | [2] | $ 15,655 | 11,061,233 | (4,036,163) | 294,198 | 225,632 | 7,560,555 | ||
Balance shares at Mar. 31, 2021 | 15,655,038 | ||||||||
Balance at Dec. 31, 2020 | [2] | $ 15,655 | [1] | 11,061,233 | [1] | (4,341,417) | 300,265 | 195,915 | 7,231,651 |
Balance, shares at Dec. 31, 2020 | [1] | 15,655,038 | |||||||
Net income | [1] | [1] | 1,779,736 | 183,733 | 1,963,469 | ||||
Foreign currency translation adjustment | [1] | [1] | 244,040 | 25,194 | 269,234 | ||||
Balance at Dec. 31, 2021 | $ 15,655 | [1] | 11,061,233 | [1] | (2,561,681) | 544,305 | 404,842 | 9,464,354 | |
Balance shares at Dec. 31, 2021 | [1] | 15,655,038 | |||||||
Net income | 148,676 | 27,283 | 175,959 | ||||||
Foreign currency translation adjustment | 8,972 | 1,748 | 10,720 | ||||||
Balance at Mar. 31, 2022 | $ 15,655 | $ 11,061,233 | $ (2,413,005) | $ 553,277 | $ 433,873 | $ 9,651,033 | |||
Balance shares at Mar. 31, 2022 | 15,655,038 | ||||||||
[1] | Given effect of the Reverse Stock Split, see Note 12. | ||||||||
[2] | Given effect of the Reverse Stock Split, see Note 10 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||||
Net income | $ 175,959 | $ 335,574 | $ 1,963,469 | $ (3,647,353) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization expense | 224,423 | 201,529 | 869,407 | 282,795 |
Non-cash lease expense | 49,712 | 26,524 | 117,824 | 124,542 |
Impairment loss on goodwill | 5,594,692 | |||
Loss from conversion of related party loan | 199,030 | |||
Changes in operating assets and liabilities | ||||
Accounts receivable | 785,262 | 1,290,704 | (124,843) | (2,311,261) |
Inventories | (66,676) | 17,444 | 66,424 | (28,659) |
Prepayments and other current assets | (446,876) | (1,745,883) | (1,755,603) | (74,427) |
Due from related parties | 167 | 356,225 | ||
Deposits paid | (327,389) | (316,736) | (1,591,577) | (635,902) |
Accounts payable | (74,504) | (110,697) | (18,632) | 199,520 |
Due to related parties | (112,717) | 118,009 | ||
Customer advances | (31,914) | 219,610 | (210,259) | 549,051 |
Accrued liabilities | 27,819 | (181,722) | 189,812 | 740,652 |
Income tax payable | (25,754) | (209,976) | (300,140) | 298,039 |
Operating lease obligations | (44,070) | (35,149) | (137,258) | (54,454) |
Net cash provided by (used in) operating activities | 133,442 | (508,778) | (457,142) | 1,236,265 |
Cash flows from investing activities | ||||
Acquisition of intangible asset | (28,008) | |||
Advance to related parties | (1,841,767) | (936,192) | ||
Proceeds from acquisition of subsidiary | 7,672 | |||
Repayment of advance to related parties | 2,674,247 | 614,275 | 46,388 | |
Purchase of property and equipment | (117,077) | (65,899) | ||
Purchase of intangible asset | (23,444) | |||
Net cash provided by investing activities | 809,036 | 469,190 | (948,031) | |
Cash flows from financing activities | ||||
Repayments to related parties | (78,761) | (371,843) | (684,784) | (920,457) |
Repayments to a third party | (16,877) | (49,817) | ||
Borrowings from related parties | 814,808 | 464,958 | 571,453 | |
Borrowings from and repayments to bank loans, net | (38,560) | |||
Borrowings from a third party | 108,721 | |||
Proceeds from bank borrowings, net | 77,609 | 131,915 | ||
Net cash provided by (used in) financing activities | (95,638) | 404,405 | (192,034) | (108,368) |
Effect of exchange rate changes on cash and cash equivalents | (10,354) | 9,835 | 53,312 | 31,834 |
Net changes in cash and cash equivalents | 27,450 | 714,498 | (126,674) | 211,700 |
Cash and cash equivalents–beginning of the period | 123,163 | 249,837 | 249,837 | 38,137 |
Cash and cash equivalents–end of the period | 150,613 | 964,335 | 123,163 | 249,837 |
Supplementary cash flow information: | ||||
Interest paid | 5,825 | 3,553 | 17,816 | 14,325 |
Income taxes paid | 64,784 | 295,965 | 444,376 | |
Non-cash investing and financing activities | ||||
Expenses paid by related parties on behalf of the Company | 14,487 | 344,218 | 498,549 | |
Remeasurement of operating lease obligation and right-of-use asset due to lease termination | $ 40,813 | 41,010 | ||
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 319,092 | 256,804 | ||
Shares issued for acquisition of subsidiary | 9,773,989 | |||
Related party loan settled with issuance of shares | $ 769,119 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS ORGANIZATION & 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 (given effect of the Reverse Stock Split, see Note 12). 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 shares (given effect of the Reverse Stock Split, see Note 12) of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for as a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company’s historical statement of stockholders’ equity has been retroactively restated to the first period presented. DIGLS was incorporated with limited liability in the Republic of Seychelles on July 4, 2016, with share capital of $ 100,000 250,000,000 0.0004 100 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 5 100 % of the shares of JJGS for a cost of $ 150 . After the closing, JJGS became the Company’s wholly owned subsidiary. JJGS owns all of the equity interest of Jiujiu (HK) Industry Limited (“JJHK”) and Jiujiu (Shenzhen) Industry Co., Ltd. (“JJSZ”). JJGS, JJHK and JJSZ did not have any material assets or liabilities as of December 31, 2019, and they did not have any substantial operations or active business during the year ended December 31, 2019. 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 % of the equity interest of Dongguan Xixingdao Technology Co., Ltd. (“Xixingdao”), a company incorporated in the PRC, in exchange for 243,134 shares (given effect of the Reverse Stock Split, see Note 12) of the Company’s common stock. The Company obtained the control of Xixingdao on August 31, 2020, the shares were issued on December 28, 2020. Xixingdao became the Company’s subsidiary since August 31, 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 5 0.6 3 0.4 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 March 31, 2022 and for the three months ended March 31, 2022 and 2021, 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, 2021 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, 2021, filed with the SEC on April 1, 2022 (the “report”). These unaudited condensed consolidated financial statements 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 March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 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 three months ended March 31, 2022 and 2021. 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 three months ended March 31, 2022 and 2021, the Company did no t 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 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 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 March 31, 2022 and December 31, 2021, the Company had customer advances of $ 351,412 and $ 382,518 , respectively. During the three months ended March 31, 2022, the Company recognized $ 272,551 of customer advances in the opening balance. Related party transactions 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. | 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 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 shares (given effect of the Reverse Stock Split, see Note 12) of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for as a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company’s historical statement of stockholders’ equity has been retroactively restated to the first period presented. 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 12) of its common stock to JJGS to acquire 100 % of the shares of JJGS for a cost of $ 150 . After the closing, JJGS became the Company’s wholly owned subsidiary. JJGS owns all of the equity interest of Jiujiu (HK) Industry Limited (“JJHK”) and Jiujiu (Shenzhen) Industry Co., Ltd. (“JJSZ”). JJGS, JJHK and JJSZ did not have any material assets or liabilities as of December 31, 2019, and they did not have any substantial operations or active business during the year ended December 31, 2019. 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 % of the equity interest of Dongguan Xixingdao Technology Co., Ltd. (“Xixingdao”), a company incorporated in the PRC, in exchange for 243,134 shares (given effect of the Reverse Stock Split, see Note 12) of the Company’s common stock. The Company obtained the control of Xixingdao on August 31, 2020, the shares were issued on December 28, 2020. Xixingdao became the Company’s subsidiary since August 31, 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 5 0.6 3 0.4 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - 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. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and fulfillment of obligations in the normal course of business. The realization of assets and fulfillment of obligations in the normal course of business is dependent on, among other things, the Company’s ability to generate sufficient cash flows from operations, and the Company’s ability to arrange adequate financing arrangements. Historically, the Company had recurring net losses and negative operating cash flows that raised substantial doubt about its ability to continue as a going concern. The Company has been improving its operations subsequent to the acquisition of Xixingdao in August 2020. In assessing its going concern in the next twelve months following the issuance of the financial statements for the year ended December 31, 2021, management considered the projected revenues and expenses for the next twelve months. Although the Company has generated a negative operating cash flow of $ 457,142 1,963,469 3,351,962 Basis of consolidation The condensed condensed As of December 31, 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 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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, 2021 December 31,2020 Spot RMB: USD exchange rate $ 0.15735 $ 0.15317 Average RMB: USD exchange rate $ 0.15499 $ 0.14496 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 revenues 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 EQUIPMENT Categories Estimated useful life 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 assets, 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 Others 5 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 months or less. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. 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 years ended December 31, 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. 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 years ended December 31, 2021 and 2020, the Company has recorded impairment of goodwill in the amount of $ nil and $ 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, 2021 December 31, 2020 Sales of wine $ 3,098,070 $ 2,704,662 Sales of water 3,653,171 1,297,554 Sales of oil 515,273 493,284 Others 755,309 510,194 Total $ 8,021,823 $ 5,005,694 Contract liabilities Contract liabilities consist mainly of advanced from customers including related party customers. 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, 2021 and 2020, the Company had customer advances of $ 382,518 and $ 580,151 , respectively. During the years ended December 31, 2021 and 2020, the Company recognized $ 580,151 and $ nil , respectively, of customer advances in the opening balance. Sales and distribution expenses Sales and distribution expenses amounted to $ 89,416 23,191 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 % for the period from the beginning of 2018 till the end of April 2018, then changed to 16 % from May 2018 to the end of March 2019, and changed to 13 % from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. For entities that are VAT small taxpayers, VAT rate applicable is 3 % for the period from the beginning of 2018, then during the COVID-19, the small taxpayers are allowed to enjoy the preferred tax policy, tax rate from 3 % to 1 % for the period from March 1, 2020 to December 31, 2021. All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the PRC tax authorities for five years from the date of filing. VAT payables are included in accrued liabilities. 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 income 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 % of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50 % of the enterprise’s PRC registered capital. The Company had $ 636,898 nil Earnings (loss) per share The Company computes earnings (loss) 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 (loss) Comprehensive income (loss) 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 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents are financially sound based on public available information. 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 also exposures 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. 10% 10% 10% 10% 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 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 statement. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
ACCOUNTS RECEIVABLE, NET | NOTE 2 - ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of March 31, 2022 and December 31, 2021 SCHEDULE OF ACCOUNTS RECEIVABLE March 31 December 31, Accounts receivable (including $ 19,044 43,477 $ 1,881,892 $ 2,662,168 Less: Allowance for doubtful accounts - - Accounts receivable, net $ 1,881,892 $ 2,662,168 | NOTE 3 - ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 Accounts receivable (including $ 43,477 239,468 $ 2,662,168 $ 2,468,038 Less: Allowance for doubtful accounts - - Account receivable, net $ 2,662,168 $ 2,468,038 |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 March 31, 2022 and December 31, 2021 SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS March 31 December 31, Prepayments (including $ 1,731,874 1,813,904 $ 2,604,463 $ 2,169,095 Other current assets 24,439 7,618 Prepayments and other receivables $ 2,628,902 $ 2,176,713 Balance represented the advanced payments to suppliers including related party suppliers. | NOTE 4 – PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS 2021 2020 Prepayments (including $ 1,813,904 298,383 $ 2,169,095 $ 376,746 Other current assets 7,618 7,062 Prepayments and other current assets $ 2,176,713 $ 383,808 Balance of prepayments represented the advanced payments to suppliers including related party suppliers. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY AND EQUIPMENT, NET | NOTE 4 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of March 31, 2022 and December 31, 2021 SCHEDULE OF PROPERTY AND EQUIPMENT March 31, December 31, Office equipment $ 116,736 $ 113,995 Leasehold improvement 129,424 126,386 Property and equipment 246,160 240,381 Less: Accumulated depreciation (117,936 ) (99,987 ) Property and equipment, net $ 128,224 $ 140,394 Depreciation expense, which was included in general and administrative expenses, for the three months ended March 31, 2022 and 2021 was $ 12,466 and $ 4,950 , respectively. | NOTE 5 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 Office equipment $ 113,995 $ 69,158 Leasehold improvement 126,386 54,146 Property and equipment 240,381 123,304 Less: Accumulated depreciation (99,987 ) (75,489 ) Property and equipment, net $ 140,394 $ 47,815 Depreciation expense, which was included in general and administrative expenses, for the years ended December 31, 2021 and 2020 was $ 24,500 and $ 22,590 , respectively. |
BUSINESS COMBINATION AND GOODWI
BUSINESS COMBINATION AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION AND GOODWILL | NOTE 6 – BUSINESS COMBINATION AND GOODWILL On August 31, 2020, FVTI completed the acquisition of 90 9,773,989 4,862,681 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. During the year ended December 31, 2020, 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 was recognized during the year ended December 31, 2020. As of December 31, 2020, the balance of goodwill is $ 1,368,915 . During the year ended December 31, 2021, the Company performed a qualitative assessment by taking into consideration the industry and market conditions, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the assessment, the Company determined that it was not necessary to perform a quantitative goodwill impairment test and concluded that no impairment indicators on its goodwill were noted as of December 31, 2021. As of December 31, 2021, the balance of goodwill is $ 1,406,289 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 March 31, December 31, Distributor channel $ 3,396,880 $ 3,389,404 Others 22,348 22,299 Total intangible assets 3,419,228 3,411,703 Less: Accumulated amortization (1,344,598 ) (1,129,913 ) Total $ 2,074,630 $ 2,281,790 Amortization expense for the three months ended March 31, 2022 and 2021 was $ 211,957 and $ 196,579 , respectively, included in cost of revenues and general and administrative expenses. As of March 31, 2022 SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2022 (remaining) $ 636,705 2023 849,220 2024 588,705 Thereafter - Total $ 2,074,630 | NOTE 7 – INTANGIBLE ASSETS Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS 2021 2020 Distributor channel $ 3,389,404 $ 3,299,329 Others 22,299 4,105 Total intangible assets 3,411,703 3,303,434 Less: Accumulated amortization (1,129,913 ) (274,944 ) Total $ 2,281,790 $ 3,028,490 Amortization expense for the years ended December 31, 2021 and 2020 was $ 844,907 and $ 260,205 , respectively, included in cost of revenues. As of December 31, 2021, the future estimated amortization costs for distribution channel are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS 2022 (remaining) 2022 $ 847,351 2023 847,351 2024 564,901 Thereafter - Total $ 2,259,603 |
INCOME TAXES
INCOME TAXES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 % on assessable profits up to HK$ 2,000,000 (approximately $ 289,855 ), and 16.5 % on any part of assessable profits over HK$ 2,000,000 . For the three months ended March 31, 2022 and 2021, the Company did not have any assessable profits arising in or derived from Hong Kong, therefore no provision for Hong Kong profits tax was made in the periods reported. 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 (“MOF and SAT”), [2019] No. 13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB 1,000,000 (including RMB1,000,000), approximately $ 142,209 , pursuant to which the qualified enterprises’ 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 RMB 1,000,000 , approximately $ 142,209 , but not more than RMB 3,000,000 , 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%. MOF and SAT [2021] No.12 provides an enterprise income tax rate of 2.5 % on small-scale and low-profit enterprises whose annual taxable income is less than RMB 1,000,000 , approximately $ 142,209 from January 1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate of 5 % on small-scale and low-profit enterprises whose annual taxable income is more than RMB 1,000,000 , approximately $ 142,209 , but less than RMB 3,000,000 , approximately $ 426,627 from January 1, 2022 to December 31, 2024. 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. The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION Three Months Ended Three Months Ended Current: – United States of America $ - $ 43,096 – Seychelles - - – Hong Kong - - – The PRC 22,407 23,259 Current income tax expense 22,407 23,259 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense - - Total $ 22,407 $ 66,355 The effective tax rate was 11.3 % and 16.5 % for the three months ended March 31, 2022 and 2021, respectively. | NOTE 8 - 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 2021 2020 Current: – United States of America $ 20,071 $ 46,621 – Seychelles - - – Hong Kong - - – The PRC 228,766 260,307 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Total $ 248,837 $ 306,928 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 2021 2020 Income (loss) attributed to PRC operations $ 3,109,080 $ (2,861,595 ) Income (loss) attributed to Seychelles and Hong Kong (444 ) 873 Loss attributed to U.S. (896,330 ) (479,703 ) Income (loss) before tax $ 2,212,306 $ (3,340,425 ) 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, 2021 and 2020: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % Higher rates in PRC, net - % - % Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset - % - % Income tax difference under different tax jurisdictions 7.2 % -3.9 % PRC tax exemption for qualified small-scale and low-profit enterprises -36.8 % 17.7 % Valuation allowance on deferred income tax assets 2.5 % -1.5 % Amortization of intangible asset and impairment of goodwill not deductible for tax purposes 7.9 % -36.8 % Impact of GILTI 9.4 % -4.4 % Others - % -1.3 % The Company’s effective tax rate 11.2 % -9.2 % 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 As of December 31, 2021 December 31, 2020 Deferred tax assets: Net operating loss carry forwards $ - $ - -United States - - -Hong Kong - - -PRC 55,457 54,598 Gross deferred tax assets 55,457 54,598 Less: valuation allowance (55,457 ) (54,598 ) Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | NOTE 6- RELATED PARTY TRANSACTIONS Amounts due from related parties as of March 31, 2022 and December 31, 2021 SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES March 31, December 31, Mr. Deqin Ke Manager of a subsidiary $ - $ 26,364 Mr. Yuwen Li Vice President 26,255 - Due from related parties $ 26,255 $ 26,364 Amounts due to related parties as of March 31, 2022 and December 31, 2021 March 31, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 300,114 $ 344,218 Ms. Xiulan Zhou Manager of a subsidiary 1,160 1,157 Mr. Huagen Li Manager of a subsidiary 2,523 2,518 Mr. Guodong Jia Manager of a subsidiary 946 944 Mr. Minghua Cheng Former director and majority shareholder 78,851 157,353 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 17 17 Mr. Anping Chen Manager of a subsidiary 8,516 6,924 Mr. Jiangwei Jia Manager of a subsidiary - 787 Ms. Xiuyun Wang Manager of a subsidiary - 6,020 Mr. Yuwen Li Vice President - 70,745 Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 94,620 93,298 Mr. Deqin Ke Manager of a subsidiary 789 - Mr. Zhihua Liao Manager of a subsidiary 325 - Ms. Chunxiang Zhang Manager of a subsidiary 1,577 - Mr. Xue Meng Manager of a subsidiary 789 - Ms. Shuqin Chen Manager of a subsidiary 789 - Due to related parties $ 491,016 $ 683,981 Revenues generated from related parties during the three months ended March 31, 2022 SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 241 $ 51 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 222 109 Mr. Zihao Ye Manager of a subsidiary 262 76 Mr. Naiyong Luo Manager of a subsidiary - 5,115 Mr. Hongwei Ye Manager of a subsidiary, Shareholder - 5,922 Dongguan Zhengui Reality Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Dongguan Zhengui Reality Co., Ltd. - 132,099 Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. - 13,781 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. - 98,643 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company - 13,182 Revenues generated from related parties $ 725 $ 268,978 Cost of revenues from related parties during the three months ended March 31, 2022 and 2021 is as follows: SCHEDULE OF COST REVENUES FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 8,178 $ 31,424 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 14,648 19,307 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 9,555 16,283 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 1,082 6,472 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 9,736 14,615 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 46,721 35,826 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 39,765 3,157 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 7,227 3,516 Cost of revenues from related parties $ 136,912 $ 130,600 Purchases from related parties during the three months ended March 31, 2022 and 2021 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 8,178 $ 31,424 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 14,648 18,319 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 9,555 15,450 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 1,082 6,141 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 9,736 13,868 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 46,721 33,993 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 39,765 2,996 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 7,227 3,336 Purchase from related party $ 136,912 $ 125,527 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. Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. In addition, during the three months ended March 31, 2022 and 2021, these related parties paid expenses on the Company’s behalf in an amount of nil and $ 14,487 , respectively. Mr. Yuwen Li, the Vice President of the Company, authorized the Company to use trademarks that were owned by him for ten years from October 5, 2019 to October 4, 2029 at no cost. Also see Note 2, 3 and 8 for more transactions with related parties. | NOTE 9- RELATED PARTY TRANSACTIONS During the year ended December 31, 2021, the Company identified certain of its customers and suppliers to be related parties as the Company can exercise significant influence over those parties. To conform to the current year presentation, the balances and transactions of those related parties in prior year have been reclassified. Amounts due from related parties as of December 31, 2021 and 2020 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2021 2020 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 Ms. Shuqin Chen Manager of a subsidiary - 105,784 Mr. Deqin Ke Manager of a subsidiary 26,364 - $ 26,364 $ 984,806 Amounts due to related parties as of December 31, 2021 and 2020 are as follows: 2021 2020 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 344,218 $ - Ms. Xiulan Zhou Manager of a subsidiary 1,157 - Mr. Huagen Li Manager of a subsidiary 2,518 - Mr. Guodong Jia Manager of a subsidiary 944 - Mr. Minghua Cheng Director and majority shareholder of the Company 157,353 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder of the Company 17 - Mr. Anping Chen Manager of a subsidiary 6,924 - Mr. Jiangwei Jia Manager of a subsidiary 787 - Ms. Xiuyun Wang Manager of a subsidiary 6,020 1,483 Mr. Yuwen Li Vice President 70,745 292,024 Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 93,298 3,063 Ms. Lihua Li Mr. Yuwen Li’s wife - 677 Mr. Zihao Ye Manager of a subsidiary - 12,958 Mr. Weihua Zuo Manager of a subsidiary - 2,298 Mr. Deqin Ke Manager of a subsidiary - 9,274 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 $ 683,981 $ 337,400 Revenues generated from related parties during the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2021 2020 Mr. Yuwen Li Vice President $ - $ 627 Mr. Kaihong Lin Chief Financial Officer and Treasurer 407 51 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 389 332 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 63 42 Mr. Zihao Ye Manager of a subsidiary 108 442 Mr. Naiyong Luo Manager of a subsidiary 5,759 6,434 Mr. Hongwei Ye Manager of a subsidiary, Shareholder of the Company 6,820 1,225 Shenzhen DaXingHuaShang Industry Development Ltd Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. - 1,257 Shenzhen DaXingHuaShang Supplychain Service Co., Ltd. Subsidiary of Shenzhen DaXingHuaShang Industry Development Ltd. - 269,552 Guangdong Shuiyijia Distribution Co., Ltd. Ms. Lihua Li is the supervisor of this company 19,619 149 Dongguan Chashan Pingfeng Cigarate and Wine Co., Ltd. Mr. Taiping Deng, a manager of a subsidiary, is the controlling shareholder of Dongguan ChaShan Pingfeng Cigarate and Wine Co. Ltd. 99,119 - Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. 104,663 45,262 Dongguan Hualian Guanhua Gong Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Hualian Guanhua Gong Co., Ltd. 57,671 21,534 Dongguan Daying Internet Technology Co., Ltd. Mr. Minghua Cheng, a director of the Company, is the controlling shareholder of Dongguan Daying Internet Technology Co., Ltd. 132,737 - Dongguan Zhengui Reality Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Dongguan Zhengui Reality Co., Ltd. 54,730 71,428 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. - 15,267 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company - 76,573 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company - 86,131 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company - 86,374 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company - 87,364 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 13,245 73,784 $ 495,330 $ 843,828 Cost of revenues from related parties during the years ended December 31, 2021 and 2020 is as follows: SCHEDULE OF COST REVENUES FROM RELATED PARTIES 2021 2020 Significantly influenced by the Company $ 56,598 $ 57,426 Guangfong Jiaduonuo Shengshi Tradong Co., Ltd. Significantly influenced by the Company 109,936 21,641 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company 124,896 75,274 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 99,502 29,122 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 89,475 38,116 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 113,893 86,802 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 69,676 - $ 663,976 $ 308,381 Purchases from related parties during the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2021 2020 Significantly influenced by the Company $ 184,099 $ 64,035 Guangfong Jiaduonuo Shengshi Tradong Co., Ltd. Significantly influenced by the Company 168,066 24,774 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company 79,685 32,425 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 63,483 9,857 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 57,086 73,843 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 72,664 48,852 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 9,483 12,394 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 44,454 25,507 $ 679,020 $ 291,687 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. Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. In addition, during the years ended December 31, 2021 and 2020, these related parties paid expenses on the Company’s behalf in an amount of $ 344,218 and $498,549, respectively . Also see Note 3, 4, 10 and 11 for more transactions with related parties. |
OPERATING LEASES
OPERATING LEASES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Operating Leases | ||
OPERATING LEASES | NOTE 8 - OPERATING LEASES As of March 31, 2022, the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 6 months to 61 months Two of the leases described above were entered with related parties. The operating lease entered with Ms. Qingmei Lin, a related party, is for the premises in Dongguan City, PRC. 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 three months ended March 31, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION For the three months ended March 31, Operating lease cost (included in general and administrative expenses in the Company’s condensed consolidated statements of operations) Related parties $ 4,726 $ 18,490 Non-related parties 37,773 18,200 Other information for the three months ended March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease obligations $ 51,477 $ 41,336 Weighted average remaining lease term (in years) 3.66 3.77 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of March 31, 2022 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2022 (remaining) $ 121,292 Remaining of fiscal year $ 121,292 2023 114,117 Year one 114,117 2024 86,720 Year two 86,720 2025 82,664 Year three 82,664 2026 46,528 Year four 46,528 Thereafter 6,308 Total lease payment 457,629 Less: Imputed interest (25,905 ) Operating lease obligations $ 431,724 | NOTE 10 – OPERATING LEASES As of December 31, 2021, the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 9 months to 64 months . Two of the leases described above were entered with related parties. The operating lease entered with Ms. Qingmei Lin, a related party, is for the premises in Dongguan City, PRC. The agreement covers the period from January 1, 2019 to April 30, 2027 with the monthly rent expense of RMB 10,000 (approximately $ 1,450 ). The operating lease agreement entered with Mr. Hongwei Ye, another related party, is for the premises in Dongguan City, PRC. The agreement covers the period from September 27, 2020 to September 30, 2023 with the monthly rent expense of RMB 960 (approximately $ 139 ). The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 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 years ended December 31, December 31, Related parties $ 32,677 $ 100,302 Non-related parties 118,315 15,197 Other information for the years ended December 31, December 31, 2020 Cash paid for amounts included in the measurement of lease obligations $ 151,586 $ 57,115 Weighted average remaining lease term (in years) 3.82 3.48 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of December 31, 2021 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2022 $ 163,885 2023 118,279 2024 87,001 2025 82,482 2026 46,426 Thereafter 6,294 Total lease payment 504,367 Less: Imputed interest (29,570 ) Operating lease obligations $ 474,797 Lease expenses were $ 150,992 115,499 for the years ended December 31, 2021 and 2020, respectively. |
BANK AND OTHER BORROWINGS
BANK AND OTHER BORROWINGS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
BANK AND OTHER BORROWINGS | NOTE 9 – BANK AND OTHER BORROWINGS 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 In December 2020, the Company obtained a loan 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 November 2021, the Company obtained a bank loan in the principal amount of RMB 500,000 79,000 interest at 3.6% December 11, 2021 December 21, 2023 500,750 79,000 interest at 10.71% The balance of the loans borrowed as of March 31, 2022 and December 31, 2021 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES March 31, 2022 December 31, 2021 Loan from a trust in PRC $ 50,690 $ 67,438 China Construction Bank 143,508 143,192 WeBank 78,968 78,795 Aggregate outstanding principal balances $ 273,166 $ 289,425 Less: current portion 95,815 101,207 Non-current portion $ 177,351 $ 188,218 The total interest expense was $ 5,825 and $ 3,553 for the three months ended March 31, 2022 and 2021, respectively. | NOTE 11 – BANK AND OTHER BORROWINGS In July 2020, the Company obtained a loan from Hua Hui (Shenzhen) Education Management Ltd., which is a related party with Mr. 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 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 In December 2020, the Company obtained a loan 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 November 2021, the Company obtained a bank loan in the principal amount of RMB 500,000 79,000 bears interest at 3.6% December 11, 2021 December 21, 2023 500,750 79,000 bears interest at 10.71% The balance of the loans borrowed as of December 31, 2021 and 2020 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES December 31, 2021 December 31, 2020 Bank loan from the trust in PRC $ 67,438 $ 114,879 China Construction Bank 143,192 - WeBank 78,795 139,387 Aggregate outstanding principal balances $ 289,425 $ 254,266 Less: current portion 101,207 - Non-current portion $ 188,218 $ 254,266 The total interest expense was $ 17,816 and $ 14,325 (including $ 12,789 paid to a related party) for the years ended December 31, 2021 and 2020, respectively. |
COMMON STOCK
COMMON STOCK | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Common Stock | ||
COMMON STOCK | NOTE 10 – COMMON STOCK 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 a ratio of 1-for-20 150,000,000 313,098,220 15,655,038 0.001 | NOTE 12 – COMMON STOCK 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 per share, at a ratio of 1-for-20 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, the Company’s authorized shares of common stock became 150,000,000 shares. As of September 30, 2020 and immediately prior to the Reverse Stock Split, there were 313,098,220 shares of common stock issued and outstanding. As a result of the Reverse Stock Split, the Company has 15,655,038 shares of common stock issued and outstanding. The par value remains unchanged at $ 0.001 per share, which resulted in a reclassification of capital from par value to additional paid-in capital in excess of par value. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS During the subsequent period through March 31, 2022, the Company advanced a total amount of $ 382,646 to a related party, and the related party repaid the amount of $ 167,003 to the Company. The balance of due from related parties as of the filing date was $ 148,430 . |
ORGANIZATION & DESCRIPTION OF B
ORGANIZATION & DESCRIPTION OF BUSINESS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
ORGANIZATION & DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS ORGANIZATION & 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 (given effect of the Reverse Stock Split, see Note 12). 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 shares (given effect of the Reverse Stock Split, see Note 12) of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for as a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company’s historical statement of stockholders’ equity has been retroactively restated to the first period presented. DIGLS was incorporated with limited liability in the Republic of Seychelles on July 4, 2016, with share capital of $ 100,000 250,000,000 0.0004 100 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 5 100 % of the shares of JJGS for a cost of $ 150 . After the closing, JJGS became the Company’s wholly owned subsidiary. JJGS owns all of the equity interest of Jiujiu (HK) Industry Limited (“JJHK”) and Jiujiu (Shenzhen) Industry Co., Ltd. (“JJSZ”). JJGS, JJHK and JJSZ did not have any material assets or liabilities as of December 31, 2019, and they did not have any substantial operations or active business during the year ended December 31, 2019. 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 % of the equity interest of Dongguan Xixingdao Technology Co., Ltd. (“Xixingdao”), a company incorporated in the PRC, in exchange for 243,134 shares (given effect of the Reverse Stock Split, see Note 12) of the Company’s common stock. The Company obtained the control of Xixingdao on August 31, 2020, the shares were issued on December 28, 2020. Xixingdao became the Company’s subsidiary since August 31, 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 5 0.6 3 0.4 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 March 31, 2022 and for the three months ended March 31, 2022 and 2021, 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, 2021 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, 2021, filed with the SEC on April 1, 2022 (the “report”). These unaudited condensed consolidated financial statements 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 March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 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 three months ended March 31, 2022 and 2021. 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 three months ended March 31, 2022 and 2021, the Company did no t 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 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 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 March 31, 2022 and December 31, 2021, the Company had customer advances of $ 351,412 and $ 382,518 , respectively. During the three months ended March 31, 2022, the Company recognized $ 272,551 of customer advances in the opening balance. Related party transactions 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. | 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 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 shares (given effect of the Reverse Stock Split, see Note 12) of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for as a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company’s historical statement of stockholders’ equity has been retroactively restated to the first period presented. 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 12) of its common stock to JJGS to acquire 100 % of the shares of JJGS for a cost of $ 150 . After the closing, JJGS became the Company’s wholly owned subsidiary. JJGS owns all of the equity interest of Jiujiu (HK) Industry Limited (“JJHK”) and Jiujiu (Shenzhen) Industry Co., Ltd. (“JJSZ”). JJGS, JJHK and JJSZ did not have any material assets or liabilities as of December 31, 2019, and they did not have any substantial operations or active business during the year ended December 31, 2019. 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 % of the equity interest of Dongguan Xixingdao Technology Co., Ltd. (“Xixingdao”), a company incorporated in the PRC, in exchange for 243,134 shares (given effect of the Reverse Stock Split, see Note 12) of the Company’s common stock. The Company obtained the control of Xixingdao on August 31, 2020, the shares were issued on December 28, 2020. Xixingdao became the Company’s subsidiary since August 31, 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 5 0.6 3 0.4 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021, 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, 2021 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, 2021, filed with the SEC on April 1, 2022 (the “report”). These unaudited condensed consolidated financial statements | 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. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and fulfillment of obligations in the normal course of business. The realization of assets and fulfillment of obligations in the normal course of business is dependent on, among other things, the Company’s ability to generate sufficient cash flows from operations, and the Company’s ability to arrange adequate financing arrangements. Historically, the Company had recurring net losses and negative operating cash flows that raised substantial doubt about its ability to continue as a going concern. The Company has been improving its operations subsequent to the acquisition of Xixingdao in August 2020. In assessing its going concern in the next twelve months following the issuance of the financial statements for the year ended December 31, 2021, management considered the projected revenues and expenses for the next twelve months. Although the Company has generated a negative operating cash flow of $ 457,142 1,963,469 3,351,962 |
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 March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. PRC | Basis of consolidation The condensed condensed As of December 31, 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 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 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, 2021 December 31,2020 Spot RMB: USD exchange rate $ 0.15735 $ 0.15317 Average RMB: USD exchange rate $ 0.15499 $ 0.14496 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 revenues 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 EQUIPMENT Categories Estimated useful life 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 assets, net | Intangible assets, 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 Others 5 | |
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 months or less. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. | |
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 three months ended March 31, 2022 and 2021. | 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 years ended December 31, 2021 and 2020. |
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 three months ended March 31, 2022 and 2021, the Company did no t 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 years ended December 31, 2021 and 2020, the Company has recorded impairment of goodwill in the amount of $ nil and $ 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 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 | 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, 2021 December 31, 2020 Sales of wine $ 3,098,070 $ 2,704,662 Sales of water 3,653,171 1,297,554 Sales of oil 515,273 493,284 Others 755,309 510,194 Total $ 8,021,823 $ 5,005,694 |
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 March 31, 2022 and December 31, 2021, the Company had customer advances of $ 351,412 and $ 382,518 , respectively. During the three months ended March 31, 2022, the Company recognized $ 272,551 of customer advances in the opening balance. | Contract liabilities Contract liabilities consist mainly of advanced from customers including related party customers. 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, 2021 and 2020, the Company had customer advances of $ 382,518 and $ 580,151 , respectively. During the years ended December 31, 2021 and 2020, the Company recognized $ 580,151 and $ nil , respectively, of customer advances in the opening balance. |
Sales and distribution expenses | Sales and distribution expenses Sales and distribution expenses amounted to $ 89,416 23,191 | |
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 % for the period from the beginning of 2018 till the end of April 2018, then changed to 16 % from May 2018 to the end of March 2019, and changed to 13 % from April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. For entities that are VAT small taxpayers, VAT rate applicable is 3 % for the period from the beginning of 2018, then during the COVID-19, the small taxpayers are allowed to enjoy the preferred tax policy, tax rate from 3 % to 1 % for the period from March 1, 2020 to December 31, 2021. All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the PRC tax authorities for five years from the date of filing. VAT payables are included in accrued liabilities. | |
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 income 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 % of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50 % of the enterprise’s PRC registered capital. The Company had $ 636,898 nil | |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) 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 (loss) | Comprehensive income (loss) Comprehensive income (loss) 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 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents are financially sound based on public available information. 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 also exposures 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. 10% 10% 10% 10% 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 transactions 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 statement. |
ORGANIZATION & DESCRIPTION OF_2
ORGANIZATION & DESCRIPTION OF BUSINESS (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021, 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, 2021 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, 2021, filed with the SEC on April 1, 2022 (the “report”). These unaudited condensed consolidated financial statements | 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. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and fulfillment of obligations in the normal course of business. The realization of assets and fulfillment of obligations in the normal course of business is dependent on, among other things, the Company’s ability to generate sufficient cash flows from operations, and the Company’s ability to arrange adequate financing arrangements. Historically, the Company had recurring net losses and negative operating cash flows that raised substantial doubt about its ability to continue as a going concern. The Company has been improving its operations subsequent to the acquisition of Xixingdao in August 2020. In assessing its going concern in the next twelve months following the issuance of the financial statements for the year ended December 31, 2021, management considered the projected revenues and expenses for the next twelve months. Although the Company has generated a negative operating cash flow of $ 457,142 1,963,469 3,351,962 |
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 March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. PRC | Basis of consolidation The condensed condensed As of December 31, 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 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 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, 2021 December 31,2020 Spot RMB: USD exchange rate $ 0.15735 $ 0.15317 Average RMB: USD exchange rate $ 0.15499 $ 0.14496 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 | 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 three months ended March 31, 2022 and 2021. | 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 years ended December 31, 2021 and 2020. |
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 three months ended March 31, 2022 and 2021, the Company did no t 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 years ended December 31, 2021 and 2020, the Company has recorded impairment of goodwill in the amount of $ nil and $ 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 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 | 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, 2021 December 31, 2020 Sales of wine $ 3,098,070 $ 2,704,662 Sales of water 3,653,171 1,297,554 Sales of oil 515,273 493,284 Others 755,309 510,194 Total $ 8,021,823 $ 5,005,694 |
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 March 31, 2022 and December 31, 2021, the Company had customer advances of $ 351,412 and $ 382,518 , respectively. During the three months ended March 31, 2022, the Company recognized $ 272,551 of customer advances in the opening balance. | Contract liabilities Contract liabilities consist mainly of advanced from customers including related party customers. 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, 2021 and 2020, the Company had customer advances of $ 382,518 and $ 580,151 , respectively. During the years ended December 31, 2021 and 2020, the Company recognized $ 580,151 and $ nil , respectively, of customer advances in the opening balance. |
Related party transactions | Related party transactions 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES | As of March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 | SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION December 31, 2021 December 31,2020 Spot RMB: USD exchange rate $ 0.15735 $ 0.15317 Average RMB: USD exchange rate $ 0.15499 $ 0.14496 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT | SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT Categories Estimated useful life 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 Others 5 | |
SCHEDULE OF DISAGGREGATION REVENUE | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE For the years ended December 31, 2021 December 31, 2020 Sales of wine $ 3,098,070 $ 2,704,662 Sales of water 3,653,171 1,297,554 Sales of oil 515,273 493,284 Others 755,309 510,194 Total $ 8,021,823 $ 5,005,694 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following as of March 31, 2022 and December 31, 2021 SCHEDULE OF ACCOUNTS RECEIVABLE March 31 December 31, Accounts receivable (including $ 19,044 43,477 $ 1,881,892 $ 2,662,168 Less: Allowance for doubtful accounts - - Accounts receivable, net $ 1,881,892 $ 2,662,168 | Accounts receivable consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 Accounts receivable (including $ 43,477 239,468 $ 2,662,168 $ 2,468,038 Less: Allowance for doubtful accounts - - Account receivable, net $ 2,662,168 $ 2,468,038 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Prepayments And Other Current Assets | ||
SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS | Prepayments and other current assets consisted of the following as of March 31, 2022 and December 31, 2021 SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS March 31 December 31, Prepayments (including $ 1,731,874 1,813,904 $ 2,604,463 $ 2,169,095 Other current assets 24,439 7,618 Prepayments and other receivables $ 2,628,902 $ 2,176,713 | Prepayments and other current assets consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS 2021 2020 Prepayments (including $ 1,813,904 298,383 $ 2,169,095 $ 376,746 Other current assets 7,618 7,062 Prepayments and other current assets $ 2,176,713 $ 383,808 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following as of March 31, 2022 and December 31, 2021 SCHEDULE OF PROPERTY AND EQUIPMENT March 31, December 31, Office equipment $ 116,736 $ 113,995 Leasehold improvement 129,424 126,386 Property and equipment 246,160 240,381 Less: Accumulated depreciation (117,936 ) (99,987 ) Property and equipment, net $ 128,224 $ 140,394 | Property and equipment consisted of the following as of December 31, 2021 and 2020: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 Office equipment $ 113,995 $ 69,158 Leasehold improvement 126,386 54,146 Property and equipment 240,381 123,304 Less: Accumulated depreciation (99,987 ) (75,489 ) Property and equipment, net $ 140,394 $ 47,815 |
BUSINESS COMBINATION AND GOOD_2
BUSINESS COMBINATION AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 | 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 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets and related accumulated amortization were as follows : SCHEDULE OF INTANGIBLE ASSETS March 31, December 31, Distributor channel $ 3,396,880 $ 3,389,404 Others 22,348 22,299 Total intangible assets 3,419,228 3,411,703 Less: Accumulated amortization (1,344,598 ) (1,129,913 ) Total $ 2,074,630 $ 2,281,790 | Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS 2021 2020 Distributor channel $ 3,389,404 $ 3,299,329 Others 22,299 4,105 Total intangible assets 3,411,703 3,303,434 Less: Accumulated amortization (1,129,913 ) (274,944 ) Total $ 2,281,790 $ 3,028,490 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS | As of March 31, 2022 SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2022 (remaining) $ 636,705 2023 849,220 2024 588,705 Thereafter - Total $ 2,074,630 | As of December 31, 2021, the future estimated amortization costs for distribution channel are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS 2022 (remaining) 2022 $ 847,351 2023 847,351 2024 564,901 Thereafter - Total $ 2,259,603 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 Three Months Ended Three Months Ended Current: – United States of America $ - $ 43,096 – Seychelles - - – Hong Kong - - – The PRC 22,407 23,259 Current income tax expense 22,407 23,259 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense - - Total $ 22,407 $ 66,355 | The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION 2021 2020 Current: – United States of America $ 20,071 $ 46,621 – Seychelles - - – Hong Kong - - – The PRC 228,766 260,307 Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Total $ 248,837 $ 306,928 |
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 2021 2020 Income (loss) attributed to PRC operations $ 3,109,080 $ (2,861,595 ) Income (loss) attributed to Seychelles and Hong Kong (444 ) 873 Loss attributed to U.S. (896,330 ) (479,703 ) Income (loss) before tax $ 2,212,306 $ (3,340,425 ) | |
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, 2021 and 2020: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % Higher rates in PRC, net - % - % Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset - % - % Income tax difference under different tax jurisdictions 7.2 % -3.9 % PRC tax exemption for qualified small-scale and low-profit enterprises -36.8 % 17.7 % Valuation allowance on deferred income tax assets 2.5 % -1.5 % Amortization of intangible asset and impairment of goodwill not deductible for tax purposes 7.9 % -36.8 % Impact of GILTI 9.4 % -4.4 % Others - % -1.3 % The Company’s effective tax rate 11.2 % -9.2 % | |
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 As of December 31, 2021 December 31, 2020 Deferred tax assets: Net operating loss carry forwards $ - $ - -United States - - -Hong Kong - - -PRC 55,457 54,598 Gross deferred tax assets 55,457 54,598 Less: valuation allowance (55,457 ) (54,598 ) Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES | Amounts due from related parties as of March 31, 2022 and December 31, 2021 SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES March 31, December 31, Mr. Deqin Ke Manager of a subsidiary $ - $ 26,364 Mr. Yuwen Li Vice President 26,255 - Due from related parties $ 26,255 $ 26,364 Amounts due to related parties as of March 31, 2022 and December 31, 2021 March 31, December 31, Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 300,114 $ 344,218 Ms. Xiulan Zhou Manager of a subsidiary 1,160 1,157 Mr. Huagen Li Manager of a subsidiary 2,523 2,518 Mr. Guodong Jia Manager of a subsidiary 946 944 Mr. Minghua Cheng Former director and majority shareholder 78,851 157,353 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 17 17 Mr. Anping Chen Manager of a subsidiary 8,516 6,924 Mr. Jiangwei Jia Manager of a subsidiary - 787 Ms. Xiuyun Wang Manager of a subsidiary - 6,020 Mr. Yuwen Li Vice President - 70,745 Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 94,620 93,298 Mr. Deqin Ke Manager of a subsidiary 789 - Mr. Zhihua Liao Manager of a subsidiary 325 - Ms. Chunxiang Zhang Manager of a subsidiary 1,577 - Mr. Xue Meng Manager of a subsidiary 789 - Ms. Shuqin Chen Manager of a subsidiary 789 - Due to related parties $ 491,016 $ 683,981 | Amounts due from related parties as of December 31, 2021 and 2020 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2021 2020 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 Ms. Shuqin Chen Manager of a subsidiary - 105,784 Mr. Deqin Ke Manager of a subsidiary 26,364 - $ 26,364 $ 984,806 Amounts due to related parties as of December 31, 2021 and 2020 are as follows: 2021 2020 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director $ 344,218 $ - Ms. Xiulan Zhou Manager of a subsidiary 1,157 - Mr. Huagen Li Manager of a subsidiary 2,518 - Mr. Guodong Jia Manager of a subsidiary 944 - Mr. Minghua Cheng Director and majority shareholder of the Company 157,353 - Mr. Hongwei Ye Manager of a subsidiary, Shareholder of the Company 17 - Mr. Anping Chen Manager of a subsidiary 6,924 - Mr. Jiangwei Jia Manager of a subsidiary 787 - Ms. Xiuyun Wang Manager of a subsidiary 6,020 1,483 Mr. Yuwen Li Vice President 70,745 292,024 Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 93,298 3,063 Ms. Lihua Li Mr. Yuwen Li’s wife - 677 Mr. Zihao Ye Manager of a subsidiary - 12,958 Mr. Weihua Zuo Manager of a subsidiary - 2,298 Mr. Deqin Ke Manager of a subsidiary - 9,274 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 $ 683,981 $ 337,400 |
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES | Revenues generated from related parties during the three months ended March 31, 2022 SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 241 $ 51 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 222 109 Mr. Zihao Ye Manager of a subsidiary 262 76 Mr. Naiyong Luo Manager of a subsidiary - 5,115 Mr. Hongwei Ye Manager of a subsidiary, Shareholder - 5,922 Dongguan Zhengui Reality Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Dongguan Zhengui Reality Co., Ltd. - 132,099 Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. - 13,781 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. - 98,643 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company - 13,182 Revenues generated from related parties $ 725 $ 268,978 | Revenues generated from related parties during the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2021 2020 Mr. Yuwen Li Vice President $ - $ 627 Mr. Kaihong Lin Chief Financial Officer and Treasurer 407 51 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director 389 332 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 63 42 Mr. Zihao Ye Manager of a subsidiary 108 442 Mr. Naiyong Luo Manager of a subsidiary 5,759 6,434 Mr. Hongwei Ye Manager of a subsidiary, Shareholder of the Company 6,820 1,225 Shenzhen DaXingHuaShang Industry Development Ltd Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. - 1,257 Shenzhen DaXingHuaShang Supplychain Service Co., Ltd. Subsidiary of Shenzhen DaXingHuaShang Industry Development Ltd. - 269,552 Guangdong Shuiyijia Distribution Co., Ltd. Ms. Lihua Li is the supervisor of this company 19,619 149 Dongguan Chashan Pingfeng Cigarate and Wine Co., Ltd. Mr. Taiping Deng, a manager of a subsidiary, is the controlling shareholder of Dongguan ChaShan Pingfeng Cigarate and Wine Co. Ltd. 99,119 - Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. 104,663 45,262 Dongguan Hualian Guanhua Gong Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Hualian Guanhua Gong Co., Ltd. 57,671 21,534 Dongguan Daying Internet Technology Co., Ltd. Mr. Minghua Cheng, a director of the Company, is the controlling shareholder of Dongguan Daying Internet Technology Co., Ltd. 132,737 - Dongguan Zhengui Reality Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Dongguan Zhengui Reality Co., Ltd. 54,730 71,428 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. - 15,267 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company - 76,573 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company - 86,131 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company - 86,374 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company - 87,364 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 13,245 73,784 $ 495,330 $ 843,828 |
SCHEDULE OF COST REVENUES FROM RELATED PARTIES | Cost of revenues from related parties during the years ended December 31, 2021 and 2020 is as follows: SCHEDULE OF COST REVENUES FROM RELATED PARTIES 2021 2020 Significantly influenced by the Company $ 56,598 $ 57,426 Guangfong Jiaduonuo Shengshi Tradong Co., Ltd. Significantly influenced by the Company 109,936 21,641 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company 124,896 75,274 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 99,502 29,122 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 89,475 38,116 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 113,893 86,802 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 69,676 - $ 663,976 $ 308,381 | |
SCHEDULE OF PURCHASES FROM RELATED PARTIES | Purchases from related parties during the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2021 2020 Significantly influenced by the Company $ 184,099 $ 64,035 Guangfong Jiaduonuo Shengshi Tradong Co., Ltd. Significantly influenced by the Company 168,066 24,774 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company 79,685 32,425 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 63,483 9,857 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 57,086 73,843 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 72,664 48,852 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 9,483 12,394 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 44,454 25,507 $ 679,020 $ 291,687 | |
SCHEDULE OF COST REVENUES FROM RELATED PARTIES | Cost of revenues from related parties during the three months ended March 31, 2022 and 2021 is as follows: SCHEDULE OF COST REVENUES FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 8,178 $ 31,424 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 14,648 19,307 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 9,555 16,283 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 1,082 6,472 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 9,736 14,615 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 46,721 35,826 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 39,765 3,157 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 7,227 3,516 Cost of revenues from related parties $ 136,912 $ 130,600 | |
SCHEDULE OF PURCHASES FROM RELATED PARTIES | Purchases from related parties during the three months ended March 31, 2022 and 2021 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2022 2021 For the three months ended March 31, 2022 2021 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 8,178 $ 31,424 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 14,648 18,319 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 9,555 15,450 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 1,082 6,141 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 9,736 13,868 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 46,721 33,993 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 39,765 2,996 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 7,227 3,336 Purchase from related party $ 136,912 $ 125,527 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 three months ended March 31, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION For the three months ended March 31, Operating lease cost (included in general and administrative expenses in the Company’s condensed consolidated statements of operations) Related parties $ 4,726 $ 18,490 Non-related parties 37,773 18,200 Other information for the three months ended March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease obligations $ 51,477 $ 41,336 Weighted average remaining lease term (in years) 3.66 3.77 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, 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 years ended December 31, December 31, Related parties $ 32,677 $ 100,302 Non-related parties 118,315 15,197 Other information for the years ended December 31, December 31, 2020 Cash paid for amounts included in the measurement of lease obligations $ 151,586 $ 57,115 Weighted average remaining lease term (in years) 3.82 3.48 Weighted average discount rate 3.23 % 3.23 % |
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS | Maturities of the Company’s lease obligations as of March 31, 2022 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2022 (remaining) $ 121,292 Remaining of fiscal year $ 121,292 2023 114,117 Year one 114,117 2024 86,720 Year two 86,720 2025 82,664 Year three 82,664 2026 46,528 Year four 46,528 Thereafter 6,308 Total lease payment 457,629 Less: Imputed interest (25,905 ) Operating lease obligations $ 431,724 | Maturities of the Company’s lease obligations as of December 31, 2021 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2022 $ 163,885 2023 118,279 2024 87,001 2025 82,482 2026 46,426 Thereafter 6,294 Total lease payment 504,367 Less: Imputed interest (29,570 ) Operating lease obligations $ 474,797 |
BANK AND OTHER BORROWINGS (Tabl
BANK AND OTHER BORROWINGS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES | The balance of the loans borrowed as of March 31, 2022 and December 31, 2021 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES March 31, 2022 December 31, 2021 Loan from a trust in PRC $ 50,690 $ 67,438 China Construction Bank 143,508 143,192 WeBank 78,968 78,795 Aggregate outstanding principal balances $ 273,166 $ 289,425 Less: current portion 95,815 101,207 Non-current portion $ 177,351 $ 188,218 | The balance of the loans borrowed as of December 31, 2021 and 2020 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES December 31, 2021 December 31, 2020 Bank loan from the trust in PRC $ 67,438 $ 114,879 China Construction Bank 143,192 - WeBank 78,795 139,387 Aggregate outstanding principal balances $ 289,425 $ 254,266 Less: current portion 101,207 - Non-current portion $ 188,218 $ 254,266 |
ORGANIZATION & DESCRIPTION OF_3
ORGANIZATION & DESCRIPTION OF BUSINESS (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES | As of March 31, 2022, 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 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 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 (“FYBL”) 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 Jia Drinking Water Ltd (“FJWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) March 29, 2021 Xixingdao Sales of agriculture products, household electric appliances and food. PRC Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) March 17, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) June 7, 2021 Xixingdao Sales of agriculture products, household electric appliances, plastic products and software development PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao Sales of agriculture products, household electric appliances and plastic products. PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. 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 2022 2021 As of and for the three months ended March 31, 2022 2021 Period-end RMB:US$1 exchange rate 0.15770 0.15261 Period-average RMB:US$1 exchange rate 0.15752 0.15424 | SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION December 31, 2021 December 31,2020 Spot RMB: USD exchange rate $ 0.15735 $ 0.15317 Average RMB: USD exchange rate $ 0.15499 $ 0.14496 |
SCHEDULE OF DISAGGREGATION REVENUE | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2022 2021 Three months ended 2022 2021 Sales of wine $ 630,462 $ 779,220 Sales of water 529,444 700,495 Sales of oil - 135,997 Others 101,904 28,448 Total $ 1,261,810 $ 1,644,160 | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE For the years ended December 31, 2021 December 31, 2020 Sales of wine $ 3,098,070 $ 2,704,662 Sales of water 3,653,171 1,297,554 Sales of oil 515,273 493,284 Others 755,309 510,194 Total $ 8,021,823 $ 5,005,694 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) $ in Millions | Jan. 06, 2021USD ($) | Jan. 06, 2021HKD ($) | Jun. 22, 2020shares | Mar. 01, 2019USD ($)shares | Apr. 11, 2018shares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Stock Issued During Period, Value, Acquisitions | $ 9,773,989 | |||||||||
Net Income (Loss) Attributable to Parent | $ 148,676 | $ 305,254 | $ 1,779,736 | (3,255,564) | ||||||
DaXingHuaShang Investment Group Limited [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Ownership percentage | 70.00% | 70.00% | ||||||||
Business combination, consideration transferred | $ 12,000,000 | |||||||||
Net Income (Loss) Attributable to Parent | $ 600,000 | $ 5 | $ 400,000 | $ 3 | ||||||
Jiujiu Group Stock Co., Ltd [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Ownership percentage | 100.00% | |||||||||
Share Exchange Agreement [Member] | DaXingHuaShang Investment Group Limited [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 15,000,000 | |||||||||
Sale And Purchase Agreement [Member] | Jiujiu Group Stock Co., Ltd [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 5 | |||||||||
Stock Issued During Period, Value, Acquisitions | $ 150 | |||||||||
Xixingdao Agreement [Member] | QHDX [Member] | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 243,134 | |||||||||
Ownership percentage | 90.00% |
SCHEDULE OF ENTITIES AND ITS SU
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 |
Dongguan City Fu La Tu Trade Ltd ("FLTT") [Member] | ||
Entity Name | Dongguan City Fu La Tu Trade Ltd (“FLTT”) | Dongguan City Fu La Tu Trade Ltd |
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 |
Dongguan City Fu Xin Gu Trade Ltd ("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 Xin Technology Ltd ("FXTL") [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 |
Dongguan City Fu Guan Healthy Industry Technology Ltd ("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 |
Dongguan City Fu Jing Technology Ltd ("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 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 |
Dongguan City Fu Yi Beverage Ltd (FYDL) [Member] | ||
Entity Name | Dongguan City Fu Yi Beverage Ltd (“FYBL”) | |
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”) | Dongguan City Fu Tai Food Trade Ltd (“FTFL”) |
Entity incorporation date | Oct. 23, 2020 | Oct. 23, 2020 |
Nature of operation | Drinking water distribution and delivery | Drinking water distribution and delivery |
Country of incorporation | PRC | PRC |
Dongguan City Fu Jia Drinking Water Ltd (FJDL) [Member] | ||
Entity Name | Dongguan City Fu Jia Drinking Water Ltd (“FJWL”) | |
Entity incorporation date | Mar. 29, 2021 | Mar. 29, 2021 |
Nature of operation | Sales of agriculture products, household electric appliances and food. | Sales of agriculture products, household electric appliances and food. |
Country of incorporation | PRC | PRC |
Dongguan City Fu Sheng Drinking Water Ltd (FSDL) [Member] | ||
Entity Name | Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) | |
Entity incorporation date | Mar. 29, 2021 | Mar. 29, 2021 |
Nature of operation | Sales of agriculture products, household electric appliances and food. | Sales of agriculture products, household electric appliances and food. |
Country of incorporation | PRC | PRC |
Dongguan City Fu Xi Drinking Water Ltd (FXDL) [Member] | ||
Entity Name | Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) | |
Entity incorporation date | Mar. 17, 2021 | Mar. 17, 2021 |
Nature of operation | Sales of agriculture products, household electric appliances and plastic products. | Sales of agriculture products, household electric appliances and plastic products. |
Country of incorporation | PRC | PRC |
Shenzhen City FuJin Trading Technology Ltd (FJTL) [Member] | ||
Entity Name | Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) | Shenzhen City Fu Jin Trading Technology Ltd (“FJSTL”) |
Entity incorporation date | Jun. 7, 2021 | Jun. 7, 2021 |
Nature of operation | Sales of agriculture products, household electric appliances, plastic products and software development | Sales of agriculture products, household electric appliances, plastic products and software development |
Country of incorporation | PRC | PRC |
Dongguan City Fuli Trading Ltd (FLTL) [Member] | ||
Entity Name | Dongguan City Fu Li Trading Ltd (“FLTL”) | Dongguan City Fu Li Trading Ltd (“FLTL”) |
Entity incorporation date | Sep. 10, 2021 | Sep. 10, 2021 |
Nature of operation | Sales of agriculture products, household electric appliances and plastic products. | Sales of agriculture products, household electric appliances and plastic products. |
Country of incorporation | PRC | PRC |
Guangdong Fugu Supply Chain Group Ltd (FGSL) [Member] | ||
Entity Name | Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) | |
FGGC [Member] | ||
Entity Name | Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) | |
Entity incorporation date | Sep. 13, 2021 | Sep. 13, 2021 |
Nature of operation | Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. | Supply chain service, sales of food and health products, machinery, plastic products, and investment holding. |
Country of incorporation | PRC | PRC |
F Y B L [Member] | ||
Entity Name | Dongguan City Fu Yi Beverage Ltd (“FYBL”) | |
F J W L [Member] | ||
Entity Name | Dongguan City Fu Jia Drinking Water Ltd (“FJWL”) | |
F S W L [Member] | ||
Entity Name | Dongguan City Fu Sheng Drinking Water Ltd (“FSWL”) | |
F X W L [Member] | ||
Entity Name | Dongguan City Fu Xi Drinking Water Ltd (“FXWL”) |
SCHEDULE OF FOREIGN CURRENCY EX
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION (Details) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Spot RMB [Member] | ||||
Offsetting Assets [Line Items] | ||||
Period-average RMB:US$1 exchange rate | 0.15735 | 0.15317 | ||
Average RMB [Member] | ||||
Offsetting Assets [Line Items] | ||||
Period-average RMB:US$1 exchange rate | 0.15499 | 0.14496 | ||
Period End R M B [Member] | ||||
Offsetting Assets [Line Items] | ||||
Period-average RMB:US$1 exchange rate | 0.15770 | 0.15261 | ||
Period Average R M B [Member] | ||||
Offsetting Assets [Line Items] | ||||
Period-average RMB:US$1 exchange rate | 0.15752 | 0.15424 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 20 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 3 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION (Details) | 12 Months Ended |
Dec. 31, 2021 | |
FXGT [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Others [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total | $ 1,261,810 | $ 1,644,160 | $ 8,021,823 | $ 5,005,694 |
Sales of Wine [Member] | ||||
Total | 630,462 | 779,220 | 3,098,070 | 2,704,662 |
Sales of Water [Member] | ||||
Total | 529,444 | 700,495 | 3,653,171 | 1,297,554 |
Sales of Oil [Member] | ||||
Total | 135,997 | 515,273 | 493,284 | |
Others [Member] | ||||
Total | $ 101,904 | $ 28,448 | $ 755,309 | $ 510,194 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Apr. 30, 2019 | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Apr. 30, 2018 | Dec. 31, 2020USD ($) | Mar. 31, 2019 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018 | Dec. 31, 2021CNY (¥) |
Cash provided by (used in) operating activities | $ (133,442) | $ 508,778 | $ 457,142 | $ (1,236,265) | ||||||
Net income (loss) | 175,959 | 335,574 | 1,963,469 | (3,647,353) | ||||||
Working capital | 3,351,962 | |||||||||
Goodwill, Impairment Loss | 0 | 0 | 5,594,692 | |||||||
Contract with Customer, Liability, Current | 351,412 | $ 580,151 | 382,518 | 580,151 | ||||||
Contract with Customer, Liability | 272,551 | 580,151 | ||||||||
Sales and distribution expenses | $ 18,155 | $ 27,554 | 89,416 | 23,191 | ||||||
[custom:ValueAddedTax] | 13.00% | 17.00% | 16.00% | |||||||
Statutory reserves | $ 636,898 | |||||||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||||||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Two Suppliers [Member] | ||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Three Suppliers [Member] | ||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||
Minimum [Member] | ||||||||||
[custom:StatutoryReservePercentage] | 10.00% | |||||||||
Maximum [Member] | ||||||||||
[custom:StatutoryReservePercentage] | 50.00% | |||||||||
Maximum [Member] | China Deposit Insurance System [Member] | ||||||||||
Cash, FDIC Insured Amount | ¥ | ¥ 500,000 | |||||||||
VAT Small Taxpayers [Member] | ||||||||||
[custom:ValueAddedTax] | 1.00% | 3.00% | 3.00% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Accounts receivable (including $19,044 and $43,477 from related parties as of March 31, 2022 and December 31, 2021, respectively) | $ 1,881,892 | $ 2,662,168 | $ 2,468,038 |
Less: Allowance for doubtful accounts | |||
Accounts receivable, net | $ 1,881,892 | $ 2,662,168 | $ 2,468,038 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Accounts receivable related parties | $ 19,044 | $ 43,477 | $ 239,468 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments And Other Current Assets | |||
Prepayments (including $1,731,874 and 1,813,904 to related parties as of March 31, 2022 and December 31, 2021, respectively) | $ 2,604,463 | $ 2,169,095 | $ 376,746 |
Other current assets | 24,439 | 7,618 | 7,062 |
Prepayments and other receivables | $ 2,628,902 | $ 2,176,713 | $ 383,808 |
SCHEDULE OF PREPAYMENTS AND O_2
SCHEDULE OF PREPAYMENTS AND OTHER CURRENT ASSETS (Details) (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments And Other Current Assets | |||
Prepaid assets related parties | $ 1,731,874 | $ 1,813,904 | $ 298,383 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 246,160 | $ 240,381 | $ 123,304 |
Less: Accumulated depreciation | (117,936) | (99,987) | (75,489) |
Property and equipment, net | 128,224 | 140,394 | 47,815 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 116,736 | 113,995 | 69,158 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 129,424 | $ 126,386 | $ 54,146 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 12,466 | $ 4,950 | $ 24,500 | $ 22,590 |
SCHEDULE OF RECOGNIZED IDENTIFI
SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) | Dec. 31, 2021USD ($) |
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 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 5,594,692 | ||
Goodwill | $ 1,409,390 | $ 1,406,289 | 1,368,915 | ||
Xixingdao [Member] | |||||
Business Acquisition [Line Items] | |||||
Equity interest percentage | 90.00% | ||||
Purchase consideration | $ 9,773,989 | ||||
Business acquisition, share issued | 4,862,681 | ||||
Goodwill, Impairment Loss | 5,594,692 | ||||
Goodwill | $ 1,368,915 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | $ 3,419,228 | $ 3,411,703 | $ 3,303,434 |
Less: Accumulated amortization | (1,344,598) | (1,129,913) | (274,944) |
Total | 2,074,630 | 2,281,790 | 3,028,490 |
Distribution Channel [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | 3,396,880 | 3,389,404 | 3,299,329 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets | $ 22,348 | $ 22,299 | $ 4,105 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining) | $ 636,705 | |
2023 | 849,220 | $ 847,351 |
2024 | 588,705 | 847,351 |
2024 | 564,901 | |
Thereafter | ||
Total | $ 2,074,630 | $ 2,259,603 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expenses | $ 211,957 | $ 196,579 | $ 844,907 | $ 260,205 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Total | $ 22,407 | $ 66,355 | $ 248,837 | $ 306,928 |
UNITED STATES | ||||
Operating Loss Carryforwards [Line Items] | ||||
Current income tax expense | 43,096 | 20,071 | 46,621 | |
Deferred income tax expense | ||||
Seychelles [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Current income tax expense | ||||
Deferred income tax expense | ||||
HONG KONG | ||||
Operating Loss Carryforwards [Line Items] | ||||
Current income tax expense | ||||
Deferred income tax expense | ||||
People's Republic of China [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Current income tax expense | 22,407 | 23,259 | 228,766 | 260,307 |
Deferred income tax expense |
SCHEDULE OF UNITED STATES AND F
SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | $ 2,212,306 | $ (3,340,425) |
People's Republic of China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | 3,109,080 | (2,861,595) |
Seychelles and Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | (444) | 873 |
UNITED STATES | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | $ (896,330) | $ (479,703) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Higher rates in PRC, net | |||
Reconciling items, net operating losses in PRC and other jurisdictions, election to not recognize tax asset | |||
Income tax difference under different tax jurisdictions | 7.20% | (3.90%) | |
PRC tax exemption for qualified small-scale and low-profit enterprises | (36.80%) | 17.70% | |
Valuation allowance on deferred income tax assets | 2.50% | (1.50%) | |
Amortization of intangible asset and impairment of goodwill not deductible for tax purposes | 7.90% | (36.80%) | |
Impact of GILTI | 9.40% | (4.40%) | |
Others | (1.30%) | ||
The Company’s effective tax rate | 2.50% | 11.20% | (9.20%) |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | ||
Gross deferred tax assets | 55,457 | 54,598 |
Less: valuation allowance | (55,457) | (54,598) |
Total deferred tax assets, net | ||
UNITED STATES | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | ||
HONG KONG | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | ||
People's Republic of China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 55,457 | $ 54,598 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | Jan. 17, 2019USD ($) | Jan. 17, 2019CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2022HKD ($) | Mar. 31, 2022CNY (¥) | Mar. 31, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||||||||||
U.S federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 11.30% | 11.30% | 11.30% | 16.50% | ||||||
Effective income tax percentage | 2.50% | 2.50% | 2.50% | 11.20% | 11.20% | 11.20% | (9.20%) | |||
People's Republic of China [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Effective income tax percentage | 20.00% | 20.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||
Income Tax Examination, Description | 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 to 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 to 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 to 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 to 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 | ||||||||
Annual taxable income | ¥ | ¥ 1,000,000 | ¥ 10,000 | ||||||||
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% | 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% | 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] | ||||||||||
Annual taxable income | $ | $ 142,209 | |||||||||
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] | Maximum [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Effective income tax percentage | 10.00% | 10.00% | 5.00% | 5.00% | 5.00% | |||||
Annual taxable income | $ 426,627 | ¥ 3,000,000 |
SCHEDULE OF AMOUNT DUE FROM AND
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 26,255 | $ 26,364 | $ 984,806 |
Due to related parties | 491,016 | 683,981 | 337,400 |
Mr Yumin Lin [Member] | President Chief Executive Officer Secretary Director [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 45,662 | ||
Due to related parties | 300,114 | 344,218 | |
Mr. Kaihong Lin [Member] | Chief Financial Officer and Treasurer [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 215,973 | ||
Ms. Xiulan Zhou [Member] | Manager of a Subsidiary Ms Yumin Lins Wife [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 360,273 | ||
Ms. Xiulan Zhou [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,160 | 1,157 | |
Mr. Huagen Li [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 123,456 | ||
Due to related parties | 2,523 | 2,518 | |
Mr. Zhipeng Zuo [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 133,658 | ||
Ms. Shuqin Chen [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 789 | ||
Ms. Shuqin Chen [Member] | Subsidiary Manager [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 105,784 | ||
Mr. Deqin Ke [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 26,364 | ||
Due to related parties | 789 | ||
Ms Huagen Li [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,518 | ||
Guodong Jia [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 944 | ||
Minghua Cheng [Member] | Director And Majority Shareholder Of The Company [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 157,353 | ||
Hongwei Ye [Member] | Manager Of A Subsidiary Shareholder Of The Company [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 17 | ||
Anping Chen [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 6,924 | ||
Jiangwei Jia [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 787 | ||
Xiuyun Wang [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 6,020 | 1,483 | |
Yuwen Li [Member] | Vice President [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 70,745 | 292,024 | |
Shenzhen Da Xing Hua Shang Industry Development Ltd [Member] | Mr. Yumin Lin is the Supervisor of Shenzhen DaXingHuaShang Industry Development Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 94,620 | 93,298 | 3,063 |
Lihua Li [Member] | Mr. Yuwen Li's Wife [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 677 | ||
Zihao Ye [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 12,958 | ||
Weihua Zuo [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 2,298 | ||
Deqin ke [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 9,274 | ||
Shengpin Liu [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 306 | ||
Aisheng Zhang [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 3,063 | ||
Zhihua Liao [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 12,254 | ||
Mr Yuwen Li [Member] | Vice President [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 26,255 | ||
Due to related parties | 70,745 | ||
Mr Guodong Jia [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 946 | 944 | |
Mr Minghua Cheng [Member] | Former Director And Majority Shareholder Of The Company [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 78,851 | 157,353 | |
Mr Hongwei Ye [Member] | Manager Of A Subsidiary Shareholder Of The Company [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 17 | 17 | |
Mr Anping Chen [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 8,516 | 6,924 | |
Mr Jiangwei Jia [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 787 | ||
Mr Xiuyun Wang [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 6,020 | ||
Mr Zhihua [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 325 | ||
Mr Chunxiang Zhang [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,577 | ||
Mr Xue Mang [Member] | Manager of a Subsidiary [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 789 |
SCHEDULE OF REVENUE GENERATED F
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | $ 725 | $ 268,978 | $ 495,330 | $ 843,828 |
Dongguan Tailai Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 13,182 | |||
Dongguan Huanhai Trading [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 104,663 | |||
Mr Naiyong Luo [Member] | Dongguan Zhengui Reality Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 132,099 | |||
Mr Weihong Ye [Member] | Dongguan Huanhai Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 13,781 | |||
Mr Naiyong Luo A Manager [Member] | Guangdong Yuexin Jiaotong Construction Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 98,643 | |||
Mr Yumin Lin [Member] | Vice President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 627 | |||
Mr Yumin Lin [Member] | President Chief Executive Officer Secretary Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 222 | 109 | 389 | 332 |
Mr. Kaihong Lin [Member] | Chief Financial Officer and Treasurer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 241 | 51 | 407 | 51 |
Ms. Xiulan Zhou [Member] | Manager of a Subsidiary Ms Yumin Lins Wife [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 63 | 42 | ||
Mr Zihao Ye [Member] | Manager of a Subsidiary Ms Yumin Lins Wife [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 108 | 442 | ||
Mr Zihao Ye [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 262 | 76 | ||
Mr Naiyong Luo [Member] | Manager of a Subsidiary Ms Yumin Lins Wife [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 5,759 | 6,434 | ||
Mr Naiyong Luo [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 5,115 | |||
Mr Hongwei Ye [Member] | Manager of a Subsidiary Ms Yumin Lins Wife [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 6,820 | 1,225 | ||
Mr Hongwei Ye [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | $ 5,922 | |||
Shenzhen Da Xing Hua Shang Industry Development Ltd [Member] | Mr. Yumin Lin is the Supervisor of Shenzhen DaXingHuaShang Industry Development Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 1,257 | |||
Shenzhen Da Xing Hua Shang Supply Chain Service Co Ltd [Member] | Subsidiary of Shenzhen Da Xing Hua Shang Industry Development Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 269,552 | |||
Guangdong Shuivijia Distribution Co Ltd [Member] | Lihua Li Supervisor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 19,619 | 149 | ||
Dongguan Cha Shan Pingfeng [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 99,119 | |||
Dongguan Huanhai Trading [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 45,262 | |||
Dongguan Huaian Guanhua Gong [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 57,671 | |||
Dongguan Huaian Guanhua Gong [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 21,534 | |||
Dongguan Daying [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 132,737 | |||
Dongguan Daying [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | ||||
Dongguan Zhengui [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 54,730 | |||
Dongguan Zhengui [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 71,428 | |||
Guangdong YuexinJiatong [Member] | Manager of a Subsidiary, Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | ||||
Guangdong YuexinJiatong [Member] | Manager of a Subsidiary [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 15,267 | |||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 76,573 | |||
Dongguan Anxiang Technology Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 86,131 | |||
Guangdong Jiaduonuo Shengshi Trading Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 86,374 | |||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | 87,364 | |||
Dongguan Tailai Trading [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues generated from related parties | $ 13,245 | $ 73,784 |
SCHEDULE OF COST REVENUES FROM
SCHEDULE OF COST REVENUES FROM RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Cost of Revenue | $ 518,462 | $ 729,743 | $ 3,659,805 | $ 1,673,367 |
Cost of revenue related parties | 136,912 | 130,600 | 663,976 | 308,381 |
Cost of revenues from related parties | 136,912 | 130,600 | ||
Dongguan Baxi Food Distribution Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 8,178 | 31,424 | ||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 14,648 | 19,307 | ||
Dongguan Pengqin Drinking Water Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 9,555 | 16,283 | ||
Dongguan Dengqinghu Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 1,082 | 6,472 | ||
Dongguan Tailai Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 9,736 | 14,615 | ||
Dongguan Anxiang Technology Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 46,721 | 35,826 | ||
Guangdong Jiaduonuo Shengshi Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 39,765 | 3,157 | ||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | $ 7,227 | $ 3,516 | ||
Dongguan Anxiang Technology Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 56,598 | 57,426 | ||
Guangfong Jiaduonuo Shengshi Tradong Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 109,936 | 21,641 | ||
Dongguan Baxi Food Distribution Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 124,896 | 75,274 | ||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 99,502 | 29,122 | ||
Dongguan Pengqin Drinking Water Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 89,475 | 38,116 | ||
Dongguan Tailai Trading Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | 113,893 | 86,802 | ||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of Revenue | $ 69,676 |
SCHEDULE OF PURCHASES FROM RELA
SCHEDULE OF PURCHASES FROM RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Purchases from related parties | $ 679,020 | $ 291,687 | ||
Purchase from related party | $ 136,912 | $ 125,527 | ||
Dongguan Baxi Food Distribution Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 8,178 | 31,424 | ||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 14,648 | 18,319 | ||
Dongguan Pengqin Drinking Water Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 9,555 | 15,450 | ||
Dongguan Dengqinghu Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 1,082 | 6,141 | ||
Dongguan Tailai Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 9,736 | 13,868 | ||
Dongguan Anxiang Technology Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 46,721 | 33,993 | ||
Guangdong Jiaduonuo Shengshi Trading Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | 39,765 | 2,996 | ||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase from related party | $ 7,227 | $ 3,336 | ||
Dongguan Anxiang Technology Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 184,099 | 64,035 | ||
Guangfong Jiaduonuo Shengshi Tradong Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 168,066 | 24,774 | ||
Dongguan Baxi Food Distribution Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 79,685 | 32,425 | ||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 63,483 | 9,857 | ||
Dongguan Pengqin Drinking Water Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 57,086 | 73,843 | ||
Dongguan Tailai Trading Co Ltd [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 72,664 | 48,852 | ||
Dongguan Dengqinghu Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 9,483 | 12,394 | ||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | Significantly Influenced By The Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | $ 44,454 | $ 25,507 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 14,487 | $ 344,218 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Cash paid for amounts included in the measurement of lease obligations | $ 51,477 | $ 41,336 | $ 151,586 | $ 57,115 |
Weighted average remaining lease term (in years) | 3 years 7 months 28 days | 3 years 9 months 7 days | 3 years 9 months 25 days | 3 years 5 months 23 days |
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] | ||||
Non-related parties | $ 4,726 | $ 18,490 | $ 32,677 | $ 100,302 |
Non-Related Parties [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Non-related parties | $ 37,773 | $ 18,200 | $ 118,315 | $ 15,197 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Year one | $ 114,117 | $ 163,885 |
Year two | 86,720 | 118,279 |
Year three | 82,664 | 87,001 |
Year four | 46,528 | 82,482 |
Year five | 46,426 | |
Thereafter | 6,308 | 6,294 |
Total lease payment | 457,629 | 504,367 |
Less: Imputed interest | (25,905) | (29,570) |
Operating lease obligations | 431,724 | 474,797 |
Remaining of fiscal year | 121,292 | |
Total lease payment | $ 457,629 | $ 504,367 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | Feb. 28, 2022USD ($) | Feb. 28, 2022CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Operating lease description | the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 6 months to 61 months | the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 6 months to 61 months | the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 9 months to 64 months | the Company has seventeen separate operating lease agreements for three office spaces, one warehouse and thirteen stores in PRC with remaining lease terms of from 9 months to 64 months | |||
Operating Lease, Expense | $ 150,992 | $ 115,499 | |||||
Operating Lease Agreement [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Operating lease description | 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 | ¥ 960 | |||||
Qingmei Lin [Member] | Operating Lease Agreement [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Operating lease description | 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 with the monthly rent expense of RMB | The agreement covers the period from January 1, 2019 to April 30, 2027 with the monthly rent expense of RMB | |||
Payments for Rent | $ 1,450 | ¥ 10,000 | $ 1,450 | ¥ 10,000 | |||
Hongwei Ye [Member] | Operating Lease Agreement [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Operating lease description | 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 | ¥ 960 | |||||
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 | ||||||
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 |
SCHEDULE OF BALANCE OF LOAN BOR
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | |||
Aggregate outstanding principal balances | $ 273,166 | $ 289,425 | $ 254,266 |
Less: current portion | 95,815 | 101,207 | |
Non-current portion | 177,351 | 188,218 | 254,266 |
Bank Loan From The Trust In PRC [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate outstanding principal balances | 50,690 | 67,438 | 114,879 |
China Construction Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate outstanding principal balances | 143,508 | 143,192 | |
We Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate outstanding principal balances | $ 78,968 | $ 78,795 | $ 139,387 |
BANK AND OTHER BORROWINGS (Deta
BANK AND OTHER BORROWINGS (Details Narrative) | Dec. 11, 2021USD ($) | Nov. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 11, 2021CNY (¥) | Nov. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Aug. 31, 2020CNY (¥) | Jul. 31, 2020CNY (¥) |
Line of Credit Facility [Line Items] | ||||||||||||||
Interest expense | $ 5,825 | $ 3,553 | $ 17,816 | $ 14,325 | ||||||||||
Interest Expense, Debt | $ 5,825 | $ 3,553 | 17,816 | 14,325 | ||||||||||
Related Party Transaction [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Interest expense | $ 12,789 | |||||||||||||
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. | |||||||||||||
Interest expense | $ 12,789 | |||||||||||||
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 | $ 79,000 | $ 115,000 | $ 115,000 | ¥ 500,750 | ¥ 750,000 | |||||||||
Interest rate | interest at the base Loan Prime Rate of 3.85% plus 8.75% | |||||||||||||
Maturity date | Dec. 21, 2022 | |||||||||||||
Shenzhen Qianhai Webank Co Ltd [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Principal amount | $ 79,000 | $ 79,000 | ¥ 500,750 | ¥ 500,000 | ||||||||||
Interest rate | bears interest at 10.71% | bears interest at 3.6% | interest at 10.71% | interest at 3.6% | ||||||||||
Maturity date | Dec. 21, 2023 | Dec. 11, 2021 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - $ / shares | Oct. 21, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | |||||
Stockholders' Equity, Reverse Stock Split | a ratio of 1-for-20 | 1-for-20 | ||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||
Common Stock, Shares, Outstanding | 15,655,038 | 15,655,038 | 15,655,038 | 15,655,038 | 313,098,220 | |
Common Stock [Member] | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |||||
Common Stock, Shares, Outstanding | 15,655,038 | |||||
Common Stock [Member] | Prior Reverse Stock Split [Member] | ||||||
Common Stock, Shares, Outstanding | 313,098,220 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Repayments of Related Party Debt | $ 78,761 | $ 371,843 | $ 684,784 | $ 920,457 |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Due to Related Parties | 382,646 | |||
Repayments of Related Party Debt | 167,003 | |||
Due from Related Parties | $ 148,430 |
ORGANIZATION & DESCRIPTION OF_4
ORGANIZATION & DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, $ in Millions | Jan. 06, 2021USD ($) | Jan. 06, 2021HKD ($) | Jun. 22, 2020shares | Mar. 01, 2019USD ($)shares | Apr. 11, 2018shares | Nov. 11, 2016 | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020HKD ($) | Oct. 21, 2021$ / sharesshares | Jul. 13, 2019 | Jul. 04, 2016USD ($)$ / sharesshares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Common Stock, Shares Authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | |||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 9,773,989 | |||||||||||||
Net Income (Loss) Attributable to Parent | $ 148,676 | $ 305,254 | $ 1,779,736 | (3,255,564) | ||||||||||
Impairment of goodwill | 0 | $ 0 | 5,594,692 | |||||||||||
Contract with customer advance | 351,412 | 382,518 | 580,151 | |||||||||||
Amount of customer advances in opening balance | $ 272,551 | $ 580,151 | ||||||||||||
DaXingHuaShang Investment Group Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Banking Regulation, Total Capital, Actual | $ 100,000 | |||||||||||||
Common Stock, Shares Authorized | shares | 250,000,000 | |||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0004 | |||||||||||||
Ownership percentage | 70.00% | 70.00% | ||||||||||||
Business combination, consideration transferred | $ 12,000,000 | |||||||||||||
Net Income (Loss) Attributable to Parent | $ 600,000 | $ 5 | $ 400,000 | $ 3 | ||||||||||
Jiujiu Group Stock Co., Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 100.00% | |||||||||||||
Share Exchange Agreement [Member] | DaXingHuaShang Investment Group Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 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] | ||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 5 | |||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 150 | |||||||||||||
Makaweng Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Xixingdao Agreement [Member] | QHDX [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 243,134 | |||||||||||||
Ownership percentage | 90.00% |