Cover
Cover - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55555 | |
Entity Registrant Name | Fortune Valley Treasures, Inc. | |
Entity Central Index Key | 0001626745 | |
Entity Tax Identification Number | 32-0439333 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 16th Floor, Building 2, A+Building | |
Entity Address, Address Line Two | No. 139 Liansheng Road, Humen Town | |
Entity Address, Address Line Three | Dongguan City | |
Entity Address, City or Town | Guangdong Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 523000 | |
City Area Code | (86) | |
Local Phone Number | 769-85729133 | |
Title of 12(g) Security | Common stock, par value $0.001 per share | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,655,038 | |
Entity Listing, Par Value Per Share | $ 0.001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 7,410 | $ 288,255 |
Accounts receivable, net (including $33,043 and $61,113 from related parties as of June 30, 2024 and December 31, 2023, respectively) | 2,155,612 | 3,118,892 |
Inventories | 34,546 | 32,587 |
Prepayments and other current assets, net (including $806,932 and $941,978 to related parties as of June 30, 2024 and December 31, 2023, respectively) | 1,454,869 | 1,643,455 |
Total current assets | 3,652,437 | 5,083,189 |
Non-current assets | ||
Deposits paid, net (including $523,886 and $536,450 to related parties as of June 30, 2024 and December 31, 2023, respectively) | 603,970 | 618,456 |
Property and equipment, net | 65,544 | 83,706 |
Intangible assets, net | 46,364 | 151,639 |
Total Assets | 4,595,437 | 6,249,169 |
Current liabilities | ||
Accounts payable (including $187,954 and $162,310 to related parties as of June 30, 2024 and December 31, 2023, respectively) | 518,058 | 583,887 |
Accrued liabilities | 756,864 | 627,457 |
Bank and other borrowings - current | 420,636 | 458,023 |
Income tax payable | 1,453 | |
Customer advances | 1,338,274 | 1,364,260 |
Total current liabilities | 4,153,090 | 3,851,925 |
Non-current liabilities | ||
Bank and other borrowings | 218,028 | 212,042 |
Total Liabilities | 4,479,440 | 4,258,331 |
Stockholders’ Equity | ||
Common stock, 150,000,000 shares authorized, 15,655,038 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 15,655 | 15,655 |
Additional paid-in capital | 11,061,233 | 11,061,233 |
Accumulated deficit and statutory reserves | (10,280,026) | (8,551,019) |
Accumulated other comprehensive loss | (499,540) | (406,190) |
Total Fortune Valley Treasures, Inc. stockholders’ equity | 297,322 | 2,119,679 |
Noncontrolling interests | (181,325) | (128,841) |
Total Stockholders’ Equity | 115,997 | 1,990,838 |
Total Liabilities and Stockholders’ Equity | 4,595,437 | 6,249,169 |
Nonrelated Party [Member] | ||
Non-current assets | ||
Operating lease right-of-use assets | 171,989 | 248,626 |
Current liabilities | ||
Operating lease obligations current | 90,801 | 119,633 |
Non-current liabilities | ||
Operating lease obligations non-current | 76,899 | 153,487 |
Related Party [Member] | ||
Non-current assets | ||
Operating lease right-of-use assets | 55,133 | 63,553 |
Current liabilities | ||
Operating lease obligations current | 12,730 | 16,986 |
Due to related parties | 1,015,727 | 680,226 |
Non-current liabilities | ||
Operating lease obligations non-current | $ 31,423 | $ 40,877 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Deposit paid, related parties | $ 523,886 | $ 536,450 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,655,038 | 15,655,038 |
Common stock, shares outstanding | 15,655,038 | 15,655,038 |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts receivable | $ 33,043 | $ 61,113 |
Prepayments and other current assets, net | 806,932 | 941,978 |
Accounts payable | $ 187,954 | $ 162,310 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net revenues (including $5,907 and $42,848 from related parties for the three months ended June 30, 2024 and 2023, respectively; $9,751 and $69,598 from related parties for the six months ended June 30, 2024 and 2023, respectively) | $ 247,061 | $ 1,272,597 | $ 514,883 | $ 2,907,886 |
Cost of revenues (including $79,439 and $133,114 from related parties for the three months ended June 30, 2024 and 2023, respectively; $167,351 and $362,096 from related parties for the six months ended June 30, 2024 and 2023, respectively) | 202,785 | 652,798 | 415,674 | 1,330,165 |
Gross profit | 44,276 | 619,799 | 99,209 | 1,577,721 |
Operating expenses: | ||||
Selling and distribution expenses | 12,198 | 13,016 | 24,795 | 26,258 |
General and administrative expenses | 804,228 | 1,027,572 | 1,839,505 | 1,978,967 |
Operating loss | (772,150) | (420,789) | (1,765,091) | (427,504) |
Other income (expense): | ||||
Other income | 2,213 | 6,436 | 5,207 | 8,210 |
Interest income | 3 | 16 | 33 | 47 |
Interest expense | (7,699) | (8,964) | (18,543) | (18,256) |
Other expense, net | (5,483) | (2,512) | (13,303) | (9,999) |
Loss before income tax | (777,633) | (423,301) | (1,778,394) | (437,503) |
Income tax expense | 90 | 21,528 | 409 | 96,502 |
Net loss | (777,723) | (444,829) | (1,778,803) | (534,005) |
Less: Net loss attributable to noncontrolling interests | (48,247) | (58,004) | (49,796) | (58,361) |
Net loss attributable to Fortune Valley Treasures, Inc. | (729,476) | (386,825) | (1,729,007) | (475,644) |
Other comprehensive loss: | ||||
Foreign currency translation loss | (26,707) | (422,433) | (96,038) | (376,961) |
Total comprehensive loss | (804,430) | (867,262) | (1,874,841) | (910,966) |
Less: comprehensive loss attributable to noncontrolling interests | (50,828) | (99,383) | (52,484) | (99,558) |
Comprehensive loss attributable to Fortune Valley Treasures, Inc. | $ (753,602) | $ (767,879) | $ (1,822,357) | $ (811,408) |
Loss per share | ||||
Basic loss per share of common stock | $ (0.05) | $ (0.02) | $ (0.11) | $ (0.03) |
Diluted loss per share of common stock | $ (0.05) | $ (0.02) | $ (0.11) | $ (0.03) |
Basic weighted average shares outstanding | 15,655,038 | 15,655,038 | 15,655,038 | 15,655,038 |
Diluted weighted average shares outstanding | 15,655,038 | 15,655,038 | 15,655,038 | 15,655,038 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from related parties | $ 247,061 | $ 1,272,597 | $ 514,883 | $ 2,907,886 |
Cost of revenue from related parties | 79,439 | 133,114 | 167,351 | 362,096 |
Related Party [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revenue from related parties | $ 5,907 | $ 42,848 | $ 9,751 | $ 69,598 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2022 | $ 15,655 | $ 11,061,233 | $ (180,826) | $ (4,504,404) | $ 108,251 | $ 6,499,909 |
Balance, shares at Dec. 31, 2022 | 15,655,038 | |||||
Net loss | (88,819) | (357) | (89,176) | |||
Foreign currency translation adjustment | 45,290 | 182 | 45,472 | |||
Balance at Mar. 31, 2023 | $ 15,655 | 11,061,233 | (135,536) | (4,593,223) | 108,076 | 6,456,205 |
Balance, shares at Mar. 31, 2023 | 15,655,038 | |||||
Balance at Dec. 31, 2022 | $ 15,655 | 11,061,233 | (180,826) | (4,504,404) | 108,251 | 6,499,909 |
Balance, shares at Dec. 31, 2022 | 15,655,038 | |||||
Net loss | (534,005) | |||||
Foreign currency translation adjustment | (376,961) | |||||
Balance at Jun. 30, 2023 | $ 15,655 | 11,061,233 | (516,590) | (4,980,048) | 8,693 | 5,588,943 |
Balance, shares at Jun. 30, 2023 | 15,655,038 | |||||
Balance at Mar. 31, 2023 | $ 15,655 | 11,061,233 | (135,536) | (4,593,223) | 108,076 | 6,456,205 |
Balance, shares at Mar. 31, 2023 | 15,655,038 | |||||
Net loss | (386,825) | (58,004) | (444,829) | |||
Foreign currency translation adjustment | (381,054) | (41,379) | (422,433) | |||
Balance at Jun. 30, 2023 | $ 15,655 | 11,061,233 | (516,590) | (4,980,048) | 8,693 | 5,588,943 |
Balance, shares at Jun. 30, 2023 | 15,655,038 | |||||
Balance at Dec. 31, 2023 | $ 15,655 | 11,061,233 | (406,190) | (8,551,019) | (128,841) | 1,990,838 |
Balance, shares at Dec. 31, 2023 | 15,655,038 | |||||
Net loss | (999,531) | (1,549) | (1,001,080) | |||
Foreign currency translation adjustment | (69,224) | (107) | (69,331) | |||
Balance at Mar. 31, 2024 | $ 15,655 | 11,061,233 | (475,414) | (9,550,550) | (130,497) | 920,427 |
Balance, shares at Mar. 31, 2024 | 15,655,038 | |||||
Balance at Dec. 31, 2023 | $ 15,655 | 11,061,233 | (406,190) | (8,551,019) | (128,841) | 1,990,838 |
Balance, shares at Dec. 31, 2023 | 15,655,038 | |||||
Net loss | (1,778,803) | |||||
Foreign currency translation adjustment | (96,038) | |||||
Balance at Jun. 30, 2024 | $ 15,655 | 11,061,233 | (499,540) | (10,280,026) | (181,325) | 115,997 |
Balance, shares at Jun. 30, 2024 | 15,655,038 | |||||
Balance at Mar. 31, 2024 | $ 15,655 | 11,061,233 | (475,414) | (9,550,550) | (130,497) | 920,427 |
Balance, shares at Mar. 31, 2024 | 15,655,038 | |||||
Net loss | (729,476) | (48,247) | (777,723) | |||
Foreign currency translation adjustment | (24,126) | (2,581) | (26,707) | |||
Balance at Jun. 30, 2024 | $ 15,655 | $ 11,061,233 | $ (499,540) | $ (10,280,026) | $ (181,325) | $ 115,997 |
Balance, shares at Jun. 30, 2024 | 15,655,038 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (1,778,803) | $ (534,005) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 116,406 | 124,680 |
Non-cash lease expense | 78,396 | 91,369 |
Allowance for credit losses | 1,119,983 | 960,144 |
Loss on disposal of intangible asset | 1,855 | |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (222,303) | (896,403) |
Inventories | (2,745) | 68,723 |
Prepayments and other current assets, net | 151,351 | 232 |
Deposits paid, net | 1 | (12,080) |
Accounts payable | (52,590) | 32,763 |
Due to related parties | 280,612 | 111,324 |
Customer advances | 6,016 | (17,538) |
Accrued liabilities | 142,612 | 74,167 |
Income tax payable | (1,431) | (17,871) |
Operating lease obligations | (112,310) | (73,176) |
Net cash used in operating activities | (274,805) | (85,816) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (4,786) | |
Acquisition of intangible asset | (702) | |
Net cash used in investing activities | (5,488) | |
Cash flows from financing activities | ||
Borrowings from and repayments to revolving credit lines, net | 7,224 | |
Borrowings from bank loans | 74,927 | 113,418 |
Repayments of bank loans | (109,896) | (58,299) |
Borrowings from and repayments to third party, net | 34,839 | (19,541) |
Net cash (used in) provided by financing activities | (130) | 42,802 |
Effect of exchange rate changes on cash and cash equivalents | (5,910) | (41,233) |
Net changes in cash and cash equivalents | (280,845) | (89,735) |
Cash and cash equivalents–beginning of the period | 288,255 | 165,685 |
Cash and cash equivalents–end of the period | 7,410 | 75,950 |
Supplementary cash flow information: | ||
Interest paid | 18,543 | 18,378 |
Income taxes paid | 2,495 | 152,140 |
Non-cash investing and financing activities | ||
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 67,520 | 39,797 |
Liabilities assumed in connection with purchase of property and equipment | $ 28,234 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) (“FVTI” or the “Company”) was incorporated in the State of Nevada on March 21, 2014. The Company’s current primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors, and drinking water distribution and delivery are conducted through its subsidiaries in the People’s Republic of China (“PRC”). On April 11, 2018, the Company entered into a share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd. whereby the Company newly issued 15,000,000 On March 1, 2019, the Company entered into a sale and purchase agreement (the “SP Agreement”) to acquire 100 5 100 150 On June 22, 2020, the Company entered into a sale and purchase agreement along with Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a company incorporated in China and a wholly-owned subsidiary of FVTI (“QHDX”), to acquire 90 243,134 On June 3, 2024, Mr. Yumin Lin tendered his resignation as a member of the board of directors (the “Board”) and Chief Executive Officer of Fortune Valley Treasures, Inc. (the “Company”) due to personal reasons. The Board accepted the resignation of Mr. Lin. Mr. Lin’s resignation was not the result of any disagreement with the Company, the Company’s management or the Board. Effective June 6, 2024, the Board elected Mr. Yuwen Li to serve as a director and Chairman of the Board. Effective June 6, 2024, the Board appointed Mr. Li as the Chief Executive Officer of the Company. In connection with such appointment, Mr. Li has resigned from other executive positions he previously held with subsidiaries of the Company. Going concern The accompanying unaudited condensed 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. As of June 30, 2024, the Company had a negative working capital of $ 500,653 7,410 10,280,026 1,778,803 274,805 The Company requires additional capital within the next six months to fund the continued operations of the Company. In order to support the Company’s operations, the Company plans to take actions to increase revenues and cash inflows by promoting product sales, expanding customer base and making additional efforts in accounts receivable collections, in addition to seeking bank borrowings and funding from shareholders. If the Company is unable to obtain additional equity or debt financing as required, the business operations and prospects of the Company may suffer. Basis of presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023, 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, 2023 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, 2023, filed with the SEC on April 15, 2024 (the “report”). These unaudited condensed consolidated financial statements should be read in conjunction with the report. Basis of consolidation The unaudited condensed 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 unaudited condensed consolidated statements of operations. As of June 30, 2024, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Trading of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of credit losses, allowance of deferred tax asset and uncertain tax position, implicit interest rate of operating leases, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. 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 2024 2023 As of and for the 2024 2023 Period-end RMB:US$1 exchange rate 0.13760 0.13880 Period-average RMB:US$1 exchange rate 0.13875 0.14448 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 U.S. 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 six months ended June 30, 2024 and 2023. 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 six months ended June 30, 2024 and 2023, the Company did not record any impairment of goodwill. Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of liquor, water, water purifier and other products directly to agents, wholesalers and end users, with majority of sales transactions were conducted offline. 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 2024 2023 2024 2023 Three months ended Six months ended 2024 2023 2024 2023 Sales of liquor $ 81,809 $ 878,952 $ 152,053 $ 1,782,672 Sales of water 80,455 213,582 172,834 633,202 Sales of water purifier 54,362 114,714 113,250 367,837 Others 30,435 65,349 76,746 124,175 Total $ 247,061 $ 1,272,597 $ 514,883 $ 2,907,886 Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for liquors, 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 June 30, 2024 and December 31, 2023, the Company had customer advances of $ 1,338,274 1,364,260 78,300 Related party transaction Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. Recently adopted accounting pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, Financial Instruments – Credit Losses is effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. This ASU is expected to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2021-08 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 2 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Accounts receivable (including $ 77,373 70,710 $ 4,945,006 $ 4,837,852 Less: Doubtful allowance (including $ 44,330 9,597 (2,789,394 ) (1,718,960 ) Accounts receivable, net $ 2,155,612 $ 3,118,892 Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Beginning balance $ 1,718,960 $ - Additions to allowance 1,119,983 1,726,142 Foreign currency translation adjustment (49,549 ) (7,182 ) Ending balance $ 2,789,394 $ 1,718,960 |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Prepayments And Other Current Assets Net | |
PREPAYMENTS AND OTHER CURRENT ASSETS, NET | NOTE 3 – PREPAYMENTS AND OTHER CURRENT ASSETS, NET Prepayments and other current assets consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS June 30, 2024 December 31, 2023 Prepayments (including $ 2,591,888 2,769,741 $ 3,750,197 $ 3,995,750 Other current assets 4,152 2,330 Total prepayments and other current assets 3,754,349 3,998,080 Less: Allowance for doubtful accounts (including $ 1,784,956 1,827,763 (2,299,480 ) (2,354,625 ) Prepayments and other current assets, net $ 1,454,869 $ 1,643,455 Balance of prepayments represented the advanced payments to suppliers including related party suppliers. Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2024 December 31, 2023 Beginning balance $ 2,354,625 $ 1,247,580 Additions to allowance - 1,169,058 Foreign currency translation adjustment (55,145 ) (62,013 ) Ending balance $ 2,299,480 $ 2,354,625 |
DEPOSITS PAID, NET
DEPOSITS PAID, NET | 6 Months Ended |
Jun. 30, 2024 | |
Deposits Paid Net | |
DEPOSITS PAID, NET | NOTE 4 – DEPOSITS PAID, NET Deposits paid consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF DEPOSITS PAID June 30, 2024 December 31, 2023 Deposits paid (including $ 1,559,656 1,597,060 $ 2,258,458 $ 2,312,622 Less: Allowance for doubtful accounts (including $ 1,035,770 1,060,610 (1,654,488 ) (1,694,166 ) Deposits paid, net $ 603,970 $ 618,456 Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID June 30, 2024 December 31, 2023 Beginning balance $ 1,694,166 $ 1,244,350 Additions to allowance - 484,800 Foreign currency translation adjustment (39,678 ) (34,984 ) Ending balance $ 1,654,488 $ 1,694,166 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2024 December 31, 2023 Office equipment (including $ 9,026 nil $ 94,784 $ 106,225 Leasehold improvement 111,814 114,495 Vehicle 31,635 32,393 Property and equipment 238,233 253,113 Less: Accumulated depreciation (including $ 9,026 nil (172,689 ) (169,407 ) Property and equipment, net $ 65,544 $ 83,706 Depreciation expense, which was included in general and administrative expenses, for the six months ended June 30, 2024 and 2023 was $ 16,337 18,046 Written back depreciation expense, which was included in general and administrative expenses, for the six months ended June 30, 2024 and 2023 was $ 8,952 nil No gain or loss was recorded for the disposal as the property and equipment was fully depreciated with zero residual value upon disposal and no proceeds were received. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6 – INTANGIBLE ASSETS, NET Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS June 30, 2024 December 31, 2023 Distribution channel $ 2,963,947 $ 3,035,029 Others 24,836 25,601 Total intangible assets 2,988,783 3,060,630 Less: Accumulated amortization (2,026,190 ) (1,982,560 ) Less: Accumulated impairment (916,229 ) (926,431 ) Intangible assets, net $ 46,364 $ 151,639 Amortization expense for the six months ended June 30, 2024 and 2023 was $ 100,069 106,634 As of June 30, 2024, the future estimated amortization costs for intangible assets are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2024 (remaining) $ 35,508 2025 4,967 2026 4,967 2027 922 2028 - Total $ 46,364 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 - RELATED PARTY TRANSACTIONS Amounts due to related parties as of June 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES June 30, 2024 December 31, 2023 Mr. Yumin Lin Former President, former Chief Executive Officer, Director and majority shareholder $ 356,119 $ 341,831 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 4,609 2,118 Mr. Huagen Li Manager of a subsidiary 2,202 2,254 Mr. Guodong Jia Manager of a subsidiary 3,995 7,479 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 15 15 Mr. Anping Chen Manager of a subsidiary 26,347 12,798 Mr. Jiangwei Jia Manager of a subsidiary 23,757 10,449 Mr. Yuwen Li President, Chief Executive Officer and Director 153,875 122,327 Ms. Lihua Li Manager of a subsidiary 38,766 14,907 Shenzhen DaXingHuaShang Industrial Group Ltd. (fka Shenzhen DaXingHuaShang Industry Development Ltd.) Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industrial Group Ltd. 82,561 84,541 Ms. Chunxiang Zhang Manager of a subsidiary 22,858 6,810 Mr. Meng Xue Manager of a subsidiary 2,527 8,204 Ms. Shuqin Chen Manager of a subsidiary 35,341 18,171 Mr. Zhipeng Zuo Manager of a subsidiary 45,227 10,103 Mr. Aisheng Zhang Manager of a subsidiary 41,093 28,751 Mr. Zhihua Liao Manager of a subsidiary 14,592 9,468 Ms. Xiuyun Wang Manager of a subsidiary 83 - Mr. Kaihong Lin Chief Financial Officer 563 - Mr. Minghua Cheng Majority shareholder 161,197 - $ 1,015,727 $ 680,226 Revenues generated from related parties during the six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ - $ 278 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife - 14 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 68 - Dongguan Huanhai Trading Co., Ltd. Mr. Hongwei Ye, a shareholder of the Company and a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. - 10,886 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. 899 10,578 Dongguan City Hualianguan Chemical Co., Ltd. Mr. Hongwei Ye, a shareholder of the Company and a manager of a subsidiary, is the controlling shareholder of Dongguan City Hualianguan Chemical Co., Ltd. - 14,808 Dongguan Humen Shuiyan Drinking Water Store Ms. Shuiyan Li, a shareholder of the Company, is the controlling shareholder of Dongguan Humen Shuiyan Drinking Water Store 8,305 33,034 Dongguan Zhengui Industry Ltd. Significantly influenced by the Company 479 - Revenues generated from related parties $ 9,751 $ 69,598 Cost of revenues from related parties during the six months ended June 30, 2024 and 2023 is as follows: SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 51,539 $ 57,509 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 7,255 23,614 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 3,348 23,433 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company - 2,934 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 27,779 52,324 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 20,659 56,704 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 13,068 90,355 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 1,842 11,473 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 41,861 43,750 Cost of revenues from related parties $ 167,351 $ 362,096 Purchases from related parties during the six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 51,539 $ 61,259 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 7,255 25,221 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 3,348 25,416 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company - 3,124 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 27,779 55,999 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 20,659 56,965 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 13,068 90,430 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 1,842 12,522 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 41,861 43,750 Purchase from related party $ 167,351 $ 374,686 Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. 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, 4, 9 and 10 for more transactions with related parties. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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 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 2,000,000 277,506 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 April 2, 2021, the State Taxation Administration issued the notice of the Ministry of Finance and the State Administration of Taxation (“MOF and SAT”) [2021] No.12 to provide an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, 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 RMB1,000,000, approximately $139,404, but less than RMB3,000,000, approximately $418,212, 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, except for Xixingdao, FVT Supply Chain and FLTT The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION 2024 2023 Six months ended June 30, 2024 2023 Current: – United States of America $ - $ 41,444 – Seychelles - - – Hong Kong - - – The PRC 409 55,058 Current income tax expense Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense Total $ 409 $ 96,502 The effective tax rate was 17.7 -22.1 |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Operating Leases | |
OPERATING LEASES | NOTE 9 - OPERATING LEASES As of June 30, 2024, the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 3 month to 39 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 1,387 960 133 The components of lease expense and supplemental cash flow information related to leases for the six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION 2024 2023 Operating lease cost (included in general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations) Six months ended June 30, 2024 2023 Related parties $ 8,918 $ 9,501 Non-related parties 81,478 63,683 Total $ 90,396 $ 73,184 Other information for the three months ended June 30, 2024 June 30, 2023 Cash paid for amounts included in the measurement of lease obligations $ 97,077 $ 77,612 Weighted average remaining lease term (in years) 1.84 2.72 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of June 30, 2024 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2024 (remaining) $ 54,759 2025 105,926 2026 53,041 2027 5,504 2028 - Total lease payment 219,230 Less: Imputed interest (7,377 ) Operating lease obligations $ 211,853 |
BANK AND OTHER BORROWINGS
BANK AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
BANK AND OTHER BORROWINGS | NOTE 10 – BANK AND OTHER BORROWINGS In May 2022, the Company obtained a loan in the principal amount of RMB 161,000 24,000 11.34 May 21, 2024 In May 2022, the Company obtained a bank loan in the principal amount of RMB 69,000 10,000 11.34 May 21, 2024 In July 2022, the Company obtained two loans in the principal amount of RMB 99,000 15,000 231,000 34,000 14.4 July 8, 2024 In July 2022, the Company obtained two loans in the principal amount of RMB 153,000 23,000 357,000 53,000 14.4 July 13, 2024 In July 2022, the Company obtained a loan in the principal amount of RMB 380,000 57,000 12.6 July 21, 2024 In February 2023, the Company obtained a revolving credit line in the principal amount of RMB 465,000 68,000 4.00 February 11, 2024 In April 2023, the Company obtained two bank loans in the principal amount of RMB 224,000 31,000 96,000 13,000 12.24 April 7, 2025 In April 2023, the Company obtained a mortgage loan in the principal amount of RMB 195,415 27,000 6.54 April 10, 2028 In May 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,050,000 146,000 4.20 May 26, 2024 In July 2023, the Company obtained two bank loans in the principal amount of RMB 57,000 8,000 133,000 18,000 10.44 July 13, 2025 In July 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,040,000 143,000 3.70 July 17, 2026 In July 2023, the Company obtained a revolving credit line in the principal amount of RMB 817,000 114,000 3.85 July 22, 2024 In November 2023, the Company obtained a bank loan in the principal amount of RMB 440,000 62,000 7.92 November 16, 2025 In January 2024, the Company obtained a bank loan, in the principal amount of RMB 390,000 544,000 17.64 January 21, 2026 In February 2024, the Company obtained two bank loans, both in the principal amount of RMB 270,000 38,000 7.92 February 22, 2026 The balance of the loans borrowed as of June 30, 2024 and December 31, 2023 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES June 30, 2024 December 31, 2023 Loans from a trust in PRC $ 54,416 $ 20,343 China Construction Bank 400,009 475,121 Guangdong Nanyue Bank 7,464 24,164 WeBank 162,648 129,396 Bank of Ningbo 14,127 21,041 Aggregate outstanding principal balances 638,664 670,065 Less: current portion 420,636 458,023 Non-current portion $ 218,028 $ 212,042 The total interest expense was $ 10,844 9,292 Future minimum loan payments as of June 30, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year ending December 31, 2024 (remaining) $ 362,876 2025 113,033 2026 157,127 2027 4,948 Thereafter 680 Total $ 638,664 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 11 – SUBSEQUENT EVENT In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred up to August 14, 2024, the date the consolidated financial statements were available to issue. Based upon this evaluation, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Going concern | Going concern The accompanying unaudited condensed 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. As of June 30, 2024, the Company had a negative working capital of $ 500,653 7,410 10,280,026 1,778,803 274,805 The Company requires additional capital within the next six months to fund the continued operations of the Company. In order to support the Company’s operations, the Company plans to take actions to increase revenues and cash inflows by promoting product sales, expanding customer base and making additional efforts in accounts receivable collections, in addition to seeking bank borrowings and funding from shareholders. If the Company is unable to obtain additional equity or debt financing as required, the business operations and prospects of the Company may suffer. |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023, 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, 2023 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, 2023, filed with the SEC on April 15, 2024 (the “report”). These unaudited condensed consolidated financial statements should be read in conjunction with the report. |
Basis of consolidation | Basis of consolidation The unaudited condensed 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 unaudited condensed consolidated statements of operations. As of June 30, 2024, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Trading of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of credit losses, allowance of deferred tax asset and uncertain tax position, implicit interest rate of operating leases, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. |
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 2024 2023 As of and for the 2024 2023 Period-end RMB:US$1 exchange rate 0.13760 0.13880 Period-average RMB:US$1 exchange rate 0.13875 0.14448 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 U.S. 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 six months ended June 30, 2024 and 2023. |
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 six months ended June 30, 2024 and 2023, the Company did not record any impairment of goodwill. |
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 liquor, water, water purifier and other products directly to agents, wholesalers and end users, with majority of sales transactions were conducted offline. 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 2024 2023 2024 2023 Three months ended Six months ended 2024 2023 2024 2023 Sales of liquor $ 81,809 $ 878,952 $ 152,053 $ 1,782,672 Sales of water 80,455 213,582 172,834 633,202 Sales of water purifier 54,362 114,714 113,250 367,837 Others 30,435 65,349 76,746 124,175 Total $ 247,061 $ 1,272,597 $ 514,883 $ 2,907,886 |
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 liquors, 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 June 30, 2024 and December 31, 2023, the Company had customer advances of $ 1,338,274 1,364,260 78,300 |
Related party transaction | Related party transaction Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, Financial Instruments – Credit Losses is effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. This ASU is expected to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2021-08 on January 1, 2023 and the adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES | As of June 30, 2024, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Trading of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages 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 2024 2023 As of and for the 2024 2023 Period-end RMB:US$1 exchange rate 0.13760 0.13880 Period-average RMB:US$1 exchange rate 0.13875 0.14448 |
SCHEDULE OF DISAGGREGATION REVENUE | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2024 2023 2024 2023 Three months ended Six months ended 2024 2023 2024 2023 Sales of liquor $ 81,809 $ 878,952 $ 152,053 $ 1,782,672 Sales of water 80,455 213,582 172,834 633,202 Sales of water purifier 54,362 114,714 113,250 367,837 Others 30,435 65,349 76,746 124,175 Total $ 247,061 $ 1,272,597 $ 514,883 $ 2,907,886 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Accounts receivable (including $ 77,373 70,710 $ 4,945,006 $ 4,837,852 Less: Doubtful allowance (including $ 44,330 9,597 (2,789,394 ) (1,718,960 ) Accounts receivable, net $ 2,155,612 $ 3,118,892 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE June 30, 2024 December 31, 2023 Beginning balance $ 1,718,960 $ - Additions to allowance 1,119,983 1,726,142 Foreign currency translation adjustment (49,549 ) (7,182 ) Ending balance $ 2,789,394 $ 1,718,960 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Prepayments And Other Current Assets Net | |
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS | Prepayments and other current assets consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS June 30, 2024 December 31, 2023 Prepayments (including $ 2,591,888 2,769,741 $ 3,750,197 $ 3,995,750 Other current assets 4,152 2,330 Total prepayments and other current assets 3,754,349 3,998,080 Less: Allowance for doubtful accounts (including $ 1,784,956 1,827,763 (2,299,480 ) (2,354,625 ) Prepayments and other current assets, net $ 1,454,869 $ 1,643,455 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS June 30, 2024 December 31, 2023 Beginning balance $ 2,354,625 $ 1,247,580 Additions to allowance - 1,169,058 Foreign currency translation adjustment (55,145 ) (62,013 ) Ending balance $ 2,299,480 $ 2,354,625 |
DEPOSITS PAID, NET (Tables)
DEPOSITS PAID, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits Paid Net | |
SCHEDULE OF DEPOSITS PAID | Deposits paid consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF DEPOSITS PAID June 30, 2024 December 31, 2023 Deposits paid (including $ 1,559,656 1,597,060 $ 2,258,458 $ 2,312,622 Less: Allowance for doubtful accounts (including $ 1,035,770 1,060,610 (1,654,488 ) (1,694,166 ) Deposits paid, net $ 603,970 $ 618,456 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID June 30, 2024 December 31, 2023 Beginning balance $ 1,694,166 $ 1,244,350 Additions to allowance - 484,800 Foreign currency translation adjustment (39,678 ) (34,984 ) Ending balance $ 1,654,488 $ 1,694,166 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following as of June 30, 2024 and December 31, 2023: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2024 December 31, 2023 Office equipment (including $ 9,026 nil $ 94,784 $ 106,225 Leasehold improvement 111,814 114,495 Vehicle 31,635 32,393 Property and equipment 238,233 253,113 Less: Accumulated depreciation (including $ 9,026 nil (172,689 ) (169,407 ) Property and equipment, net $ 65,544 $ 83,706 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS June 30, 2024 December 31, 2023 Distribution channel $ 2,963,947 $ 3,035,029 Others 24,836 25,601 Total intangible assets 2,988,783 3,060,630 Less: Accumulated amortization (2,026,190 ) (1,982,560 ) Less: Accumulated impairment (916,229 ) (926,431 ) Intangible assets, net $ 46,364 $ 151,639 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS | As of June 30, 2024, the future estimated amortization costs for intangible assets are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2024 (remaining) $ 35,508 2025 4,967 2026 4,967 2027 922 2028 - Total $ 46,364 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES | Amounts due to related parties as of June 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES June 30, 2024 December 31, 2023 Mr. Yumin Lin Former President, former Chief Executive Officer, Director and majority shareholder $ 356,119 $ 341,831 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 4,609 2,118 Mr. Huagen Li Manager of a subsidiary 2,202 2,254 Mr. Guodong Jia Manager of a subsidiary 3,995 7,479 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 15 15 Mr. Anping Chen Manager of a subsidiary 26,347 12,798 Mr. Jiangwei Jia Manager of a subsidiary 23,757 10,449 Mr. Yuwen Li President, Chief Executive Officer and Director 153,875 122,327 Ms. Lihua Li Manager of a subsidiary 38,766 14,907 Shenzhen DaXingHuaShang Industrial Group Ltd. (fka Shenzhen DaXingHuaShang Industry Development Ltd.) Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industrial Group Ltd. 82,561 84,541 Ms. Chunxiang Zhang Manager of a subsidiary 22,858 6,810 Mr. Meng Xue Manager of a subsidiary 2,527 8,204 Ms. Shuqin Chen Manager of a subsidiary 35,341 18,171 Mr. Zhipeng Zuo Manager of a subsidiary 45,227 10,103 Mr. Aisheng Zhang Manager of a subsidiary 41,093 28,751 Mr. Zhihua Liao Manager of a subsidiary 14,592 9,468 Ms. Xiuyun Wang Manager of a subsidiary 83 - Mr. Kaihong Lin Chief Financial Officer 563 - Mr. Minghua Cheng Majority shareholder 161,197 - $ 1,015,727 $ 680,226 |
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES | Revenues generated from related parties during the six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ - $ 278 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife - 14 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 68 - Dongguan Huanhai Trading Co., Ltd. Mr. Hongwei Ye, a shareholder of the Company and a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. - 10,886 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. 899 10,578 Dongguan City Hualianguan Chemical Co., Ltd. Mr. Hongwei Ye, a shareholder of the Company and a manager of a subsidiary, is the controlling shareholder of Dongguan City Hualianguan Chemical Co., Ltd. - 14,808 Dongguan Humen Shuiyan Drinking Water Store Ms. Shuiyan Li, a shareholder of the Company, is the controlling shareholder of Dongguan Humen Shuiyan Drinking Water Store 8,305 33,034 Dongguan Zhengui Industry Ltd. Significantly influenced by the Company 479 - Revenues generated from related parties $ 9,751 $ 69,598 |
SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES | Cost of revenues from related parties during the six months ended June 30, 2024 and 2023 is as follows: SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 51,539 $ 57,509 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 7,255 23,614 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 3,348 23,433 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company - 2,934 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 27,779 52,324 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 20,659 56,704 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 13,068 90,355 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 1,842 11,473 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 41,861 43,750 Cost of revenues from related parties $ 167,351 $ 362,096 |
SCHEDULE OF PURCHASES FROM RELATED PARTIES | Purchases from related parties during the six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2024 2023 Six months ended June 30, 2024 2023 Dongguan Baxi Food Distribution Co., Ltd. Significantly influenced by the Company $ 51,539 $ 61,259 Dongguan Dalingshan Xinwenhua Drinking Water Store Significantly influenced by the Company 7,255 25,221 Dongguan Pengqin Drinking Water Co., Ltd. Significantly influenced by the Company 3,348 25,416 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company - 3,124 Dongguan Tailai Trading Co., Ltd. Significantly influenced by the Company 27,779 55,999 Dongguan Anxiang Technology Co., Ltd. Significantly influenced by the Company 20,659 56,965 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significantly influenced by the Company 13,068 90,430 Dongguan Dalingshan Runxin Drinking Water Store Significantly influenced by the Company 1,842 12,522 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 41,861 43,750 Purchase from related party $ 167,351 $ 374,686 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 2023 Six months ended June 30, 2024 2023 Current: – United States of America $ - $ 41,444 – Seychelles - - – Hong Kong - - – The PRC 409 55,058 Current income tax expense Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense Total $ 409 $ 96,502 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION 2024 2023 Operating lease cost (included in general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations) Six months ended June 30, 2024 2023 Related parties $ 8,918 $ 9,501 Non-related parties 81,478 63,683 Total $ 90,396 $ 73,184 Other information for the three months ended June 30, 2024 June 30, 2023 Cash paid for amounts included in the measurement of lease obligations $ 97,077 $ 77,612 Weighted average remaining lease term (in years) 1.84 2.72 Weighted average discount rate 3.23 % 3.23 % |
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS | Maturities of the Company’s lease obligations as of June 30, 2024 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2024 (remaining) $ 54,759 2025 105,926 2026 53,041 2027 5,504 2028 - Total lease payment 219,230 Less: Imputed interest (7,377 ) Operating lease obligations $ 211,853 |
BANK AND OTHER BORROWINGS (Tabl
BANK AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES | The balance of the loans borrowed as of June 30, 2024 and December 31, 2023 were as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES June 30, 2024 December 31, 2023 Loans from a trust in PRC $ 54,416 $ 20,343 China Construction Bank 400,009 475,121 Guangdong Nanyue Bank 7,464 24,164 WeBank 162,648 129,396 Bank of Ningbo 14,127 21,041 Aggregate outstanding principal balances 638,664 670,065 Less: current portion 420,636 458,023 Non-current portion $ 218,028 $ 212,042 |
SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS | Future minimum loan payments as of June 30, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year ending December 31, 2024 (remaining) $ 362,876 2025 113,033 2026 157,127 2027 4,948 Thereafter 680 Total $ 638,664 |
SCHEDULE OF ENTITIES AND ITS SU
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES (Details) | 6 Months Ended |
Jun. 30, 2024 | |
DIGLS [Member] | |
Entity Name | DIGLS |
Entity incorporation date | Jul. 04, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Republic of Seychelles |
DILHK [Member] | |
Entity Name | DILHK |
Entity incorporation date | Jun. 22, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Hong Kong, PRC |
QHDX [Member] | |
Entity Name | QHDX |
Entity incorporation date | Nov. 03, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | PRC |
FVTL [Member] | |
Entity Name | FVTL |
Entity incorporation date | May 31, 2011 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of food and platform |
Country of incorporation | PRC |
JJGS [Member] | |
Entity Name | JJGS |
Entity incorporation date | Aug. 17, 2017 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Republic of Seychelles |
JJHK [Member] | |
Entity Name | JJHK |
Entity incorporation date | Aug. 24, 2017 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Hong Kong, PRC |
JJSZ [Member] | |
Entity Name | JJSZ |
Entity incorporation date | Nov. 16, 2018 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of food |
Country of incorporation | PRC |
Xixingdao [Member] | |
Entity Name | Xixingdao |
Entity incorporation date | Aug. 28, 2019 |
Ownership percentage by parent | 100% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FLTT [Member] | |
Entity Name | Dongguan City Fu La Tu Trade Ltd (“FLTT”) |
Entity incorporation date | Sep. 27, 2020 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
FXGT [Member] | |
Entity Name | Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) |
Entity incorporation date | Dec. 02, 2020 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
FXTL [Member] | |
Entity Name | Dongguan City Fu Xin Technology Ltd (“FXTL”) |
Entity incorporation date | Nov. 12, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FGHL [Member] | |
Entity Name | Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) |
Entity incorporation date | Dec. 21, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FJTL [Member] | |
Entity Name | Dongguan City Fu Jing Technology Ltd (“FJTL”) |
Entity incorporation date | Nov. 17, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FGTL [Member] | |
Entity Name | Dongguan City Fu Xiang Technology Ltd (“FGTL”) |
Entity incorporation date | Nov. 16, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FJFL [Member] | |
Entity Name | Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) |
Entity incorporation date | Nov. 09, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FLFL [Member] | |
Entity Name | Dongguan City Fu Lai Food Ltd (“FLFL”) |
Entity incorporation date | Sep. 27, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FYBL [Member] | |
Entity Name | Dongguan City Fu Yi Beverage Ltd (“FYBL”) |
Entity incorporation date | Nov. 12, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FXWL [Member] | |
Entity Name | Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) |
Entity incorporation date | Mar. 17, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of alcoholic beverages and water purifier |
Country of incorporation | PRC |
FJWL [Member] | |
Entity Name | Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) |
Entity incorporation date | Mar. 29, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FSWL [Member] | |
Entity Name | Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) |
Entity incorporation date | Mar. 29, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FJSTL [Member] | |
Entity Name | Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) |
Entity incorporation date | Jun. 07, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FLTL [Member] | |
Entity Name | Dongguan City Fu Li Trading Ltd (“FLTL”) |
Entity incorporation date | Sep. 10, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FGGC [Member] | |
Entity Name | Guangdong Fu Gu Supply Chain Group Ltd (“FGGC”) |
Entity incorporation date | Sep. 13, 2021 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
FZGTL [Member] | |
Entity Name | Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) |
Entity incorporation date | Sep. 09, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
CFTL [Member] | |
Entity Name | Dongguan City Chang Fu Trading Ltd (“CFTL”) |
Entity incorporation date | Sep. 09, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
LTTL [Member] | |
Entity Name | Dongguan City La Tong Trading Ltd (“LTTL”) |
Entity incorporation date | Aug. 08, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
KFTL [Member] | |
Entity Name | Dongguan City Kai Fu Trading Ltd (“KFTL”) |
Entity incorporation date | Sep. 08, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
SCHEDULE OF FOREIGN CURRENCY EX
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION (Details) | Jun. 30, 2024 | Jun. 30, 2023 |
Period End RMB [Member] | ||
Offsetting Assets [Line Items] | ||
Period-average RMB:US$1 exchange rate | 0.13760 | 0.13880 |
Period Average RMB [Member] | ||
Offsetting Assets [Line Items] | ||
Period-average RMB:US$1 exchange rate | 0.13875 | 0.14448 |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Product Information [Line Items] | ||||
Total | $ 247,061 | $ 1,272,597 | $ 514,883 | $ 2,907,886 |
Sales of Liquor [Member] | ||||
Product Information [Line Items] | ||||
Total | 81,809 | 878,952 | 152,053 | 1,782,672 |
Sales of Water [Member] | ||||
Product Information [Line Items] | ||||
Total | 80,455 | 213,582 | 172,834 | 633,202 |
Sales of Water Purifier [Member] | ||||
Product Information [Line Items] | ||||
Total | 54,362 | 114,714 | 113,250 | 367,837 |
Others [Member] | ||||
Product Information [Line Items] | ||||
Total | $ 30,435 | $ 65,349 | $ 76,746 | $ 124,175 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 22, 2020 | Mar. 01, 2019 | Apr. 11, 2018 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Negative working capital | $ 500,653 | $ 500,653 | ||||||||
Cash and cash equivalents | 7,410 | 7,410 | $ 288,255 | |||||||
Accumulated deficit and statutory reserves | 10,280,026 | 10,280,026 | 8,551,019 | |||||||
Net income (loss) | 777,723 | $ 1,001,080 | $ 444,829 | $ 89,176 | 1,778,803 | $ 534,005 | ||||
Net cash provided by (used in) operating activities | 274,805 | $ 85,816 | ||||||||
Contract with customer advance | $ 1,338,274 | 1,338,274 | $ 1,364,260 | |||||||
Amount of customer advances in opening balance | $ 78,300 | |||||||||
Share Exchange Agreement [Member] | DaXingHuaShang Investment Group Limited [Member] | ||||||||||
Number of shares exchanged | 15,000,000 | |||||||||
Sale and Purchase Agreement [Member] | Jiujiu Group Stock Co., Ltd [Member] | ||||||||||
Number of shares exchanged | 5 | |||||||||
Ownership percentage | 100% | |||||||||
Value shares issued in exchange | $ 150 | |||||||||
Xixingdao Agreement [Member] | QHDX [Member] | ||||||||||
Number of shares exchanged | 243,134 | |||||||||
Ownership percentage | 90% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Credit Loss [Abstract] | ||
Accounts receivable (including $77,373 and $70,710 from related parties as of June 30, 2024 and December 31, 2023, respectively) | $ 4,945,006 | $ 4,837,852 |
Less: Doubtful allowance (including $44,330 and $9,597 from related parties as of June 30, 2024 and December 31, 2023, respectively) | (2,789,394) | (1,718,960) |
Accounts receivable, net | $ 2,155,612 | $ 3,118,892 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts receivable | $ 4,945,006 | $ 4,837,852 |
Doubtful allowance | 2,789,394 | 1,718,960 |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts receivable | 77,373 | 70,710 |
Doubtful allowance | $ 44,330 | $ 9,597 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 1,718,960 | |
Additions to allowance | 1,119,983 | 1,726,142 |
Foreign currency translation adjustment | (49,549) | (7,182) |
Ending balance | $ 2,789,394 | $ 1,718,960 |
SCHEDULE OF PREPAYMENT AND OTHE
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Prepayments And Other Current Assets Net | |||
Prepayments (including $2,591,888 and $2,769,741 to related parties as of June 30, 2024 and December 31, 2023, respectively) | $ 3,750,197 | $ 3,995,750 | |
Other current assets | 4,152 | 2,330 | |
Total prepayments and other current assets | 3,754,349 | 3,998,080 | |
Less: Allowance for doubtful accounts (including $1,784,956 and $1,827,763 to related parties as of June 30, 2024 and December 31, 2023, respectively) | (2,299,480) | (2,354,625) | $ (1,247,580) |
Prepayments and other current assets, net | $ 1,454,869 | $ 1,643,455 |
SCHEDULE OF PREPAYMENT AND OT_2
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS (Details) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Prepayments to related parties | $ 3,750,197 | $ 3,995,750 | |
Allowance for doubtful accounts | 2,299,480 | 2,354,625 | $ 1,247,580 |
Related Party [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prepayments to related parties | 2,591,888 | 2,769,741 | |
Allowance for doubtful accounts | $ 1,784,956 | $ 1,827,763 |
SCHEDULE OF ALLOWANCE FOR DOU_2
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Prepayments And Other Current Assets Net | ||
Beginning balance | $ 2,354,625 | $ 1,247,580 |
Additions to allowance | 1,169,058 | |
Foreign currency translation adjustment | (55,145) | (62,013) |
Ending balance | $ 2,299,480 | $ 2,354,625 |
SCHEDULE OF DEPOSITS PAID (Deta
SCHEDULE OF DEPOSITS PAID (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits Paid Net | |||
Deposits paid (including $1,559,656 and $1,597,060 to related parties as of June 30, 2024 and December 31, 2023, respectively) | $ 2,258,458 | $ 2,312,622 | |
Less: Allowance for doubtful accounts (including $1,035,770 and $1,060,610 to related parties as of June 30, 2024 and December 31, 2023, respectively) | (1,654,488) | (1,694,166) | $ (1,244,350) |
Deposits paid, net | $ 603,970 | $ 618,456 |
SCHEDULE OF DEPOSITS PAID (De_2
SCHEDULE OF DEPOSITS PAID (Details) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Deposits paid | $ 2,258,458 | $ 2,312,622 | |
Deposits paid allowance for doubtful accounts | 1,654,488 | 1,694,166 | $ 1,244,350 |
Related Party [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deposits paid | 1,559,656 | 1,597,060 | |
Deposits paid allowance for doubtful accounts | $ 1,035,770 | $ 1,060,610 |
SCHEDULE OF ALLOWANCE FOR DOU_3
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Deposits Paid Net | ||
Beginning balance | $ 1,694,166 | $ 1,244,350 |
Additions to allowance | 484,800 | |
Foreign currency translation adjustment | (39,678) | (34,984) |
Ending balance | $ 1,654,488 | $ 1,694,166 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 238,233 | $ 253,113 |
Disposal of office equipment | 9,026 | |
Less: Accumulated depreciation (including $9,026 and $nil to the written back disposal of office equipment as of June 30, 2024 and December 31, 2023, respectively) | (172,689) | (169,407) |
Property and equipment, net | 65,544 | 83,706 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 94,784 | 106,225 |
Disposal of office equipment | 9,026 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 111,814 | 114,495 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 31,635 | $ 32,393 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Depreciation expense | $ 16,337 | $ 18,046 |
General and Administrative Expense [Member] | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Depreciation expense | $ 8,952 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 2,988,783 | $ 3,060,630 |
Less: Accumulated amortization | (2,026,190) | (1,982,560) |
Less: Accumulated impairment | (916,229) | (926,431) |
Intangible assets, net | 46,364 | 151,639 |
Distribution Channel [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 2,963,947 | 3,035,029 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 24,836 | $ 25,601 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS (Details) | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (remaining) | $ 35,508 |
2025 | 4,967 |
2026 | 4,967 |
2027 | 922 |
2028 | |
Total | $ 46,364 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expenses | $ 100,069 | $ 106,634 |
SCHEDULE OF AMOUNT DUE FROM AND
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES (Details) - Related Party [Member] - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1,015,727 | $ 680,226 |
Former President Former Chief Executive Officer Director and Majority Shareholder [Member] | Mr Yumin Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 356,119 | 341,831 |
Manager of a Subsidiary, Mr. Yumin Lins Wife [Member] | Ms. Xiulan Zhou [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 4,609 | 2,118 |
Manager of a Subsidiary [Member] | Mr. Huagen Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,202 | 2,254 |
Manager of a Subsidiary [Member] | Mr. Guodong Jia [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 3,995 | 7,479 |
Manager of a Subsidiary [Member] | Mr. Anping Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 26,347 | 12,798 |
Manager of a Subsidiary [Member] | Mr. Jiangwei Jia [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 23,757 | 10,449 |
Manager of a Subsidiary [Member] | Ms. Lihua Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 38,766 | 14,907 |
Manager of a Subsidiary [Member] | Ms. Chunxiang Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 22,858 | 6,810 |
Manager of a Subsidiary [Member] | Mr. Meng Xue [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,527 | 8,204 |
Manager of a Subsidiary [Member] | Ms. Shuqin Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 35,341 | 18,171 |
Manager of a Subsidiary [Member] | Mr. Zhipeng Zuo [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 45,227 | 10,103 |
Manager of a Subsidiary [Member] | Mr. Aisheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 41,093 | 28,751 |
Manager of a Subsidiary [Member] | Mr. Zhihua Liao [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 14,592 | 9,468 |
Manager of a Subsidiary [Member] | Xiuyun Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 83 | |
Manager of a Subsidiary, Shareholder [Member] | Mr. Hongwei Ye [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 15 | 15 |
President Chief Executive Officer and Director [Member] | Mr. Yuwen Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 153,875 | 122,327 |
Mr. Yumin Lin is the Supervisor of Shenzhen DaXingHuaShang Industry Development Ltd [Member] | Shenzhen Da Xing Hua Shang Industry Development Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 82,561 | 84,541 |
Chief Financial Officer [Member] | Kaihong Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 563 | |
Majority Shareholder [Member] | Minghua Cheng [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 161,197 |
SCHEDULE OF REVENUE GENERATED F
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | $ 9,751 | $ 69,598 |
Mr.Naiyong Luo a Manager [Member] | Related Party [Member] | Guangdong Yuexin Jiaotong Construction Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 899 | 10,578 |
Hualianguan Chemical Co Ltd [Member] | Related Party [Member] | Dongguan City Hualianguan Chemical Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 14,808 | |
Mr.Kaihong Lin [Member] | Chief Financial Officer and Treasurer [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 278 | |
XiuLan Zhou [Member] | Manager of a Subsidiary, Mr. Yumin Lins Wife [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 14 | |
Mr. Hongwei Ye [Member] | Manager of a Subsidiary, Shareholder [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 68 | |
Dongguan Huanhai Trading Co Ltd [Member] | Huanhai Trading Co Ltd [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 10,886 | |
Dongguan Humen Shuiyan Drinking Water [Member] | Ms.Shuiyan Li [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 8,305 | 33,034 |
Dongguan Zhengui Industry Ltd [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | $ 479 |
SCHEDULE OF COST OF REVENUES FR
SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | $ 202,785 | $ 652,798 | $ 415,674 | $ 1,330,165 |
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 167,351 | 362,096 | ||
Dongguan Baxi Food Distribution Co Ltd [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 51,539 | 57,509 | ||
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 7,255 | 23,614 | ||
Dongguan Pengqin Drinking Water Co Ltd [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 3,348 | 23,433 | ||
Dongguan Dengqinghu Drinking Water Store [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 2,934 | |||
Dongguan Tailai Trading Co Ltd [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 27,779 | 52,324 | ||
Dongguan Anxiang Technology Co Ltd [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 20,659 | 56,704 | ||
Guangdong Jiaduonuo Shengshi Trading Co Ltd [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 13,068 | 90,355 | ||
Dongguan Dalingshan Runxin Drinking Water Store [Member] | Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | 1,842 | 11,473 | ||
Dongguan City Yijia Trading Co Ltd [Member] | Related Party [Member] | Mr. Yongming Li [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenues from related parties | $ 41,861 | $ 43,750 |
SCHEDULE OF PURCHASES FROM RELA
SCHEDULE OF PURCHASES FROM RELATED PARTIES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Purchase from related party | $ 167,351 | $ 374,686 |
Dongguan Baxi Food Distribution Co Ltd [Member] | ||
Purchase from related party | 51,539 | 61,259 |
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | ||
Purchase from related party | 7,255 | 25,221 |
Dongguan Pengqin Drinking Water Co Ltd [Member] | ||
Purchase from related party | 3,348 | 25,416 |
Dongguan Dengqinghu Drinking Water Store [Member] | ||
Purchase from related party | 3,124 | |
Dongguan Tailai Trading Co Ltd [Member] | ||
Purchase from related party | 27,779 | 55,999 |
Dongguan Anxiang Technology Co Ltd [Member] | ||
Purchase from related party | 20,659 | 56,965 |
Guangdong Jiaduonuo Shengshi Trading Co Ltd [Member] | ||
Purchase from related party | 13,068 | 90,430 |
Dongguan Dalingshan Runxin Drinking Water Store [Member] | ||
Purchase from related party | 1,842 | 12,522 |
Dongguan City Yijia Trading Co Ltd [Member] | Mr. Yongming Li [Member] | ||
Purchase from related party | $ 41,861 | $ 43,750 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation [Line Items] | ||||
Total | $ 90 | $ 21,528 | $ 409 | $ 96,502 |
UNITED STATES | ||||
Effective Income Tax Rate Reconciliation [Line Items] | ||||
Current income tax expense | 41,444 | |||
Deferred income tax expense | ||||
Seychelle [Member] | ||||
Effective Income Tax Rate Reconciliation [Line Items] | ||||
Current income tax expense | ||||
Deferred income tax expense | ||||
HONG KONG | ||||
Effective Income Tax Rate Reconciliation [Line Items] | ||||
Current income tax expense | ||||
Deferred income tax expense | ||||
CHINA | ||||
Effective Income Tax Rate Reconciliation [Line Items] | ||||
Current income tax expense | 409 | 55,058 | ||
Deferred income tax expense |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 HKD ($) | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
U.S federal income tax rate | 21% | 21% | |
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 17.70% | 17.70% | (22.10%) |
Effective income tax percentage | 25% | 25% | |
CHINA | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Income tax examination, description | On April 2, 2021, the State Taxation Administration issued the notice of the Ministry of Finance and the State Administration of Taxation (“MOF and SAT”) [2021] No.12 to provide an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, 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 RMB1,000,000, approximately $139,404, but less than RMB3,000,000, approximately $418,212, 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, except for Xixingdao, FVT Supply Chain and FLTT | On April 2, 2021, the State Taxation Administration issued the notice of the Ministry of Finance and the State Administration of Taxation (“MOF and SAT”) [2021] No.12 to provide an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, 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 RMB1,000,000, approximately $139,404, but less than RMB3,000,000, approximately $418,212, 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, except for Xixingdao, FVT Supply Chain and FLTT | |
Up To HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 8.25% | 8.25% | |
Income tax assessable profit | $ 277,506 | $ 2,000,000 | |
Over HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective income tax rate reconciliation, foreign income tax rate differential, percent | 16.50% | 16.50% | |
Income tax assessable profit | $ 2,000,000 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 90,396 | $ 73,184 |
Cash paid for amounts included in the measurement of lease obligations | $ 97,077 | $ 77,612 |
Weighted average remaining lease term (in years) | 1 year 10 months 2 days | 2 years 8 months 19 days |
Operating lease, weighted average discount rate, percent | 3.23% | 3.23% |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 8,918 | $ 9,501 |
Nonrelated Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 81,478 | $ 63,683 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS (Details) | Jun. 30, 2024 USD ($) |
Operating Leases | |
2024 (remaining) | $ 54,759 |
2025 | 105,926 |
2026 | 53,041 |
2027 | 5,504 |
2028 | |
Total lease payment | 219,230 |
Less: Imputed interest | (7,377) |
Operating lease obligations | $ 211,853 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 CNY (¥) | |
Operating lease description | the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 3 month to 39 months | the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 3 month to 39 months |
Qingmei Lin [Member] | Operating Lease Agreement [Member] | ||
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 |
Payments for rent | $ 1,387 | ¥ 10,000 |
Mr. Hongwei Ye [Member] | Operating Lease Agreement [Member] | ||
Payments for rent | $ 133 | ¥ 960 |
SCHEDULE OF BALANCE OF LOAN BOR
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | $ 638,664 | $ 670,065 |
Less: current portion | 420,636 | 458,023 |
Non-current portion | 218,028 | 212,042 |
Bank Loan From The Trust in PRC [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 54,416 | 20,343 |
China Construction Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 400,009 | 475,121 |
Guangdong Nanyue Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 7,464 | 24,164 |
WeBank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 162,648 | 129,396 |
Bank of Ningbo [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | $ 14,127 | $ 21,041 |
SCHEDULE OF FUTURE MINIMUM LOAN
SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 (remaining) | $ 362,876 | |
2025 | 113,033 | |
2026 | 157,127 | |
2027 | 4,948 | |
Thereafter | 680 | |
Total | $ 638,664 | $ 670,065 |
BANK AND OTHER BORROWINGS (Deta
BANK AND OTHER BORROWINGS (Details Narrative) | 1 Months Ended | 6 Months Ended | ||||||||||||||||||
Feb. 29, 2024 USD ($) | Jan. 31, 2024 USD ($) | Nov. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jul. 31, 2022 USD ($) | May 31, 2022 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Feb. 29, 2024 CNY (¥) | Jan. 31, 2024 CNY (¥) | Nov. 30, 2023 CNY (¥) | Jul. 31, 2023 CNY (¥) | May 31, 2023 CNY (¥) | Apr. 30, 2023 CNY (¥) | Feb. 28, 2023 CNY (¥) | Jul. 31, 2022 CNY (¥) | May 31, 2022 CNY (¥) | |
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Interest expense | $ 10,844 | $ 9,292 | ||||||||||||||||||
China Construction Bank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 146,000 | $ 68,000 | $ 24,000 | ¥ 1,050,000 | ¥ 465,000 | ¥ 161,000 | ||||||||||||||
Interest rate | 4.20% | 4% | ||||||||||||||||||
Maturity date | May 26, 2024 | Feb. 11, 2024 | ||||||||||||||||||
Huaneng Guicheng Trust Co Ltd [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 544,000 | ¥ 390,000 | ||||||||||||||||||
Interest rate | 17.64% | 11.34% | ||||||||||||||||||
Maturity date | Jan. 21, 2026 | May 21, 2024 | ||||||||||||||||||
WeBank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 38,000 | $ 62,000 | $ 8,000 | $ 13,000 | $ 10,000 | ¥ 270,000 | ¥ 440,000 | ¥ 57,000 | ¥ 96,000 | ¥ 69,000 | ||||||||||
Interest rate | 7.92% | 7.92% | 11.34% | |||||||||||||||||
Maturity date | Feb. 22, 2026 | Nov. 16, 2025 | May 21, 2024 | |||||||||||||||||
WeBank One [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 15,000 | ¥ 99,000 | ||||||||||||||||||
Guangdong Nanyue Bank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 34,000 | 231,000 | ||||||||||||||||||
WeBank and Guangdong Nanyue Bank Co Ltd. [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Interest rate | 14.40% | |||||||||||||||||||
Maturity date | Jul. 08, 2024 | |||||||||||||||||||
WeBank Two [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 23,000 | 153,000 | ||||||||||||||||||
Nanyue Bank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 18,000 | $ 53,000 | 133,000 | 357,000 | ||||||||||||||||
WeBank and Nanyue Bank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Interest rate | 10.44% | 14.40% | ||||||||||||||||||
Maturity date | Jul. 13, 2025 | Jul. 13, 2024 | ||||||||||||||||||
Huaneng Guicheng [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 57,000 | ¥ 380,000 | ||||||||||||||||||
Interest rate | 12.60% | |||||||||||||||||||
Maturity date | Jul. 21, 2024 | |||||||||||||||||||
Bank of Ningbo [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 31,000 | 224,000 | ||||||||||||||||||
Bank of Ningbo and WeBank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Interest rate | 12.24% | |||||||||||||||||||
Maturity date | Apr. 07, 2025 | |||||||||||||||||||
Car Loan WeBank [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 27,000 | ¥ 195,415 | ||||||||||||||||||
Interest rate | 6.54% | |||||||||||||||||||
Maturity date | Apr. 10, 2028 | |||||||||||||||||||
China Construction Bank Loan One [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 143,000 | 1,040,000 | ||||||||||||||||||
Interest rate | 3.70% | |||||||||||||||||||
Maturity date | Jul. 17, 2026 | |||||||||||||||||||
China Construction Bank Loan Two [Member] | ||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||
Principal amount | $ 114,000 | ¥ 817,000 | ||||||||||||||||||
Interest rate | 3.85% | |||||||||||||||||||
Maturity date | Jul. 22, 2024 |