| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
| Mar. 31, 2017 |
| Summary Of Significant Accounting Policies Policies | |
| Method of accounting | The Company maintains
its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial
statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted
accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial
statements. |
| Principles of consolidation | The consolidated financial
statements are presented in US Dollars and include the accounts of the Company and its subsidiary. All significant inter-company
balances and transactions are eliminated in consolidation. The following table depicts
the identity of the subsidiary:
Name of Subsidiary Place of Incorporation Attributable Equity Interest %
Registered Capital
Yugosu Investment Limited (1) Hong Kong 100 HKD 10,000
Guangzhou Sleepaid Household Supplies Co., Ltd (2) PRC 100 RMB 3,000,000
Yuewin Trading Ltd (3) PRC 100 RMB 500,000 _____________
Note: (1) Wholly owned subsidiary of Sleepaid Holding Company
(2) Wholly owned subsidiary of Yugosu Investment Limited
(3) Wholly owned subsidiary of Sleepaid Household |
| Use of estimates | The preparation of consolidated
financial statements that conform with generally accepted accounting principles in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the
reporting periods. Management makes these estimates using the best information available at the time, however, actual results could
differ materially from those estimates. |
| Economic and political risks | The Companys operations
are conducted in Hong Kong and China and a large number of customers are located in Southern China. Accordingly, the Companys
business, financial condition and results of operations may be influenced by the political, economic and legal environment in Hong
Kong and China, and by the general state of the economy in Hong Kong and China. The Companys operations
and customers in Hong Kong and Southern China are subject to special considerations and significant risks not typically associated
with companies in North America and Western Europe. These include risks associated with, among others, the political, economic
and legal environments, and foreign currency exchange. The Companys results may be adversely affected by changes in the
political and social conditions in Hong Kong and China, and by changes in governmental policies with respect to laws and regulations,
anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. |
| Property, plant and equipment | Plant and equipment are
carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line
method with 5% scrape value. Estimated useful lives
of the plant and equipment are as follows:
Furniture and fixtures 5 years
Office equipment 2 - 5 years
Motor vehicles 4 - 5 years The cost and related
accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included
in the statement of operation. |
| Accounting for the impairment of long-lived assets | The Company periodically
evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when
events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360. The carrying value of a
long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable
and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds
the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted
at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner,
except that fair market values are reduced for the cost to dispose. During the reporting
periods, there was no impairment loss. |
| Cash and concentration of risk | The Group considers all
highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Group maintains
bank accounts in HK and the PRC. |
| Income taxes | The Company accounts
for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under
the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance
is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to
realize their benefits, or that future realization is uncertain. |
| Foreign currency translation | The accompanying consolidated
financial statements are presented in United States dollars (USD). The functional currencies of the Companys operating business
based in Hong Kong and PRC are the Hong Kong Dollar (HKD) and Renminbi (RMB) respectively. The consolidated financial statements
are translated into USD from HKD and RMB at period-end exchange rates as to assets and liabilities and average exchange rates as
to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.. The exchange rates used
to translate amounts in HK$ and RMB into USD for the purposes of preparing the consolidated financial statements were as follows:
2017 2016
Three months and Year end HKD: USD exchange rate 7.7707 7.7545
Average quarterly and yearly HKD : USD exchange rate 7.7606 7.7734
2017 2016
Three months and Year end RMB: USD exchange rate 6.8912 6.4479
Average quarterly and yearly RMB: USD exchange rate 6.8891 6.5395
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 USD at the rates used in translation. In addition, the
current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC. |
| Comprehensive income | Comprehensive income
is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among
other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive
income are required to be reported in a financial statement that is presented with the same prominence as other consolidated financial
statements. The Companys current component of comprehensive income is the net income and foreign currency translation adjustment. |
| Recently implemented standards | The FASB has issued Accounting
Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The definition of a business
affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to
help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of
assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities
is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition
of a business more operable. For public companies,
the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods.
For all other companies and organizations, the amendments are effective for annual periods beginning after December 15, 2018, and
interim periods within annual periods beginning after December 15, 2019. |
| Accounts receivable | Accounts receivable is
recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts
is maintained for all customers based on a variety of factors, including the length of time the receivables are past due, significant
one-time events and historical experience. Management reviews and
adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts
receivable. The Company evaluates the credit risk of its customers utilizing historical data and estimates of future performance.
Bad debts are written off as incurred. During the reporting years, there were no bad debts. Outstanding accounts
balances are reviewed individually for collectability. The Company does not charge any interest income on trade receivables. Accounts
balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery
is considered remote. To date, the Company has not charged off any balances as it has yet to exhaust all means of collection. |
| Inventories | Inventories primarily
consist of merchandise inventories and are stated at lower of cost or market and net realizable value. Cost of inventories is calculated
on the weighted average basis which approximates cost. Management regularly
reviews inventories and records valuation reserves for damaged and defective returns, inventories with slow-moving or obsolescence
exposure and inventories with carrying value that exceeds market value. Because of its product mix, the Company has not historically
experienced significant occurrences of obsolescence. Inventory shrinkage is
accrued as a percentage of revenues based on historical inventory shrinkage trends. The Company performs physical inventory count
of its stores once per quarter and cycle counts inventories at its distribution centers once per quarter throughout the year. The
reserve for inventory shrinkage represents an estimate for inventory shrinkage for each store since the last physical inventory
date through the reporting date. These reserves are estimates,
which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand
and competitive environments differ from expectations. |
| Revenue recognition | The Company earns revenue
by selling merchandise through self-managed retail stores inside shopping malls, franchise stores and wholesale agent. Revenue from self-managed
retail stores inside shopping malls is recognized when merchandise is purchased by and delivered to the customer, confirmed, fixed
and reconciled with the shopping malls and collectability is reasonably assured. Revenue from franchised
stores is recognized after goods delivered and cash collected (normally cash on delivery) from the franchise retail stores. Revenue from wholesale
agent is recognized after goods delivered, amount fixed or determined and collectability is reasonably assured. All revenues are shown
net of estimated returns during the relevant period represented by estimated allowance for sales returns based upon historical
experience. The Company records sales
tax collected from its customers on a net basis, and therefore excludes it from revenue as defined in ASC 605, Revenue Recognition. |
| Costs of sales | Cost of sales includes
the cost of merchandise, collecting and handling charges based on store sales deducted by landlord, related cost of packaging and
shipping cost and the distribution center costs. |
| Operating lease rental | The Company did not have
a lease that met the criteria of a capital lease. Leases that do not qualify as a capital lease are classified as an operating
lease. Operating lease rental expenses included in selling, general and administrative expenses for the three months ended March
31, 2017 and 2016 were $18,234 and $7,474, respectively |
| Selling expenses | Selling expenses include
store-related expense, other than store occupancy costs, as well as advertising, depreciation and amortization, and certain expenses
associated with operating the Companys corporate headquarters. |
| Advertising costs | The Company expensed
all advertising costs as incurred. Advertising expenses, net of reimbursement from suppliers, amounted to $7,544 and $21,871 for
the three months ended March 31, 2017 and 2016 respectively. Advertising expense is included in selling expense in the accompanying
consolidated statements of income. |
| Concentration of Credit Risk | The Company maintains
cash in bank deposit accounts in Hong Kong and PRC. The Company performs ongoing evaluations of this institution to limit its concentration
risk exposure. The Company operates
retail stores located in the PRC. Because of this, the Company is subject to regional risks, such as the economy, regional financial
conditions and unemployment, weather conditions, power outages, and other natural disasters specific to the region in which the
Company operates. |
| Retirement Benefit Plans | Full time employees of
the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits,
medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the
Company to make contributions to the government for these benefits based on certain percentages of the employees salaries.
The Company accounts the mandated defined contribution plan under the vested benefit obligations approach based on the guidance
of ASC 715, CompensationRetirement Benefits. The total amounts for
such employee benefits which were expensed were $8,845 and $10,853 for the three months ended March 31, 2017 and 2016, respectively. |
| Segment reporting | In accordance with ASC
280-10, Segment Reporting (ASC 280-10), the Companys chief operating decision makers rely upon consolidated
results of operations when making decisions about allocating resources and assessing performance of the Company. As a result of
the assessment made by the chief operating decision makers, the Company has only one single operating and geographic segment. The
Company does not distinguish between markets or segments for the purpose of internal reporting |
| Product Warranty | The company is the legal
obligor for the warranties of the products sold to customers but believed that the likelihood that we would not recover all warranty
costs from the manufacturer to be remote based on our past operating history, manufacturers cooperation and their reputation
and history of honoring all their warranty obligations. Since our inception to present, we have not incurred any direct warranty
expenses and accordingly, the accrual and associated expenses recognized in the financial statements has been recorded as zero. |
| Basic and diluted earnings (loss) per share | In accordance with ASC
No. 260 (formerly SFAS No. 128), Earnings Per Share, the basic earnings (loss) per common share is computed by dividing
net earnings (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings
(loss) per common share is computed similarly to basic earnings (loss) per common share, except that the denominator is increased
to include the number of additional common shares that would have been outstanding if the potential common shares had been issued
and if the additional common shares were dilutive. |
