Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Jan. 15, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Jialijia Group Corp Ltd | |
Entity Central Index Key | 0001659559 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 333-209900 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV | |
Entity Common Stock, Shares Outstanding | 12,445,222 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 38,547 | $ 13 |
Advance to suppliers | 187,748 | 93,079 |
Other current assets | 4,798 | 12,756 |
Total Current Assets | 231,093 | 105,848 |
Property, plant, and equipment, net | 366,171 | |
Total Assets | 597,264 | 105,848 |
Current Liabilities | ||
Accrued expenses | 36,108 | |
Due to related parties | 2,918,663 | 277,661 |
Other current liabilities | 2,420 | |
Total Current Liabilities | 2,957,191 | 277,661 |
Total Liabilities | 2,957,191 | 277,661 |
Commitments and contingencies | ||
Stockholders' Deficit | ||
Common stock, $.001 par value, 1,000,000,000 shares authorized, 12,445,222 and 7,285,000 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 12,445 | 7,285 |
Additional paid-in capital | 2,582,468 | 31,770 |
Treasury stock | (120,000) | (120,000) |
Accumulated deficit | (4,281,680) | (90,824) |
Accumulated other comprehensive income (loss) | 63,580 | (44) |
Total Stockholders' deficit | (1,743,187) | (171,813) |
Noncontrolling interests | (616,740) | |
Total Stockholders' Deficit | (2,359,927) | (171,813) |
Total Liabilities and Stockholders' Deficit | $ 597,264 | $ 105,848 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 12,445,222 | 7,285,000 |
Common stock, shares outstanding | 12,445,222 | 7,285,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenue | ||||
Cost of revenue | ||||
Gross profit | ||||
General and administrative expenses | (90,717) | (6,393) | (276,132) | (21,613) |
Goodwill impairment | (3,962,424) | |||
Total operating expense | (90,717) | (6,393) | (4,238,556) | (21,613) |
Loss from operations before income taxes | (90,717) | (6,393) | (4,238,556) | (21,613) |
Provision for income tax | ||||
Net loss | (90,717) | (6,393) | (4,238,556) | (21,613) |
Net loss attributable to noncontrolling interest | 11,589 | 47,700 | ||
Net loss attributable to Jialijia Group Corporation Limited | (79,128) | (6,393) | (4,190,856) | (21,613) |
Net Loss | (90,717) | (6,393) | (4,238,556) | (21,613) |
Other comprehensive income (loss): | ||||
Foreign currency translation gain | 88,801 | 88,345 | ||
Comprehensive loss | (1,916) | (6,393) | (4,150,211) | (21,613) |
Comprehensive (income) loss attributable to noncontrolling interests | (13,614) | 22,980 | ||
Comprehensive loss attributable to Jialijia Group Corporation Limited | $ (15,530) | $ (6,393) | $ (4,127,231) | $ (21,613) |
Net loss attibutable to Jialijia stockholders - basic and diluted | $ (0.01) | $ 0 | $ (0.48) | $ 0 |
Weighted average shares outstanding, basic and diluted | 11,255,198 | 7,285,000 | 8,776,314 | 7,285,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders’ Deficit - USD ($) | Common Stock | Treasury Stock | Subscriptions Receivable | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-controlling interest | Total |
Balances at beginning at Dec. 31, 2017 | $ 7,285 | $ (120,000) | $ 31,770 | $ (61,556) | $ (142,501) | |||
Balances at beginning, shares at Dec. 31, 2017 | 7,285,000 | |||||||
Net loss for the period ended | (7,350) | (7,350) | ||||||
Balances at ending at Mar. 31, 2018 | $ 7,285 | (120,000) | 31,770 | (68,906) | (149,851) | |||
Balances at ending, shares at Mar. 31, 2018 | 7,285,000 | |||||||
Net loss for the period ended | (7,870) | (7,870) | ||||||
Balances at ending at Jun. 30, 2018 | $ 7,285 | (120,000) | 31,770 | (76,776) | (157,721) | |||
Balances at ending, shares at Jun. 30, 2018 | 7,285,000 | |||||||
Net loss for the period ended | (6,393) | (6,393) | ||||||
Balances at ending at Sep. 30, 2018 | $ 7,285 | (120,000) | 31,770 | (83,169) | (164,114) | |||
Balances at ending, shares at Sep. 30, 2018 | 7,285,000 | |||||||
Balances at beginning at Dec. 31, 2018 | $ 7,285 | (120,000) | 31,770 | (90,824) | (44) | (171,813) | ||
Balances at beginning, shares at Dec. 31, 2018 | 7,285,000 | |||||||
Effect of restructuring | 2,431,000 | (593,760) | 1,837,240 | |||||
Foreign currency translation | (36,390) | (14,367) | (50,757) | |||||
Net loss for the period ended | (4,027,990) | (18,243) | (4,046,233) | |||||
Balances at ending at Mar. 31, 2019 | $ 7,285 | (120,000) | 2,462,770 | (4,118,814) | (36,434) | (626,370) | (2,431,563) | |
Balances at ending, shares at Mar. 31, 2019 | 7,285,000 | |||||||
Issuance of shares | $ 817 | (24,513) | 23,696 | |||||
Issuance of shares, shares | 817,108 | |||||||
Foreign currency translation | 36,416 | 13,885 | 50,301 | |||||
Net loss for the period ended | (83,738) | (17,869) | (101,607) | |||||
Balances at ending at Jun. 30, 2019 | $ 8,102 | (120,000) | (24,513) | 2,486,466 | (4,202,552) | (18) | (630,354) | (2,482,869) |
Balances at ending, shares at Jun. 30, 2019 | 8,102,108 | |||||||
Capital contribution | $ 24,513 | 24,513 | ||||||
Issuance of shares | $ 4,343 | 96,002 | 100,345 | |||||
Issuance of shares, shares | 4,343,114 | |||||||
Foreign currency translation | 63,598 | 25,203 | 88,801 | |||||
Net loss for the period ended | (79,128) | (11,589) | (90,717) | |||||
Balances at ending at Sep. 30, 2019 | $ 12,445 | $ (120,000) | $ 2,582,468 | $ (4,281,680) | $ 63,580 | $ (616,740) | $ (2,359,927) | |
Balances at ending, shares at Sep. 30, 2019 | 12,445,222 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (4,238,556) | $ (21,613) |
Depreciation | 112,463 | |
Goodwill impairment | 3,962,424 | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Decrease in other current assets | 14,020 | |
Increase in accrued expenses | 5,009 | 2,450 |
Increase in other current liabilities | 2,532 | |
Net cash used in operating activities | (142,108) | (19,163) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of subsidiary equity interest, net of cash acquired | (131,083) | |
Net cash used in investing activities | (131,083) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Capital contribution | 124,027 | |
Net proceeds from loans from related parties | 186,952 | 19,163 |
Net cash provided by financing activities | 310,979 | 19,163 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 746 | |
NET INCREASE IN CASH & CASH EQUIVALENTS | 38,534 | |
CASH & CASH EQUIVALENTS, BEGINNING BALANCE | 13 | |
CASH & CASH EQUIVALENTS, ENDING BALANCE | 38,547 | |
SUPPLEMENTAL DISCLOSURES: | ||
Income tax paid | ||
Interest paid |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization and Business [Abstract] | |
Organization and Business | Note 1. Organization and Business Jialijia Group Corporation Limited (the "Company"), formerly known as Rizzen, Inc., was incorporated as a corporation under the laws of the State of Nevada on October 21, 2015. On July 10, 2019, the Company entered into a share purchase/exchange agreement (the "Exchange Agreement") with Huazhongyun Group Co., Limited ("Huazhongyun"), a company incorporated under the laws of Hong Kong, and Na Jin, the sole shareholder of Huazhongyun (the "Shareholder") and the Chief Executive Officer of the Company. Huazhongyun owns 6,000,000 shares (the "Company Shares") of the Company, which represented approximately 82% of the shares of the Company's common stock, issued and outstanding, at the time of execution of the Exchange Agreement. The Shareholder owns an aggregate of 10,000 ordinary shares of Huazhongyun ("Huazhongyun Shares"), which constitute all of the issued and outstanding shares of Huazhongyun. Pursuant to the Exchange Agreement, among other matters, the Shareholder will sell and transfer all of the Huazhongyun Shares in exchange for all of the Company Shares. As a result, the Shareholder will directly own the Company Shares, which represent approximately 82% of the issued and outstanding shares of the Company's common stock at the time of execution of the Exchange Agreement and Huazhongyun will become a wholly-owned subsidiary of the Company. Jialijia Jixiang Investment (Changzhou) Co., Ltd, ("Jialijia (Changzhou)") is a company incorporated under the laws of the PRC on June 13, 2017. Huazhongyun owned all of the equity interests in Jialijia Jixiang Investment (Changzhou) Co., Ltd. ("WFOE"), a wholly-foreign owned entity formed under the laws of China. Rucheng Wenchuan Gas Co., Ltd. ("Rucheng Wenchuan") was incorporated under the laws of the People's Republic of China (the "PRC") on March 31, 2006. On January 7, 2019, Jialijia (Changzhou) entered into an equity transfer agreement (the "Equity Transfer") with Mr. Jiannan Wu, the shareholder who owned 94.77% of Rucheng Wenchuan's outstanding shares. Pursuant to the Equity Transfer, Mr. Jiannan Wu agreed to transfer 70% of his ownership of Rucheng Wenchuan to Jialijia (Changzhou), in exchange of RMB 1,000,000 and 2,860,000 common shares of the Company owned by Huazhongyun. Immediately after the equity transfer agreement, Jialijia (Changzhou) owns 70% of the ownership and becomes the controlling shareholder of Rucheng Wenchuan. Both Huazhongyun and Jialijia (Changzhou) are holding companies and have not carried out substantive business operations of their own. Rucheng Wenchuan is primarily engaged in the production and sale of gases for industrial and medical purposes, such as oxygen and nitrogen, in the PRC. Pursuant to the Exchange Agreement, on August 29, 2019 (the "Closing Date"), Na Jin sold and transferred all of the Huazhongyun Shares to the Company in exchange for all of the Company Shares and the Company received all of the outstanding Huazhongyun Shares. As a result, on the Closing Date, Na Jin directly owned Company Shares representing approximately 48% of the issued and outstanding shares of the Company's common stock, Huazhongyun became a wholly-owned subsidiary of the Company and the Company owned 70% of the outstanding equity interest in Rucheng Wenchuan through Huazhongyun and WFOE. The acquisition of Huazhongyun and WFOE is treated as a reverse merger (the "Reverse Merger") for accounting purposes. As a result of the consummation of the Reverse Merger on August 29, 2019, the Company, through its subsidiaries, is engaged in the production and sale of gases for industrial and medical purposes, such as oxygen and nitrogen, in the PRC. The Company is in the process of improving its facilities and has not commenced its gas production or generated any revenues. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation The consolidated balance sheets as of June 30, 2019 and December 31, 2018 and the consolidated statements of income and comprehensive income for the three and six months ended June 30, 2019 and 2018 combine the historical consolidated statements of balance sheets and income and comprehensive income of the Company, Huazhongyun, Jialijia (Changzhou), and have been prepared as if the Reverse Merger had closed on January 1, 2018. Both the Company, and Huazhongyun and WFOE are under common control. The unaudited consolidated financial information was prepared using the acquisition method of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, Business Combinations. The acquisition of Rucheng Wenchuan by Jialijia (Changzhou) is accounted for under the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805") with Jialijia (Changzhou) as the acquiring entity. In business combination transactions in which the consideration given is not in the form of cash (that is, in the form of non-cash assets, liabilities incurred, or equity interests issued), measurement of the acquisition consideration is based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Under ASC 805, all of the Rucheng Wenchuan assets acquired and liabilities assumed in this business combination are recognized at their acquisition-date fair value. The excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed, if any, is allocated to goodwill. |
Purchase Price
Purchase Price | 9 Months Ended |
Sep. 30, 2019 | |
Purchase Price [Abstract] | |
Purchase Price | Note 3. Purchase Price In connection with the acquisition of Rucheng Wenchuan, Jialijia (Changzhou) entered into an equity transfer agreement (the "Equity Transfer") with Mr. Jiannan Wu, the shareholder who owned 94.77% of Rucheng Wenchuan's outstanding shares on January 7, 2019. Pursuant to the Equity Transfer, Mr. Jiannan Wu agreed to transfer 70% of his ownership of Rucheng Wenchuan to Jialijia (Changzhou), in exchange of RMB 1,000,000, approximately $145,983, and 2,860,000 common shares of the Company owned by Huazhongyun. Immediately after the equity transfer agreement, Jialijia (Changzhou) owns 70% of the ownership and becomes the controlling shareholder of Rucheng Wenchuan. Goodwill as a result of the acquisition of Rucheng Wenchuan is calculated as follows: Purchase consideration: Cash and cash equivalents $ 145,983 Common stock (1) 2,431,000 Total consideration 2,576,983 Estimated Fair Value of Assets Acquired: Cash and cash equivalents $ 8,822 Advance to supplier 101,811 Other current assets 2,909 Property and equipment 492,413 Total assets acquired 605,955 Estimated Fair Value of Liabilities Assumed: Due to related parties 2,552,596 Accrued expenses and other current liabilities 32,560 Total liabilities assumed 2,585,156 Total net assets (1,979,201 ) Noncontrolling interests (593,760 ) Total net assets acquired (1,385,441 ) Goodwill as a result of the acquisition $ 3,962,424 (1) 2,860,000 shares of the Company's common stock to be issued to Mr. Jiannan Wu in connection with the Equity Transfer. Those shares were valued at $0.85 per share, the closing share price of the Company on January 7, 2019. During the nine months ended September 30, 2019, the Company has recorded goodwill impairment in full amount. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2019 | |
Going Concern [Abstract] | |
Going Concern | Note 4. Going Concern These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the Company's accompanying consolidated financial statements, for the nine months ended September 30, 2019, the Company had a net loss of $4,238,556. Additionally, the Company had an accumulated deficit of $4,281,680 and working capital deficit of $2,726,098 as of September 30, 2019, and has not yet generated revenues. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs. If the Company is unable to successfully commence its business operations in a short period of time, or unable to raise additional capital or secure additional lending, the Company may need to curtail or cease its operations. The Company believes that these matters raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management plans to obtain such resources for the Company include obtaining capital from the sale of its equity, and short-term and long-term borrowings from banks, stockholders or other related party(ies). However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 5. Summary of Significant Accounting Policies Basis of Accounting The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Principles of consolidation The consolidated financial statements include the financial statements of Jialijia Group Corporation Limited, Huazhongyun Group Co., Limited, Jialijia Jixiang Investment (Changzhou) Co., Ltd and its 70% owned subsidiary, Rucheng Wenchuan Gas Co., Ltd. All inter-company transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. Cash and Cash Equivalents The Company considers all cash on hand and in banks, certificates of deposit with banks and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. There is no insurance securing these deposits in the PRC. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Advances to Suppliers The Company advances funds to certain suppliers for the purchase of machinery and equipment. Based on management's evaluation, no allowance for advances to suppliers is required at the balance sheet dates. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Gains or losses on disposals are reflected as gain or loss in the year of disposal. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Buildings 20 years Machinery and equipment 10 years Office equipment 5 years Vehicles 5 years Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized and transferred to property, plant and equipment on completion, at which time depreciation commences. Impairment of Long-lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. There was no impairment reassessed and recorded by the management for the nine months ended September 30, 2019 and 2018. Impairment of Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the nine months ended September 30, 2019, the goodwill, in amount of $3,962,424, as a result of the acquisition of Rucheng Wenchuan (see Note 3), was fully recognized as impairment during the nine months ended September 30, 2019. Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of 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 deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. Foreign Currency Translation The Company uses the United States dollar ("U.S. dollars") for financial reporting purposes. The functional currency of the Company and its subsidiaries is the Chinese Yuan or Renminbi ("RMB"). The Company's subsidiaries maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. For the Company and its subsidiaries whose functional currencies are other than the U.S. dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders' equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders' equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Fair Values of Financial Instruments ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company's financial instruments primarily consist of cash and cash equivalents, other receivables, advances to suppliers, accrued expenses, other payables, and related party borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. Recent Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (ASU) 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement", which changes the fair value measurement disclosure requirements of ASC 820. This update is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its financial statements. |
Advance to Suppliers
Advance to Suppliers | 9 Months Ended |
Sep. 30, 2019 | |
Advance to Suppliers [Abstract] | |
Advance to Suppliers | Note 6. Advance to Suppliers The Company had advance to suppliers of $187,748 and $93,079 as of September 30, 2019 and December 31, 2018, respectively. Advance to suppliers was made related to the purchase of equipment. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Note 7. Property, Plant, and Equipment, Net Property, plant, and equipment consisted of the following: September 30, December 31, Machinery and equipment $ 1,542,526 $ - Buildings 30,675 - 1,573,201 - Less: Accumulated depreciation (1,109,505 ) - Less: Accumulated impairment (97,525 ) - Property, plant, and equipment, net $ 366,171 $ - Depreciation expense for the nine months ended September 30, 2019 and 2018 were $112,463 and $0, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 8. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, Accrued local taxes $ 35,940 $ - Accrued payroll 168 - $ 36,108 $ - |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 9. Income Tax United States The Company was incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made, as there was no taxable income from U.S. operations for the nine months ended September 30, 2019 and 2018. The U.S. Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21%. PRC Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose an unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, starting from January 1, 2008, the Company's subsidiary in PRC are subject to an enterprise income tax rate of 25%. The Company had recorded no income tax provisions for the nine months ended September 30, 2019 and 2018. Provision for income tax expense (benefit) consists of the following: For the Nine Months ended 2019 2018 Current USA - - China - - Deferred USA - - China - - Total provision for income tax expense (benefit) $ - $ - The following is a reconciliation of the statutory tax rate to the effective tax rate: For the Nine Months ended 2019 2018 U.S. statutory tax benefit (21.0 )% (21.0 )% Change in deferred tax asset valuation allowance 21.0 % 21.0 % PRC statutory tax 25.0 % 25.0 % Net permanent differences (25.0 )% (25.0 )% Effective income tax rate 0.0 % 0.0 % The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent that the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors. At September 30, 2019 and December 31, 2018, based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized and have a 100% valuation allowance associated with its deferred tax assets. |
Related Party Transactions and
Related Party Transactions and Balances | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Note 10. Related Party Transactions and Balances The related parties of the company with whom transactions are reported in these consolidated financial statements are as follows: Name of entity or Individual Relationship with the Company Shenzhen Wenchuan Gas Co., Ltd. Mr. Jiannan Wu is the president and legal representative of this entity Rucheng County Minhang Special Gas Co., Ltd Mr. Jiannan Wu is the president and legal representative of this entity Jiannan Wu Shareholder, director, General Manager Dongzhi Zhang Chairman of the Board Na Jin Shareholder, director, Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) Due to related parties: September 30, December 31, 2019 2018 Shenzhen Wenchuan Gas Co., Ltd. $ 2,383,115 $ - Dongzhi Zhang 386,196 189,115 Rucheng County Minhang Special Gas Co., Ltd. 48,509 - Na Jin 85,174 88,546 Jiannan Wu 15,669 - $ 2,918,663 $ 277,661 Due to related parties were non-trade balances advanced from its related parties for the Company’s purchase of equipment and daily operating expenses. The balances are unsecured, non-interest bearing, and payable on demand. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | Note 11. Equity The Company has authorized 1,000,000,000 shares of Common Stock at par value of $0.001. As of September 30, 2019 and December 31, 2018, the Company had 12,445,222 and 7,285,000 shares of common stock, issued and outstanding, respectively. On May 15, 2019, the Company issued 817,108 shares of its common stock at a price per share of $0.02 to nine (9) subscribers. From July 22, 2019 to July 29, 2019, the Company revised the subscription agreements with the 9 subscribers, which cancelled 14,785 shares and issued additional 346,416 shares to the 9 subscribers. In addition, the Company revised the issuance price to $0.03 per share. In addition, on July 24 2019, Ms. Na Jin, the Chief Executive Officer of the Company, purchased 1,000,000 shares of the Company’s common stock at a price of $0.01 per share. As of September 30, 2019, Huazhongyun owned 6,000,000 shares of the Company. These shares have been reclassified and recorded as treasury stock at the cost of $0.02 per share, as a result of the Reverse Merger. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subsequent Events The Company has evaluated subsequent events through the date which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2019 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of Jialijia Group Corporation Limited, Huazhongyun Group Co., Limited, Jialijia Jixiang Investment (Changzhou) Co., Ltd and its 70% owned subsidiary, Rucheng Wenchuan Gas Co., Ltd. All inter-company transactions and balances are eliminated in consolidation. |
Use of estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all cash on hand and in banks, certificates of deposit with banks and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. There is no insurance securing these deposits in the PRC. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. |
Advances to Suppliers | Advances to Suppliers The Company advances funds to certain suppliers for the purchase of machinery and equipment. Based on management's evaluation, no allowance for advances to suppliers is required at the balance sheet dates. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Gains or losses on disposals are reflected as gain or loss in the year of disposal. All ordinary repair and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets: Estimated Buildings 20 years Machinery and equipment 10 years Office equipment 5 years Vehicles 5 years Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized and transferred to property, plant and equipment on completion, at which time depreciation commences. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. There was no impairment reassessed and recorded by the management for the nine months ended September 30, 2019 and 2018. |
Impairment of Goodwill | Impairment of Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the nine months ended September 30, 2019, the goodwill, in amount of $3,962,424, as a result of the acquisition of Rucheng Wenchuan (see Note 3), was fully recognized as impairment during the nine months ended September 30, 2019. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of 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 deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. |
Foreign Currency Translation | Foreign Currency Translation The Company uses the United States dollar ("U.S. dollars") for financial reporting purposes. The functional currency of the Company and its subsidiaries is the Chinese Yuan or Renminbi ("RMB"). The Company's subsidiaries maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. For the Company and its subsidiaries whose functional currencies are other than the U.S. dollar, all asset and liability accounts were translated at the exchange rate on the balance sheet date; stockholders' equity is translated at the historical rates and items in the income statement and cash flow statements are translated at the average rate in each applicable period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders' equity. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company's financial instruments primarily consist of cash and cash equivalents, other receivables, advances to suppliers, accrued expenses, other payables, and related party borrowings. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update (ASU) 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement", which changes the fair value measurement disclosure requirements of ASC 820. This update is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its financial statements. |
Purchase Price (Tables)
Purchase Price (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Purchase Price Tables Abstract | |
Schedule of goodwill result acquisition | Purchase consideration: Cash and cash equivalents $ 145,983 Common stock (1) 2,431,000 Total consideration 2,576,983 Estimated Fair Value of Assets Acquired: Cash and cash equivalents $ 8,822 Advance to supplier 101,811 Other current assets 2,909 Property and equipment 492,413 Total assets acquired 605,955 Estimated Fair Value of Liabilities Assumed: Due to related parties 2,552,596 Accrued expenses and other current liabilities 32,560 Total liabilities assumed 2,585,156 Total net assets (1,979,201 ) Noncontrolling interests (593,760 ) Total net assets acquired (1,385,441 ) Goodwill as a result of the acquisition $ 3,962,424 (1) 2,860,000 shares of the Company's common stock to be issued to Mr. Jiannan Wu in connection with the Equity Transfer. Those shares were valued at $0.85 per share, the closing share price of the Company on January 7, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated Buildings 20 years Machinery and equipment 10 years Office equipment 5 years Vehicles 5 years |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | September 30, December 31, Machinery and equipment $ 1,542,526 $ - Buildings 30,675 - 1,573,201 - Less: Accumulated depreciation (1,109,505 ) - Less: Accumulated impairment (97,525 ) - Property, plant, and equipment, net $ 366,171 $ - |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Expenses Tables Abstract | |
Schedule of accrued expenses | September 30, December 31, Accrued local taxes $ 35,940 $ - Accrued payroll 168 - $ 36,108 $ - |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income tax expense (benefit) | For the Nine Months ended 2019 2018 Current USA - - China - - Deferred USA - - China - - Total provision for income tax expense (benefit) $ - $ - |
Schedule of statutory tax rate to the effective tax rate | For the Nine Months ended 2019 2018 U.S. statutory tax benefit (21.0 )% (21.0 )% Change in deferred tax asset valuation allowance 21.0 % 21.0 % PRC statutory tax 25.0 % 25.0 % Net permanent differences (25.0 )% (25.0 )% Effective income tax rate 0.0 % 0.0 % |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of due to related parties | September 30, December 31, 2019 2018 Shenzhen Wenchuan Gas Co., Ltd. $ 2,383,115 $ - Dongzhi Zhang 386,196 189,115 Rucheng County Minhang Special Gas Co., Ltd. 48,509 - Na Jin 85,174 88,546 Jiannan Wu 15,669 - $ 2,918,663 $ 277,661 |
Organization and Business (Deta
Organization and Business (Details) - CNY (¥) | Jul. 10, 2019 | Jan. 07, 2019 | Aug. 29, 2019 | Sep. 30, 2019 |
Huazhongyun [Member] | ||||
Organization and Business (Textual) | ||||
Shares owned | 6,000,000 | |||
Exchange Agreement [Member] | Jin directly [Member] | ||||
Organization and Business (Textual) | ||||
Issued and outstanding shares percentage | 48.00% | |||
Equity interest | 70.00% | |||
Exchange Agreement [Member] | Huazhongyun [Member] | ||||
Organization and Business (Textual) | ||||
Shares owned | 6,000,000 | |||
Aggregate of ordinary shares | 10,000 | |||
Percentage of issued and outstanding shares | 82.00% | |||
Issued and outstanding shares percentage | 82.00% | |||
Equity Transfer [Member] | Rucheng Wenchuan's [Member] | ||||
Organization and Business (Textual) | ||||
Shares owned | 2,860,000 | |||
Ownership percentage | 70.00% | |||
Equity Transfer [Member] | Rucheng Wenchuan's [Member] | RMB [Member] | ||||
Organization and Business (Textual) | ||||
Exchange common shares | ¥ 1,000,000 | |||
Equity Transfer [Member] | Jiannan Wu [Member] | ||||
Organization and Business (Textual) | ||||
Ownership percentage | 94.77% |
Purchase Price (Details)
Purchase Price (Details) | Sep. 30, 2019USD ($) | |
Purchase consideration: | ||
Cash and cash equivalents | $ 145,983 | |
Common stock | 2,431,000 | [1] |
Total consideration | 2,576,983 | |
Estimated Fair Value of Assets Acquired: | ||
Cash and cash equivalents | 8,822 | |
Advance to supplier | 101,811 | |
Other current assets | 2,909 | |
Property and equipment | 492,413 | |
Total assets acquired | 605,955 | |
Estimated Fair Value of Liabilities Assumed: | ||
Due to related parties | 2,552,596 | |
Accrued expenses and other current liabilities | 32,560 | |
Total liabilities assumed | 2,585,156 | |
Total net assets | (1,979,201) | |
Noncontrolling interests | (593,760) | |
Total net assets acquired | (1,385,441) | |
Goodwill as a result of the acquisition | $ 3,962,424 | |
[1] | 2,860,000 shares of the Company's common stock to be issued to Mr. Jiannan Wu in connection with the Equity Transfer. Those shares were valued at $0.85 per share, the closing share price of the Company on January 7, 2019. |
Purchase Price (Details Textual
Purchase Price (Details Textual) - Equity Transfer [Member] | Jan. 07, 2019USD ($)$ / sharesshares | Jan. 07, 2019CNY (¥)shares |
Jiannan Wu [Member] | ||
Purchase Price (Textual) | ||
Ownership percentage | 94.77% | |
Rucheng Wenchuan's [Member] | ||
Purchase Price (Textual) | ||
Ownership percentage | 70.00% | |
Exchange common shares | $ | $ 145,983 | |
Ownership controlling percentage | 70.00% | |
Issuance of common shares | shares | 2,860,000 | 2,860,000 |
Price per share | $ / shares | $ 0.85 | |
Rucheng Wenchuan's [Member] | RMB [Member] | ||
Purchase Price (Textual) | ||
Exchange common shares | ¥ | ¥ 1,000,000 |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Going Concern (Textual) | |||||
Net loss | $ (90,717) | $ (6,393) | $ (4,238,556) | $ (21,613) | |
Accumulated deficit | (4,281,680) | (4,281,680) | $ (90,824) | ||
Working capital deficit | $ (2,726,098) | $ (2,726,098) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Buildings [Member] | |
Estimated useful life | 20 years |
Machinery and equipment [Member] | |
Estimated useful life | 10 years |
Office equipment [Member] | |
Estimated useful life | 5 years |
Vehicles [Member] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Summary of Significant Accounting Policies (Textual) | |
Principles of consolidation, description | The consolidated financial statements include the financial statements of Jialijia Group Corporation Limited, Huazhongyun Group Co., Limited, Jialijia Jixiang Investment (Changzhou) Co., Ltd and its 70% owned subsidiary, Rucheng Wenchuan Gas Co., Ltd. All inter-company transactions and balances are eliminated in consolidation. |
Goodwill | $ 3,962,424 |
Amount settlement percentage, description | A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. |
Advance to Suppliers (Details)
Advance to Suppliers (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Advance to Suppliers (Textual) | ||
Advance to suppliers | $ 187,748 | $ 93,079 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Property, plant, and equipment, gross | $ 1,573,201 | |
Less: Accumulated depreciation | (1,109,505) | |
Less: Accumulated impairment | (97,525) | |
Property, plant, and equipment, net | 366,171 | |
Machinery and equipment [Member] | ||
Property, plant, and equipment, gross | 1,542,526 | |
Buildings [Member] | ||
Property, plant, and equipment, gross | $ 30,675 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant, and Equipment, Net (Textual) | ||
Depreciation expense | $ 112,463 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued local taxes | $ 35,940 | |
Accrued payroll | 168 | |
Accrued expenses, Total | $ 36,108 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current | ||||
USA | ||||
China | ||||
Deferred | ||||
USA | ||||
China | ||||
Total provision for income tax expense (benefit) |
Income Tax (Details 1)
Income Tax (Details 1) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. statutory tax benefit | (21.00%) | (21.00%) |
Change in deferred tax asset valuation allowance | 21.00% | 21.00% |
PRC statutory tax | 25.00% | 25.00% |
Net permanent differences | (25.00%) | (25.00%) |
Effective income tax rate | $ 0 | $ 0 |
Income Tax (Details Textual)
Income Tax (Details Textual) | Jan. 01, 2008 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Income Tax (Textual) | ||||
Income tax rate | 25.00% | 25.00% | ||
Valuation allowance deferred tax assets, percentage | 100.00% | 100.00% | ||
Maximum [Member] | ||||
Income Tax (Textual) | ||||
U.S. statutory tax rate | 35.00% | |||
Minimum [Member] | ||||
Income Tax (Textual) | ||||
U.S. statutory tax rate | 21.00% | |||
PRC [Member] | ||||
Income Tax (Textual) | ||||
Income tax rate | 25.00% |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Due to related parties | $ 2,918,663 | $ 277,661 |
Shenzhen Wenchuan Gas Co., Ltd. [Member] | ||
Due to related parties | 2,383,115 | |
Dongzhi Zhang [Member] | ||
Due to related parties | 386,196 | 189,115 |
Rucheng County Minhang Special Gas Co., Ltd. [Member] | ||
Due to related parties | 48,509 | |
Na Jin [Member] | ||
Due to related parties | 85,174 | 88,546 |
Jiannan Wu [Member] | ||
Due to related parties | $ 15,669 |
Equity (Details)
Equity (Details) | Jul. 29, 2019Subscribers$ / sharesshares | Jul. 31, 2019Investorsshares | Jul. 24, 2019$ / sharesshares | May 15, 2019Subscribers$ / sharesshares | Sep. 30, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Equity (Textual) | ||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||||
Common stock, shares issued | 12,445,222 | 7,285,000 | ||||
Common stock, shares outstanding | 12,445,222 | 7,285,000 | ||||
Issuance price per share | $ / shares | $ 0.03 | |||||
Subscription Agreement [Member] | ||||||
Equity (Textual) | ||||||
Purchase of aggregate common stock | 3,011,483 | |||||
Number Of Investors | Investors | 54 | |||||
Subscribers [Member] | ||||||
Equity (Textual) | ||||||
Common stock, shares issued | 817,108 | |||||
Common stock price, per share | $ / shares | $ 0.03 | $ 0.02 | ||||
Number of subscribers | Subscribers | 9 | 9 | ||||
Cancellation of shares | 14,785 | |||||
Issuance of additional aggregate shares of common stock | 346,416 | |||||
Ms. Na Jin [Member] | ||||||
Equity (Textual) | ||||||
Common stock price, per share | $ / shares | $ 0.01 | |||||
Purchase of aggregate common stock | 1,000,000 | |||||
Huazhongyun [Member] | ||||||
Equity (Textual) | ||||||
Shares owned | 6,000,000 | |||||
Treasury stock | $ / shares | $ 0.02 |