Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | This Post-Effective Amendment No. 1 (this “Post-Effective Amendment”) to Huahui Education Group Limited’s Registration Statement on Form F-1 (File No. 333-235275) (the “Registration Statement”), as declared effective by the Securities and Exchange Commission (the “SEC”) on October 14, 2020 is being filed pursuant to the undertakings in Item 9.1(b) of the Registration Statement to update and supplement the information contained in the Registration Statement and the prospectus included therein, to include the information contained in the Registrant’s Annual Report on Form 20-F for the fiscal year ended December 31, 2020 filed with the SEC on April 30, 2021 and in its Report on Form 6-K for the six months ended June 30, 2021 filed on September 24, 2021 |
Entity Registrant Name | HUAHUI EDUCATION GROUP LIMITED |
Entity Central Index Key | 0001680935 |
Entity Address, Address Line One | 13th Floor, Building B1, Wisdom Plaza, |
Entity Address, Address Line Two | Qiaoxiang Road, Nanshan District |
Entity Address, Address Line Three | Shenzhen |
Entity Address, City or Town | Guangdong Province |
Entity Address, Postal Zip Code | 518000 |
City Area Code | (86) |
Local Phone Number | 13728708818 |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 289,899 | $ 298,106 | $ 1,165,793 | $ 189,210 |
Accounts receivable | 112,481 | 125,105 | ||
Other receivables | 270,585 | 268,089 | 70,670 | 3,423 |
Prepaid expenses and other current assets | 26,382 | 68,367 | 65,574 | 14,677 |
Total current assets | 699,347 | 759,667 | 1,302,037 | 207,310 |
Non-current assets: | ||||
Leasehold improvements and equipment, net | 42,588 | 53,976 | 100,656 | 24,192 |
Operating lease right-of-use assets | 594,000 | 712,088 | 415,770 | |
Deferred tax assets, net | 129,812 | |||
Total non-current assets | 636,588 | 766,064 | 516,426 | 154,004 |
Total assets | 1,335,935 | 1,525,731 | 1,818,463 | 361,314 |
Current liabilities: | ||||
Deferred revenue | 302,885 | 253,889 | 509,385 | 147,269 |
Accounts payable, other payables and accruals | 149,534 | 179,077 | 227,565 | 19,896 |
Current operating lease liabilities | 253,847 | 270,556 | 173,292 | |
Income tax payable | 1,600 | 16,509 | 28,694 | |
Amount due to related parties | 499,993 | 388,839 | 444,802 | 372,585 |
Total current liabilities | 1,207,859 | 1,108,870 | 1,383,738 | 539,750 |
Non-current liabilities: | ||||
Non-current operating lease liabilities | 340,153 | 441,532 | 242,478 | |
Total non-current liabilities | 340,153 | 441,532 | 242,478 | |
Total liabilities | 1,548,012 | 1,550,402 | 1,626,216 | 539,750 |
EQUITY (DEFICIT) | ||||
Share capital | 30,273 | 30,273 | 30,273 | 30,273 |
Additional paid in capital | (1,140) | (1,140) | (1,140) | (1,140) |
Foreign currency translation reserve | 27,504 | 23,751 | 89 | 3,345 |
Retained earnings (Deficit) | (268,714) | (77,555) | 163,025 | (210,914) |
Total equity (deficit) | (212,077) | (24,671) | 192,247 | (178,436) |
Total liabilities and equity | $ 1,335,935 | $ 1,525,731 | $ 1,818,463 | $ 361,314 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||||
Share capital, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Share capital, shares issued | 302,734,900 | 302,734,900 | 302,734,900 | 302,734,900 |
Share capital, shares outstanding | 302,734,900 | 302,734,900 | 302,734,900 | 302,734,900 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 726,422 | $ 205,164 | $ 1,246,285 | $ 2,268,717 | $ 212,780 |
Cost of revenue | (222,206) | (88,888) | (371,488) | (539,281) | (56,216) |
Gross profit | 504,216 | 116,276 | 874,797 | 1,729,436 | 156,564 |
Selling and marketing expenses | (3,580) | (154) | (3,686) | (17,282) | (8,947) |
General and administrative expense | (648,667) | (537,862) | (1,111,748) | (1,184,973) | (470,788) |
Loss on disposal of a subsidiary | (42,346) | ||||
Operating income (loss) | (190,377) | (421,740) | (240,637) | 527,181 | (323,171) |
Other income (expense), net | 2,447 | (1,547) | 15,244 | 12,026 | (40) |
Income (loss) before income taxes | (187,930) | (423,287) | (225,393) | 539,207 | (323,211) |
Income tax (expense) benefits | (3,229) | 9,866 | (15,187) | (165,268) | 43,930 |
Net income (loss) | (191,159) | (413,421) | (240,580) | 373,939 | (279,281) |
Foreign currency translation differences | 3,753 | (5,347) | 23,662 | (3,256) | 3,345 |
Total comprehensive income (loss) for the years | $ (187,406) | $ (418,768) | $ (216,918) | $ 370,683 | $ (275,936) |
Basic and diluted earnings (loss) per ordinary share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding – Basic and diluted | 302,734,900 | 302,734,900 | 302,734,900 | 302,734,900 | 302,734,900 |
Previously Reported [Member] | |||||
Revenue | $ 2,268,717 | ||||
Cost of revenue | (330,091) | ||||
Gross profit | 1,938,626 | ||||
Selling and marketing expenses | (17,282) | ||||
General and administrative expense | (1,394,163) | ||||
Operating income (loss) | 527,181 | ||||
Other income (expense), net | 12,026 | ||||
Income (loss) before income taxes | 539,207 | ||||
Income tax (expense) benefits | (165,268) | ||||
Net income (loss) | 373,939 | ||||
Foreign currency translation differences | (3,256) | ||||
Total comprehensive income (loss) for the years | $ 370,683 | ||||
Basic and diluted earnings (loss) per ordinary share | $ 0 | ||||
Weighted average number of common shares outstanding – Basic and diluted | 302,734,900 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) | Share Capital [Member] | Capital Reserve [Member] | Foreign Currency Translation Reserve [Member] | Retained Earnings [Member] | Additional Paid-in Capital [Member] | Total |
Beginning balance, value at Dec. 31, 2017 | $ 30,273 | $ 67,227 | $ 97,500 | |||
Income (loss) for the year | (279,281) | (279,281) | ||||
Foreign currency translation gain (loss) | 3,345 | 3,345 | ||||
Recapitalization | 68,367 | (68,367) | ||||
Ending balance, value at Dec. 31, 2018 | 30,273 | $ (1,140) | 3,345 | (210,914) | (1,140) | (178,436) |
Income (loss) for the year | 373,939 | 373,939 | ||||
Foreign currency translation gain (loss) | (3,256) | (3,256) | ||||
Ending balance, value at Dec. 31, 2019 | 30,273 | (1,140) | 89 | 163,025 | (1,140) | 192,247 |
Income (loss) for the year | (413,421) | (413,421) | ||||
Foreign currency translation gain (loss) | (5,347) | (5,347) | ||||
Ending balance, value at Jun. 30, 2020 | 30,273 | (1,140) | (5,258) | (250,396) | (226,521) | |
Beginning balance, value at Dec. 31, 2019 | 30,273 | (1,140) | 89 | 163,025 | (1,140) | 192,247 |
Income (loss) for the year | (240,580) | (240,580) | ||||
Foreign currency translation gain (loss) | 23,662 | 23,662 | ||||
Ending balance, value at Dec. 31, 2020 | 30,273 | (1,140) | 23,751 | (77,555) | (24,671) | |
Income (loss) for the year | (191,159) | (191,159) | ||||
Foreign currency translation gain (loss) | 3,753 | 3,753 | ||||
Ending balance, value at Jun. 30, 2021 | $ 30,273 | $ (1,140) | $ 27,504 | $ (268,714) | $ (212,077) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ (191,159) | $ (413,421) | $ (240,580) | $ 373,939 | $ (279,281) |
Adjustments for: | |||||
Depreciation expense | 26,014 | 19,502 | 39,051 | 37,087 | 40,131 |
Gain from sale of furniture and equipment | (10,238) | 8,331 | |||
Loss on disposal of a subsidiary | 42,346 | ||||
Written off of rental deposits | 27,260 | ||||
Impairment of leasehold improvements and equipment | 55,919 | ||||
Deferred taxes | (7,964) | 129,322 | (43,930) | ||
Changes in: | |||||
Accounts receivable | 13,951 | (27,941) | (118,399) | ||
Other receivables | 410 | (190,068) | 6,065 | (31,730) | 104,305 |
Prepaid expenses and other current assets | 42,639 | 16,305 | 1,486 | (51,510) | (1,531) |
Accounts payable, other payables and accruals | 173,539 | (1,576) | |||
Other payables and accruals | (46,479) | (121,240) | (47,681) | 173,539 | |
Deferred revenue | 46,147 | (79,937) | (273,882) | 367,000 | (326) |
Income tax payable | (13,339) | 28,938 | |||
Net cash provided by operating activities | (66,131) | (804,764) | (647,279) | 1,016,347 | (90,698) |
Cash flows from investing activities: | |||||
Short term loan to a third party | (188,451) | ||||
Additions to leasehold improvements and equipment | (56,616) | (1,047) | (1,133) | (116,122) | (2,023) |
Proceeds from sale of furniture and equipment | 8,806 | 2,051 | |||
Acquisition of subsidiary, net of cash acquired | 68,693 | ||||
Proceeds from disposal of a subsidiary | 307 | ||||
Net cash (used in)/provided by investing activities | (56,309) | (1,047) | (189,584) | (107,316) | 68,721 |
Cash flows from financing activities: | |||||
Amount due to related parties | 74,941 | 210,017 | |||
Proceeds from advances from related parties | 111,059 | 60,627 | 116,343 | 74,941 | |
Repayment of advances to related parties | (170,593) | (172,306) | |||
Net cash provided by financing activities | 111,059 | (109,966) | (55,963) | 74,941 | 210,017 |
Effect of exchange rate changes on cash and cash equivalents | 3,174 | (13,299) | 25,139 | (7,389) | 1,170 |
Net increase in cash and cash equivalents | (8,207) | (929,076) | (867,687) | 976,583 | 189,210 |
Cash and cash equivalents at the beginning of year | 298,106 | 1,165,793 | 1,165,793 | 189,210 | |
Cash and cash equivalents at the end of year | 289,899 | 236,717 | 298,106 | 1,165,793 | 189,210 |
Supplemental disclosure of non-cash investing and financing activities: | |||||
Income tax paid | 28,526 | 9,113 | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ 608,147 | $ 97,352 | $ 720,867 | $ 197,524 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS HUAHUI EDUCATION GROUP CORPORATION, formerly DUONAS CORP. (“HHEG Nevada” or “Nevada Company”) was incorporated in the State of Nevada on September 19, 2014 to start business operations concerned with production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. A change of control took place on November 2, 2017 from Vladyslav Beinars. Control was obtained by the sale of 2,000,000 Through October 22, 2017, Nevada Company’s primary business activity was production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. Subsequently, Nevada Company’s operations were determined and structured by the new investor group. As such, at December 31, 2018, Nevada Company accounted for the related assets, liabilities and results of operations up to October 22, 2017 as discontinued operations. On February 22, 2019, Nevada Company completed the process of redomiciling from Nevada to the Cayman Islands. The Board of Directors had established a wholly owned subsidiary in the Cayman Islands named HUAHUI EDUCATION GROUP LIMITED (“HHEG Cayman” or the “Company”), and merged Nevada Company into HHEG Cayman. HHEG Cayman is the surviving company. There was no change in the number of outstanding shares of Nevada Company’s Common Stock and each share of HHEG Nevada Common Stock was converted into one ordinary share of HHEG Cayman. On July 2, 2019, the Company’s Board of Directors unanimously approved modifying the Company’s accounting fiscal year end from June 30 to December 31. On July 3, 2019 (the “Closing Date”), HHEG Cayman, an exempted company limited by shares under the laws of the Cayman Islands, closed on a share exchange (the “Share Exchange”) with HUAHUI GROUP STOCK LTD, (“HGSL”), a Seychelles company limited by shares, and HUAHUI GROUP (HK) CO., LTD (“HGHK”), a company with limited liability formed under the laws of Hong Kong and a wholly owned subsidiary of HGSL. As a result, HGHK is now a wholly owned subsidiary of the Company. Under the Share Exchange Agreement, on the Closing Date, the Company issued a total of 300,000,000 100 99.1 0.9 ZDSE was incorporated as a limited company in the Peoples’ Republic of China (the “PRC”) on January 19, 2016. ZDSE is a professional management coaching organization engaged in researching, developing and applying methods for helping individuals to improve their personal and professional leadership skills and effectiveness. ZDSE’s clients consist of executive managers from large scale, small and medium-sized enterprises, as well as professionals and employees in various fields. The Company’s second operating subsidiary, Shenzhen Huahui Media Technology Co., Ltd. (“HHMT”), was established on August 25, 2020 under the laws of the PRC and commenced operations at that time. HHMT’s business includes: cultural exchange event planning; conference planning; corporate image planning; marketing planning; exhibition planning; stage lighting, audio equipment, display equipment and technology development, sales and leasing; door-to-door integration of multimedia teaching systems installation, on-site maintenance, etc. In addition, Huahui (Shenzhen) Education Management Co., Limited (“HEMC”), which previously conducted only minor operations providing administrative services for the Company, commenced providing consulting services on November 1, 2020. As of June 30, 2021, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal ownership Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 Investment holding; consulting services Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 Investment holding Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 Investment holding Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8, 2020 N/A PRC 100 Investment holding Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25, 2020 N/A PRC 100 Investment holding; Event planning and production; business planning Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28, 2020 N/A PRC 100 Investment holding Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29, 2020 N/A PRC 100 Investment holding | 1. DESCRIPTION OF BUSINESS HUAHUI EDUCATION GROUP CORPORATION, formerly DUONAS CORP. (“HHEG Nevada” or “Nevada Company”) was incorporated in the State of Nevada on September 19, 2014 to start business operations concerned with production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. A change of control took place on November 2, 2017 from Vladyslav Beinars. Control was obtained by the sale of 2,000,000 Through October 22, 2017, Nevada Company’s primary business activity was production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. Subsequently, Nevada Company’s operations were determined and structured by the new investor group. As such, at December 31, 2018, Nevada Company accounted for the related assets, liabilities and results of operations up to October 22, 2017 as discontinued operations. On February 22, 2019, Nevada Company completed the process of redomiciling from Nevada to the Cayman Islands. The Board of Directors had established a wholly owned subsidiary in the Cayman Islands named HUAHUI EDUCATION GROUP LIMITED (“HHEG Cayman” or “Company”), and merged Nevada Company into HHEG Cayman. HHEG Cayman is the surviving company. There was no change in the number of outstanding shares of Nevada Company’s Common Stock and that each share of HHEG Nevada Common Stock was converted into one ordinary share of HHEG Cayman. On July 2, 2019, the Company’s board of directors unanimously approved modifying the Company’s accounting fiscal year end from June 30 to December 31. On July 3, 2019 (the “Closing Date”), HHEG Cayman, an exempted company limited by shares under the laws of the Cayman Islands, closed on a share exchange (the “Share Exchange”) with HUAHUI GROUP STOCK LTD, (“HGSL”), a Seychelles company limited by shares, and HUAHUI GROUP (HK) CO., LTD (“HGHK”), a company with limited liability formed under the laws of Hong Kong and a wholly owned subsidiary of HGSL. As a result, HGHK is now a wholly owned subsidiary of the Company. Under the Share Exchange Agreement, on the Closing Date, the Company issued a total of 300,000,000 100 99.1 0.9 ZDSE was incorporated as a limited company in the Peoples’ Republic of China (the “PRC”) on January 19, 2016. ZDSE is a professional management coaching organization engaged in researching, developing and applying methods for helping individuals to improve their personal and professional leadership skills and effectiveness. ZDSE’s clients consist of executive managers from large scale, small and medium-sized enterprises, as well as professionals and employees in various fields. The Company conducts business in one segment which is the provision of educational services in the PRC. Shenzhen Huahui Media Technology Co., Ltd. (“HHMT”), established in August 25,2020. HHMT’s business projects include: cultural exchange event planning; conference planning; corporate image planning; marketing planning; exhibition planning; stage lighting, audio equipment, display equipment, and technology development and sales, leasing, and door-to-door integration of multimedia teaching systems Installation, on-site maintenance, etc. As of December 31, 2020, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Investment holding Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 % Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 % Investment holding Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8,2020 N/A PRC 100 % Investment holding Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25,2020 N/A PRC 100 % Investment holding Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28,2020 N/A PRC 100 % Investment holding Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29,2020 N/A PRC 100 % Investment holding | 1. DESCRIPTION OF BUSINESS HUAHUI EDUCATION GROUP CORPORATION, formerly DUONAS CORP. (“HHEG Nevada” or the “Company”) was incorporated in the State of Nevada on September 19, 2014 to start business operations concerned with production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. A change of control took place on November 2, 2017 from Vladyslav Beinars. Control was obtained by the sale of 2,000,000 Through October 22, 2017, the Company’s primary business activity was production of stylish decorative items made from concrete, such as: different sculptures, candleholders, lamps, tabletops, bookcases, vases of different shapes and forms, decorations for the garden; and subsequent selling thereof. Going forward, the Company’s operations will be determined and structured by the new investor group. As such, at December 31, 2018, the Company accounted for these related assets, liabilities and results of operations up to October 22, 2017 as discontinued operations. On February 26, 2019, the Company completed the process of redomiciling the Company from Nevada to the Cayman Islands. The Board of Directors has established a wholly owned subsidiary in the Cayman Islands named HUAHUI EDUCATION GROUP LIMITED (“HHEG Cayman”), and merged the Company into HHEG Cayman. HHEG Cayman is the surviving company. There was no change in the number of outstanding shares of the Company’s Common Stock and that each share of HHEG Nevada Common Stock was converted into one ordinary share of HHEG Cayman. On July 2, 2019, the Company’s board of directors unanimously approved to modify the Company’s accounting fiscal year end from June 30 to December 31. On July 3, 2019 (the “Closing Date”), HUAHUI EDUCATION GROUP LIMITED (the “Company”), an exempted company limited by shares under the laws of the Cayman Islands, closed on a share exchange (the “Share Exchange”) with HUAHUI GROUP STOCK LTD, (“HGSL”), a Seychelles company limited by shares, and HUAHUI GROUP (HK) CO., LTD (“HGHK”), a company with limited liability formed under the laws of Hong Kong and a wholly owned subsidiary of HGSL. As a result, HGHK is now a wholly owned subsidiary of the Company. Under the Share Exchange Agreement, on the Closing Date, the Company issued a total of 300,000,000 100 99.1 0.9 ZDSE was incorporated as a limited company in the Peoples’ Republic of China (the “PRC”) on January 19, 2016. ZDSE is a professional management coaching organization engaged in researching, developing and applying methods for helping individuals to improve their personal and professional leadership skills and effectiveness. ZDSE’s clients consist of executive managers from large scale, small and medium-sized enterprises, as well as professionals and employees in various fields. The Company conducts business in one segment which is the provision of educational services in the PRC. As of June 30, 2019, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Investment holding Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 % Educational services |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). (b) Going Concern The Company incurred a net loss of $ 191,159 508,512 212,077 66,131 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments 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. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. (c) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. (e) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. (f) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at June 30, 2021 and 2020. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (g) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 The assets’ residual value, useful lives and depreciation method are regularly reviewed. (h) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment, such as an evidence of obsolescence or physical damage of an asset or significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of the asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2021 and 2020. (i) Value added tax (“VAT”) On March 23, 2016, the Ministry of Finance and the State Administration of Taxation issued a circular on the Full Implementation of the Business Tax Levy of VAT Pilots, under which pilots for the change of business tax to VAT have been fully promoted throughout the country since May 1, 2016. All business tax taxpayers, including ZDSE, were included in the scope of the pilot and were changed from paying business tax to paying VAT. According to notice No.36 (2016) issued by the Ministry of Finance and the State Administration of Taxation, the Comprehensive Project replaces Business Tax with Value-added Tax. According to notice No. 13 (2019), VAT small-scale taxpayers with monthly sales of less than RMB 100,000 150,000 To support the novel coronavirus pneumonia prevention and control, and accelerate the resumption of work, the rate of small-scale VAT is reduced from 3% to 1% 1 150,000 (j) Income Recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company’s educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. Revenue is recognized proportionately as the instruction is delivered over the period of the course for the course fees collected. Revenue is generated through delivery of services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. (k) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. (l) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share,” which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of June 30, 2021. (m) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date, revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2021H1 2020H1 Year-end RMB exchange rate 6.4586 6.5286 Average annual RMB exchange rate 6.4719 6.8984 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. (n) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. 100 %of the Company’s cash and cash equivalents are in RMB as of June 30, 2021 and 2020, respectively. (o) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (p) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, other receivables, amount due to related parties and accounts receivable, other receivables, amount due to related parties and (q) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of June 30, 2021 and December 31, 2020 as the amounts were immaterial. (r) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. (s) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivables and other receivables. As of June 30, 2021, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. Accounts Receivable represent tuition fees of ZDH and the planning service fee of HHMT due from customers that typically are collected within a short period of time. Other receivables mainly represent short-term loans to other companies with interest charged, rental and utilities deposit. Management believes it has no significant risk related to its concentration within its accounts receivable. The Company did not have any customers constituting 10 (t) Impact of Covid-19 Novel coronavirus (“COVID-19”) spread rapidly to many parts of China and other parts of the world in the first quarter of calendar year 2020. The epidemic resulted in quarantines, travel restrictions and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Revenue of the first half of 2021 increased by 254% compared with that of 2020, to basically the same level as that of 2019. (u) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. (v) Recent accounting pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The Company incurred net loss of $ 240,580 349,203 24,671 647,279 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments 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. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. (b) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure, or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts and etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. (d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2020 and 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (f) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 The assets’ residual value, useful lives, and depreciation method are regularly reviewed. (g) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2020 and 2019. (h) Value added tax (“VAT”) On March 23, 2016, the Ministry of Finance and the State Administration of Taxation issued a circular on the Full Implementation of the Business Tax Levy of VAT Pilots. The circular indicates that since May 1, 2016, pilots for the change of business tax to VAT have been fully promoted throughout the country, and all business tax taxpayers, including ZDSE, were included in the scope of the pilot and were changed from paying business tax to paying VAT. According to notice No.36 (2016) issued by the Ministry of Finance and the State Administration of Taxation, the Comprehensive Project replaces Business Tax with Value-added Tax. According to notice No. 13 (2019), the VAT small-scale taxpayers with monthly sales of less than RMB 100,000 100,000 300,000 To support the novel coronavirus pneumonia prevention and control, and accelerate the resumption of work, The rate of small-scale VAT is reduced from 3% to 1% 1 (i) Income Recognition Recognition of Revenue The primary sources of our revenues are as follows: (a) Coach course service revenue derived from ZDSE Revenue is reported net of business taxes and VAT. The educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. The Company had $ 253,889 509,385 (b) Conference and exhibition planning service revenue was derived from HHMT which was established on August 25, 2020. Conference and exhibition planning service revenue in 2020 was $ 102,720 Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income, and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. (j) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. (k) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of December 31, 2020. (l) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized are as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2020 2019 Year-end RMB exchange rate 6.5286 6.96 Average annual RMB exchange rate 6.8984 6.90 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. (m) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Over 99 (n) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (o) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents and accounts payable. The carrying amounts of cash and cash equivalents, accounts payable and amount due to related parties approximate their fair values due to the short-term maturities of these instruments. (p) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of December 31, 2020 and 2019 as the amounts were immaterial. (q) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. (r) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivables and other receivables. As of December 31, 2020, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. Accounts Receivable represent tuition fees due from company customers, typically are collected within a short period of time. Other receivables mainly represent short-term loans to other companies with interest charged, rental and utilities deposit. Management believes it has no significant risk related to its concentration within its accounts receivable. The Company did not have any customers constituting 10 (s) Impact of Covid-19 Novel coronavirus (“COVID-19”) has spread rapidly to many parts of China and other parts of the world in the first quarter of calendar year 2020. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Affected by the epidemic, all branches of ZDSE (a subsidiary engaged in career management guidance business) gradually reopened as of June 1, 2020. As a result, revenue of 2020 decreased by 45 (t) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. (u) Recent accounting pronouncements Recent accounting pronouncements adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Effective January 1, 2019, the Company adopted this standard resulted in the recognition of right-of-use assets of $ 712,088 712,088 Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. (b) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure, or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts and etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. (d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2019 and 2018. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (f) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATE USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 years Computer equipment and software 5 years The assets’ residual value, useful lives, and depreciation method are regularly reviewed. (g) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did no (h) Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6 From May 2016 to July 2018, the Company is a small-scale taxpayer and in accordance with Cai Shui [2016] No. 68, the non-academic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3 6 (i) Income Recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. The Company had $ 509,385 147,269 Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income, and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. (j) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. (k) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no (l) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2019 2018 Year-end RMB exchange rate 6.96 6.88 Average annual RMB exchange rate 6.90 6.60 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. (m) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Over 99 80 (n) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (o) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents and accounts payable. The carrying amounts of cash and cash equivalents, accounts payable and amount due to related parties approximate their fair values due to the short-term maturities of these instruments. (p) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of December 31, 2019 and 2018 as the amounts were immaterial. (q) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. (r) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents. As of December 31, 2019, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. The Company did not have any customers constituting 10 (s) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. (t) Recent accounting pronouncements Recent accounting pronouncements adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In January 2016, the FASB issued a new pronouncement ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 was further amended in February 2018 by ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU 2016-01. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 and ASU 2018-03 are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 Effective January 1, 2019, the Company adopted this standard resulted in the recognition of right-of-use assets of $ 415,770 415,770 In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this ASU on update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method each period presented. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or dispose of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim period within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosure are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019 and 2018. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
LEASEHOLD IMPROVEMENT AND EQUIP
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET | 3. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT June 30, 2021 December 31,2020 Furniture and education equipment $ 22,367 $ 13,703 Computer equipment and software 71,553 70,586 Leasehold improvements 71,579 70,811 Leasehold improvement and equipment, gross $ 165,499 $ 155,100 Less: accumulated depreciation (122,911 ) (101,124 ) Leasehold improvement and equipment, net $ 42,588 $ 53,976 Depreciation expense for the six months ended June 30, 2021 and 2020 was $ 26,014 and $ 19,502 | 3. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2020 2019 Furniture and education equipment $ 13,703 $ 27,125 Computer equipment and software 70,586 46,120 Leasehold improvements 70,811 83,413 Leasehold improvement and equipment, gross $ 155,100 $ 156,658 Less: accumulated depreciation (101,124 ) (56,001 ) Leasehold improvement and equipment, net $ 53,976 $ 100,656 Depreciation expense for the years ended December 31, 2020 and 2019 wa s 39,051 a 37,087 | 4. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2019 2018 Furniture and education equipment $ 27,125 $ 36,861 Computer equipment and software 46,120 15,529 Leasehold improvements 83,413 - Leasehold improvement and equipment, gross $ 156,658 $ 52,390 Less: accumulated depreciation (56,001 ) (28,198 ) Leasehold improvement and equipment, net $ 100,656 $ 24,192 Depreciation expense for the years ended December 31, 2019 and 2018 was $ 37,087 40,131 The Company recorded long-lived asset impairment losses of $ 55,919 33,882 22,037 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE The accounts receivable and allowance balances at June 30, 2021 and December 31, 2020 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE June 30, 2021 December 31, 2020 Accounts receivable $ 112,481 $ 125,105 Less: allowance for doubtful accounts - - Accounts receivable, net $ 112,481 $ 125,105 No allowance for doubtful accounts was made during the six months ended June 30, 2021 and the year ended December 31, 2020. | 4. ACCOUNTS RECEIVABLE The Accounts receivable and allowance balances at December 31, 2020 and 2019 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE 2020 2019 Accounts receivable $ 125,105 $ - Less: allowance for doubtful accounts - - Accounts receivable, net $ 125,105 $ - No allowance for doubtful accounts was made for the years ended December 31, 2020 and 2019. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Receivables | |||
OTHER RECEIVABLES | 5. OTHER RECEIVABLES Other receivables mainly comprise short-term loan to a third party, Dongguan Anxiang Technology Co., Ltd., and rental and utilities deposits paid for the Guangzhou and Liaoning office, which are fully refundable. Short term loan amounting to RMB 1.3 0.7 | 5. OTHER RECEIVABLES Other receivables mainly comprise short-term loan to a third party, Dongguan Anxiang Technology Co., Ltd. and rental and utilities deposits paid for the Guangzhou and Liaoning office which are fully refundable. Short term loan amounting to RMB 1.3 0.7 | 5. OTHER RECEIVABLES Other receivables mainly represent rental and utilities deposit paid for the Guangzhou office. The amount is fully refundable. |
ACCOUNTS PAYABLE, OTHER PAYABLE
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |||
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | 6. ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS June 30, 2021 December 31, 2020 Accounts payable (a) $ 51,961 $ 27,769 Accrued payroll and welfare payable 42,005 85,362 VAT and other taxes payable 3,379 7,416 Others (b) 52,189 58,530 Total Other Payables and Accruals $ 149,534 $ 179,077 (a) Accounts payable primarily include supplier’s service charge to HHMT and decoration fee payable by ZDSE. (b) Others primarily include office rental and property management fee payable by ZDH’s subsidiaries. | 7. ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2020 2019 Accounts payable (a) $ 27,769 $ 61,898 Accrued payroll and welfare payable 85,362 107,284 VAT and other taxes payable 7,416 25,728 Others (b) 58,530 32,655 Total Other Payables and Accruals $ 179,077 $ 227,565 (a) Accounts payable primarily mainly include supplier’s service charge to HHMT in 2020, and commission payable for students’ referral in 2019. (b) Others primarily include miscellaneous expenses payable. | 7. ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2019 2018 Accounts payable (a) $ 61,898 $ - Accrued payroll and welfare payable 107,284 16,221 VAT and other taxes payable 25,728 1,379 Others (b) 32,655 2,296 Total Accounts Payable, Other Payables and Accruals $ 227,565 $ 19,896 (a) Accounts payable primarily include commission payable for students’ referral. (b) Others primarily include miscellaneous expenses payable. |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
INCOME TAXES | 7. INCOME TAXES Cayman Islands In February 2019, HHEG Nevada was redomiciled from Nevada to the Cayman Islands by means of a merger with and into HHEG Cayman, a tax-exempted company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and the Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of its shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of its shares, nor will gains derived from the disposal of its shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in the Cayman Islands has been made as the Company had no taxable income for the six months ended June 30, 2021 and 2020. Seychelles HGSL and HGCL are tax-exempted companies incorporated in Seychelles. Under the current laws of Seychelles, the Company and HGCL are not subject to income, corporate or capital gains tax, and Seychelles currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Seychelles on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Seychelles income or corporation tax. No provision for income taxes in Seychelles has been made as the Company and HGCL had no taxable income for the six months ended June 30, 2021 and 2020. Hong Kong HGHK is incorporated in Hong Kong and is subject to an income tax rate of 16.5 PRC The Company’s PRC subsidiaries are subject to 25 ZDSE and HHMT enjoy a preferential tax rate of 2.5 10 No provision for income taxes has been made on the other companies in the PRC. Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2021 2020 For the six months ended June 30, 2021 2020 (Unaudited) (Unaudited) Current tax expense (benefits) $ 3,229 $ (1,902 ) Deferred tax (benefit) expense - (7,964 ) Total income taxes $ 3,229 $ (9,866 ) Income taxes of ZDSE and HHMT are accrued at the tax rate of 2.5 5 SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2021 2020 For the six months ended June 30, 2021 2020 (Unaudited) (Unaudited) Loss before tax $ (187,930 ) $ (423,287 ) Tax (credit) calculated at statutory tax rate (25%) (46,983 ) (105,822 ) Income tax exemptions and reliefs - - Income tax difference under difference tax jurisdictions - - Others (Note 1) - - Valuation allowance 50,212 95,956 Total income taxes $ 3,229 $ (9,866 ) The Company’s other subsidiaries have not recognized deferred income tax assets as of June 30, 2021 and December 31, 2020. | 8. INCOME TAXES Cayman Islands The Company’s parent entity, In February 2019, HHEG Nevada was redomiciled from Nevada to the Cayman Islands. HHEG Cayman is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2020 and 2019. Seychelles HGSL and HGCL are tax-exempted companies incorporated in Seychelles. Under the current laws of Seychelles, HGSL and HGCL are not subject to income, corporate or capital gains tax, and Seychelles currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Seychelles on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Seychelles income or corporation tax. No provision for income taxes in Seychelles has been made as HGSL and HGCL had no taxable income for the years ended December 31, 2020 and 2019. Hong Kong HGHK is incorporated in Hong Kong and is subject to an income tax rate of 16.5 PRC The Company’s PRC subsidiaries are subject to 25 ZDSE enjoys a preferential tax rate of 10 No provision for income taxes has been made on the others company in the PRC. Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2020 2019 Current tax expense $ 15,187 $ 35,456 Deferred tax expense (benefits) - 129,812 Total income taxes $ 15,187 $ 165,268 The effective tax rates was -7 31 25 SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2020 2019 Income (loss) before tax $ (225,393 ) $ 539,207 Tax (credit)/expense calculated at statutory tax rate (56,348 ) 134,802 Income tax exemptions and reliefs (43,805 ) (72,418 ) Income tax difference under difference tax jurisdictions 29,273 65,596 Others (Note 1) 86,067 37,288 Valuation allowance - - Total income taxes $ 15,187 $ 165,268 Note 1 Others mainly comprise of valuation allowance of $ 86,067 and $ 35,001 as of December 31, 2020 and 2019, respectively. The Company determined the valuation allowance on an entity by entity basis. The valuation allowance, which is primarily related to entities with net operating loss carry-forwards for which the Company does not believe will ultimately be realized. | 8. INCOME TAXES Nevada The Company’s parent entity, HHEG Nevada, is an U.S entity through February 2019 and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as HHEG had no United States taxable income for the years ended December 31, 2019 and 2018. In February 2019, HHEG Nevada was redomiciled from Nevada to the Cayman Islands. As a result of the redomicile, the accumulated tax loss of HHEG cannot be utilized against any taxable income in the United States available in the future. Cayman Islands HHEG Cayman is a tax-exempted company incorporated in Cayman Islands. Under the current laws of Cayman Islands, the Company is not subject to income, corporate or capital gains tax, and Cayman Islands currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Cayman Islands on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Cayman Islands income or corporation tax. No provision for income taxes in Cayman Islands has been made as the Company had no taxable income for the year ended December 31, 2019. Seychelles HGSL and HGCL are tax-exempted companies incorporated in Seychelles. Under the current laws of Seychelles, HGSL and HGCL are not subject to income, corporate or capital gains tax, and Seychelles currently have no form of estate duty, inheritance tax or gift tax. In addition, payments of dividends and capital in respect of their shares are not subject to taxation and no withholding will be required in the Seychelles on the payment of any dividend or capital to any holder of their shares, nor will gains derived from the disposal of their shares be subject to Seychelles income or corporation tax. No provision for income taxes in Seychelles has been made as HGSL and HGCL had no taxable income for the years ended December 31, 2019 and 2018. Hong Kong HGHK is incorporated in Hong Kong and is subject to an income tax rate of 16.5 PRC The Company’s PRC subsidiaries are subject to 25 ZDSE is the Company’s only operating subsidiary. The components of provision for income taxes and tax charges for the years ended December 31, 2019 and 2018 come solely from the tax jurisdiction in the PRC, which has a statutory tax rate of 25 25 Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2019 2018 Current tax expense $ 35,456 $ - Deferred tax expense (benefits) 129,812 (43,930 ) Total income taxes $ 165,268 $ (43,930 ) The effective tax rates was 31 14 SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2019 2018 Income (loss) before tax $ 539,207 $ (323,211 ) Tax expense calculated at statutory tax rate 134,802 (80,803 ) Income tax exemptions and reliefs (72,418 ) - Income tax difference under difference tax jurisdictions 65,596 (12,472 ) Others (Note 1) 37,288 49,345 Total income taxes $ 165,268 $ (43,930 ) Note 1 Others mainly comprise of valuation allowance of $ 35,001 19,662 Recognized deferred tax assets and liabilities Deferred tax assets and liabilities are offset when income taxes are related to the same fiscal authority. Deferred income taxes are calculated on all temporary differences under the asset and liability method using a 25 The movement in the deferred income tax account is as follows: SCHEDULE OF DEFERRED INCOME TAX 2019 2018 Beginning of the year $ 129,812 $ - Deferred tax assets acquired through acquisition of ZDSE - 89,384 (Debited)/Credited to the statement of income (loss) (129,322 ) 43,930 Exchange difference (490 ) (3,502 ) End of the period/year $ - $ 129,812 Deferred tax assets and temporary differences are recognized if the realization of the tax benefit is probable. Deferred tax assets are recognized for tax loss and carry forwards only to the extent that realization of the related tax benefit through the future taxable profits is probable. As of the year ended December 31, 2019, the Company had utilized all net operating loss carried-forward. |
LOSS ON DISPOSAL OF A SUBSIDIAR
LOSS ON DISPOSAL OF A SUBSIDIARY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
LOSS ON DISPOSAL OF A SUBSIDIARY | 8. Loss on disposal of a subsidiary LOSS ON DISPOSAL OF A SUBSIDIARY In June, 2021, ZDSE sold 100 310 42,656 42,346 SCHEDULE OF FINANCIAL POSITION Financial position of Zhengxinhui June 28, 2021, date of disposal Current assets $ 3 Non Current assets $ 42,653 Net Assets $ 42,656 Cash Consideration $ 310 Loss on disposal $ 42,346 | 8. Loss on disposal of a subsidiary LOSS ON DISPOSAL OF A SUBSIDIARY In June, 2021, ZDSE sold 100 310 42,656 42,346 SCHEDULE OF FINANCIAL POSITION Financial position of Zhengxinhui June 28, 2021, date of disposal Current assets $ 3 Non Current assets $ 42,653 Net Assets $ 42,656 Cash Consideration $ 310 Loss on disposal $ 42,346 |
LEASES
LEASES | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
LEASES | 9. LEASES The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company leased various training centers in the PRC. Rent expense for the six months ended June 30, 2021 was $ 198,713 The Company has three operating leases with lease terms of more than one year 594,000 253,847 340,153 Significant assumptions and judgments made as part of the adoption of this new lease standard include determining: (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS As of June 30, 2021 As of December 31, 2020 Within 1 year 275,792 295,108 After 1 year but within 5 years 367,376 477,773 Total lease payments 643,168 772,881 Less: imputed interest (49,168 ) (60,793 ) Total lease obligations 594,000 712,088 Less: current obligations (253,847 ) (270,556 ) Long-term lease obligations 340,153 441,532 Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES June 30, 2021 June 30, 2020 For the six months ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 160,857 73,763 Right-of-use assets obtained in exchange for operating lease liabilities 608,147 97,352 Remaining lease term for operating lease (years) 0.75 4.25 1.75 2.17 Weighted average discount rate for operating lease 4.75 % 4.75 % | 9. LEASES The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company leased various training centers in the PRC, rent expense for the year ended December 31, 2020 was $ 320,569 The Company has three operating leases with the lease term over one year 712,088 270,556 441,532 Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS As of As of Within 1 year 295,108 184,612 After 1 year but within 5 years 477,773 250,729 Total lease payments 772,881 435,341 Less: imputed interest (60,793 ) (19,571 ) Total lease obligations 712,088 415,770 Less: current obligations (270,556 ) (173,292 ) Long-term lease obligations 441,532 242,478 Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES For year ended Dec 31, 2020 Dec 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 302,788 162,560 Right-of-use assets obtained in exchange for operating lease liabilities 720,867 197,524 Remaining lease term for operating lease (years) 1.25 4.58 1.25 2.67 Weighted average discount rate for operating lease 4.75 % 4.75 % | 9. LEASES The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity, but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company leased various training centers in the PRC, under operating leases terminating in August 2019 through August 2022 268,962 71,478 one year March 2022 415,770 173,292 242,478 Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS 2019 Within 1 year $ 184,612 After 1 year but within 5 years 250,729 Total lease payments $ 435,341 Less: imputed interest (19,571 ) Total lease obligations 415,770 Less: current obligations (173,292 ) Long-term lease obligations $ 242,478 Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES 2019 Cash paid for amounts included in the measurement of lease liabilities: $ Operating cash flow from operating lease 162,560 Right-of-use assets obtained in exchange for operating lease liabilities 197,524 Remaining lease term for operating lease (years) 1.25 2.67 Weighted average discount rate for operating lease 4.75 % |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
RELATED PARTIES TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS RELATED PARTIES TRANSACTIONS (a) The Company had the following balances due to related parties: SCHEDULE OF AMOUNT DUE TO RELATED PARTIES Relationship June 30, 2021 December 31, 2020 Junze Zhang Shareholder and director of the Company 484,510 388,839 Qing Zuo Chairman of the Board of ZDSE since December 20, 2018 15,483 - Total $ 499,993 $ 388,839 The balances represent cash advances from related parties. The balances with related parties are unsecured, non-interest bearing and repayable on demand. (b) Transactions For the six months ended June 30, 2021 2020 Repayment to related parties Junze Zhang $ - $ 170,593 Mengling Zhang (1) - 5,956 $ - $ 176,549 Cash advance from related parties Qing Zuo $ 15,451 $ - Junze Zhang 95,608 60,627 Mengling Zhang (1) - 5,956 $ 111,059 $ 66,583 (1) Amounts advanced by and repaid to Mengling Zhang are included in the Unaudited Consolidated Statements of Cash Flows under Cash Flows from Operating Activities as they related to operating, and not financing, activities. | 10. RELATED PARTIES TRANSACTIONS SCHEDULE OF AMOUNT DUE TO RELATED PARTIES (a) The Company had the following balances due to related parties: Relationship 2020 2019 Junze Zhang Shareholder and director of the Company $ 388,839 $ 444,802 The balances represent cash advances from related parties. The balances with related parties are unsecured, non-interest bearing and repayable on demand. From time to time, majority shareholder and general manager of the Company advanced funds to the Company for working capital purpose. (b) Transactions For the years ended December 31, 2020 2019 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) - 165,176 Henghui Investment Consultation(SZ) Partnership Business (LP) - 63,767 Qing Zuo - 39,805 Junze Zhang 172,306 - Mengling Zhang - 50,221 Zihua Wu - 35,940 $ 172,306 $ 354,909 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ - $ 141,214 Qing Zuo - 6,459 Junze Zhang 116,343 264,836 Mengling Zhang - 13,840 Zihua Wu - 3,500 $ 116,343 $ 429,849 | 10. RELATED PARTIES TRANSACTIONS (a) The Company had the following balances due to related parties: SCHEDULE OF AMOUNT DUE TO RELATED PARTIES Relationship 2019 2018 Hengqing Investment Consultation(SZ) Partnership Business (LP) Company controlled by Qing Zuo $ - $ 24,052 Henghui Investment Consultation(SZ) Partnership Business (LP) Company controlled by Qing Zuo - 64,008 Qing Zuo Majority shareholder of ZDSE and executive chairman until June 27, 2018 and November 28, 2018, respectively. Currently Chairman of the Board of ZDSE since December 20, 2018 - 33,473 Junze Zhang Shareholder and director of the Company 444,802 182,093 Mengling Zhang General manager of ZDSE - 36,519 Zihua Wu Director of the Company - 32,440 Total $ 444,802 $ 372,585 The balances represent cash advances from related parties. The balances with related parties are unsecured, non-interest bearing and repayable on demand. From time to time, majority shareholder and general manager of the Company advanced funds to the Company for working capital purpose. As of December 31, 2018, advances from Qing Zuo and Mengling Zhang amount to $ 51,801 147,239 (b) Transactions For the years ended December 31, 2019 2018 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) 165,176 - Henghui Investment Consultation(SZ) Partnership Business (LP) 63,767 - Qing Zuo 39,805 576 Mengling Zhang 50,221 400,222 Zihua Wu 35,940 - $ 354,909 $ 400,798 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ 141,214 $ 25,055 Henghui Investment Consultation (SZ) Partnership Business (LP) - 66,676 Qing Zuo 6,459 5,185 Junze Zhang 264,836 - Mengling Zhang 13,840 56,612 Zihua Wu 3,500 - $ 429,849 $ 153,528 Shareholder debts converted to capital contribution Qing Zuo $ - $ 51,801 Mengling Zhang - 147,239 $ - $ 199,040 * Beginning July 1, 2018, Qing Zuo and Mengling Zhang agreed to provide free coaching services to the Company in connection with the special training and with conducting professional technical training to students. |
RESERVES
RESERVES | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserves | |||
RESERVES | 11. RESERVES (a) Legal reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. no (b) Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. | 11. RESERVES (a) Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. no (b) Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. | 11. RESERVES (a) Legal reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends (b) Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Events [Abstract] | |||
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations from June 30, 2021 to the date the financial statements were issued and has determined that the Company does not have any material subsequent events to disclose in these financial statements. | 13. SUBSEQUENT EVENTS On February 26, 2021, ZDH established a new subsidiary, Shenzhen Zhengxinhui Education Technology Co., Ltd., which will mainly engage in the coach management training market in Shenzhen. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. | 12. SUBSEQUENT EVENTS The outbreak of coronavirus (COVID-19) in January 2020 resulted in interruption of commencement of tutorial classes which adversely affected the businesses significantly. Management is evaluating the impact and developing actions plan to minimize the effect of the COVID-19 pandemic and to recover business as soon as possible. There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid Expenses And Other Current Assets | ||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets mainly represent prepaid consultancy fees for professional advice on business expansion plan. | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets mainly represent prepaid consultancy fees for professional advice on business expansion plan. |
PRIOR YEAR ADJUSTMENT
PRIOR YEAR ADJUSTMENT | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
PRIOR YEAR ADJUSTMENT | 12. PRIOR YEAR ADJUSTMENT In order to match the cost of revenue more accurately, the salaries of coaching-related staff of ZDSE were included in cost of revenue account since January 1, 2020. Prior year adjustments have been passed and the impact of such adjustments summarized below: SCHEDULE OF PRIOR PERIOD ADJUSTMENTS For the year ended December As previously stated Prior year adjustment As restated Cost of Revenue $ 330,091 209,190 539,281 General and administrative expenses $ 1,394,163 (209,190 ) 1,184,973 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | 3. BUSINESS COMBINATION In June 2018, HUAHUI GROUP STOCK LIMITED (“HGSL”) entered into an equity transfer agreement relating to the acquisition of 100 The following represents the purchase price allocation at the dates of the acquisition: SCHEDULE OF PURCHASE PRICE ALLOCATION June 27, 2018 Cash and cash equivalents $ 71,016 Other current assets 48,793 Non-current assets 220,634 Current liabilities (340,141 ) Total purchase price $ 302 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Basis of Presentation | (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). | (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The Company incurred net loss of $ 240,580 349,203 24,671 647,279 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments 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. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Going Concern | (b) Going Concern The Company incurred a net loss of $ 191,159 508,512 212,077 66,131 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments 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. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||
Basis of Consolidation | (c) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. | (b) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure, or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. | (b) Basis of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities over which the Company has control. Control exists when the Company has the power over the entity, exposure, or rights to variable returns from involvement in the entity, and the ability to use power over the entity to affect returns through its power over the entity. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. |
Use of estimates | (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts and etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts and etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. |
Business combinations | (e) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | (d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. | (d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at June 30, 2021 and 2020. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. | (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2020 and 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. | (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2019 and 2018. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. |
Leasehold Improvement and Equipment | (g) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 The assets’ residual value, useful lives and depreciation method are regularly reviewed. | (f) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 The assets’ residual value, useful lives, and depreciation method are regularly reviewed. | (f) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATE USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 years Computer equipment and software 5 years The assets’ residual value, useful lives, and depreciation method are regularly reviewed. |
Impairment of long-lived assets | (h) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment, such as an evidence of obsolescence or physical damage of an asset or significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of the asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the six months ended June 30, 2021 and 2020. | (g) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2020 and 2019. | (g) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of income where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company did no |
Value added tax (“VAT”) | (i) Value added tax (“VAT”) On March 23, 2016, the Ministry of Finance and the State Administration of Taxation issued a circular on the Full Implementation of the Business Tax Levy of VAT Pilots, under which pilots for the change of business tax to VAT have been fully promoted throughout the country since May 1, 2016. All business tax taxpayers, including ZDSE, were included in the scope of the pilot and were changed from paying business tax to paying VAT. According to notice No.36 (2016) issued by the Ministry of Finance and the State Administration of Taxation, the Comprehensive Project replaces Business Tax with Value-added Tax. According to notice No. 13 (2019), VAT small-scale taxpayers with monthly sales of less than RMB 100,000 150,000 To support the novel coronavirus pneumonia prevention and control, and accelerate the resumption of work, the rate of small-scale VAT is reduced from 3% to 1% 1 150,000 | (h) Value added tax (“VAT”) On March 23, 2016, the Ministry of Finance and the State Administration of Taxation issued a circular on the Full Implementation of the Business Tax Levy of VAT Pilots. The circular indicates that since May 1, 2016, pilots for the change of business tax to VAT have been fully promoted throughout the country, and all business tax taxpayers, including ZDSE, were included in the scope of the pilot and were changed from paying business tax to paying VAT. According to notice No.36 (2016) issued by the Ministry of Finance and the State Administration of Taxation, the Comprehensive Project replaces Business Tax with Value-added Tax. According to notice No. 13 (2019), the VAT small-scale taxpayers with monthly sales of less than RMB 100,000 100,000 300,000 To support the novel coronavirus pneumonia prevention and control, and accelerate the resumption of work, The rate of small-scale VAT is reduced from 3% to 1% 1 | (h) Value added tax (“VAT”) On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot VAT reform program (“Pilot Program”), applicable to businesses in selected industries. Such VAT Pilot Program was phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Business in the Pilot Program would pay VAT instead of sales tax. Starting from August 1, 2013, the Pilot Program was expanded to cover all regions in the PRC. Implementation of the Pilot Program, the new enrollment system development services and other operating services which were previously subject to business tax are therefore subject to VAT at the rate of 6 From May 2016 to July 2018, the Company is a small-scale taxpayer and in accordance with Cai Shui [2016] No. 68, the non-academic educational programs and services in short-term training schools are subject to a simple VAT collection method and apply for a 3 6 |
Income Recognition | (j) Income Recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The Company’s educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. Revenue is recognized proportionately as the instruction is delivered over the period of the course for the course fees collected. Revenue is generated through delivery of services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | (i) Income Recognition Recognition of Revenue The primary sources of our revenues are as follows: (a) Coach course service revenue derived from ZDSE Revenue is reported net of business taxes and VAT. The educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. The Company had $ 253,889 509,385 (b) Conference and exhibition planning service revenue was derived from HHMT which was established on August 25, 2020. Conference and exhibition planning service revenue in 2020 was $ 102,720 Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income, and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. | (i) Income Recognition Recognition of Revenue Revenue is reported net of business taxes and VAT. The educational services consist of training programs and courses. Tuition is generally paid in advance and is initially recorded as deferred revenue. The Company had $ 509,385 147,269 Revenue is generated through delivery services. Revenue is recognized when a customer receives services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers as services are performed over the remaining contractual terms. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Other Income and other expenses Other income, and other expenses are recognized on an accrual basis in accordance with the substance of the relevant agreements. |
Operating leases | (k) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. | (j) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. | (j) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. |
Earnings Per Share | (l) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share,” which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of June 30, 2021. | (k) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of December 31, 2020. | (k) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retrospectively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no |
Foreign Currency Translation | (m) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date, revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2021H1 2020H1 Year-end RMB exchange rate 6.4586 6.5286 Average annual RMB exchange rate 6.4719 6.8984 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. | (l) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized are as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2020 2019 Year-end RMB exchange rate 6.5286 6.96 Average annual RMB exchange rate 6.8984 6.90 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. | (l) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2019 2018 Year-end RMB exchange rate 6.96 6.88 Average annual RMB exchange rate 6.90 6.60 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. |
Foreign Currency Risk | (n) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. 100 %of the Company’s cash and cash equivalents are in RMB as of June 30, 2021 and 2020, respectively. | (m) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Over 99 | (m) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Over 99 80 |
Fair Value | (o) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | (n) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | (n) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Fair Value of financial instruments | (p) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, other receivables, amount due to related parties and accounts receivable, other receivables, amount due to related parties and | (o) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents and accounts payable. The carrying amounts of cash and cash equivalents, accounts payable and amount due to related parties approximate their fair values due to the short-term maturities of these instruments. | (o) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents and accounts payable. The carrying amounts of cash and cash equivalents, accounts payable and amount due to related parties approximate their fair values due to the short-term maturities of these instruments. |
Income Taxes | (q) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of June 30, 2021 and December 31, 2020 as the amounts were immaterial. | (p) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of December 31, 2020 and 2019 as the amounts were immaterial. | (p) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. The Company did not record uncertain tax positions as of December 31, 2019 and 2018 as the amounts were immaterial. |
Comprehensive income | (r) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. | (q) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. | (q) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. |
Concentration of credit risk | (s) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivables and other receivables. As of June 30, 2021, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. Accounts Receivable represent tuition fees of ZDH and the planning service fee of HHMT due from customers that typically are collected within a short period of time. Other receivables mainly represent short-term loans to other companies with interest charged, rental and utilities deposit. Management believes it has no significant risk related to its concentration within its accounts receivable. The Company did not have any customers constituting 10 | (r) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, accounts receivables and other receivables. As of December 31, 2020, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. Accounts Receivable represent tuition fees due from company customers, typically are collected within a short period of time. Other receivables mainly represent short-term loans to other companies with interest charged, rental and utilities deposit. Management believes it has no significant risk related to its concentration within its accounts receivable. The Company did not have any customers constituting 10 | (r) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents. As of December 31, 2019, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. The Company did not have any customers constituting 10 |
Impact of Covid-19 | (t) Impact of Covid-19 Novel coronavirus (“COVID-19”) spread rapidly to many parts of China and other parts of the world in the first quarter of calendar year 2020. The epidemic resulted in quarantines, travel restrictions and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Revenue of the first half of 2021 increased by 254% compared with that of 2020, to basically the same level as that of 2019. | (s) Impact of Covid-19 Novel coronavirus (“COVID-19”) has spread rapidly to many parts of China and other parts of the world in the first quarter of calendar year 2020. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Affected by the epidemic, all branches of ZDSE (a subsidiary engaged in career management guidance business) gradually reopened as of June 1, 2020. As a result, revenue of 2020 decreased by 45 | |
Share Capital | (u) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. | (t) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. | |
Recent accounting pronouncements | (v) Recent accounting pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | (u) Recent accounting pronouncements Recent accounting pronouncements adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Effective January 1, 2019, the Company adopted this standard resulted in the recognition of right-of-use assets of $ 712,088 712,088 Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. | (t) Recent accounting pronouncements Recent accounting pronouncements adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration that a company expects to be entitled to in exchange for the goods or services. To achieve this principle, a company must apply five steps including identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) the company satisfies the performance obligations. Additional quantitative and qualitative disclosure to enhance the understanding about the nature, amount, timing, and uncertainty of revenue and cash flows is also required. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. The effective date of ASU 2016-10 is the same as the effective date of ASU 2014-09. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In January 2016, the FASB issued a new pronouncement ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 was further amended in February 2018 by ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU 2016-01. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 and ASU 2018-03 are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 Effective January 1, 2019, the Company adopted this standard resulted in the recognition of right-of-use assets of $ 415,770 415,770 In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this ASU on update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method each period presented. The Company adopted this ASU on January 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019 and 2018. In January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805): Clarifying the Determination of Business. The Update requires that when substantially all of the fair value of the gross assets acquired (or dispose of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU on update (1) required that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim period within those periods. Early adoption of the amendments in this Update is allowed. The amendments in this Update should be applied prospectively on or after the effective date. No disclosure are required at transition. The Company adopted this pronouncement on its consolidated financial statements as of and for the year ended December 31, 2019 and 2018. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
Share Capital | (s) Share Capital Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
SUMMARY OF SUBSIDIARY INFORMATION | As of June 30, 2021, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal ownership Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 Investment holding; consulting services Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 Investment holding Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 Investment holding Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8, 2020 N/A PRC 100 Investment holding Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25, 2020 N/A PRC 100 Investment holding; Event planning and production; business planning Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28, 2020 N/A PRC 100 Investment holding Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29, 2020 N/A PRC 100 Investment holding | As of December 31, 2020, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of acquisition Place of incorporation Percentage of legal Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Investment holding Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 % Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 % Investment holding Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8,2020 N/A PRC 100 % Investment holding Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25,2020 N/A PRC 100 % Investment holding Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28,2020 N/A PRC 100 % Investment holding Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29,2020 N/A PRC 100 % Investment holding | As of June 30, 2019, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of incorporation Date of Place of incorporation Percentage of legal ownership by the Company Principal activities Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Investment holding Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Investment holding Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Investment holding Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Investment holding Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Investment holding Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January19, 2016 June 27, 2018 PRC 100 % Educational services |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
SCHEDULE OF ESTIMATE USEFUL LIFE OF ASSETS | Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 | Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 Computer equipment and software 3 5 | Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: SCHEDULE OF ESTIMATE USEFUL LIFE OF ASSETS Leasehold improvement Shorter of the lease term or estimated useful life Furniture and education equipment 5 years Computer equipment and software 5 years |
SUMMARY OF EXCHANGE OF CURRENCY RATES | The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2021H1 2020H1 Year-end RMB exchange rate 6.4586 6.5286 Average annual RMB exchange rate 6.4719 6.8984 | The exchange rates utilized are as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2020 2019 Year-end RMB exchange rate 6.5286 6.96 Average annual RMB exchange rate 6.8984 6.90 | The exchange rates utilized as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2019 2018 Year-end RMB exchange rate 6.96 6.88 Average annual RMB exchange rate 6.90 6.60 |
LEASEHOLD IMPROVEMENT AND EQU_2
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT | SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT June 30, 2021 December 31,2020 Furniture and education equipment $ 22,367 $ 13,703 Computer equipment and software 71,553 70,586 Leasehold improvements 71,579 70,811 Leasehold improvement and equipment, gross $ 165,499 $ 155,100 Less: accumulated depreciation (122,911 ) (101,124 ) Leasehold improvement and equipment, net $ 42,588 $ 53,976 | SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2020 2019 Furniture and education equipment $ 13,703 $ 27,125 Computer equipment and software 70,586 46,120 Leasehold improvements 70,811 83,413 Leasehold improvement and equipment, gross $ 155,100 $ 156,658 Less: accumulated depreciation (101,124 ) (56,001 ) Leasehold improvement and equipment, net $ 53,976 $ 100,656 | SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2019 2018 Furniture and education equipment $ 27,125 $ 36,861 Computer equipment and software 46,120 15,529 Leasehold improvements 83,413 - Leasehold improvement and equipment, gross $ 156,658 $ 52,390 Less: accumulated depreciation (56,001 ) (28,198 ) Leasehold improvement and equipment, net $ 100,656 $ 24,192 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE | The accounts receivable and allowance balances at June 30, 2021 and December 31, 2020 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE June 30, 2021 December 31, 2020 Accounts receivable $ 112,481 $ 125,105 Less: allowance for doubtful accounts - - Accounts receivable, net $ 112,481 $ 125,105 | The Accounts receivable and allowance balances at December 31, 2020 and 2019 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE 2020 2019 Accounts receivable $ 125,105 $ - Less: allowance for doubtful accounts - - Accounts receivable, net $ 125,105 $ - |
ACCOUNTS PAYABLE, OTHER PAYAB_2
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |||
SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS June 30, 2021 December 31, 2020 Accounts payable (a) $ 51,961 $ 27,769 Accrued payroll and welfare payable 42,005 85,362 VAT and other taxes payable 3,379 7,416 Others (b) 52,189 58,530 Total Other Payables and Accruals $ 149,534 $ 179,077 (a) Accounts payable primarily include supplier’s service charge to HHMT and decoration fee payable by ZDSE. (b) Others primarily include office rental and property management fee payable by ZDH’s subsidiaries. | SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2020 2019 Accounts payable (a) $ 27,769 $ 61,898 Accrued payroll and welfare payable 85,362 107,284 VAT and other taxes payable 7,416 25,728 Others (b) 58,530 32,655 Total Other Payables and Accruals $ 179,077 $ 227,565 (a) Accounts payable primarily mainly include supplier’s service charge to HHMT in 2020, and commission payable for students’ referral in 2019. (b) Others primarily include miscellaneous expenses payable. | SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2019 2018 Accounts payable (a) $ 61,898 $ - Accrued payroll and welfare payable 107,284 16,221 VAT and other taxes payable 25,728 1,379 Others (b) 32,655 2,296 Total Accounts Payable, Other Payables and Accruals $ 227,565 $ 19,896 (a) Accounts payable primarily include commission payable for students’ referral. (b) Others primarily include miscellaneous expenses payable. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
SCHEDULE OF INCOME TAX EXPENSES BENEFITS | Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2021 2020 For the six months ended June 30, 2021 2020 (Unaudited) (Unaudited) Current tax expense (benefits) $ 3,229 $ (1,902 ) Deferred tax (benefit) expense - (7,964 ) Total income taxes $ 3,229 $ (9,866 ) | Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2020 2019 Current tax expense $ 15,187 $ 35,456 Deferred tax expense (benefits) - 129,812 Total income taxes $ 15,187 $ 165,268 | Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2019 2018 Current tax expense $ 35,456 $ - Deferred tax expense (benefits) 129,812 (43,930 ) Total income taxes $ 165,268 $ (43,930 ) |
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES | SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2021 2020 For the six months ended June 30, 2021 2020 (Unaudited) (Unaudited) Loss before tax $ (187,930 ) $ (423,287 ) Tax (credit) calculated at statutory tax rate (25%) (46,983 ) (105,822 ) Income tax exemptions and reliefs - - Income tax difference under difference tax jurisdictions - - Others (Note 1) - - Valuation allowance 50,212 95,956 Total income taxes $ 3,229 $ (9,866 ) | SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2020 2019 Income (loss) before tax $ (225,393 ) $ 539,207 Tax (credit)/expense calculated at statutory tax rate (56,348 ) 134,802 Income tax exemptions and reliefs (43,805 ) (72,418 ) Income tax difference under difference tax jurisdictions 29,273 65,596 Others (Note 1) 86,067 37,288 Valuation allowance - - Total income taxes $ 15,187 $ 165,268 | SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2019 2018 Income (loss) before tax $ 539,207 $ (323,211 ) Tax expense calculated at statutory tax rate 134,802 (80,803 ) Income tax exemptions and reliefs (72,418 ) - Income tax difference under difference tax jurisdictions 65,596 (12,472 ) Others (Note 1) 37,288 49,345 Total income taxes $ 165,268 $ (43,930 ) |
SCHEDULE OF DEFERRED INCOME TAX | The movement in the deferred income tax account is as follows: SCHEDULE OF DEFERRED INCOME TAX 2019 2018 Beginning of the year $ 129,812 $ - Deferred tax assets acquired through acquisition of ZDSE - 89,384 (Debited)/Credited to the statement of income (loss) (129,322 ) 43,930 Exchange difference (490 ) (3,502 ) End of the period/year $ - $ 129,812 |
LOSS ON DISPOSAL OF A SUBSIDI_2
LOSS ON DISPOSAL OF A SUBSIDIARY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
SCHEDULE OF FINANCIAL POSITION | SCHEDULE OF FINANCIAL POSITION Financial position of Zhengxinhui June 28, 2021, date of disposal Current assets $ 3 Non Current assets $ 42,653 Net Assets $ 42,656 Cash Consideration $ 310 Loss on disposal $ 42,346 | SCHEDULE OF FINANCIAL POSITION Financial position of Zhengxinhui June 28, 2021, date of disposal Current assets $ 3 Non Current assets $ 42,653 Net Assets $ 42,656 Cash Consideration $ 310 Loss on disposal $ 42,346 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS | The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS As of June 30, 2021 As of December 31, 2020 Within 1 year 275,792 295,108 After 1 year but within 5 years 367,376 477,773 Total lease payments 643,168 772,881 Less: imputed interest (49,168 ) (60,793 ) Total lease obligations 594,000 712,088 Less: current obligations (253,847 ) (270,556 ) Long-term lease obligations 340,153 441,532 | The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS As of As of Within 1 year 295,108 184,612 After 1 year but within 5 years 477,773 250,729 Total lease payments 772,881 435,341 Less: imputed interest (60,793 ) (19,571 ) Total lease obligations 712,088 415,770 Less: current obligations (270,556 ) (173,292 ) Long-term lease obligations 441,532 242,478 | The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS 2019 Within 1 year $ 184,612 After 1 year but within 5 years 250,729 Total lease payments $ 435,341 Less: imputed interest (19,571 ) Total lease obligations 415,770 Less: current obligations (173,292 ) Long-term lease obligations $ 242,478 |
SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES | Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES June 30, 2021 June 30, 2020 For the six months ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 160,857 73,763 Right-of-use assets obtained in exchange for operating lease liabilities 608,147 97,352 Remaining lease term for operating lease (years) 0.75 4.25 1.75 2.17 Weighted average discount rate for operating lease 4.75 % 4.75 % | Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES For year ended Dec 31, 2020 Dec 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 302,788 162,560 Right-of-use assets obtained in exchange for operating lease liabilities 720,867 197,524 Remaining lease term for operating lease (years) 1.25 4.58 1.25 2.67 Weighted average discount rate for operating lease 4.75 % 4.75 % | Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES 2019 Cash paid for amounts included in the measurement of lease liabilities: $ Operating cash flow from operating lease 162,560 Right-of-use assets obtained in exchange for operating lease liabilities 197,524 Remaining lease term for operating lease (years) 1.25 2.67 Weighted average discount rate for operating lease 4.75 % |
RELATED PARTIES TRANSACTIONS (T
RELATED PARTIES TRANSACTIONS (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
SCHEDULE OF AMOUNT DUE TO RELATED PARTIES | (a) The Company had the following balances due to related parties: SCHEDULE OF AMOUNT DUE TO RELATED PARTIES Relationship June 30, 2021 December 31, 2020 Junze Zhang Shareholder and director of the Company 484,510 388,839 Qing Zuo Chairman of the Board of ZDSE since December 20, 2018 15,483 - Total $ 499,993 $ 388,839 (b) Transactions For the six months ended June 30, 2021 2020 Repayment to related parties Junze Zhang $ - $ 170,593 Mengling Zhang (1) - 5,956 $ - $ 176,549 Cash advance from related parties Qing Zuo $ 15,451 $ - Junze Zhang 95,608 60,627 Mengling Zhang (1) - 5,956 $ 111,059 $ 66,583 (1) | SCHEDULE OF AMOUNT DUE TO RELATED PARTIES (a) The Company had the following balances due to related parties: Relationship 2020 2019 Junze Zhang Shareholder and director of the Company $ 388,839 $ 444,802 (b) Transactions For the years ended December 31, 2020 2019 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) - 165,176 Henghui Investment Consultation(SZ) Partnership Business (LP) - 63,767 Qing Zuo - 39,805 Junze Zhang 172,306 - Mengling Zhang - 50,221 Zihua Wu - 35,940 $ 172,306 $ 354,909 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ - $ 141,214 Qing Zuo - 6,459 Junze Zhang 116,343 264,836 Mengling Zhang - 13,840 Zihua Wu - 3,500 $ 116,343 $ 429,849 | (a) The Company had the following balances due to related parties: SCHEDULE OF AMOUNT DUE TO RELATED PARTIES Relationship 2019 2018 Hengqing Investment Consultation(SZ) Partnership Business (LP) Company controlled by Qing Zuo $ - $ 24,052 Henghui Investment Consultation(SZ) Partnership Business (LP) Company controlled by Qing Zuo - 64,008 Qing Zuo Majority shareholder of ZDSE and executive chairman until June 27, 2018 and November 28, 2018, respectively. Currently Chairman of the Board of ZDSE since December 20, 2018 - 33,473 Junze Zhang Shareholder and director of the Company 444,802 182,093 Mengling Zhang General manager of ZDSE - 36,519 Zihua Wu Director of the Company - 32,440 Total $ 444,802 $ 372,585 The balances represent cash advances from related parties. The balances with related parties are unsecured, non-interest bearing and repayable on demand. From time to time, majority shareholder and general manager of the Company advanced funds to the Company for working capital purpose. As of December 31, 2018, advances from Qing Zuo and Mengling Zhang amount to $ 51,801 147,239 (b) Transactions For the years ended December 31, 2019 2018 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) 165,176 - Henghui Investment Consultation(SZ) Partnership Business (LP) 63,767 - Qing Zuo 39,805 576 Mengling Zhang 50,221 400,222 Zihua Wu 35,940 - $ 354,909 $ 400,798 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ 141,214 $ 25,055 Henghui Investment Consultation (SZ) Partnership Business (LP) - 66,676 Qing Zuo 6,459 5,185 Junze Zhang 264,836 - Mengling Zhang 13,840 56,612 Zihua Wu 3,500 - $ 429,849 $ 153,528 Shareholder debts converted to capital contribution Qing Zuo $ - $ 51,801 Mengling Zhang - 147,239 $ - $ 199,040 * Beginning July 1, 2018, Qing Zuo and Mengling Zhang agreed to provide free coaching services to the Company in connection with the special training and with conducting professional technical training to students. |
PRIOR YEAR ADJUSTMENT (Tables)
PRIOR YEAR ADJUSTMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
SCHEDULE OF PRIOR PERIOD ADJUSTMENTS | SCHEDULE OF PRIOR PERIOD ADJUSTMENTS For the year ended December As previously stated Prior year adjustment As restated Cost of Revenue $ 330,091 209,190 539,281 General and administrative expenses $ 1,394,163 (209,190 ) 1,184,973 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF PURCHASE PRICE ALLOCATION | The following represents the purchase price allocation at the dates of the acquisition: SCHEDULE OF PURCHASE PRICE ALLOCATION June 27, 2018 Cash and cash equivalents $ 71,016 Other current assets 48,793 Non-current assets 220,634 Current liabilities (340,141 ) Total purchase price $ 302 |
SUMMARY OF SUBSIDIARY INFORMATI
SUMMARY OF SUBSIDIARY INFORMATION (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 04, 2019 | Jul. 03, 2019 | |
Percentage of legal ownership by the Company | 100.00% | |||||
HGSL [Member] | ||||||
Date of incorporation | May 17, 2017 | |||||
HGCL [Member] | ||||||
Date of incorporation | May 29, 2017 | |||||
HGHK [Member] | ||||||
Date of incorporation | Jan. 4, 2017 | |||||
Share Capital | ||||||
Date of incorporation | Mar. 28, 2017 | |||||
HSEC [Member] | ||||||
Date of incorporation | Jan. 5, 2018 | |||||
ZDSE [Member] | ||||||
Date of incorporation | Jan. 19, 2016 | |||||
Huahui Group Stock Limited [Member] | ||||||
Date of incorporation | May 17, 2017 | May 17, 2017 | ||||
Place of incorporation | Seychelles | Seychelles | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | 99.10% | 99.10% | ||
Principal activities | Investment holding | Investment holding | ||||
Huahui Group Co., Limited [Member] | ||||||
Date of incorporation | May 29, 2017 | May 29, 2017 | ||||
Place of incorporation | Seychelles | Seychelles | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Huahui Group (HK) Co., Limited [Member] | ||||||
Date of incorporation | Jan. 4, 2017 | Jan. 4, 2017 | ||||
Place of incorporation | Hong Kong | Hong Kong | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Date of acquisition | Apr. 20, 2018 | Apr. 20, 2018 | ||||
Huahui (Shenzhen) Education Management Co., Limited [Member] | ||||||
Date of incorporation | Mar. 28, 2017 | Mar. 28, 2017 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding; consulting services | Investment holding | ||||
Date of acquisition | Apr. 20, 2018 | Apr. 20, 2018 | ||||
Shenzhen Huahui Shangxing Education Consulting Co., Limited [Member] | ||||||
Date of incorporation | Jan. 5, 2018 | Jan. 5, 2018 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Date of acquisition | May 4, 2018 | May 4, 2018 | ||||
Zhongdehui (Shenzhen) Education Development Co., Limited [Member] | ||||||
Date of incorporation | Jan. 19, 2016 | Jan. 19, 2016 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Educational services | Educational services | ||||
Date of acquisition | Jun. 27, 2018 | Jun. 27, 2018 | ||||
Huahui Technology (HK) Co., Limited [Member] | ||||||
Date of incorporation | Mar. 25, 2020 | Mar. 25, 2020 | ||||
Place of incorporation | Hong Kong | Hong Kong | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Huahui (Shenzhen) Education Technology Co., Ltd ("HETC") [Member] | ||||||
Date of incorporation | Jul. 8, 2020 | Jul. 8, 2020 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Huahui Jinming (Shenzhen) Education Technology Co., Limited ("JMET") [Member] | ||||||
Date of incorporation | Jul. 8, 2020 | Jul. 8, 2020 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Shenzhen Huahui Media Technology Co., Ltd.("HHMT") [Member] | ||||||
Date of incorporation | Aug. 25, 2020 | Aug. 25, 2020 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding; Event planning and production; business planning | Investment holding | ||||
Zhongdehui (Guangzhou) Education Consulting Co., Limited ("GZZDH") [Member] | ||||||
Date of incorporation | Dec. 28, 2020 | Dec. 28, 2020 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
Zhongdehui (Shenyang) Education Consulting Co., Limited ("SYZDH") [Member] | ||||||
Date of incorporation | Dec. 29, 2020 | Dec. 29, 2020 | ||||
Place of incorporation | PRC | PRC | ||||
Percentage of legal ownership by the Company | 100.00% | 100.00% | ||||
Principal activities | Investment holding | Investment holding | ||||
HGSL [Member] | ||||||
Place of incorporation | Seychelles | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Investment holding | |||||
HGCL [Member] | ||||||
Place of incorporation | Seychelles | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Investment holding | |||||
HGHK [Member] | ||||||
Place of incorporation | Hong Kong | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Investment holding | |||||
Date of acquisition | Apr. 20, 2018 | |||||
Share Capital | ||||||
Place of incorporation | PRC | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Investment holding | |||||
Date of acquisition | Apr. 20, 2018 | |||||
HSEC [Member] | ||||||
Place of incorporation | PRC | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Investment holding | |||||
Date of acquisition | May 4, 2018 | |||||
ZDSE [Member] | ||||||
Place of incorporation | PRC | |||||
Percentage of legal ownership by the Company | 100.00% | |||||
Principal activities | Educational services | |||||
Date of acquisition | Jun. 27, 2018 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narrative) - shares | Jul. 03, 2019 | Nov. 02, 2017 | Jun. 30, 2021 | Dec. 31, 2020 | Jul. 04, 2019 |
Sale of stock shares issued in transaction | 2,000,000 | ||||
Ownership interest percentage | 100.00% | ||||
Huahui Group Stock Limited [Member] | |||||
Number of ordinary shares of common stock exchanged | 300,000,000 | ||||
Ownership interest percentage | 99.10% | 100.00% | 100.00% | 99.10% | |
Huahui Group Stock Limited [Member] | Common Stock [Member] | |||||
Ownership interest percentage | 100.00% | ||||
Huahui Group Stock Limited [Member] | MrZihuaWu [Member] | |||||
Ownership interest percentage | 0.90% | 0.90% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSETS (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life, description | Shorter of the lease term or estimated useful life | Shorter of the lease term or estimated useful life |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 5 years | 5 years |
Computer Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 3 years | 3 years |
Computer Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment useful life | 5 years | 5 years |
SUMMARY OF EXCHANGE OF CURRENCY
SUMMARY OF EXCHANGE OF CURRENCY RATES (Details) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Year-End RMB [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Foreign currency exchange rate, translation | 6.4586 | 6.5286 | 6.96 | 6.88 |
Annual-Average RMB [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Foreign currency exchange rate, translation | 6.4719 | 6.8984 | 6.90 | 6.60 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jan. 02, 2012 | Aug. 31, 2018 | Jun. 30, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Jul. 31, 2018 | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Jan. 02, 2019USD ($) | Dec. 31, 2017USD ($) |
Product Information [Line Items] | ||||||||||||||
Net loss | $ 191,159 | $ 413,421 | $ 240,580 | $ (373,939) | $ 279,281 | |||||||||
Net current liability | 508,512 | 349,203 | ||||||||||||
Deficit on total equity | 212,077 | 226,521 | 24,671 | (192,247) | 178,436 | $ (97,500) | ||||||||
Net cash used in operating acitivities | $ 66,131 | $ 804,764 | $ 647,279 | $ (1,016,347) | $ 90,698 | |||||||||
VAT rate description | The rate of small-scale VAT is reduced from 3% to 1% | |||||||||||||
Income tax percentage | (7.00%) | 31.00% | 14.00% | |||||||||||
Foreign currency risk, percentage | 1 | 1 | ||||||||||||
Revenue, description of timing | Revenue of the first half of 2021 increased by 254% compared with that of 2020, to basically the same level as that of 2019. | Revenue of the first half of 2021 increased by 254% compared with that of 2020, to basically the same level as that of 2019. | ||||||||||||
Deferred revenue | $ 253,889 | $ 509,385 | $ 147,269 | |||||||||||
Service Revenue | $ 726,422 | $ 205,164 | 1,246,285 | 2,268,717 | 212,780 | |||||||||
Operating lease right-of-use assets | 594,000 | 712,088 | 415,770 | |||||||||||
Operating lease liabilities | $ 594,000 | $ 712,088 | 415,770 | |||||||||||
Impairment losses on long-lived assets | ||||||||||||||
Potentially dilutive ordinary shares | shares | 0 | |||||||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Operating lease right-of-use assets | $ 415,770 | |||||||||||||
Operating lease liabilities | $ 415,770 | |||||||||||||
CNY [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Foreign currency risk, percentage | 0.99 | 0.80 | ||||||||||||
CNY [Member] | Cash and Cash Equivalents [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Foreign currency risk, percentage | 0.99 | 0.99 | ||||||||||||
Revenue Benchmark [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Revenue decreased in future business disruptions | 0.45 | |||||||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Concentration of credit risk | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||
Valued Added Tax [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT rate description | the rate of small-scale VAT is reduced from 3% to 1% | the rate of small-scale VAT is reduced from 3% to 1% | ||||||||||||
Income tax percentage | 6.00% | 6.00% | 1.00% | 1.00% | 1.00% | 3.00% | ||||||||
Valued Added Tax [Member] | CNY [Member] | Forecast [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT monthly small scale | ¥ | ¥ 100,000 | |||||||||||||
Valued Added Tax [Member] | Minimum [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT monthly small scale | ¥ | ¥ 150,000 | ¥ 100,000 | ||||||||||||
Valued Added Tax [Member] | Minimum [Member] | CNY [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT monthly small scale | ¥ | 100,000 | |||||||||||||
Valued Added Tax [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT monthly small scale | ¥ | ¥ 150,000 | |||||||||||||
Valued Added Tax [Member] | Maximum [Member] | CNY [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
VAT monthly small scale | ¥ | ¥ 300,000 | |||||||||||||
Conference And Exhibition Planning [Member] | ||||||||||||||
Product Information [Line Items] | ||||||||||||||
Service Revenue | $ 102,720 |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||||
Furniture and education equipment | $ 22,367 | $ 13,703 | $ 27,125 | $ 36,861 |
Computer equipment and software | 71,553 | 70,586 | 46,120 | 15,529 |
Leasehold improvements | 71,579 | 70,811 | 83,413 | |
Leasehold improvement and equipment, gross | 165,499 | 155,100 | 156,658 | 52,390 |
Less: accumulated depreciation | (122,911) | (101,124) | (56,001) | (28,198) |
Leasehold improvement and equipment, net | $ 42,588 | $ 53,976 | $ 100,656 | $ 24,192 |
LEASEHOLD IMPROVEMENT AND EQU_3
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 26,014 | $ 19,502 | $ 39,051 | $ 37,087 | $ 40,131 |
Impairment of leasehold improvements and equipment | 55,919 | ||||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of leasehold improvements and equipment | 33,882 | ||||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of leasehold improvements and equipment | $ 22,037 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | |||
Accounts receivable | $ 112,481 | $ 125,105 | |
Less: allowance for doubtful accounts | |||
Accounts receivable, net | $ 112,481 | $ 125,105 |
OTHER RECEIVABLES (Details Narr
OTHER RECEIVABLES (Details Narrative) - Subsequent Event [Member] ¥ in Millions | 12 Months Ended |
Dec. 16, 2021CNY (¥) | |
Subsequent Event [Line Items] | |
Short term loan | ¥ 1.3 |
Debt instrument bears interest rate | 0.70% |
SCHEDULE OF ACCOUNTS PAYABLE, O
SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Payables and Accruals [Abstract] | |||||||
Accounts payable (a) | $ 51,961 | [1] | $ 27,769 | [1],[2] | $ 61,898 | [2] | |
Accrued payroll and welfare payable | 42,005 | 85,362 | 107,284 | 16,221 | |||
VAT and other taxes payable | 3,379 | 7,416 | 25,728 | 1,379 | |||
Others (b) | 52,189 | [3] | 58,530 | [3],[4] | 32,655 | [4] | 2,296 |
Total Accounts Payable, Other Payables and Accruals | $ 149,534 | $ 179,077 | $ 227,565 | $ 19,896 | |||
[1] | Accounts payable primarily include supplier’s service charge to HHMT and decoration fee payable by ZDSE. | ||||||
[2] | Accounts payable primarily mainly include supplier’s service charge to HHMT in 2020, and commission payable for students’ referral in 2019. | ||||||
[3] | Others primarily include office rental and property management fee payable by ZDH’s subsidiaries. | ||||||
[4] | Others primarily include miscellaneous expenses payable. |
SCHEDULE OF INCOME TAX EXPENSES
SCHEDULE OF INCOME TAX EXPENSES BENEFITS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Current tax expense | $ 3,229 | $ (1,902) | $ 15,187 | $ 35,456 | |
Deferred tax expense (benefits) | (7,964) | 129,812 | (43,930) | ||
Total income taxes | $ 3,229 | $ (9,866) | $ 15,187 | $ 165,268 | $ (43,930) |
SCHEDULE OF RECONCILIATION OF E
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income (loss) before tax | $ (187,930) | $ (423,287) | $ (225,393) | $ 539,207 | $ (323,211) |
Tax expense calculated at statutory tax rate | (46,983) | (105,822) | (56,348) | 134,802 | (80,803) |
Income tax exemptions and reliefs | (43,805) | (72,418) | |||
Income tax difference under difference tax jurisdictions | 29,273 | 65,596 | (12,472) | ||
Others (Note 1) | 86,067 | 37,288 | 49,345 | ||
Valuation allowance | 50,212 | 95,956 | |||
Total income taxes | $ 3,229 | $ (9,866) | $ 15,187 | $ 165,268 | $ (43,930) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax rate | (7.00%) | 31.00% | 14.00% | ||
Income tax statutory tax rate | 25.00% | 25.00% | 25.00% | ||
Principal income tax rate, percentage | 25.00% | ||||
Operating loss carryforwards, valuation allowance | $ 86,067 | $ 35,001 | $ 19,662 | ||
ZDSE [Member] | |||||
Income tax preferential tax rate | 2.50% | 5.00% | 10.00% | ||
HHMT [Member] | |||||
Income tax preferential tax rate | 2.50% | 10.00% | 10.00% | ||
Zhongdehui (sz) Development Co., Ltd (ZDSE) [Member] | |||||
Income tax statutory tax rate | 2.50% | ||||
Shenzhen Huahui Media Technology Co Ltd [Member] | |||||
Income tax statutory tax rate | 2.50% | ||||
HONG KONG | |||||
Income tax rate | 16.50% | 16.50% | 16.50% | ||
CHINA | |||||
Income tax rate | 25.00% | 25.00% | |||
Income tax statutory tax rate | 25.00% |
SCHEDULE OF FINANCIAL POSITION
SCHEDULE OF FINANCIAL POSITION (Details) - Zhengxinhui Education Technology Co Ltd [Member] - USD ($) | Jun. 28, 2021 | Jun. 30, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets | $ 3 | |
Non Current assets | 42,653 | |
Net Assets | 42,656 | $ 42,656 |
Cash Consideration | 310 | 310 |
Loss on disposal | $ 42,346 | $ 42,346 |
LOSS ON DISPOSAL OF A SUBSIDI_3
LOSS ON DISPOSAL OF A SUBSIDIARY (Details Narrative) - USD ($) | Jun. 28, 2021 | Jun. 30, 2021 | Jul. 03, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity interest | 100.00% | ||
Zhengxinhui Education Technology Co Ltd [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity interest | 100.00% | ||
Cash consideration | $ 310 | $ 310 | |
Net Assets | 42,656 | 42,656 | |
Loss on disposal | $ 42,346 | $ 42,346 |
SCHEDULE OF CONSOLIDATED STATEM
SCHEDULE OF CONSOLIDATED STATEMENTS OF OPERATIONS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases | ||||
Within 1 year | $ 275,792 | $ 295,108 | $ 184,612 | |
After 1 year but within 5 years | 367,376 | 477,773 | 250,729 | |
Total lease payments | 643,168 | 772,881 | 435,341 | |
Less: imputed interest | (49,168) | (60,793) | (19,571) | |
Total lease obligations | 594,000 | 712,088 | 415,770 | |
Less: current obligations | (253,847) | (270,556) | (173,292) | |
Long-term lease obligations | 340,153 | 441,532 | 242,478 | |
Within 1 year | 184,612 | |||
Total lease payments | 643,168 | 772,881 | 435,341 | |
Less: imputed interest | (19,571) | |||
Total lease obligations | 594,000 | 712,088 | 415,770 | |
Less: current obligations | (253,847) | (270,556) | (173,292) | |
Long-term lease obligations | $ 340,153 | $ 441,532 | $ 242,478 |
SCHEDULE OF OTHER INFORMATION O
SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating cash flow from operating lease | $ 160,857 | $ 73,763 | $ 302,788 | $ 162,560 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 608,147 | $ 97,352 | $ 720,867 | $ 197,524 | |
Weighted average discount rate for operating lease | 4.75% | 4.75% | 4.75% | 4.75% | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 197,524 | ||||
Minimum [Member] | |||||
Remaining lease term for operating lease (years) | 9 months | 1 year 9 months | 1 year 3 months | 1 year 3 months | |
Maximum [Member] | |||||
Remaining lease term for operating lease (years) | 4 years 3 months | 2 years 2 months 1 day | 4 years 6 months 29 days | 2 years 8 months 1 day |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | ||||
Rent expense | $ 198,713 | $ 320,569 | $ 268,962 | $ 71,478 |
Operating leases terminating description | The Company has three operating leases with lease terms of more than one year, which are classified as operating leases. The longest lease term expires in September 2025. | The Company has three operating leases with the lease term over one year expiring in March and August 2022 | The Company leased various training centers in the PRC, under operating leases terminating in August 2019 through August 2022 | |
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | 1 year | |
Operating lease right-of-use assets | $ 594,000 | $ 712,088 | $ 415,770 | |
Operating lease liabilities current | 253,847 | 270,556 | 173,292 | |
Operating lease liabilities non-current | $ 340,153 | $ 441,532 | $ 242,478 | |
Operating lease expiring date | 2022-03 |
SCHEDULE OF AMOUNT DUE TO RELAT
SCHEDULE OF AMOUNT DUE TO RELATED PARTIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Related Party Transaction [Line Items] | |||||||
Amount due to related parties | $ 499,993 | $ 388,839 | $ 444,802 | $ 372,585 | |||
Repayment to related parties | $ 176,549 | 172,306 | 354,909 | 400,798 | |||
Cash advance from related parties | $ 111,059 | 66,583 | $ 116,343 | 429,849 | 153,528 | ||
Shareholder debts converted to capital contribution | 199,040 | ||||||
Junze Zhang [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | Shareholder and director of the Company | Shareholder and director of the Company | Shareholder and director of the Company | ||||
Amount due to related parties | $ 484,510 | $ 388,839 | $ 444,802 | 182,093 | |||
Repayment to related parties | 170,593 | 172,306 | |||||
Cash advance from related parties | $ 95,608 | 60,627 | $ 116,343 | $ 264,836 | |||
Qing Zuo [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | Chairman of the Board of ZDSE since December 20, 2018 | Chairman of the Board of ZDSE since December 20, 2018 | Majority shareholder of ZDSE and executive chairman until June 27, 2018 and November 28, 2018, respectively. Currently Chairman of the Board of ZDSE since December 20, 2018 | ||||
Amount due to related parties | $ 15,483 | 33,473 | |||||
Repayment to related parties | 39,805 | 576 | |||||
Cash advance from related parties | 15,451 | 6,459 | 5,185 | ||||
Shareholder debts converted to capital contribution | 51,801 | ||||||
Mengling Zhang [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | General manager of ZDSE | ||||||
Amount due to related parties | 36,519 | ||||||
Repayment to related parties | [1] | 5,956 | [1] | 50,221 | 400,222 | ||
Cash advance from related parties | [1] | $ 5,956 | [1] | 13,840 | 56,612 | ||
Shareholder debts converted to capital contribution | 147,239 | ||||||
Hengqing Investment Consultation(SZ) Partnership Business (LP) [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | Company controlled by Qing Zuo | ||||||
Amount due to related parties | 24,052 | ||||||
Repayment to related parties | 165,176 | ||||||
Cash advance from related parties | $ 141,214 | 25,055 | |||||
Henghui Investment Consultation(SZ) Partnership Business (LP) [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | Company controlled by Qing Zuo | ||||||
Amount due to related parties | 64,008 | ||||||
Repayment to related parties | 63,767 | ||||||
Cash advance from related parties | 66,676 | ||||||
Zihua Wu [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party description | Director of the Company | ||||||
Amount due to related parties | 32,440 | ||||||
Repayment to related parties | 35,940 | ||||||
Cash advance from related parties | $ 3,500 | ||||||
[1] | Amounts advanced by and repaid to Mengling Zhang are included in the Unaudited Consolidated Statements of Cash Flows under Cash Flows from Operating Activities as they related to operating, and not financing, activities. |
RESERVES (Details Narrative)
RESERVES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Legal reserve | $ 0 | $ 0 | $ 0 | $ 0 |
PRC's Foreign Investment Enterprises [Member] | ||||
Legal reserves percentage description | Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. | Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. | Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends |
SCHEDULE OF PRIOR PERIOD ADJUST
SCHEDULE OF PRIOR PERIOD ADJUSTMENTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of Revenue | $ 222,206 | $ 88,888 | $ 371,488 | $ 539,281 | $ 56,216 |
General and administrative expenses | $ 648,667 | $ 537,862 | $ 1,111,748 | 1,184,973 | $ 470,788 |
Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of Revenue | 330,091 | ||||
General and administrative expenses | 1,394,163 | ||||
Revision of Prior Period, Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of Revenue | 209,190 | ||||
General and administrative expenses | $ (209,190) |
SCHEDULE OF PURCHASE PRICE ALLO
SCHEDULE OF PURCHASE PRICE ALLOCATION (Details) | Jun. 27, 2018USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Cash and cash equivalents | $ 71,016 |
Other current assets | 48,793 |
Non-current assets | 220,634 |
Current liabilities | (340,141) |
Total purchase price | $ 302 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) | Jun. 30, 2018 |
Equity Transfer Agreement [Member] | Huahui Group Stock Limited [Member] | |
Business Acquisition [Line Items] | |
Acquisition of equity percentage | 100.00% |
SCHEDULE OF DEFERRED INCOME TAX
SCHEDULE OF DEFERRED INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning of the year | $ 129,812 | |
Deferred tax assets acquired through acquisition of ZDSE | 89,384 | |
(Debited)/Credited to the statement of income (loss) | (129,322) | 43,930 |
Exchange difference | (490) | (3,502) |
End of the period/year | $ 129,812 |
RELATED PARTIES TRANSACTIONS (D
RELATED PARTIES TRANSACTIONS (Details Narrative) | Dec. 31, 2018USD ($) |
Qing Zuo [Member] | |
Related Party Transaction [Line Items] | |
Advances from related parties | $ 51,801 |
Mengling Zhang [Member] | |
Related Party Transaction [Line Items] | |
Advances from related parties | $ 147,239 |