Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 333-213314 |
Entity Registrant Name | HUAHUI EDUCATION GROUP LIMITED |
Entity Central Index Key | 0001680935 |
Entity Incorporation, State or Country Code | E9 |
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 | Guangdoang Province |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 518000 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 302,734,900 |
ICFR Auditor Attestation Flag | false |
Auditor Name | Pan-China Singapore PAC |
Auditor Firm ID | 6255 |
Auditor Location | Singapore |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
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 | Guangdoang Province |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 518000 |
City Area Code | (86) |
Local Phone Number | 13728708818 |
Contact Personnel Name | Junze Zhang |
Contact Personnel Email Address | junze_zhang@126.com |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 84,487 | $ 184,596 |
Accounts receivable | 458,896 | 357,233 |
Other receivables | 383,349 | 319,616 |
Prepaid expenses and other current assets | 1,055 | 2,216 |
Total current assets | 927,787 | 863,661 |
Non-current assets: | ||
Leasehold improvements and equipment, net | 16,371 | 30,397 |
Operating lease right-of-use assets | 545,745 | 453,708 |
Total non-current assets | 562,116 | 484,105 |
Total assets | 1,489,903 | 1,347,766 |
Current liabilities: | ||
Deferred revenue | 306,785 | 119,028 |
Accounts payable, other payables and accruals | 367,736 | 228,642 |
Current operating lease liabilities | 214,758 | 162,178 |
Income tax payable | 314 | |
Amount due to related parties | 704,980 | 674,537 |
Total current liabilities | 1,594,259 | 1,184,699 |
Non-current liabilities: | ||
Non-current operating lease liabilities | 330,987 | 291,530 |
Total non-current liabilities | 330,987 | 291,530 |
Total liabilities | 1,925,246 | 1,476,229 |
Equity (deficit) | ||
Share capital ($0.0001 par value, 302,734,900 shares issued and outstanding for the year ended December 31, 2022 and 2021) | 30,273 | 30,273 |
Additional paid-in capital | (1,140) | (1,140) |
Foreign currency translation reserve | 9,851 | 33,455 |
(Accumulated loss) Retained earnings | (472,503) | (191,051) |
Non-controlling interest | (1,824) | |
Total equity | (435,343) | (128,463) |
Total liabilities and equity | $ 1,489,903 | $ 1,347,766 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 302,734,900 | 302,734,900 |
Common stock, shares outstanding | 302,734,900 | 302,734,900 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 1,106,349 | $ 1,705,225 |
Cost of Revenue | (268,408) | (537,427) |
Gross profit | 837,941 | 1,167,798 |
Selling and marketing expenses | (9,466) | (7,635) |
General and administrative expenses | (1,094,261) | (1,228,669) |
Loss on disposal of a subsidiary | (42,346) | |
Operating loss | (265,786) | (110,852) |
Other income(expenses), net | (2,565) | 6,380 |
Loss before income taxes | (268,351) | (104,472) |
Income tax expenses (benefits) | (14,925) | (9,024) |
Net loss | (283,276) | (113,496) |
Foreign currency translation differences | (23,604) | 9,704 |
Total comprehensive loss for the years | (306,880) | (103,792) |
Owners of the Company | (281,452) | |
Non-controlling interest | $ (1,824) | |
Basic and diluted loss per ordinary share | $ 0 | $ 0 |
Weighted average number of shares outstanding-Basic and diluted | 302,734,900 | 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] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 30,273 | $ (1,140) | $ 23,751 | $ (77,555) | $ (24,671) | |
Loss for the year | (113,496) | (113,496) | ||||
Foreign currency translation gain (loss) | 9,704 | 9,704 | ||||
Balance at Dec. 31, 2021 | 30,273 | (1,140) | 33,455 | (191,051) | (128,463) | |
Loss for the year | (281,452) | (1,824) | (283,276) | |||
Foreign currency translation gain (loss) | (23,604) | (23,604) | ||||
Balance at Dec. 31, 2022 | $ 30,273 | $ (1,140) | $ 9,851 | $ (472,503) | $ (1,824) | $ (435,343) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (283,276) | $ (113,496) |
Adjustments for: | ||
Depreciation expense | 15,394 | 45,448 |
Loss from disposal of furniture and equipment | 42,346 | |
Changes in: | ||
Accounts receivable | (134,111) | (225,269) |
Other receivables | (91,969) | (43,542) |
Prepaid expenses and other current assets | 1,012 | 66,994 |
Other payables and accruals | 161,725 | 27,607 |
Deferred revenue | 203,060 | (139,659) |
Net cash used in operating activities | (128,165) | (339,571) |
Cash flows from investing activities: | ||
Short term loan to a third party | ||
Additions to leasehold improvements and equipment | (3,369) | (63,452) |
Proceeds from sale of furniture and equipment | 307 | |
Net cash used in investing activities | (3,369) | (63,145) |
Cash flows from financing activities: | ||
Proceeds from advances from related parties | 43,488 | 291,874 |
Repayment of advances from related parties | (8,850) | |
Net cash provided by financing activities | 43,488 | 283,024 |
Effect of exchange rate changes on cash and cash equivalents | (12,063) | 6,182 |
Net decrease in cash and cash equivalents | (100,109) | (113,510) |
Cash and cash equivalents at the beginning of period | 184,596 | 298,106 |
Cash and cash equivalents at the end of period | 84,487 | 184,596 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Income tax paid | 2,304 | 21,042 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 554,643 | $ 579,998 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS HUAHUI EDUCATION GROUP LIMITED, 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. Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) was established on December 29, 2020 and Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) was established on December 28, 2020. SYZDH has taken over the business of ZDSE’s Shenyang branch and GZZDH has taken over the business of ZDSE’s Guangzhou branch. On February 26, 2021, ZDSE’s Shenzhen Branch established a wholly-owned subsidiary, Shenzhen Zhengxinhui Education Technology Co., Limited, which was sold to an unrelated third party on June 28, 2021. Zhongdehui (JiNan) Education Consulting Co., Limited (“JNZDH”) was established as of April 14, 2022, engaged in researching, developing and applying methods for helping individuals to improve their personal and professional leadership skills and effectiveness. ZDSE’s clients include executive managers from large scale, small and medium-sized enterprises, as well as professionals and employees in various fields. Shenzhen Huahui Media Technology Co., Ltd. (“HHMT”) was established in August 25,2020. 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 and sales, leasing, and door-to-door integration of multimedia teaching systems installation, and on-site maintenance. HHMT has one wholly-owned subsidiary, Shenzhen Jiarui Media Co., Limited (“SJMC”), which was formed on June 4, 2021 under the laws of the PRC. SJMC’s principal business is essentially the same as that of HHMT, including 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, and on-site maintenance. In addition, Huahui (Shenzhen) Education Management Co., Limited (“HEMC”), which was established on March 28, 2017 and previously conducted only minor operations providing administrative services for the Company, commenced providing consulting services on November 1, 2020. Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) was incorporated in the PRC on July 8, 2020 as a wholly owned subsidiary of HSEC. JEMT started operation in June 2022, holding training courses for individuals and enterprises to improve their professional and management skills Shandong Yuli Big Data Technology Co., Limited (“SDYL”) was incorporated in the PRC on December 14, 2021, and is an 80% owned subsidiary of HSEC. Twenty percent of SDYL’s shares are owned by SYDL’s Legal Representative, Xinwen Yang. SDYL’s business model of “HR Technology + Platform + Service” utilizes human resources (“HR”) technology to build a HR platform that will provide payroll, personnel recruitment, labor dispatch, flexible employment, fiscal and tax planning and legal HR consultation through a mobile app and SDYL’s website. SDYL started operation in May 2022. As of December 31, 2022, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of Date of Place of Percentage of Principal Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Holding company Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Holding company Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Holding company Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Holding company Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Holding company Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January 19, 2016 June 27, 2018 PRC 100 % Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 % Holding company Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 % Holding company Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8, 2020 N/A PRC 100 % Holding company Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25, 2020 N/A PRC 100 % Event planning and production; business planning Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28, 2020 N/A PRC 100 % Educational services Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29, 2020 N/A PRC 100 % Educational services Shenzhen Jiarui Media June 4, 2021 N/A PRC 100 % Conference and exhibition planning Shangdong Yuli Big Data December 14, 2021 N/A PRC 80 % Investment holding Zhongdehui (JiNan) Education Consulting Co., Limited (“JNZDH”) April 14, 2022 N/A PRC 100 % Educational services |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 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 $ 283,276 435,343 128,165 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, 2022 and 2021. 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 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, 2022 and 2021. (h) Value added tax (“VAT”) Since May 1, 2016, all taxpayers, including ZDSE, are subject to value-added tax (“VAT”) instead of business tax. VAT small-scale taxpayers are subject to a VAT rate of 3% 100,000 To support the novel coronavirus pneumonia prevention and control and accelerate the resumption of work, the VAT rate for small-scale taxpayers having monthly sales of in excess of RMB 100,000 3% to 1% 100,000 150,000 3 Currently, of all the operating subsidiaries of the Company, with the exception of SDYL, which is a general taxpayer and subject to a VAT rate of 6 3 (i) Income Recognition Recognition of Revenue The primary sources of our revenues are as follows: (a) Coach course service 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 $ 306,785 119,028 (b) Conference and exhibition planning service revenue was derived from HHMT which was established on August 25, 2020. HHMT has one wholly-owned subsidiary, Shenzhen Jiarui Media Co., Limited (“SJMC”), which was formed on June 4, 2021 under the laws of the PRC. Conference and exhibition planning service revenue in 2022 was $ 292,273 26 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. (c) Consulting service income is recognized when the services rendered, HEMC commenced business operations in the second half of 2020.Consulting service revenue in 2022 was $ 17,698 1.6 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 Ordinary Shares were exercised and converted into Ordinary Shares. 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, 2022. (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 2022 2021 Year-end RMB exchange rate 6.9091 6.3551 Average annual RMB exchange rate 6.7131 6.4522 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, 2022 and 2021 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, 2022, 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 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) 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 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 $ 545,745 545,745 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. |
LEASEHOLD IMPROVEMENT AND EQUIP
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET | 3. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2022 2021 Furniture and education equipment $ 22,917 $ 22,731 Computer equipment and software 68,248 72,718 Leasehold improvements 73,135 79,511 Leasehold improvement and equipment, gross $ 164,300 $ 174,960 Less: accumulated depreciation (147,929 ) (144,563 ) Leasehold improvement and equipment, net $ 16,371 $ 30,397 Depreciation expense for the years ended December 31, 2022 and 2021 was $ 15,394 45,448 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE The Accounts receivable and allowance balances at December 31, 2022 and 2021 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE 2022 2021 Accounts receivable $ 458,896 $ 357,233 Less: allowance for doubtful accounts - - Accounts receivable, net $ 458,896 $ 357,233 No allowance for doubtful accounts was made for the years ended December 31, 2022 and 2021. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
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. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
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. |
ACCOUNTS PAYABLE, OTHER PAYABLE
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | 7. ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2022 2021 Accounts payable (a) $ 136,302 $ 96,154 Accrued payroll and welfare payable 85,229 50,949 VAT and other taxes payable 14,067 2,895 Others (b) 132,138 78,644 Total other payables and accruals $ 367,736 $ 228,642 (a) Accounts payable primarily include supplier’s service charge to HHMT and SJMC. (b) Others primarily include office rental and miscellaneous expenses payable. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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, 2022 and 2021. 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, 2022 and 2021. 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, HHMT and SJMC enjoy a preferential tax rate of 2.5 10 Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2022 2021 Current tax expense $ 14,925 $ 9,024 Deferred tax expense (benefits) - - Total income taxes $ 14,925 $ 9,024 Income taxes of ZDSE, JEMT, HHMT and SJMC are accrued at the tax rate of 2.5 5 SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2022 2021 Loss before tax $ (268,351 ) $ (104,472 ) Tax (credit) calculated at statutory tax rate ( 25 (67,087 ) (26,118 ) Valuation allowance 82,012 35,142 Total income taxes $ 14,925 $ 9,024 The Company’s other subsidiaries have not recognized deferred income tax assets as of December 31, 2022 and 2021. |
Loss on disposal of a subsidiar
Loss on disposal of a subsidiary | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Loss on disposal of a subsidiary | 9. Loss on disposal of a subsidiary In June, 2021, ZDSE sold 100 310 42,656 42,346 SCHEDULE OF LOSS ON DISPOSAL OF A SUBSIDIARY 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 | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
LEASES | 10. 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, 2022 was $ 248,628 The Company has two operating leases with lease terms of more than one year 545,745 214,758 330,987 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 FUTURE MINIMUM PAYMENTS UNDER LONG-TERM NON -CANCELABLE OPERATING LEASES As of As of Within 1 year 235,961 249,384 After 1 year but within 5 years 343,465 311,561 Total lease payments 579,426 560,945 Less: imputed interest (33,681 ) (107,237 ) Total lease obligations 545,745 453,708 Less: current obligations (214,758 ) (162,178 ) Long-term lease obligations 330,987 291,530 Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES Dec 31, 2022 Dec 31, 2021 For year ended Dec 31, 2022 Dec 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 198,874 323,509 Right-of-use assets obtained in exchange for operating lease liabilities 554,643 579,998 Remaining lease term for operating lease (years) 0.25 2.75 0.25 3.75 Weighted average discount rate for operating lease 4.75 % 4.75 % |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | 11. RELATED PARTIES TRANSACTIONS (a) The Company had the following balances due to related parties: SCHEDULE OF AMOUNT DUE TO RELATED PARTIES Relationship Dec 31, 2022 Dec 31, 2021 Junze Zhang Shareholder and director of the Company 698,624 667,787 Qing Zuo Chairman of the Board of ZDSE since December 20, 2018 6,356 6,750 Total $ 704,980 $ 674,537 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, 2022 2021 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) - - Henghui Investment Consultation(SZ) Partnership Business (LP) - - Qing Zuo - 8,850 Junze Zhang - - Mengling Zhang - - Zihua Wu - - $ - $ 8,850 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ - $ - Qing Zuo 151 15,499 Junze Zhang 43,317 276,375 Mengling Zhang - - Zihua Wu - - $ 43,488 $ 291,874 |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2022 | |
Reserves | |
RESERVES | 12. 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 (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. |
SEGMENT DATA
SEGMENT DATA | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | 13. SEGMENT DATA The company shows the financial operation and asset according to three business segments: (a) Education and training business projects include: education training, financial management consulting, economic information consulting, electronic commerce operation, database management, sporting goods, crafts, arts and electronic product sales; (b) Media’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. (c) Consulting services business projects include: education information consulting, enterprise management consulting, cultural activity planning, meeting planning, enterprise image planning, marketing planning, research and development of educational software technology and so on. (d) Human resources outsourcing service revenue projects include: HR Technology + Platform + Service” utilizes HR technology to build an HR platform that will provide payroll, personnel recruitment, labor dispatch, flexible employment, fiscal and tax planning and legal HR consultation through a mobile app and SDYL’s website. Specific structure information in 2022 sees table below: SCHEDULE OF SEGMENT DATA Education and training Exhibition planning service Consulting service Human resources outsourcing service Totals Revenue from external customers 796,257 292,273 17,698 121 1,106,349 Intersegment revenue - - - - - Interest income 122 2 10 27 161 Interest expense 1,876 260 2,957 51 5,144 Depreciation and amortization 15,028 - 366 - 15,394 Operating income (loss) (9,594 ) 96,701 (343,756 ) (9,137 ) (265,786 ) Segment assets 749,015 444,895 207,487 88,506 1,489,903 Expenditures for segment assets 3,369 - - - 3,369 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (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 $ 283,276 435,343 128,165 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. |
Basis of Consolidation | (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 | (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 | (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 | (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, 2022 and 2021. 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 | (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 Computer equipment and software 3 5 The assets’ residual value, useful lives, and depreciation method are regularly reviewed. |
Impairment of long-lived assets | (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, 2022 and 2021. |
Value added tax (“VAT”) | (h) Value added tax (“VAT”) Since May 1, 2016, all taxpayers, including ZDSE, are subject to value-added tax (“VAT”) instead of business tax. VAT small-scale taxpayers are subject to a VAT rate of 3% 100,000 To support the novel coronavirus pneumonia prevention and control and accelerate the resumption of work, the VAT rate for small-scale taxpayers having monthly sales of in excess of RMB 100,000 3% to 1% 100,000 150,000 3 Currently, of all the operating subsidiaries of the Company, with the exception of SDYL, which is a general taxpayer and subject to a VAT rate of 6 3 |
Income Recognition | (i) Income Recognition Recognition of Revenue The primary sources of our revenues are as follows: (a) Coach course service 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 $ 306,785 119,028 (b) Conference and exhibition planning service revenue was derived from HHMT which was established on August 25, 2020. HHMT has one wholly-owned subsidiary, Shenzhen Jiarui Media Co., Limited (“SJMC”), which was formed on June 4, 2021 under the laws of the PRC. Conference and exhibition planning service revenue in 2022 was $ 292,273 26 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. (c) Consulting service income is recognized when the services rendered, HEMC commenced business operations in the second half of 2020.Consulting service revenue in 2022 was $ 17,698 1.6 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 | (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 | (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 Ordinary Shares were exercised and converted into Ordinary Shares. 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, 2022. |
Foreign Currency 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 2022 2021 Year-end RMB exchange rate 6.9091 6.3551 Average annual RMB exchange rate 6.7131 6.4522 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 | (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 |
Fair Value | (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 | (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 | (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, 2022 and 2021 as the amounts were immaterial. |
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 | (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, 2022, 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 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 |
Share Capital | (s) Share Capital Incremental costs directly attributable to the issue of Ordinary Shares are recognized as a deduction from equity. |
Recent accounting pronouncements | (t) 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 $ 545,745 545,745 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. |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SUBSIDIARY INFORMATION | As of December 31, 2022, the Company’s subsidiaries are as follows: SUMMARY OF SUBSIDIARY INFORMATION Entity Date of Date of Place of Percentage of Principal Huahui Group Stock Limited (“HGSL”) May 17, 2017 N/A Seychelles 100 % Holding company Huahui Group Co., Limited (“HGCL”) May 29, 2017 N/A Seychelles 100 % Holding company Huahui Group (HK) Co., Limited (“HGHK”) January 4, 2017 April 20, 2018 Hong Kong 100 % Holding company Huahui (Shenzhen) Education Management Co., Limited (“HEMC”) March 28, 2017 April 20, 2018 PRC 100 % Holding company Shenzhen Huahui Shangxing Education Consulting Co., Limited (“HSEC”) January 5, 2018 May 4, 2018 PRC 100 % Holding company Zhongdehui (Shenzhen) Education Development Co., Limited (“ZDSE”) January 19, 2016 June 27, 2018 PRC 100 % Educational services Huahui Technology (HK) Co., Limited (“HTHK”) March 25, 2020 N/A Hong Kong 100 % Holding company Huahui (Shenzhen) Education Technology Co., Ltd (“HETC”) July 8, 2020 N/A PRC 100 % Holding company Huahui Jinming (Shenzhen) Education Technology Co., Limited (“JMET”) July 8, 2020 N/A PRC 100 % Holding company Shenzhen Huahui Media Technology Co., Ltd.(“HHMT”) August 25, 2020 N/A PRC 100 % Event planning and production; business planning Zhongdehui (Guangzhou) Education Consulting Co., Limited (“GZZDH”) December 28, 2020 N/A PRC 100 % Educational services Zhongdehui (Shenyang) Education Consulting Co., Limited (“SYZDH”) December 29, 2020 N/A PRC 100 % Educational services Shenzhen Jiarui Media June 4, 2021 N/A PRC 100 % Conference and exhibition planning Shangdong Yuli Big Data December 14, 2021 N/A PRC 80 % Investment holding Zhongdehui (JiNan) Education Consulting Co., Limited (“JNZDH”) April 14, 2022 N/A PRC 100 % Educational services |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 ESTIMATE 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 |
SUMMARY OF EXCHANGE OF CURRENCY RATES | The exchange rates utilized are as follows: SUMMARY OF EXCHANGE OF CURRENCY RATES 2022 2021 Year-end RMB exchange rate 6.9091 6.3551 Average annual RMB exchange rate 6.7131 6.4522 |
LEASEHOLD IMPROVEMENT AND EQU_2
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT | SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT 2022 2021 Furniture and education equipment $ 22,917 $ 22,731 Computer equipment and software 68,248 72,718 Leasehold improvements 73,135 79,511 Leasehold improvement and equipment, gross $ 164,300 $ 174,960 Less: accumulated depreciation (147,929 ) (144,563 ) Leasehold improvement and equipment, net $ 16,371 $ 30,397 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE | The Accounts receivable and allowance balances at December 31, 2022 and 2021 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE 2022 2021 Accounts receivable $ 458,896 $ 357,233 Less: allowance for doubtful accounts - - Accounts receivable, net $ 458,896 $ 357,233 No allowance for doubtful accounts was made for the years ended December 31, 2022 and 2021. |
ACCOUNTS PAYABLE, OTHER PAYAB_2
ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS | SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS 2022 2021 Accounts payable (a) $ 136,302 $ 96,154 Accrued payroll and welfare payable 85,229 50,949 VAT and other taxes payable 14,067 2,895 Others (b) 132,138 78,644 Total other payables and accruals $ 367,736 $ 228,642 (a) Accounts payable primarily include supplier’s service charge to HHMT and SJMC. (b) Others primarily include office rental and miscellaneous expenses payable. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX EXPENSES BENEFITS | Income tax expense (benefits) SCHEDULE OF INCOME TAX EXPENSES BENEFITS 2022 2021 Current tax expense $ 14,925 $ 9,024 Deferred tax expense (benefits) - - Total income taxes $ 14,925 $ 9,024 |
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES | SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES 2022 2021 Loss before tax $ (268,351 ) $ (104,472 ) Tax (credit) calculated at statutory tax rate ( 25 (67,087 ) (26,118 ) Valuation allowance 82,012 35,142 Total income taxes $ 14,925 $ 9,024 |
Loss on disposal of a subsidi_2
Loss on disposal of a subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF LOSS ON DISPOSAL OF A SUBSIDIARY | SCHEDULE OF LOSS ON DISPOSAL OF A SUBSIDIARY 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) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER LONG-TERM NON -CANCELABLE OPERATING LEASES | The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER LONG-TERM NON -CANCELABLE OPERATING LEASES As of As of Within 1 year 235,961 249,384 After 1 year but within 5 years 343,465 311,561 Total lease payments 579,426 560,945 Less: imputed interest (33,681 ) (107,237 ) Total lease obligations 545,745 453,708 Less: current obligations (214,758 ) (162,178 ) Long-term lease obligations 330,987 291,530 |
SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES | Other information: SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES Dec 31, 2022 Dec 31, 2021 For year ended Dec 31, 2022 Dec 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease 198,874 323,509 Right-of-use assets obtained in exchange for operating lease liabilities 554,643 579,998 Remaining lease term for operating lease (years) 0.25 2.75 0.25 3.75 Weighted average discount rate for operating lease 4.75 % 4.75 % |
RELATED PARTIES TRANSACTIONS (T
RELATED PARTIES TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Dec 31, 2022 Dec 31, 2021 Junze Zhang Shareholder and director of the Company 698,624 667,787 Qing Zuo Chairman of the Board of ZDSE since December 20, 2018 6,356 6,750 Total $ 704,980 $ 674,537 For the years ended December 31, 2022 2021 Repayment to related parties Hengqing Investment Consultation(SZ) Partnership Business (LP) - - Henghui Investment Consultation(SZ) Partnership Business (LP) - - Qing Zuo - 8,850 Junze Zhang - - Mengling Zhang - - Zihua Wu - - $ - $ 8,850 Cash advance from related parties Hengqing Investment Consultation (SZ) Partnership Business (LP) $ - $ - Qing Zuo 151 15,499 Junze Zhang 43,317 276,375 Mengling Zhang - - Zihua Wu - - $ 43,488 $ 291,874 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT DATA | Specific structure information in 2022 sees table below: SCHEDULE OF SEGMENT DATA Education and training Exhibition planning service Consulting service Human resources outsourcing service Totals Revenue from external customers 796,257 292,273 17,698 121 1,106,349 Intersegment revenue - - - - - Interest income 122 2 10 27 161 Interest expense 1,876 260 2,957 51 5,144 Depreciation and amortization 15,028 - 366 - 15,394 Operating income (loss) (9,594 ) 96,701 (343,756 ) (9,137 ) (265,786 ) Segment assets 749,015 444,895 207,487 88,506 1,489,903 Expenditures for segment assets 3,369 - - - 3,369 |
SUMMARY OF SUBSIDIARY INFORMATI
SUMMARY OF SUBSIDIARY INFORMATION (Details) | 12 Months Ended | |
Dec. 31, 2022 | Jul. 03, 2019 | |
Huahui Group Stock Limited [Member] | ||
Date of incorporation | May 17, 2017 | |
Place of incorporation | Seychelles | |
Percentage of legal ownership by the Company | 100% | 100% |
Principal activities | Holding company | |
Huahui Group Co., Limited [Member] | ||
Date of incorporation | May 29, 2017 | |
Place of incorporation | Seychelles | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Huahui Group (HK) Co., Limited [Member] | ||
Date of incorporation | Jan. 04, 2017 | |
Place of incorporation | Hong Kong | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Date of acquisition | Apr. 20, 2018 | |
Huahui (Shenzhen) Education Management Co., Limited [Member] | ||
Date of incorporation | Mar. 28, 2017 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Date of acquisition | Apr. 20, 2018 | |
Shenzhen Huahui Shangxing Education Consulting Co., Limited [Member] | ||
Date of incorporation | Jan. 05, 2018 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Date of acquisition | May 04, 2018 | |
Zhongdehui (Shenzhen) Education Development Co., Limited [Member] | ||
Date of incorporation | Jan. 19, 2016 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Educational services | |
Date of acquisition | Jun. 27, 2018 | |
Huahui Technology (HK) Co., Limited [Member] | ||
Date of incorporation | Mar. 25, 2020 | |
Place of incorporation | Hong Kong | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Huahui Shenzhen Education Technology Co Ltd [Member] | ||
Date of incorporation | Jul. 08, 2020 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Huahui Jinming Shenzhen Education Technology Co Limited [Member] | ||
Date of incorporation | Jul. 08, 2020 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Holding company | |
Shenzhen Huahui Media Technology Co Ltd [Member] | ||
Date of incorporation | Aug. 25, 2020 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Event planning and production; business planning | |
Zhongdehui Guangzhou Education Consulting Co Limited [Member] | ||
Date of incorporation | Dec. 28, 2020 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Educational services | |
Zhongdehui Shenyang Education Consulting Co Limited [Member] | ||
Date of incorporation | Dec. 29, 2020 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Educational services | |
Shenzhen Jiarui Media Co Limited [Member] | ||
Date of incorporation | Jun. 04, 2021 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Conference and exhibition planning | |
Shangdong Yult Big Data Technology Co Limited [Member] | ||
Date of incorporation | Dec. 14, 2021 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 80% | |
Principal activities | Investment holding | |
ZhongdehuiJiNan Education Consulting Co Limited [Member] | ||
Date of incorporation | Apr. 14, 2022 | |
Place of incorporation | PRC | |
Percentage of legal ownership by the Company | 100% | |
Principal activities | Educational services |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narrative) - shares | Jul. 03, 2019 | Nov. 02, 2017 | Dec. 31, 2022 |
Sale of stock shares issued in transaction | 2,000,000 | ||
Huahui Group Stock Limited [Member] | |||
Number of ordinary shares of common stock exchanged | 300,000,000 | ||
Ownership interest percentage | 100% | 100% | |
Huahui Group Stock Limited [Member] | Shareholders [Member] | |||
Ownership interest percentage | 99.10% | ||
Huahui Group Stock Limited [Member] | Former Shareholders [Member] | |||
Ownership interest percentage | 0.90% |
SCHEDULE OF ESTIMATE USEFUL LIF
SCHEDULE OF ESTIMATE USEFUL LIFE OF ASSETS (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
SUMMARY OF EXCHANGE OF CURRENCY
SUMMARY OF EXCHANGE OF CURRENCY RATES (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Year-End RMB [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Foreign currency exchange rate, translation | 6.9091 | 6.3551 |
Annual-Average RMB [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Foreign currency exchange rate, translation | 6.7131 | 6.4522 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | 21 Months Ended | ||||
May 02, 2016 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2020 USD ($) | |
Product Information [Line Items] | ||||||
Net loss | $ 283,276 | $ 113,496 | ||||
Total equity | 435,343 | 128,463 | $ 24,671 | |||
Net cash (used in) provided by operating activities | 128,165 | 339,571 | ||||
Deferred revenue | 306,785 | 119,028 | ||||
Revenue | $ 1,106,349 | $ 1,705,225 | ||||
Cash and cash equivalents rate | 99% | 99% | ||||
Operating lease right-of-use assets | $ 545,745 | $ 453,708 | ||||
Operating lease liabilities | $ 545,745 | $ 453,708 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Customer [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration of credit risk | 10% | 10% | ||||
Valued Added Tax [Member] | ||||||
Product Information [Line Items] | ||||||
VAT rate description | VAT small-scale taxpayers are subject to a VAT rate of 3% | 3% to 1% | 3% to 1% | |||
VAT monthly small scale | ¥ | ¥ 100,000 | |||||
Tax rate for assessable income | 3% | 3% | ||||
Income tax percentage, small-scale taxpayers | 6% | 6% | ||||
Income tax percentage, exempt from VAT payments | 3% | 3% | ||||
Valued Added Tax [Member] | Minimum [Member] | ||||||
Product Information [Line Items] | ||||||
VAT monthly small scale | ¥ | ¥ 100,000 | ¥ 150,000 | ||||
Conference and exhibition planning [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue | $ 292,273 | |||||
Recognition of revenue, percentage | 26% | 26% | ||||
Consulting Service [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue | $ 17,698 | |||||
Recognition of revenue, percentage | 1.60% | 1.60% |
SCHEDULE OF LEASEHOLD IMPROVEME
SCHEDULE OF LEASEHOLD IMPROVEMENTS AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Furniture and education equipment | $ 22,917 | $ 22,731 |
Computer equipment and software | 68,248 | 72,718 |
Leasehold improvements | 73,135 | 79,511 |
Leasehold improvement and equipment, gross | 164,300 | 174,960 |
Less: accumulated depreciation | (147,929) | (144,563) |
Leasehold improvement and equipment, net | $ 16,371 | $ 30,397 |
LEASEHOLD IMPROVEMENT AND EQU_3
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 15,394 | $ 45,448 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE AND ALLOWANCE (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 458,896 | $ 357,233 |
Less: allowance for doubtful accounts | ||
Accounts receivable, net | $ 458,896 | $ 357,233 |
SCHEDULE OF ACCOUNTS PAYABLE, O
SCHEDULE OF ACCOUNTS PAYABLE, OTHER PAYABLES AND ACCRUALS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |||
Accounts payable (a) | [1] | $ 136,302 | $ 96,154 |
Accrued payroll and welfare payable | 85,229 | 50,949 | |
VAT and other taxes payable | 14,067 | 2,895 | |
Others (b) | [2] | 132,138 | 78,644 |
Total other payables and accruals | $ 367,736 | $ 228,642 | |
[1]Accounts payable primarily include supplier’s service charge to HHMT and SJMC.[2]Others primarily include office rental and miscellaneous expenses payable. |
SCHEDULE OF INCOME TAX EXPENSES
SCHEDULE OF INCOME TAX EXPENSES BENEFITS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 14,925 | $ 9,024 |
Deferred tax expense (benefits) | ||
Total income taxes | $ 14,925 | $ 9,024 |
SCHEDULE OF RECONCILIATION OF E
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Loss before tax | $ (268,351) | $ (104,472) |
Tax (credit) calculated at statutory tax rate (25%) | (67,087) | (26,118) |
Valuation allowance | 82,012 | 35,142 |
Total income taxes | $ 14,925 | $ 9,024 |
SCHEDULE OF RECONCILIATION OF_2
SCHEDULE OF RECONCILIATION OF EFFECTIVE INCOME TAX RATES (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income tax statutory tax rate | 25% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax statutory tax rate | 25% | |
ZDSE, HHMT and SJMC [Member] | ||
Income tax preferential tax rate | 2.50% | |
Income tax statutory tax rate | 2.50% | |
ZDSE [Member] | ||
Income tax preferential tax rate | 5% | 10% |
HONG KONG | ||
Income tax rate | 16.50% | |
CHINA | ||
Income tax rate | 25% |
SCHEDULE OF LOSS ON DISPOSAL OF
SCHEDULE OF LOSS ON DISPOSAL OF A SUBSIDIARY (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on disposal | $ (42,346) | ||
Zhengxinhui Education Technology Co Ltd [Member] | |||
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 | ||
Cash Consideration | 310 | ||
Loss on disposal | $ 42,346 |
Loss on disposal of a subsidi_3
Loss on disposal of a subsidiary (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Loss on disposal | $ (42,346) | |||
Zhengxinhui Education Technology Co Ltd [Member] | ||||
Cash consideration | $ 310 | |||
Net Assets | $ 42,656 | |||
Loss on disposal | $ 42,346 | |||
Zhengxinhui Education Technology Co Ltd [Member] | ||||
Equity interest | 100% |
SCHEDULE OF FUTURE MINIMUM PAYM
SCHEDULE OF FUTURE MINIMUM PAYMENTS UNDER LONG-TERM NON -CANCELABLE OPERATING LEASES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Within 1 year | $ 235,961 | $ 249,384 |
After 1 year but within 5 years | 343,465 | 311,561 |
Total lease payments | 579,426 | 560,945 |
Less: imputed interest | (33,681) | (107,237) |
Total lease obligations | 545,745 | 453,708 |
Less: current obligations | (214,758) | (162,178) |
Long-term lease obligations | $ 330,987 | $ 291,530 |
SCHEDULE OF OTHER INFORMATION O
SCHEDULE OF OTHER INFORMATION OF OPERATING LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating cash flow from operating lease | $ 198,874 | $ 323,509 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 554,643 | $ 579,998 |
Weighted average discount rate for operating lease | 4.75% | 4.75% |
Minimum [Member] | ||
Remaining lease term for operating lease (years) | 3 months | 3 months |
Maximum [Member] | ||
Remaining lease term for operating lease (years) | 2 years 9 months | 3 years 9 months |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Rent expense | $ 248,628 | |
Lessee operating lease description | The Company has two operating leases with lease terms of more than one year | |
Lessee operating lease term of contract | 1 year | |
Operating lease right-of-use assets | $ 545,745 | $ 453,708 |
Operating lease liabilities current | 214,758 | 162,178 |
Operating lease liabilities non-current | $ 330,987 | $ 291,530 |
SCHEDULE OF AMOUNT DUE TO RELAT
SCHEDULE OF AMOUNT DUE TO RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Total | $ 704,980 | $ 674,537 |
Repayment to related parties | 8,850 | |
Cash advance from related parties | $ 43,488 | $ 291,874 |
Junze Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Shareholder and director of the Company | Shareholder and director of the Company |
Total | $ 698,624 | $ 667,787 |
Repayment to related parties | ||
Cash advance from related parties | $ 43,317 | $ 276,375 |
Qing Zuo [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Chairman of the Board of ZDSE since December 20, 2018 | Chairman of the Board of ZDSE since December 20, 2018 |
Total | $ 6,356 | $ 6,750 |
Repayment to related parties | 8,850 | |
Cash advance from related parties | 151 | 15,499 |
Hengqing investment consultation [Member] | ||
Related Party Transaction [Line Items] | ||
Repayment to related parties | ||
Cash advance from related parties | ||
Henghui investment [Member] | ||
Related Party Transaction [Line Items] | ||
Repayment to related parties | ||
Mengling Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Repayment to related parties | ||
Cash advance from related parties | ||
Zihua wu [Member] | ||
Related Party Transaction [Line Items] | ||
Repayment to related parties | ||
Cash advance from related parties |
RESERVES (Details Narrative)
RESERVES (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
SCHEDULE OF SEGMENT DATA (Detai
SCHEDULE OF SEGMENT DATA (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | ||
Revenue from external customers | $ 1,106,349 | $ 1,705,225 |
Intersegment revenue | ||
Interest income | 161 | |
Interest expense | 5,144 | |
Depreciation and amortization | 15,394 | |
Operating income (loss) | (265,786) | (110,852) |
Assets | 1,489,903 | $ 1,347,766 |
Expenditures for segment assets | 3,369 | |
Education and training [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 796,257 | |
Intersegment revenue | ||
Interest income | 122 | |
Interest expense | 1,876 | |
Depreciation and amortization | 15,028 | |
Operating income (loss) | (9,594) | |
Assets | 749,015 | |
Expenditures for segment assets | 3,369 | |
Exhibition Planning Service [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 292,273 | |
Intersegment revenue | ||
Interest income | 2 | |
Interest expense | 260 | |
Depreciation and amortization | ||
Operating income (loss) | 96,701 | |
Assets | 444,895 | |
Expenditures for segment assets | ||
Consulting Service [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 17,698 | |
Intersegment revenue | ||
Interest income | 10 | |
Interest expense | 2,957 | |
Depreciation and amortization | 366 | |
Operating income (loss) | (343,756) | |
Assets | 207,487 | |
Expenditures for segment assets | ||
Human resources outsourcing service [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customers | 121 | |
Intersegment revenue | ||
Interest income | 27 | |
Interest expense | 51 | |
Depreciation and amortization | ||
Operating income (loss) | (9,137) | |
Assets | 88,506 | |
Expenditures for segment assets |