| Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
| Mar. 31, 2019 |
| Summary Of Significant Accounting Policies | |
| Method of accounting | Management
has prepared the accompanying financial statements and these notes in accordance to generally accepted accounting principles in
the United States of America; the Company maintains its general ledger and journals with the accrual method accounting. |
| Use of estimates | The
preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information
available at the time the estimates are made; however, actual results could differ materially from those estimates. |
| Cash and cash equivalents | The
Company considers all highly liquid investments purchased with original maturities of three months or less, and unencumbered bank
deposits to be cash equivalents. |
| Accounts receivables | Trade
receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate
for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off against allowances. |
| Inventories | Inventories
consist of raw materials and finished goods are stated at the lower of cost or market value. Finished goods costs include: materials,
direct labor, inbound shipping costs, and allocated overhead. The Company applies the weighted average cost method to its inventory. |
| Advances and prepayments to suppliers | The
Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection
of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. |
| Plant and equipment | Plant and equipment are
carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line
method. The Company’s typically applies a salvage value of 0% to 10%. The estimated useful lives of the plant and equipment
are as follows:
Landscaping, plant and tree 1-3 years
Machinery and equipment 5-10 years The cost and related accumulated
depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s
results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments
are capitalized. |
| Intangible assets | Intangible assets are carried
at cost less accumulated amortization. Amortization is provided over their useful lives, using the straight-line method. The estimated
useful lives of the intangible assets are as follows:
Land use rights 20-40 years
Software licenses 5-10 years
Trademarks 20-40 years |
| Construction in progress and prepayments for equipment | Construction
in progress and prepayments for equipment represent direct and indirect acquisition and construction costs for plants, and costs
of acquisition and installation of related equipment. Amounts classified as construction in progress and prepayments for equipment
are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended
use are completed. Depreciation is not provided for assets classified in this account. |
| Accounting for the impairment of long-lived assets | The Company annually reviews its
long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may
not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry, introduction of new technologies,
or if the Company has inadequate working capital to utilize the long-lived assets to generate the adequate profits. Impairment
is present if the carrying amount of an asset is less than its expected future undiscounted cash flows. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount
exceeds the fair market value of the asset. Assets to be disposed are reported at the lower of the carrying amount or fair value
less costs to sell. |
| Statutory reserves | Statutory
reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used
to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe
that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit.
Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered
capital. |
| Foreign currency translation | The
accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi
(RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates,
and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at
their historical exchange rates when the capital transactions occurred.
2019 2018
Year
end RMB: US$ exchange rate 6.7111 6.8764
Annual
average RMB: US$ exchange rate 6.7482 6.6146 The
RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized
financial institutions. |
| Revenue recognition | The
Company recognizes revenue when all the following criteria have been met: it has negotiated the terms of the transaction with
the customer which includes setting a fixed sales price, it has transferred of possession of the product to the customer, the
customer does not have the right to return the product, the customer is able to further sell or transfer the product onto others
for economic benefit without any other obligation to be fulfilled by the Company, and the Company is reasonably assured that funds
have been or will be collected from the customer. The Company's the amount of revenue recognized to the books reflects the value
of goods invoiced, net of any value-added tax (VAT) or excise tax. |
| Advertising | All
advertising costs are expensed as incurred. |
| Shipping and handling | All
outbound shipping and handling costs are expensed as incurred. |
| Research and development | All
research and development costs are expensed as incurred. |
| Retirement benefits | Retirement
benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred
or allocated to inventory as part of overhead. |
| Income taxes | The
Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future
years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before
the Company is able to realize their benefits, or that future realization is uncertain. |
| Comprehensive income | The
Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income
and all changes to the statements of stockholders’ equity, except the changes in paid-in capital and distributions to stockholders
due to investments by stockholders. |
| Earnings per share | The
Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic
EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding
for the period. Diluted EPS presents the dilutive effect on a per share basis from the potential conversion of convertible securities
or the exercise of options and or warrants; the dilutive effects of potentially convertible securities are calculated using the
as-if method; the potentially dilutive effect of options or warrants are calculated using the treasury stock method. Securities
that are potentially an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded
from the calculation of diluted EPS. |
| Financial instruments | The
Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables,
accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities.
ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments
held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation
hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying
amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments
and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments
and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined
as follows:
• Level
1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets.
• Level
2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs
that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial
instrument.
• Level
3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The
Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities
from Equity,” and ASC 815. |
| Commitments and contingencies | Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it
is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
| Recent accounting pronouncements | In
January 2017, the FASB issued guidance which simplifies the accounting for goodwill impairment. The updated guidance eliminates
Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment
charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over
its fair value, determined in Step 1. The Company is currently evaluating the impact on the financial statements of this guidance. In
January 2017, the FASB amended the existing accounting standards for business combinations. The amendments clarify the definition
of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted
for as acquisitions (or disposals) of assets or businesses. The Company is currently evaluating the impact on the financial statements
of this guidance. In
November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The
guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents
in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted
cash and restricted cash equivalents in the statement of cash flows. The Company is currently evaluating the timing and the impact
of this guidance on the financial statements. In
October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory.
The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when
the transfer occurs The Company is currently evaluating the timing and the impact of this guidance on the financial statements. In
August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts
and cash payments on the statement of cash flows. The Company is currently evaluating the timing and the impact of this guidance
on the financial statements. In
June 2016, the FASB issued guidance, which requires credit losses on financial assets measured at amortized cost basis to be presented
at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities
should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The
Company is currently evaluating the timing and the impact of this guidance on the financial statements. In
February 2016, the FASB issued guidance, which amends the existing accounting standards for leases. Consistent with current
guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily
will depend on its classification. Under the new guidance, a lessee will be required to recognize assets and liabilities for all
leases with lease terms of more than twelve months. The Company is currently evaluating the timing and the impact of this
guidance on the financial statements. In
January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement
of financial assets and financial liabilities. The updated guidance primarily addresses certain aspects of recognition, measurement,
presentation, and disclosure of financial instruments. The Company is currently evaluating the timing and the impact of this guidance
on the financial statements. |
