Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 16, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Adveco Group Inc. | |
Entity Central Index Key | 0001698519 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 434,073,648 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 26,705 | $ 33,340 |
Accounts receivable | 28,792 | 5,991 |
Other receivables | 24,556 | 11,274 |
Inventory | 1,017,749 | 696,570 |
Advances and prepayments to suppliers | 732,082 | 143,411 |
Prepaid expenses, taxes and other current assets | 186,230 | 160,602 |
Related party receivable | 171,391 | 76,460 |
Total current assets | 2,187,505 | 1,127,648 |
Non-current Assets | ||
Property, plant and equipment, net | 707,589 | 895,273 |
Construction in progress, net | 4,762,260 | 5,010,721 |
Intangible assets, net | 2,389,666 | 2,413,826 |
Other assets and goodwill | 11,916 | 4,363 |
Total Assets | 10,058,936 | 9,451,831 |
Current Liabilities | ||
Short term bank loans | 174,786 | 261,763 |
Accounts payable | 1,297,977 | 943,756 |
Taxes payable | 67,595 | 49,475 |
Other payable | 112,730 | 127,614 |
Accrued liabilities and expenses | 40,487 | 116,535 |
Customer advances and deposits | 29,958 | 24,905 |
Related party payable | 19,640,457 | 17,034,755 |
Total current liabilities | 21,363,990 | 18,558,803 |
Total Liabilities | 21,363,990 | 18,558,803 |
Stockholders' Deficit | ||
Common stock, $0.001 par value, 2,000,000,000 shares authorized; 434,073,648 shares issued and outstanding | 434,074 | 434,074 |
Additional paid in capital | 2,869,890 | 2,869,890 |
Accumulated deficit | (14,854,863) | (12,648,527) |
Accumulated other comprehensive loss | 266,526 | 255,629 |
Non-controlling interest | (20,681) | (18,038) |
Total Stockholders' Deficit | (11,305,054) | (9,106,972) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 10,058,936 | $ 9,451,831 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' Deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 434,073,648 | 434,073,648 |
Common stock, shares outstanding | 434,073,648 | 434,073,648 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS COMPREHENSIVE LOSS UNAUDITED - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS COMPREHENSIVE LOSS UNAUDITED | ||||
Revenue | $ 647,247 | $ 149,901 | $ 990,127 | $ 234,497 |
Cost of revenues | 621,984 | 100,878 | 882,896 | 163,405 |
Gross loss | 26,000 | 49,023 | 107,231 | 71,092 |
Operating expenses | ||||
Selling and marketing expenses | 219,345 | 116,942 | 476,424 | 184,407 |
General and administrative expenses | 1,310,488 | 1,765,049 | 2,050,405 | 2,318,970 |
Total operating expenses | 1,529,833 | 1,881,991 | 2,526,829 | 2,503,377 |
Operating loss | (1,503,833) | (1,832,968) | (2,419,598) | (2,432,285) |
Other income (expenses): | ||||
Interest income | 2 | 17 | 2 | 25 |
Interest expenses | 2,916 | 7,605 | 6,985 | 13,978 |
Other income | 204,851 | 315 | 210,146 | 458 |
Other expenses | (2,282) | (1,461) | (7,465) | |
Total other income and (expenses) | 204,210 | (5,812) | 210,619 | (13,495) |
Provision for income taxes | ||||
Net loss | (1,300,360) | (1,838,780) | (2,208,979) | (2,445,780) |
Other comprehensive income: | ||||
Foreign currency translation income | 232,759 | 123,376 | 10,897 | (31,219) |
Comprehensive loss | $ (1,067,601) | $ (1,715,404) | $ (2,198,082) | $ 2,476,999 |
Loss per share | ||||
Basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Basic and diluted weighted average shares outstanding | 434,073,648 | 434,073,648 | 434,073,648 | 434,073,648 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT UNAUDITED - USD ($) | Total | Common Stock | Non Controlling Interest | Accumulated Other Comprehensive Loss | Accumulated Deficit | Additional Paid In capital |
Beginning Balance, Amount at Jan. 01, 2018 | $ (5,865,581) | $ 434,074 | $ (10,719) | $ 31,224 | $ (9,190,050) | $ 2,869,890 |
Net loss | (2,445,780) | (3,814) | (2,441,966) | |||
Foreign currency translation adjustment | (31,219) | (31,219) | ||||
Ending Balance, Amount at Jun. 30, 2018 | (5,865,581) | 434,074 | (14,533) | 5 | (11,632,016) | 2,869,890 |
Beginning Balance, Amount at Dec. 31, 2018 | (9,106,972) | 434,074 | (18,038) | 255,629 | (12,648,527) | 2,869,890 |
Net loss | (2,208,979) | (2,643) | (2,206,336) | |||
Foreign currency translation adjustment | 10,897 | 10,897 | ||||
Ending Balance, Amount at Jun. 30, 2019 | $ (11,305,054) | $ 434,074 | $ (20,681) | $ 266,526 | $ (14,854,863) | $ 2,869,890 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (2,208,979) | $ (2,445,780) |
Amortization | 33,997 | 34,819 |
Depreciation | 82,672 | 85,744 |
Increase in accounts and other receivables | (36,490) | (100,250) |
Increase in inventory | (323,920) | (112,147) |
Decrease/(increase) in prepayments and other current assets | (621,198) | 22,680 |
Increase in payables and other current liabilities | 288,986 | 153,646 |
Net cash used in operating activities | (2,784,932) | (2,361,289) |
Cash flows from investing activities | ||
Changes in plant and equipment and construction in progress | 368,200 | (181,159) |
Purchase of intangible assets | (13,309) | |
Payments for security deposits | ||
Net cash provided by (used in) investing activities | 354,891 | (181,159) |
Cash flows from financing activities | ||
Proceeds from injection of capital by owners | ||
Repayment of borrowings | (88,444) | (342,448) |
Changes in related party balances, net | 2,511,722 | 2,731,833 |
Net cash provided by financing activities | 2,423,278 | 2,389,385 |
Net decrease of cash and cash equivalents | (6,763) | (153,063) |
Effect of foreign currency translation on cash and cash equivalents | 128 | 7,412 |
Cash and cash equivalents-beginning of year | 33,340 | 155,244 |
Cash and cash equivalents-end of year | 26,705 | 9,593 |
Supplementary cash flow information: | ||
Interest received | 2 | 25 |
Interest paid | 6,985 | 13,978 |
Income taxes paid |
Organization,Principal Activiti
Organization,Principal Activities, and Going Concern | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
1. Organization,Principal Activities, and Going Concern | ADVECO GROUP INC. (the Company) was incorporated under the laws of the State of Nevada, U.S. on September 20, 2016. The Company did not have operations that generated revenues and positive cash flows; however, the Companys management has been reviewing investment opportunities. On March 22, 2018, the Company filed a Certificate of Amendment with the State of Nevada to increase its authorized shares to 2,000,000,000. On May 9, 2018, the Company entered into share exchange agreement by and among Sunny Taste Group Inc. (STGI) and its shareholders: 1.) Zhang Hua, 2.) Chen Hao Development Co., Ltd. and 3.) Shengjie Development Co., Ltd. whereby the Company newly issued 427,568,548 shares of its common stock in exchange for all the outstanding shares in STGI. This transaction has been accounted for a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and STGI, the legal acquiree, is the accounting acquirer. Sunny Taste Group Inc. (STGI) is a limited company incorporated in the British Virgin Islands on August 24, 2017. The Company is an investment holding company. Its primary business activities are conducted through its wholly owned subsidiaries in the Hubei province in the Peoples Republic of China (PRC). The Company primarily grows and sells a variety of agricultural products to local customers. Sunny Taste International Development Co., Ltd. (STID) is a limited company incorporated in the British Virgin Islands on August 24, 2017. It is wholly owned subsidiary of STGI. Sunny Taste (Hong Kong) Co., Limited (STHK) was incorporated on September 2, 2016 in Hong Kong with limited liability. It is a wholly owned subsidiary of STID. On November 1, 2017 Jingmen Wingspread Agriculture Company Limited (JWAC) was incorporated as wholly owned foreign entity in the PRC. It is a wholly owned subsidiary of STHK. Hubei Chenyuhui Agriculture Technology Company Limited (HCAT) was incorporated on October 30, 2012. I was acquired by JWAC on or about March 30, 2018; accordingly, HCAT became a wholly owned subsidiary of JWAC. On April 28, 2017, HCAT registered Hubei Hongxintai Agriculture Company Limited. (HHXT) as a branch office. Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern; however, the Company has incurred a net loss of $2,208,979 for the six months ended June 30, 2019. As of June 30, 2019, the Company had an accumulated deficit of $14,854,863, working capital deficit of $19,176,485, and stockholders deficit of $11,305,054; its net cash used in operating activities for the six months ended June 30, 2019 was $2,784,932. These factors raise substantial doubt on the Company's ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Managements plan for the Companys continued existence is dependent upon Management's ability to identify investment opportunities, develop those opportunities to generate profit; additionally, Management will need to continue to rely on certain related parties to provide funding for investment, working capital, and general corporate purposes. If Management is unable to execute its plan, the Company may become insolvent. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
2. 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 Companys 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 Companys 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 enterprises 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 Companys 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 6.8656 6.6184 Annual average RMB: US$ exchange rate 6.7840 6.3659 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 Companys 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). Financial Instruments-Credit Losses (Topic 326) amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 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 right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact on the financial statements of this guidance. |
Trade Receivables
Trade Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
3. Trade Receivables | The Company extends credit terms of 15 to 60 days to the majority of its domestic and international customers, which include third-party distributors and wholesalers. |
Plant and Equipment
Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
4. Plant and Equipment | 2019 2018 At Cost: Machinery and equipment $ 533,269 $ 354,722 Vehicle 195,951 199,216 Building 61,855 102,318 Furniture and fixtures 284,475 231,248 $ 1,075,550 $ 1,181,091 Less (367,961 ) (285,818 ) $ 707,589 $ 895,273 Depreciation expense for the six months ended June 30, 2019 and 2018 was $82,672 and $85,744, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
5. Intangible Assets | 2019 2018 At Cost: Land use rights 2,537,010 2,532,992 Software licenses 8,316 5,718 Trademark 7,470 4,447 Patents 21,848 21,813 $ 2,574,644 $ 2,564,970 Less (184,978 ) (151,144 ) $ 2,389,666 $ 2,413,826 Amortization expense for the six months ended June 30, 2019 and 2018 was $33,997 and $34,819, respectively. |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
6. Bank Loans | The Company had outstanding short-term loans with following financial institutions as detailed in the table below: Lender Due Date Interest rate 2019 2018 Bank of Communications Jinmen Branch 3/21/2019 10.50 % 261,763 Bank of Communications Jinmen Branch 13/3/2020 6.09 % 174,786 - 174,786 261,763 The loans from Bank of Communications by were guaranteed by Hubei Jinzhuan Guarantee Corporation Limited. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
7. Related Party Transactions | At June 30, 2019 and December 31, 2018, the Company lent funds to the following related parties; these loans were unsecured and non-interest bearing. Entity 2019 2018 Relationship Jinmen Xintai Vegetable Cultivation Professional Cooperative $ 303 $ 74 Common Control Hubei Ruizhe Agricultural Co., Ltd. 376 - Desheng Chen - 5,480 Relative to CEO Xiangyi Yang 2,447 - Relative to CEO Hubei Chenyuhui Retail Store 135,142 40,152 Common Control Jingmen Xintai Asset Management Co., Ltd. - 275 Relative to CEO Jinmen Xintai Cultural Development Co., Ltd - 30,479 Common Control Jingmen Xinxin Cultural Development Co., Ltd. 33,123 - Common Control 171,391 $ 76,460 At June 30, 2019 and December 31, 2018, the Company owed funds to the following related parties These advances were unsecured and non-interest bearing and due on demand: Entity 2019 2018 Relationship Jinmen Xintai Vegetable Cultivation Professional Cooperative $ 106,583 $ 4,616 Common Control Jinmen Quntai Agriculture Technology Corporation 13,997 13,975 Common Control Jinmen Shanzhiwei Chuqin Livestock Professional Cooperative 123,193 - Common Control Hubei Chenyuhui Retail Store 81,046 45,892 Common Control Jinmen Yutai Agricultural Technology Corporation 28,926 28,881 Common Control Hua Zhang 19,092,285 16,868,121 Chief Executive Officer Xuebing Ma 194,427 73,270 Relative to CEO $ 19,640,457 $ 17,034,755 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
8. Income Taxes | We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entitys financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Our effective tax rate for fiscal year 2019 will be 21%, which we expect to be fairly consistent in the near term. Our tax rate may also be affected by discrete items that may occur in any given year, but are not consistent from year to year. Income taxes are calculated and accrued for U.S. taxes only. The Companys subsidiaries formed in the British Virgin Islands is not subject to tax on its income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no withholding tax is imposed. The Companys subsidiary formed in Hong Kong is subject to the profits tax rate at 16.5% for income generated and operation in the special administrative region. The Companys subsidiaries incorporated in the PRC are subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the carry forward depends predominantly upon the Companys ability to generate taxable income during the carry forward period. The Companys subsidiaries incorporated in the PRC has unused net operating losses (NOLs) available for carry forward to future years for PRC income tax reporting purposes up to five years. The Company recorded a deferred tax asset in the amount of $0 at June 30, 2019. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
9. Commitments | The Company enters into land lease with rural townships for its plantations to grow agricultural products. The contracts are entered into and paid on a year to year basis. The Company does have any non-cancelable lease agreements. Pledges The Company had provided unconditional guarantees to Hubei Shayang Rural Bank and Shayang District Li City Rural Credit Cooperative for loans provided to certain related parties. At June 30, 2019 and December 31, 2018, the outstanding loans balances owed to Hubei Shayang Rural Bank and Shayang District Li City Rural Credit Cooperative were $856,950 and $403,629. The maximum amount of loss if the related parties become insolvent would be $856,950 and $403,629. |
Risks
Risks | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
10. Risks | A. Credit risk The Companys deposits are made with banks located in the PRC. They do not carry federal deposit insurance and may be subject to loss of the banks become insolvent. Since the Companys inception, the age of account receivables has been less than one year indicating that the Company is subject to minimal risk borne from credit extended to customers. B. Interest risk The company is subject to interest rate risk when short term loans become due and require refinancing. C. Economic and political risks The Companys operations are conducted in the PRC. Accordingly, the Companys business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. The Companys operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Companys results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. D. Environmental risks The Company has procured environmental licenses required by the PRC government. The Company has both a water treatment facility for water used in its production process and secure transportation to remove waste off site. In the event of an accident, the Company has purchased insurance to cover potential damage to employees, equipment, and local environment. E. Inflation Risk Management monitors changes in prices levels. Historically inflation has not materially impacted the companys financial statements; however, significant increases in the price of raw materials and labor that cannot be passed to the Companys customers could adversely impact the Companys results of operations. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2019 | |
Organization,Principal Activities, and Going Concern | |
11. Subsequent events | The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. The Company has evaluated subsequent events from June 30, 2019 through the date the financial statements were available to be issued and has determined that there are not any material subsequent events that require disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies (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 Companys 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 Companys 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 enterprises 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 Companys 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 6.8656 6.6184 Annual average RMB: US$ exchange rate 6.7840 6.3659 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 Companys 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). Financial Instruments-Credit Losses (Topic 326) amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 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 right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact on the financial statements of this guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies (Tables) | |
Plant and equipment estimated useful lives | Landscaping, plant and tree 1-3 years Machinery and equipment 5-10 years |
Intangible assets estimated useful lives | Land use rights 20-40 years Software licenses 5-10 years Trademarks 20-40 years |
Foreign currency translation exchange rates | 2019 2018 Year end RMB: US$ exchange rate 6.8656 6.6184 Annual average RMB: US$ exchange rate 6.7840 6.3659 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Plant and Equipment (Tables) | |
Schedule of Plant and Equipment | 2019 2018 At Cost: Machinery and equipment $ 533,269 $ 354,722 Vehicle 195,951 199,216 Building 61,855 102,318 Furniture and fixtures 284,475 231,248 $ 1,075,550 $ 1,181,091 Less (367,961 ) (285,818 ) $ 707,589 $ 895,273 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets (Tables) | |
Schedule of Intangible Assets | 2019 2018 At Cost: Land use rights 2,537,010 2,532,992 Software licenses 8,316 5,718 Trademark 7,470 4,447 Patents 21,848 21,813 $ 2,574,644 $ 2,564,970 Less (184,978 ) (151,144 ) $ 2,389,666 $ 2,413,826 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Bank Loans (Tables) | |
Schedule of Bank Loans | Lender Due Date Interest rate 2019 2018 Bank of Communications Jinmen Branch 3/21/2019 10.50 % 261,763 Bank of Communications Jinmen Branch 13/3/2020 6.09 % 174,786 - 174,786 261,763 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions (Tables) | |
Schedule of Related Party Transactions | At June 30, 2019 and December 31, 2018, the Company lent funds to the following related parties; these loans were unsecured and non-interest bearing. Entity 2019 2018 Relationship Jinmen Xintai Vegetable Cultivation Professional Cooperative $ 303 $ 74 Common Control Hubei Ruizhe Agricultural Co., Ltd. 376 - Desheng Chen - 5,480 Relative to CEO Xiangyi Yang 2,447 - Relative to CEO Hubei Chenyuhui Retail Store 135,142 40,152 Common Control Jingmen Xintai Asset Management Co., Ltd. - 275 Relative to CEO Jinmen Xintai Cultural Development Co., Ltd - 30,479 Common Control Jingmen Xinxin Cultural Development Co., Ltd. 33,123 - Common Control 171,391 $ 76,460 At June 30, 2019 and December 31, 2018, the Company owed funds to the following related parties These advances were unsecured and non-interest bearing and due on demand: Entity 2019 2018 Relationship Jinmen Xintai Vegetable Cultivation Professional Cooperative $ 106,583 $ 4,616 Common Control Jinmen Quntai Agriculture Technology Corporation 13,997 13,975 Common Control Jinmen Shanzhiwei Chuqin Livestock Professional Cooperative 123,193 - Common Control Hubei Chenyuhui Retail Store 81,046 45,892 Common Control Jinmen Yutai Agricultural Technology Corporation 28,926 28,881 Common Control Hua Zhang 19,092,285 16,868,121 Chief Executive Officer Xuebing Ma 194,427 73,270 Relative to CEO $ 19,640,457 $ 17,034,755 |
Organization and Principal Acti
Organization and Principal Activities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | May 09, 2018 | Mar. 22, 2018 | |
State of incorporation | Nevada | |||||||
Date of incorporation | Sep. 20, 2016 | |||||||
Common stock authorized shares increase | 2,000,000,000 | |||||||
Net loss | $ (1,300,360) | $ (1,838,780) | $ (2,208,979) | $ (2,445,780) | $ (2,445,780) | |||
Accumulated deficit | (14,854,863) | (14,854,863) | $ (12,648,527) | |||||
Net cash used in operating activities | (2,784,932) | $ (2,361,289) | ||||||
Going Concern [Member] | ||||||||
Net loss | 2,208,979 | |||||||
Accumulated deficit | (14,854,863) | (14,854,863) | ||||||
Working capital deficit | (19,176,485) | (19,176,485) | ||||||
Stockholders deficit | $ (11,305,054) | (11,305,054) | ||||||
Net cash used in operating activities | $ (2,784,932) | |||||||
Sunny Taste Group Inc. [Member] | ||||||||
Common stock issued in exchange for outstanding shares | 427,568,548 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Landscaping, plant and tree [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 1 year |
Landscaping, plant and tree [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 6 Months Ended |
Jun. 30, 2019 | |
Land use rights [Member] | Minimum [Member] | |
Intangible assets, Estimated Useful Life | 20 years |
Land use rights [Member] | Maximum [Member] | |
Intangible assets, Estimated Useful Life | 40 years |
Software licenses [Member] | Minimum [Member] | |
Intangible assets, Estimated Useful Life | 5 years |
Software licenses [Member] | Maximum [Member] | |
Intangible assets, Estimated Useful Life | 10 years |
Trademarks [Member] | Minimum [Member] | |
Intangible assets, Estimated Useful Life | 20 years |
Trademarks [Member] | Maximum [Member] | |
Intangible assets, Estimated Useful Life | 40 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies (Details 2) | ||
Year end RMB: US$ exchange rate | $ 6.8656 | $ 6.6184 |
Annual average RMB: US$ exchange rate | $ 6.7840 | $ 6.3659 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Statutory reserve description | 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. |
Minimum [Member] | |
Property, Plant and Equipment, Salvage Value Percentage | 0.00% |
Maximum [Member] | |
Property, Plant and Equipment, Salvage Value Percentage | 10.00% |
Trade Receivables (Details Narr
Trade Receivables (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Trade Receivables (Details Narrative) | |
Credit term extend, description | The Company extends credit terms of 15 to 60 days to the majority of its domestic and international customers, which include third-party distributors and wholesalers. |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Plant and Equipment, gross | $ 10,755,501 | $ 1,181,091 |
Less: Accumulated depreciation | (367,961) | (285,818) |
Plant and Equipment, net | 707,589 | 895,273 |
Machinery and Equipment [Member] | ||
Plant and Equipment, gross | 533,269 | 354,722 |
Vehicle [Member] | ||
Plant and Equipment, gross | 195,951 | 199,216 |
Building [Member] | ||
Plant and Equipment, gross | 61,855 | 102,318 |
Furniture and Fixtures [Member] | ||
Plant and Equipment, gross | $ 284,475 | $ 231,248 |
Plant and Equipment (Details Na
Plant and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Plant and Equipment (Details Narrative) | ||
Depreciation expense | $ 82,672 | $ 85,744 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
At Cost: | |||
Intangible assets | $ 2,574,644 | $ 2,564,970 | |
Less: Accumulated amortization | (184,978) | (151,144) | |
Intangible assets | 2,389,666 | $ 2,413,826 | 2,413,826 |
Land use rights [Member] | |||
At Cost: | |||
Intangible assets | 2,537,010 | 2,532,992 | |
Software licenses [Member] | |||
At Cost: | |||
Intangible assets | 8,316 | 5,718 | |
Trademarks [Member] | |||
At Cost: | |||
Intangible assets | 7,470 | 4,447 | |
Patents [Member] | |||
At Cost: | |||
Intangible assets | $ 21,848 | $ 21,813 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets (Details Narrative) | ||
Amortization expense | $ 33,997 | $ 34,819 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Short term bank loans | $ 174,786 | $ 261,763 |
Bank of Communications - Jinmen Branch [Member] | ||
Short term bank loans | $ 261,763 | |
Due Date | Mar. 21, 2019 | Mar. 21, 2019 |
Interest rate | 10.50% | 10.50% |
Bank of Communications - Jinmen Branch One [Member] | ||
Short term bank loans | $ 174,786 | |
Due Date | Mar. 13, 2020 | Mar. 13, 2020 |
Interest rate | 6.09% | 6.09% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Related party receivable | $ 171,391 | $ 76,460 |
Jinmen Xintai Vegetable Cultivation Professional Cooperative [Member] | ||
Related party receivable | 303 | 74 |
Hubei Ruizhe Agricultural Co., Ltd. [Member] | ||
Related party receivable | 376 | |
Desheng Chen [Member] | ||
Related party receivable | 5,480 | |
Xiangyi Yang [Member] | ||
Related party receivable | 2,447 | |
Hubei Chenyuhiu Retail Store [Member] | ||
Related party receivable | 135,142 | 40,152 |
Jingmen Xintai Asset Management Co., Ltd. [Member] | ||
Related party receivable | 275 | |
Jinmen Xintai Cultural Development Co., Ltd [Member] | ||
Related party receivable | 30,479 | |
Jinmen Xinxin Cultural Development Co., Ltd [Member] | ||
Related party receivable | $ 33,123 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Related party payable | $ 19,640,457 | $ 17,034,755 |
Jinmen Xintai Vegetable Cultivation Professional Cooperative [Member] | ||
Related party payable | 106,583 | 4,616 |
Hubei Chenyuhiu Retail Store [Member] | ||
Related party payable | 81,046 | 45,892 |
Jinmen Quntai Agriculture Technology Corporation [Member] | ||
Related party payable | 13,997 | 13,975 |
Jinmen Shanzhiwei Chuqin Livestock Professional Cooperative [Member] | ||
Related party payable | 123,193 | |
Jinmen Yutai Agricultural Technology Corporation [Member] | ||
Related party payable | 28,926 | 28,881 |
Hua Zhang [Member] | ||
Related party payable | 19,092,285 | 16,868,121 |
Xuebing Ma [Member] | ||
Related party payable | $ 194,427 | $ 73,270 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Deferred tax asset | $ 0 |
Effective tax rate | 21.00% |
PRC [Member] | |
Tax rate | 25.00% |
Hong Kong [Member] | |
Tax rate | 16.50% |
Commitments (Details Narrative)
Commitments (Details Narrative) - Hubei Shayang Rural Bank and Shayang District Li City [Member] - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Outstanding loans | $ 856,950 | $ 403,629 |
Maximum [Member] | ||
Loss if the related parties become insolvent | $ 856,950 | $ 403,629 |