Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Jinxuan Coking Coal Ltd |
Entity Central Index Key | 0001715194 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | cik0001715194 |
Entity Common Stock, Shares Outstanding | 14,333,334 |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 848,522 | $ 4,116 |
Notes receivable | 2,539,309 | 0 |
Accounts receivable | 228,858 | 0 |
Other receivables, net | 12,846 | 882,683 |
Prepayments and other current assets | 2,939 | 37,889 |
Subscription receivable | 80,000 | 0 |
Inventories | 0 | 60,825 |
Total Current Assets | 3,712,474 | 985,513 |
Non-current assets | ||
Property and equipment, net | 270,814 | 372,475 |
Total Assets | 3,983,288 | 1,357,988 |
Current liabilities | ||
Accounts payable | 283,311 | 59,606 |
Other payable and accrued expenses | 246,002 | 64,847 |
Loan from a third party | 2,252,872 | 0 |
Income taxes payable | 65,677 | 57,459 |
Amount due to related parties | 407,706 | 429,650 |
Total Current Liabilities | 3,255,568 | 611,562 |
Commitments | ||
Shareholders' equity | ||
Ordinary shares (0.001 par value, 100,000,000 shares authorized, 14,333,334 and 13,333,334 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively) | 14,333 | 13,333 |
Additional paid-in capital | 861,301 | 783,207 |
Statutory reserve | 74,956 | 74,956 |
Accumulated deficit | (145,972) | (84,048) |
Accumulated other comprehensive loss | (76,898) | (41,022) |
Total Shareholders' Equity | 727,720 | 746,426 |
Total Liabilities and Shareholders' Equity | $ 3,983,288 | $ 1,357,988 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Sep. 28, 2018 | Dec. 31, 2017 | Aug. 05, 2017 | Jul. 30, 2017 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 14,333,334 | 13,333,334 | 13,333,334 | ||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 13,333,334 | 13,333,334 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
- Product sales to a related party | $ 0 | $ 0 | $ 2,919,696 |
Total revenue | 6,721,728 | 179,757 | 19,589,747 |
Cost of revenue | |||
- Product sales to a related party | 0 | 0 | 4,664,452 |
Total cost of revenue | 5,663,877 | 99,274 | 17,200,450 |
Gross profit | 1,057,851 | 80,483 | 2,389,297 |
Operating expenses | |||
Selling and marketing expenses | 355,369 | 104,730 | 1,121,950 |
General and administrative expenses | 650,845 | 722,291 | 260,715 |
Impairment loss on equipment | 17,652 | 0 | 0 |
Total operating expenses | 1,023,866 | 827,021 | 1,382,665 |
Profit (loss) from operations | 33,985 | (746,538) | 1,006,632 |
Other (expenses) income | |||
Total other (expenses) income, net | (84,342) | 878 | 478 |
(Loss) income before income tax | (50,357) | (745,660) | 1,007,110 |
Income tax expense | 11,567 | 0 | 257,549 |
Net (loss) income | (61,924) | (745,660) | 749,561 |
Other comprehensive (loss) income | |||
Foreign currency translation (loss) gain | (35,876) | 65,254 | (80,262) |
Comprehensive (loss) income | $ (97,800) | $ (680,406) | $ 669,299 |
Weighted average number of shares, basic and diluted | 13,590,868 | 13,333,334 | 13,333,334 |
Basic and diluted (loss) earnings per share | $ (0.005) | $ (0.056) | $ 0.056 |
Product [Member] | |||
Revenue | |||
Revenue | $ 6,684,112 | $ 79,946 | $ 16,670,051 |
- Product sales to a related party | 0 | 0 | 2,919,696 |
Cost of revenue | |||
- Product sales to a related party | 0 | 0 | 2,794,596 |
Total cost of revenue | 5,663,877 | 99,274 | 14,405,854 |
Service [Member] | |||
Revenue | |||
Revenue | $ 37,616 | $ 99,811 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Ordinary Shares | Additional Paid-in Capital | Statutory Reserve | Retained earnings (Accumulated Deficit) | Accumulated other Comprehensive (loss) income |
Balance at Dec. 31, 2015 | $ 757,533 | $ 13,333 | $ 783,207 | $ 0 | $ (12,993) | $ (26,014) |
Balance, Shares at Dec. 31, 2015 | 13,333,334 | |||||
Net income (loss) | 749,561 | $ 0 | 0 | 0 | 749,561 | 0 |
Statutory reserves | 0 | 0 | 0 | 74,956 | (74,956) | 0 |
Foreign currency translation loss | (80,262) | 0 | 0 | 0 | 0 | (80,262) |
Balance at Dec. 31, 2016 | 1,426,832 | $ 13,333 | 783,207 | 74,956 | 661,612 | (106,276) |
Balance, shares at Dec. 31, 2016 | 13,333,334 | |||||
Net income (loss) | (745,660) | $ 0 | 0 | 0 | (745,660) | 0 |
Foreign currency translation loss | 65,254 | 0 | 0 | 0 | 0 | 65,254 |
Balance at Dec. 31, 2017 | $ 746,426 | $ 13,333 | $ 783,207 | $ 74,956 | $ (84,048) | $ (41,022) |
Balance, shares at Dec. 31, 2017 | 13,333,334 | |||||
Issuance of ordinary shares | 79,094 | 1,000 | 78,094 | 0 | 0 | 0 |
Issuance of ordinary shares, in shares | $ 1,000,000 | |||||
Net income (loss) | $ (61,924) | 0 | $ 0 | $ 0 | $ (61,924) | $ 0 |
Foreign currency translation loss | (35,876) | 0 | 0 | 0 | 0 | (35,876) |
Balance at Dec. 31, 2018 | $ 727,720 | $ 14,333 | $ 861,301 | $ 74,956 | $ (145,972) | $ (76,898) |
Balance, shares at Dec. 31, 2018 | 14,333,334 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (61,924) | $ (745,660) | $ 749,561 |
Adjustment to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation | 68,056 | 62,602 | 10,342 |
Deferred income tax | 0 | 0 | 4,060 |
Bad debt provision | 75,558 | 0 | 0 |
Impairment loss on equipment | 17,652 | 0 | 0 |
Changes in operating assets and liabilities | |||
Accounts receivable | (237,358) | 71,012 | (72,214) |
Notes receivable | (2,633,621) | 0 | 0 |
Other receivables | 24,247 | 0 | 0 |
Inventories | 59,862 | 64,569 | (125,299) |
Income taxes payable | 11,567 | (153,213) | 212,143 |
Prepayments and other current assets | 34,241 | 25,668 | (63,252) |
Accounts payable | 235,170 | (51,701) | 111,018 |
Other payable and accrued expenses | 188,607 | (401,390) | 451,934 |
Due from a related party | 0 | 57,743 | (55,328) |
Due to a related party | 0 | 195,148 | 19,572 |
Net cash (used in) provided by operating activities | (2,217,943) | (875,222) | 1,242,537 |
Cash flows from investing activities: | |||
Purchase of property and equipment | 0 | (215,485) | (190,557) |
Collection from a related party | 0 | 740,255 | 0 |
Collection from third parties | 755,581 | 871,142 | (998,587) |
Deposit for acquisition | 0 | (740,255) | 0 |
Net cash provided by (used in) investing activities | 755,581 | 655,657 | (1,189,144) |
Cash flows from financing activities: | |||
Repayment to a related party | 0 | 0 | (22,583) |
Receipt of loan from third parties | 2,336,547 | 18,183 | 0 |
Receipt of loan from a related party | 0 | 148,045 | 0 |
Payment of shares offering expense | (906) | 0 | 0 |
Net cash provided by (used in) financing activities | 2,335,641 | 166,228 | (22,583) |
Effect of exchange rate changes on cash and cash equivalents | (28,873) | 1,655 | (3,103) |
Net increase (decrease) in cash and cash equivalents | 844,406 | (51,682) | 27,707 |
Cash and cash equivalents at beginning of year | 4,116 | 55,798 | 28,091 |
Cash and cash equivalents at end of year | 848,522 | 4,116 | 55,798 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 0 | 0 | 0 |
Cash paid for income taxes | 0 | 153,213 | 50,359 |
Non-cash financing activity | |||
Subscription receivable | $ (80,000) | $ 0 | $ 0 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 12 Months Ended |
Dec. 31, 2018 | |
OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1. BUSINESS DESCRIPTION Organization and description of business Jinxuan Coking Coal Limited (“Jinxuan” or the “Company”), through its subsidiaries, is currently engaged in distributing and reselling blended coking coal in People’s Republic of China (“PRC” or “China”). Jinxuan is a limited company established under the laws of the Cayman Islands on February 24, 2017. The authorized number of ordinary shares was 50,000 shares with par value of $1 each. 50,000 ordinary shares were issued at par value, equivalent to share capital of $50,000. Mr. Xiangyang Guo (“Mr. Guo”), the sole director of the Company, is the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. On July 30, 2017, the Company effected a 1-for-2,000 stock split of its ordinary share, after which the authorized number of ordinary shares became 100,000,000 0.001 The PRC operating company, Liulin Junhao Coal Trade Co. Ltd. (“Liulin Junhao” or “WOFE”) was incorporated as a PRC entity pursuant to PRC law on October 16, 2012 by two former shareholders. On February 26, 2015, the 100% ownership interest of Liulin Junhao was transferred to Beijing Jinxuan Investment Co., Ltd (“Beijing Jinxuan”). On December 20, 2016, four individuals, including Mr. Guo, entered into a share transferring agreement with Beijing Jinxuan to acquire 100% of the ownership of Liulin Junhao (the “share transferring transaction”). The share transferring transaction was closed at the end of business on December 31, 2016 and as a result, the controlling shareholder, Mr. Guo, held controlling interest of Liulin Junhao on January 1, 2017. On April 25, 2019, the shareholders of Liulin Junhao. consented to changing the company’s name to Shanxi Jinxuan Investment Co. Ltd., effective immediately. Reorganization During 2017, in anticipation of an initial public offering (“IPO”) of its equity securities, the Company undertook a reorganization (“the Reorganization”) and became the ultimate holding company of Jinxuan JH limited (“Jinxuan JH”), Junhao Coking Coal International Holding Limited (“Junhao International”), Jacqueline G.D International Limited (“Jacqueline G.D”) and Liulin Junhao, which were all controlled by the same shareholders after Mr. Guo held controlling interest of Liulin Junhao on January 1, 2017. Details of the subsidiaries of the Company are set out below: Subsidiaries Date of incorporation Place of Incorporation Percentage of ownership Principal activity Jinxuan JH March 20, 2017 British Virgin Islands 100 Investment holding Jacquline G.D January 10, 2017 Hong Kong 100 Investment holding Junhao International April 10, 2017 Hong Kong 100 Investment holding Liulin Junhao October 16, 2012 PRC 100 Distribution and resell of coal On August 5, 2017, as a result of the Reorganization, there were 13,333,334 ordinary shares issued and outstanding, and the Reorganization was accounted for as a recapitalization. The Company believes it is appropriate to reflect the Reorganization on a retroactive basis similar to stock split pursuant to ASC 260. The Company, together with its wholly-owned subsidiaries Jinxuan JH, Jacquiline G.D, Junhao International and Liulin Junhao were effectively controlled by the same shareholders before and after the Reorganization and therefore the Reorganization is considered under common control after Mr. Guo obtained controlling interest of Liulin Junhao on January 1, 2017 and was accounted for similar to the pooling method of accounting as of then. On September 28, 2018, the Company offered 1,000,000 ordinary shares at a fixed price of $0.08 per share, par value $0.001 per share. At the completion of this offering, there is 14,333,334 shares of ordinary shares issued and outstanding. The gross proceeds from this offering is $80,000, which is received in January 2019. The net proceeds from this offering, after deducting the offering expenses paid by the Company of $906 is $79,094. |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | NOTE 2. LIQUIDITY The Company’s net loss for the years ended December 31, 2018 and 2017 were $61,924 and $745,660, respectively. The net cash used in operating activities were $2,217,943 and $875,222 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company had cash and cash equivalents of $848,522 and the Company’s consolidated current assets exceeded its consolidated current liabilities by $456,906. In assessing its going concern in the next 12 months following the issuance of the financial statements for the year ended December 31, 2018, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating expenditure commitments. The Company believes that available cash and cash equivalents, the cash provided by operating activities, should enable the Company to meet anticipated cash needs in the next 12 months after the issuance of the financial statements. If the Company encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity, which could include, but not necessarily be limited to, decreasing operating expense, increasing advance receipts and reducing indirect cost. The continuing financial support from the Company’s major shareholders, if necessary, in the near future will also be provided to ensure sufficient working capital. Thus the accompanying consolidated financial statements assuming the Company will continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates. (c) Foreign currency translation and transactions The functional currency of Liulin Junhao is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar” or “US$”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in shareholders’ equity. The exchange rates applied are as follows: December 31, 2018 2017 RMB exchange rate at balance sheet dates 6.8632 6.5127 The Years Ended December 31 2018 2017 2016 Average exchange rate for the year 6.6174 6.7547 6.6423 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. The source of the exchange rates is generated from People's Bank of China. (d) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of December 31, 2018, and 2017, cash was $848,522 and $4,116, respectively. (e) Notes receivables Notes receivables represent bank's acceptance bills that were received from customers in the ordinary operation of business, and bank's acceptance bills are due within one year or less. (f) Accounts receivable and other receivables, net Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. During the years ended December 31, 2018, 2017 and 2016, there were no allowance for doubtful accounts from accounts receivable; the allowances for doubtful accounts from other receivables were $72,852, nil and nil, respectively. (g) Property and equipment, net The Company states property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 0% to 5% residual value. Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machinery 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. (h) Revenue recognition On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption did not result in a material adjustment to the accumulated deficit as of January 1, 2018. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Accordingly, revenues for the year ended December 31, 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 and 2016 have not been adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. There was no material impact on its financial statements and disclosures in the periods after adopting ASC 606. The Company’s revenues are derived principally from sales of coke coal and coal sales agent services. Commencing on January 1, 2018, the Company recognizes revenue in accordance with ASC 606 and revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Coke coal sales revenue The Company has the right to receive the consideration by providing agreed quantity and quality coal to the customers, and the price for the product is fixed. The Company is a principal because the Company controls the promised goods (coke coal) before the Company transfers the goods to the customer. And there are no other parties involved for the obligation to provide the goods to the customer. There is no variable consideration and non-cash consideration agreed with customer. The transaction price is fixed and allocated to the delivery of goods, the only performance obligation. The revenue is recognized when the Company satisfied its performance obligation by transferring the promised goods to the customer with agreed point of time, fixed price and location. Coal sales agent services revenue When serving as an agent, the Company signed contracts with supplier and customer separately. The Company’s obligation is to provide the specified services to arrange for the supplier to provide those goods to the customer. When the Company satisfies the performance obligation, the Company recognizes revenue in the amount of the fee to which it expects to be entitled in exchange for arranging for the supplier to provide its goods. The Company’s fee is the net amount of consideration that the Company retains after paying the supplier the consideration received in exchange for the goods to be provided by the supplier. Also, the supplier assumes the Company’s performance obligations and contractual rights in the contract signed with customer so that the Company is no longer obliged to satisfy the performance obligation to transfer the promised good to the customer. The contracts with coal sales agent service customers have specific prices and terms for the service provided. The revenue is recognized upon the services of delivery of coke coal to a customer. Contract costs For the year ended December 31, 2018, the Company did not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. The Company does not have advances from customers as of December 31, 2018. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 days after a bill is issued. The Company does not have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is not contingent on a future event. (i) Cost of revenue Cost of revenue mainly comprised of raw material costs, inbound freight charges and production costs, depreciation, workers’ wages and site lease. (j) Shipping and handling costs The Company expenses the shipping and handling costs in conjunction with sale of its products as incurred and the shipping and handling costs is included as part of selling and marketing expenses. Total shipping and handling costs were $290,130, $89,027 and $1,112,599 for the years ended December 31, 2018, 2017 and 2016, respectively. (k) Taxation a) Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts a teach period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company is required to file its income tax return with Cayman Island and its subsidiaries located in BVI, Hong Kong, and PRC are required to file tax return with BVI, Hong Kong and PRC respectively. b) Value added tax (“VAT”) Sales revenues are subject to VAT. The VAT rate is 16% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods, except otherwise specified; 10% for taxpayers leasing services, or freight, except otherwise specified. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2018 and 2017, and there were no uncertain tax positions as of December 31, 2018, 2017 and 2016. All tax returns since the Company’s inception are still subject to examination by tax authorities. (l) Comprehensive income (loss) Recognized revenue, expenses, gains and losses are included as net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. (m) Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, notes receivable, accounts receivable, other receivables, and accounts payable. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. (n) (Loss) earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have 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. (o) Impairment of long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. The impairment loss of long-lived assets were $17,652, nil and nil for the years ended December 31, 2018, 2017 and 2016, respectively. (p) Recently issued accounting standards FASB Accounting Standards Update No. 2016-02 In February 2016, the FASB issued new lease accounting guidance ASU No. 2016-02, “Leases” (“ASU 2016-02”), as amended by ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements.” Under the new guidance, at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new guidance is not applicable for leases with a term of 12 months or less. Lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company adopted the amendments in these ASUs on January 1, 2019 using the modified retrospective transition approach provided by ASU No. 2018-11. The adoption did not result in a material adjustment to the Company’s accumulated deficit as of January 1, 2019. Based on the Company’s current office space lease agreements as of December 31, 2018, the amounts of the right-of-use asset and related lease payment liability recognized on January 1, 2019 is approximately $345,000. |
ACCOUNT RECEIVABLES
ACCOUNT RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable Text Block [Text Block] | NOTE 4. ACCOUNT RECEIVABLES Account receivable consisted of the following: As of December 31, 2018 2017 Receivable from product sales $ 228,858 $ - Total $ 228,858 $ - As of December 31, 2018, accounts receivable of $228,858 was from our product sales to third parties and are non-interest bearing. |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5. OTHER RECEIVABLES, NET Other receivables consisted of the following: As of December 31, 2018 2017 Rental deposit $ 7,712 $ 8,126 Due from third parties 77,986 865,081 Input VAT - 9,476 Total other receivables 85,698 882,683 Less: Provision for doubtful accounts (72,852 ) - Other receivables, net $ 12,846 $ 882,683 As of December 31, 2018, amounts due from third parties mainly consist of loans to third parties. As of December 31, 2018, the Company evaluates the collectability of loan to third parties and recorded an allowance of $72,852 for doubtful accounts. On February 22, 2018, Beijing Jinxuan, Liulin Junhao, and Mr. Feiyue Mao, as a 99% equity owner of Beijing Jinxuan, entered into a termination agreement pursuant to which the parties terminated the Beijing Jinxuan Transfer Agreement, and agreed that Mr. Feiyue Mao shall return the $755,581 (RMB5 million) deposit paid by the Company in 2017 to Liulin Junhao in April 2018. The deposit was collected on April 20, 2018. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
PREPAYMENTS AND OTHER CURRENT ASSETS [Abstract] | |
Prepayments and Other Current Assets [Text Block] | NOTE 6. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following: As of December 31, 2018 2017 Prepayments for inventory $ 463 $ 487 Prepaid rental - 37,402 Others 2,476 - Total $ 2,939 $ 37,889 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 7. INVENTORIES Inventory relates to clean coal and raw coal targeted for resell, which consisted of the following: As of December 31, 2018 2017 Clean coal $ - $ 45,426 Raw coal - 15,399 Total $ - $ 60,825 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 8. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of December 31, 2018 2017 Vehicles $ 189,167 $ 199,348 Machinery 6,268 24,541 Furniture 12,123 12,775 Leasehold improvement 27,894 29,398 Building 173,388 182,721 Less: accumulated depreciation (138,026 ) (76,308 ) Property and equipment, net $ 270,814 $ 372,475 Depreciation expense was $68,056, $ 62,602 and $10,342, respectively, for the years ended December 31, 2018, 2017 and 2016. The net book value of the unused coal distributor was fully impaired as of December 31, 2018 as it is not expected to generate future cash flow to the Company. The coal distributor is a machine used for coal blending manufacture was bought in February 2016, and was not regularly used in the daily manufacture. An impairment loss of $17,652 was recognized in the statements of operations for the year ended December 31, 2018. |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 9. ACCOUNTS PAYABLE Accounts payable consisted of the following: As of December 31, 2018 2017 Payable to suppliers $ 282,596 $ 59,606 Others 715 - Total $ 283,311 $ 59,606 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 10. OTHER PAYABLE AND ACCRUED EXPENSES Other payable and accrued expenses consisted of the following: As of December 31, 2018 2017 Accrued payroll $ 1,940 $ 12,470 Other tax payable 82,606 - Other payable 161,455 52,377 Total $ 246,001 $ 64,847 As of December 31, 2018 , other tax payable of $82,606 primarily include unpaid value-added tax, personal Income Tax and other taxes. As of December 31, 2018, other payable of $161,455 primarily consist of unpaid rental fees and interest-free loans of $119,478 (RMB820,000) that matured on December 31, 2018. On January 1, 2019 such interest-free loans were renewed with mature date of December 31, 2019. |
LOAN FROM A THIRD PARTY
LOAN FROM A THIRD PARTY | 12 Months Ended |
Dec. 31, 2018 | |
Loan From Third Party [Abstract] | |
Loan From Third Party [Text Block] | NOTE 11. LOAN FROM A THIRD PARTY As of December 31, 2018 2017 Principle of loan from a third party $ 2,185,569 $ - Accrued interest payable 67,303 - Total $ 2,252,872 $ - During the year ended December 31, 2018, the Company borrowed a loan from a third party in the amount of $2,185,569 (RMB 15,000,000 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 12. TAXATION a) Enterprise Income Taxes Under the current laws of Cayman Islands, the Company incorporated in the Cayman Islands are not subject to tax on income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Jinxuan JH is incorporated in the BVI. Under the current law of the BVI, Jinxuan JH is not subject to tax on income or capital gains. Additionally, if dividends are paid by Jinxuan JH to its shareholders, no BVI withholding tax will be imposed. Jacqueline G.D and Junhao International were both incorporated in Hongkong and do not conduct any substantial operations of its own. Under the Hong Kong tax laws, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. No provision for Hongkong profits tax has been made in the consolidated financial statements as Jacqueline G.D and Junhao International both have no assessable profits for the year ended December 31, 2018. Liulin Junhao, incorporated in the PRC, is governed by the enterprise income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC is 25%, and applies to both domestic and foreign invested enterprises. The effective tax rate of the Company were (23.0) %, 0% and 25.6% for the years ended December 31, 2018, 2017 and 2016, respectively. The components of the income tax expenses for the years ended December 31, 2018, 2017 and 2016 are as follows The Years ended December 31, 2018 2017 2016 Current income tax provision $ 11,567 $ - $ 253,489 Deferred income tax provision - - 4,060 Total $ 11,567 $ - $ 257,549 Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2018 and 2017 and the Company’s effective income tax expenses is as follows: The Years ended December 31, 2018 2017 2016 (Loss) income before income taxes $ (50,357 ) $ (745,660 ) $ 1,007,110 Statutory EIT rate 25 % 25 % 25 % Income tax (benefit) expense computed at statutory EIT rate (12,589 ) (186,415 ) 251,778 Reconciling items: International tax rate differential 46 - - Non-deductible expenses 132,498 57,401 5,771 Valuation allowance change (108,388 ) 129,014 - Income tax expense $ 11,567 $ - $ 257,549 Effective tax rate (23.0 )% - % 25.6 % b) Deferred Tax According to PRC tax regulations, net operating losses can be carried forward to offset future operating income for five years. Significant components of deferred tax assets were as follows: For the Fiscal Years Ended December 31, 2018 2017 Net operating loss carry forwards $ - $ 129,014 Allowance for doubtful accounts 18,213 - Impairment expenses 4,255 - Deferred tax assets, gross 22,468 129,014 Less: Valuation allowance (22,468 ) (129,014 ) Deferred tax assets, net $ - $ - The Company follows ASC 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Due to the Company's history of recurrent losses, the management did not expect the Company will generate enough profit to utilize the DTA in the future. Accordingly, a full deferred tax asset valuation allowance has been provided. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Valuation allowances decreased by $106,546 in 2018, and increased by $129,014 in 2017. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2018 and 2017, and there were no uncertain tax positions as of December 31, 2018 and 2017. d) Value-added Tax PRC Value-added Tax Liulin Junhao is the operating entity who provided services in China and therefore is subject to a Chinese value-added tax (“VAT”). Revenue represents the invoiced value of goods delivered net of a VAT. The application tax rate is 16% for selling product and 10% for freight. Furthermore, accrued VAT payables are subject to a 6% surcharges, which includes urban maintenance and construction taxes and additional education fees. |
ORDINARY SHARE
ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 13. ORDINARY SHARE On September 28, 2018, the Company offered 1,000,000 ordinary shares at a fixed price of $0.08 per share, par value of $0.001 per share. At the completion of this offering, there are 14,333,334 shares of ordinary shares issued and outstanding. The 1,000,000 shares were issued to 30 individuals. As of December 31, 2018, the gross proceeds from the shares issuance of $80,000 were recorded as subscription receivable, which were received in January 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 14. RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability, directly or indirectly, to control the other parties or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, stockholder, or a related corporation. a) The table below summarizes the major related parties and their relationships with the Company: Name of related parties Relationship with the Company Mr. Bingshan Guo Director Mr. Xiangyang Guo CEO, director and chairman of the board of the Company Mr. Yonghong Che 9% beneficial owner of the Company b) During the periods presented, the details of the related party balances and transactions were as follows: Amount due to related parties: As of December 31, 2018 2017 Mr. Bingshan Guo $ 211,005 $ 222,362 Mr. Xiangyang Guo 145,704 153,547 Mr. Yonghong Che 50,996 53,741 Total $ 407,706 $ 429,650 During 2017, Mr. Bingshan Guo paid the professional service fees for initial public offering on behalf of the Company, these amounts were non-interest bearing with no payment terms. Mr. Xiangyang Guo and Mr. Yonghong Che provided interest-free loans to the Company. On December 31, 2018, the related parties agreed with the Company to extend the maturity day to December 31, 2019. Transaction: 1. Sales to a related party The Years ended December 31, 2018 2017 2016 Liulin Hongxing Coking Coal Trade Co., Ltd. (“Hongxing”) $ - $ - $ 2,919,696 Total $ - $ - $ 2,919,696 Hongxing was no longer the Company’s related party from December 31, 2016 as the Company was no longer under common control with Hongxin since 2017. During the year ended December 31, 2016, the Company sold coking coal to Hongxing, which mainly engaged in coal washing plant and coal reselling. Prices and terms for all the sales transactions were determined based on the prevailing market prices. 2. Purchase from a related party The Years ended December 31, 2018 2017 2016 Hongxing $ - $ - $ 4,664,452 Total $ - $ - $ 4,664,452 During the year ended December 31, 2016, the Company purchased high sulfur coking coal from Hongxing. The price and terms of the purchase were determined based on the prevailing market prices. 3. Lease from a related party During the year ended December 31, 2016, the Company leased a coal yard from Hongxing, under the non-cancelable operating lease agreement that expires at December 31, 2020. The lease is on a fixed payment basis, with a five years leasing term and has no contingent rentals. Expenses from this lease recorded during the year ended December 31, 2018, 2017 and 2016 were as below: The Years ended December 31, 2018 2017 2016 Hongxing $ 17,698 $ 19,246 $ 19,572 Total $ 17,698 $ 19,246 $ 19,572 4. Loan provided by related parties The Years ended December 31, 2018 2017 2016 Related party paid on behalf of the Company for operations: Mr. Bingshan Guo $ - $ 195,148 $ - Loan provided by related parties to the Company: Mr. Xiangyang Guo - 148,045 - Hongxing - - 19,572 Total $ - $ 343,193 $ 19,572 |
CONCENTRATION AND RISK
CONCENTRATION AND RISK | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 15. CONCENTRATION AND RISK Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, and other receivables. As of December 31, 2018, and 2017, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China, which management believes are of high credit quality. Currency convertibility risk Significant part of the Company’s businesses is transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiary to transfer its net assets, to the Company through loans, advances or cash dividends. Concentration of customers The following tables summarized the information about the Company’s concentration of customers for the years ended December 31, 2018, 2017 and 2016, respectively: Year Ended December 31, 2018 2017 2016 Customer A 33 % * 13 % B 17 % * * C 14 % * * D 11 % * * E * 46 % * F * 54 % * G * * 48 % H * * 15 % I * * 14 % Accounts receivable from customer D accounts for 93% of the Company’s total accounts receivable as of December 31, 2018. No other customer accounts for more than 10% of the total accounts receivable as of December 31, 2018 and 2017. Concentration of suppliers The following tables summarized the information about the Company’s concentration of suppliers for the years ended December 31, 2018, 2017 and 2016, respectively: Year Ended December 31, 2018 2017 2016 Supplier J 60 % * * K 16 % * * L * * 72 % H * * 28 % Accounts payable to supplier M and N account for 65% and 35% of the Company’s total accounts payable as of December 31, 2018. Supplier O accounted for 100% of our accounts payable as of December 31, 2017. * Less than 10%. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | NOTE 16. COMMITMENTS The Company leases office premises and a coal yard under the non-cancelable operating lease agreements that expire at December 31, 2022, with an option to renew the lease. Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows: Lease commitments Year ending December 31, -2019 $ 105,004 -2020 118,021 -2021 118,021 -2022 43,711 -2023 and thereafter - Total $ 384,757 For the years ended December 31, 2018, 2017 and 2016, rental expenses under operating leases were $59,414, $70,586 and $19,694, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 17. SUBSEQUENT EVENTS The Company’s management has performed subsequent events procedures through the date the consolidated financial statements are issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) |
Use of Estimates, Policy [Policy Text Block] | (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (c) Foreign currency translation and transactions The functional currency of Liulin Junhao is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar” or “US$”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in shareholders’ equity. The exchange rates applied are as follows: December 31, 2018 2017 RMB exchange rate at balance sheet dates 6.8632 6.5127 The Years Ended December 31 2018 2017 2016 Average exchange rate for the year 6.6174 6.7547 6.6423 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. The source of the exchange rates is generated from People's Bank of China. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (d) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of December 31, 2018, and 2017, cash was $848,522 and $4,116, respectively. |
Notes Receivables Policy [Table Text Block] | (e) Notes receivables Notes receivables represent bank's acceptance bills that were received from customers in the ordinary operation of business, and bank's acceptance bills are due within one year or less. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | (f) Accounts receivable and other receivables, net Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. During the years ended December 31, 2018, 2017 and 2016, there were no allowance for doubtful accounts from accounts receivable; the allowances for doubtful accounts from other receivables were $72,852, nil and nil, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | (g) Property and equipment, net The Company states property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 0% to 5% residual value. Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machinery 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. |
Revenue Recognition, Policy [Policy Text Block] | (h) Revenue recognition On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption did not result in a material adjustment to the accumulated deficit as of January 1, 2018. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Accordingly, revenues for the year ended December 31, 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 and 2016 have not been adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. There was no material impact on its financial statements and disclosures in the periods after adopting ASC 606. The Company’s revenues are derived principally from sales of coke coal and coal sales agent services. Commencing on January 1, 2018, the Company recognizes revenue in accordance with ASC 606 and revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Coke coal sales revenue The Company has the right to receive the consideration by providing agreed quantity and quality coal to the customers, and the price for the product is fixed. The Company is a principal because the Company controls the promised goods (coke coal) before the Company transfers the goods to the customer. And there are no other parties involved for the obligation to provide the goods to the customer. There is no variable consideration and non-cash consideration agreed with customer. The transaction price is fixed and allocated to the delivery of goods, the only performance obligation. The revenue is recognized when the Company satisfied its performance obligation by transferring the promised goods to the customer with agreed point of time, fixed price and location. Coal sales agent services revenue When serving as an agent, the Company signed contracts with supplier and customer separately. The Company’s obligation is to provide the specified services to arrange for the supplier to provide those goods to the customer. When the Company satisfies the performance obligation, the Company recognizes revenue in the amount of the fee to which it expects to be entitled in exchange for arranging for the supplier to provide its goods. The Company’s fee is the net amount of consideration that the Company retains after paying the supplier the consideration received in exchange for the goods to be provided by the supplier. Also, the supplier assumes the Company’s performance obligations and contractual rights in the contract signed with customer so that the Company is no longer obliged to satisfy the performance obligation to transfer the promised good to the customer. The contracts with coal sales agent service customers have specific prices and terms for the service provided. The revenue is recognized upon the services of delivery of coke coal to a customer. Contract costs For the year ended December 31, 2018, the Company did not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. The Company does not have advances from customers as of December 31, 2018. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 days after a bill is issued. The Company does not have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is not contingent on a future event. |
Cost of Sales, Policy [Policy Text Block] | (i) Cost of revenue Cost of revenue mainly comprised of raw material costs, inbound freight charges and production costs, depreciation, workers’ wages and site lease. |
Shipping And Handling Cost [Policy Text Block] | (j) Shipping and handling costs The Company expenses the shipping and handling costs in conjunction with sale of its products as incurred and the shipping and handling costs is included as part of selling and marketing expenses. Total shipping and handling costs were $290,130, $89,027 and $1,112,599 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Income Tax, Policy [Policy Text Block] | (k) Taxation a) Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts a teach period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company is required to file its income tax return with Cayman Island and its subsidiaries located in BVI, Hong Kong, and PRC are required to file tax return with BVI, Hong Kong and PRC respectively. b) Value added tax (“VAT”) Sales revenues are subject to VAT. The VAT rate is 16% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods, except otherwise specified; 10% for taxpayers leasing services, or freight, except otherwise specified. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2018 and 2017, and there were no uncertain tax positions as of December 31, 2018, 2017 and 2016. All tax returns since the Company’s inception are still subject to examination by tax authorities. |
Comprehensive Income, Policy [Policy Text Block] | (l) Comprehensive income (loss) Recognized revenue, expenses, gains and losses are included as net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (m) Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, notes receivable, accounts receivable, other receivables, and accounts payable. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. |
(Loss) earnings Per Share, Policy [Policy Text Block] | (n) (Loss) earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have 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. |
Impairment of Long-Lived Assets [Policy Text Block] | (o) Impairment of long-lived assets Long-lived assets, including property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. The impairment loss of long-lived assets were $17,652, nil and nil for the years ended December 31, 2018, 2017 and 2016, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | (p) Recently issued accounting standards FASB Accounting Standards Update No. 2016-02 In February 2016, the FASB issued new lease accounting guidance ASU No. 2016-02, “Leases” (“ASU 2016-02”), as amended by ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements.” Under the new guidance, at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new guidance is not applicable for leases with a term of 12 months or less. Lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company adopted the amendments in these ASUs on January 1, 2019 using the modified retrospective transition approach provided by ASU No. 2018-11. The adoption did not result in a material adjustment to the Company’s accumulated deficit as of January 1, 2019. Based on the Company’s current office space lease agreements as of December 31, 2018, the amounts of the right-of-use asset and related lease payment liability recognized on January 1, 2019 is approximately $345,000. |
BUSINESS DESCRIPTION (Tables)
BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest [Table Text Block] | Details of the subsidiaries of the Company are set out below: Subsidiaries Date of incorporation Place of Incorporation Percentage of ownership Principal activity Jinxuan JH March 20, 2017 British Virgin Islands 100 Investment holding Jacquline G.D January 10, 2017 Hong Kong 100 Investment holding Junhao International April 10, 2017 Hong Kong 100 Investment holding Liulin Junhao October 16, 2012 PRC 100 Distribution and resell of coal |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Foreign Currency Exchange Rate [Table Text Block] | The exchange rates applied are as follows: December 31, 2018 2017 RMB exchange rate at balance sheet dates 6.8632 6.5127 The Years Ended December 31 2018 2017 2016 Average exchange rate for the year 6.6174 6.7547 6.6423 |
Property, Plant and Equipment,Estimated Useful Lives [Table Text Block] | Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machinery 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life |
ACCOUNT RECEIVABLES (Tables)
ACCOUNT RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable [Table Text Block] | Account receivable consisted of the following: As of December 31, 2018 2017 Receivable from product sales $ 228,858 $ - Total $ 228,858 $ - |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES [Abstract] | |
Schedule of Other Receivables [Table Text Block] | Other receivables consisted of the following: As of December 31, 2018 2017 Rental deposit $ 7,712 $ 8,126 Due from third parties 77,986 865,081 Input VAT - 9,476 Total other receivables 85,698 882,683 Less: Provision for doubtful accounts (72,852 ) - Other receivables, net $ 12,846 $ 882,683 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PREPAYMENTS AND OTHER CURRENT ASSETS [Abstract] | |
Schedule of Prepayments and Other Current Assets [Table Text Block] | Prepayments and other current assets consisted of the following: As of December 31, 2018 2017 Prepayments for inventory $ 463 $ 487 Prepaid rental - 37,402 Others 2,476 - Total $ 2,939 $ 37,889 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory relates to clean coal and raw coal targeted for resell, which consisted of the following: As of December 31, 2018 2017 Clean coal $ - $ 45,426 Raw coal - 15,399 Total $ - $ 60,825 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: As of December 31, 2018 2017 Vehicles $ 189,167 $ 199,348 Machinery 6,268 24,541 Furniture 12,123 12,775 Leasehold improvement 27,894 29,398 Building 173,388 182,721 Less: accumulated depreciation (138,026 ) (76,308 ) Property and equipment, net $ 270,814 $ 372,475 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable And Accrued Liabilities Disclosure [Table Text Block] | Accounts payable consisted of the following: As of December 31, 2018 2017 Payable to suppliers $ 282,596 $ 59,606 Others 715 - Total $ 283,311 $ 59,606 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Other payable and accrued expenses consisted of the following: As of December 31, 2018 2017 Accrued payroll $ 1,940 $ 12,470 Other tax payable 82,606 - Other payable 161,455 52,377 Total $ 246,001 $ 64,847 |
LOAN FROM A THIRD PARTY (Tables
LOAN FROM A THIRD PARTY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan From Third Party [Abstract] | |
Loan From Third Party [Table Text Block] | As of December 31, 2018 2017 Principle of loan from a third party $ 2,185,569 $ - Accrued interest payable 67,303 - Total $ 2,252,872 $ - |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the income tax expenses for the years ended December 31, 2018, 2017 and 2016 are as follows The Years ended December 31, 2018 2017 2016 Current income tax provision $ 11,567 $ - $ 253,489 Deferred income tax provision - - 4,060 Total $ 11,567 $ - $ 257,549 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2018 and 2017 and the Company’s effective income tax expenses is as follows: The Years ended December 31, 2018 2017 2016 (Loss) income before income taxes $ (50,357 ) $ (745,660 ) $ 1,007,110 Statutory EIT rate 25 % 25 % 25 % Income tax (benefit) expense computed at statutory EIT rate (12,589 ) (186,415 ) 251,778 Reconciling items: International tax rate differential 46 - - Non-deductible expenses 132,498 57,401 5,771 Valuation allowance change (108,388 ) 129,014 - Income tax expense $ 11,567 $ - $ 257,549 Effective tax rate (23.0 )% - % 25.6 % |
Deferred tax assets [Table Text Block] | Significant components of deferred tax assets were as follows: For the Fiscal Years Ended December 31, 2018 2017 Net operating loss carry forwards $ - $ 129,014 Allowance for doubtful accounts 18,213 - Impairment expenses 4,255 - Deferred tax assets, gross 22,468 129,014 Less: Valuation allowance (22,468 ) (129,014 ) Deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | During the periods presented, the details of the related party balances and transactions were as follows: Amount due to related parties: As of December 31, 2018 2017 Mr. Bingshan Guo $ 211,005 $ 222,362 Mr. Xiangyang Guo 145,704 153,547 Mr. Yonghong Che 50,996 53,741 Total $ 407,706 $ 429,650 |
Schedule of Revenue from Related Parties [Table Text Block] | During 2017, Mr. Bingshan Guo paid the professional service fees for initial public offering on behalf of the Company, these amounts were non-interest bearing with no payment terms. Mr. Xiangyang Guo and Mr. Yonghong Che provided interest-free loans to the Company. On December 31, 2018, the related parties agreed with the Company to extend the maturity day to December 31, 2019. Transaction: 1. Sales to a related party The Years ended December 31, 2018 2017 2016 Liulin Hongxing Coking Coal Trade Co., Ltd. (“Hongxing”) $ - $ - $ 2,919,696 Total $ - $ - $ 2,919,696 |
Schedule of Related Party Transaction, Purchases from Related Party [Table Text Block] | During the year ended December 31, 2016, the Company sold coking coal to Hongxing, which mainly engaged in coal washing plant and coal reselling. Prices and terms for all the sales transactions were determined based on the prevailing market prices. 2. Purchase from a related party The Years ended December 31, 2018 2017 2016 Hongxing $ - $ - $ 4,664,452 Total $ - $ - $ 4,664,452 |
Schedule of Related Party Transaction, Expenses from Lease [Table Text Block] | Expenses from this lease recorded during the year ended December 31, 2018, 2017 and 2016 were as below: The Years ended December 31, 2018 2017 2016 Hongxing $ 17,698 $ 19,246 $ 19,572 Total $ 17,698 $ 19,246 $ 19,572 |
Schedule Of Due From Due To Related Parties [Table Text Block] | 4. Loan provided by related parties The Years ended December 31, 2018 2017 2016 Related party paid on behalf of the Company for operations: Mr. Bingshan Guo $ - $ 195,148 $ - Loan provided by related parties to the Company: Mr. Xiangyang Guo - 148,045 - Hongxing - - 19,572 Total $ - $ 343,193 $ 19,572 |
CONCENTRATION AND RISK (Tables)
CONCENTRATION AND RISK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration risk information about customer [Table Text Block] | The following tables summarized the information about the Company’s concentration of customers for the years ended December 31, 2018, 2017 and 2016, respectively: Year Ended December 31, 2018 2017 2016 Customer A 33 % * 13 % B 17 % * * C 14 % * * D 11 % * * E * 46 % * F * 54 % * G * * 48 % H * * 15 % I * * 14 % |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The following tables summarized the information about the Company’s concentration of suppliers for the years ended December 31, 2018, 2017 and 2016, respectively: Year Ended December 31, 2018 2017 2016 Supplier J 60 % * * K 16 % * * L * * 72 % H * * 28 % |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows: Lease commitments Year ending December 31, -2019 $ 105,004 -2020 118,021 -2021 118,021 -2022 43,711 -2023 and thereafter - Total $ 384,757 |
BUSINESS DESCRIPTION (Details)
BUSINESS DESCRIPTION (Details) | 12 Months Ended | |
Dec. 31, 2018 | Feb. 22, 2018 | |
Percentage of ownership | 99.00% | |
Jinxuan JH [Member] | ||
Date of incorporation | Mar. 20, 2017 | |
Place of Incorporation | British Virgin Islands | |
Percentage of ownership | 100.00% | |
Principal activity | Investment holding | |
Jacquline G.D [Member] | ||
Date of incorporation | Jan. 10, 2017 | |
Place of Incorporation | Hong Kong | |
Percentage of ownership | 100.00% | |
Principal activity | Investment holding | |
Junhao International [Member] | ||
Date of incorporation | Apr. 10, 2017 | |
Place of Incorporation | Hong Kong | |
Percentage of ownership | 100.00% | |
Principal activity | Investment holding | |
Liulin Junhao [Member] | ||
Date of incorporation | Oct. 16, 2012 | |
Place of Incorporation | PRC | |
Percentage of ownership | 100.00% | |
Principal activity | Distribution and resell of coal |
BUSINESS DESCRIPTION (Details T
BUSINESS DESCRIPTION (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2019 | Sep. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 05, 2017 | Jul. 30, 2017 | Feb. 24, 2017 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common Stock, Shares, Issued | 14,333,334 | 13,333,334 | 13,333,334 | ||||
Common Stock, Value, Issued | $ 14,333 | $ 13,333 | |||||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 13,333,334 | 13,333,334 | |||
Stock Issued During Period, Shares, New Issues | 79,094 | ||||||
Stock Issued During Period, Value, New Issues | $ 80,000 | ||||||
Payments for Repurchase of Initial Public Offering | 906 | ||||||
Proceeds from Issuance Initial Public Offering | $ 79,094 | ||||||
Common Stock [Member] | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||||
Common Stock, Shares, Issued | 1,000,000 | 14,333,334 | |||||
Common Stock, Value, Issued | $ 1,000,000 | ||||||
Shares Issued, Price Per Share | $ 0.08 | ||||||
Stock Issued During Period, Shares, New Issues | 14,333,334 | 1,000 | |||||
Stock Issued During Period, Value, New Issues | $ 1,000,000 | ||||||
Jinxuan Coking Coal Ltd [Member] | |||||||
Common Stock, Shares Authorized | 50,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 1 | ||||||
Common Stock, Shares, Issued | 50,000 | ||||||
Common Stock, Value, Issued | $ 50,000 |
LIQUIDITY (Details Textual)
LIQUIDITY (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income (Loss) Attributable to Parent | $ (61,924) | $ (745,660) | $ 749,561 | |
Net Cash Provided by (Used in) Operating Activities | (2,217,943) | (875,222) | 1,242,537 | |
Cash and Cash Equivalents, at Carrying Value | 848,522 | 4,116 | $ 55,798 | $ 28,091 |
Assets, Current | $ 3,712,474 | $ 985,513 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
RMB exchange rate at balance sheets dates | 6.8632 | 6.5127 | |
Average exchange rate for each year | 6.6174 | 6.7547 | 6.6423 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold improvement | Shorter of the remaining lease terms or estimated useful life |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Machinery [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
Furniture [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Cost of Goods and Services Sold | $ 5,663,877 | $ 99,274 | $ 17,200,450 | |
Property, Plant and Equipment, Salvage Value, Percentage | 0.00% | 5.00% | ||
Cash | $ 848,522 | $ 4,116 | ||
Allowance for Doubtful Other Receivables, Current | $ 72,852 | 0 | 0 | |
Concentration Risk, Percentage | 16.00% | |||
Percentage of Value Added Tax | 10.00% | |||
Impairment loss of long lived assets | $ 17,652 | 0 | 0 | |
Operating Lease, Right-of-Use Asset | $ 345,000 | |||
Shipping and Handling [Member] | ||||
Cost of Goods and Services Sold | $ 290,130 | $ 89,027 | $ 1,112,599 |
ACCOUNT RECEIVABLES (Details)
ACCOUNT RECEIVABLES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable, Gross, Current | $ 228,858 | $ 0 |
Accounts Receivable, Net, Current | $ 228,858 | $ 0 |
ACCOUNT RECEIVABLES (Detail Tex
ACCOUNT RECEIVABLES (Detail Textual) | Dec. 31, 2018USD ($) |
Accounts Receivable, Related Parties | $ 228,858 |
OTHER RECEIVABLES, NET (Details
OTHER RECEIVABLES, NET (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Rental deposits | $ 7,712 | $ 8,126 |
Due from third parties | 77,986 | 865,081 |
Input VAT | 0 | 9,476 |
Total other receivables | 85,698 | 882,683 |
Less: Provision for doubtful accounts | (72,852) | 0 |
Other receivables, net | $ 12,846 | $ 882,683 |
OTHER RECEIVABLES, NET (Detai_2
OTHER RECEIVABLES, NET (Details Textual) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 20, 2018USD ($) | Apr. 20, 2018CNY (¥) | Feb. 22, 2018 | |
Provision for Doubtful Accounts | $ 75,558 | $ 0 | $ 0 | |||
Equity Method Investment, Ownership Percentage | 99.00% | |||||
Luilin junjhao [Member] | ||||||
Deposits | $ 755,581 | ¥ 5 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Prepayments for inventory | $ 463 | $ 487 |
Prepaid rental | 0 | 37,402 |
Others | 2,476 | 0 |
Total | $ 2,939 | $ 37,889 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net | $ 0 | $ 60,825 |
Clean coal [Member} | ||
Inventory, Net | 0 | 45,426 |
Raw Materials [Member] | ||
Inventory, Net | $ 0 | $ 15,399 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Less: accumulated depreciation | $ (138,026) | $ (76,308) |
Property and equipment, net | 270,814 | 372,475 |
Building [Member] | ||
Property, Plant and Equipment, Gross | 173,388 | 182,721 |
Vehicles [Member] | ||
Property, Plant and Equipment, Gross | 189,167 | 199,348 |
Machinery [Member] | ||
Property, Plant and Equipment, Gross | 6,268 | 24,541 |
Furniture [Member] | ||
Property, Plant and Equipment, Gross | 12,123 | 12,775 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 27,894 | $ 29,398 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation | $ 68,056 | $ 62,602 | $ 10,342 |
Impairment of Loss | $ 17,652 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payable to suppliers | $ 282,596 | $ 59,606 |
Others | 715 | 0 |
Total | $ 283,311 | $ 59,606 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued payroll | $ 1,940 | $ 12,470 |
Other tax payable | 82,606 | 0 |
Other payables | 161,455 | 52,377 |
Total | $ 246,002 | $ 64,847 |
OTHER PAYABLES AND ACCRUED EX_4
OTHER PAYABLES AND ACCRUED EXPENSES (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |||
Accrual for Taxes Other than Income Taxes, Current | $ 82,606 | $ 0 | |
Accounts Payable, Other, Current | 161,455 | $ 52,377 | |
Unpaid Rental Fees and Interest Free Loans | $ 119,478 | ¥ 820,000 | |
Debt Instrument, Maturity Date | Dec. 31, 2019 |
LOAN FROM A THIRD PARTY (Detail
LOAN FROM A THIRD PARTY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loan From Third Party [Abstract] | ||
Principal of loan from third party | $ 2,185,569 | $ 0 |
Accrued interest payable | 67,303 | 0 |
Total | $ 2,252,872 | $ 0 |
LOAN FROM A THIRD PARTY (Deta_2
LOAN FROM A THIRD PARTY (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018CNY (¥) | |
Loan From Third Party [Abstract] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,185,569 | ¥ 15,000,000 | |
Line of Credit Facility, Interest Rate During Period | 4.00% | ||
Debt Instrument, Periodic Payment, Interest | $ 67,303 | $ 0 |
TAXATION (Details)
TAXATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax provision | $ 11,567 | $ 0 | $ 253,489 |
Deferred income tax provision | 0 | 0 | 4,060 |
Total | $ 11,567 | $ 0 | $ 257,549 |
TAXATION (Details 1)
TAXATION (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(Loss) income before income taxes | $ (50,357) | $ (745,660) | $ 1,007,110 |
Statutory EIT rate | 25.00% | 25.00% | 25.00% |
Income tax (benefit) expense computed at statutory EIT rate | $ (12,589) | $ (186,415) | $ 251,778 |
Reconciling items: | |||
International tax rate differential | 46 | 0 | 0 |
Non-deductible expenses | 132,498 | 57,401 | 5,771 |
Valuation allowance | (108,388) | 129,014 | 0 |
Income tax expense | $ 11,567 | $ 0 | $ 257,549 |
Effective tax rate | (23.00%) | 0.00% | 25.60% |
TAXATION (Details 2)
TAXATION (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards | $ 0 | $ 129,014 |
Allowance for doubtful accounts | 18,213 | 0 |
Impairment expenses | 4,255 | 0 |
Deferred tax assets, gross | 22,468 | 129,014 |
Less: Valuation allowance | (22,468) | (129,014) |
Deferred tax assets, net | $ 0 | $ 0 |
TAXATION (Details Textual)
TAXATION (Details Textual) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018HKD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | 25.00% |
Surtax Including Urban Maintenance and Construction Taxes and Additional Education Fees,Rate | 6.00% | 6.00% | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ (50,357) | $ (745,660) | $ 1,007,110 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (106,546) | $ 129,014 | ||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 50.00% | 50.00% | ||
Hong Kong [Member] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 2,000,000 | |||
Maximum [Member] | Hong Kong [Member] | ||||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 16.50% | 16.50% | ||
Minimum [Member] | Hong Kong [Member] | ||||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 8.25% | 8.25% | ||
Product [Member] | ||||
Value-Added Tax Rate | 16.00% | 16.00% | ||
Cargo and Freight [Member] | ||||
Value-Added Tax Rate | 10.00% | 10.00% |
ORDINARY SHARE (Detail Textual)
ORDINARY SHARE (Detail Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 05, 2017 | Jul. 30, 2017 | |
Common Stock, Shares, Issued | 14,333,334 | 13,333,334 | 13,333,334 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 13,333,334 | 13,333,334 | |
Stock Issued During Period, Shares, New Issues | 79,094 | ||||
Common Stock, Value, Issued | $ 14,333 | $ 13,333 | |||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 80,000 | ||||
Common Stock [Member] | |||||
Common Stock, Shares, Issued | 1,000,000 | 14,333,334 | |||
Shares Issued, Price Per Share | $ 0.08 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||
Stock Issued During Period, Shares, New Issues | 14,333,334 | 1,000 | |||
Common Stock, Value, Issued | $ 1,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 22, 2018 | |
Due to Related Parties, Current | $ 407,706 | $ 429,650 | ||
Revenue from Related Parties | 0 | 0 | $ 2,919,696 | |
Related Party Transaction, Purchases from Related Party | 0 | 0 | 4,664,452 | |
Related Party Transaction, Expenses from Transactions with Related Party | 17,698 | 19,246 | 19,572 | |
Equity Method Investment, Ownership Percentage | 99.00% | |||
Loans and Leases Receivable, Related Parties | 0 | 343,193 | 19,572 | |
Mr. YonghongChe [Member] | ||||
Due to Related Parties, Current | $ 50,996 | 53,741 | ||
Equity Method Investment, Ownership Percentage | 9.00% | |||
Liulin Hongxing Coking Coal Trade Co., Ltd. ("Hongxing") [Member] | ||||
Revenue from Related Parties | $ 0 | 0 | 2,919,696 | |
Mr. BingshanGuo [Member] | ||||
Due to Related Parties, Current | 211,005 | 222,362 | ||
Mr. XiangyangGuo [Member] | ||||
Due to Related Parties, Current | 145,704 | 153,547 | ||
Loans and Leases Receivable, Related Parties | 0 | 148,045 | 0 | |
Hongxing [Member] | ||||
Related Party Transaction, Purchases from Related Party | 0 | 0 | 4,664,452 | |
Related Party Transaction, Expenses from Transactions with Related Party | 17,698 | 19,246 | 19,572 | |
Loans and Leases Receivable, Related Parties | 0 | 0 | 19,572 | |
Bingsh [Member] | ||||
Loans and Leases Receivable, Related Parties | $ 0 | $ 195,148 | $ 0 |
CONCENTRATION AND RISK (Details
CONCENTRATION AND RISK (Details 1) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 16.00% | |||||
Customer A [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 33.00% | [1] | 13.00% | |||
Customer B [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 17.00% | [1] | [1] | |||
Customer C [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 14.00% | [1] | [1] | |||
Customer D [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 11.00% | [1] | [1] | |||
Customer E [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | 46.00% | [1] | |||
Customer F [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | 54.00% | [1] | |||
Customer G [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | [1] | 48.00% | |||
Customer H [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | [1] | 15.00% | |||
Customer I [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | [1] | 14.00% | |||
[1] | Less than 10%. |
CONCENTRATION AND RISK (Detai_2
CONCENTRATION AND RISK (Details 2) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | |||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 16.00% | |||||
Supplier J [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 60.00% | [1] | ||||
Supplier K [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | 16.00% | [1] | ||||
Supplier L [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | 72.00% | ||||
Supplier H [Member] | ||||||
Product Information [Line Items] | ||||||
Concentration Risk, Percentage | [1] | 28.00% | ||||
[1] | Less than 10%. |
CONCENTRATION AND RISK (Detai_3
CONCENTRATION AND RISK (Details Textual) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | ||
Concentration Risk, Percentage | 16.00% | ||||
Customer D [Member] | |||||
Concentration Risk, Percentage | 11.00% | [1] | |||
Accounts Receivable [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 93.00% | ||||
Accounts Payable [Member] | Supplier M [Member] | |||||
Concentration Risk, Percentage | 65.00% | ||||
Accounts Payable [Member] | Supplier N [Member] | |||||
Concentration Risk, Percentage | 35.00% | ||||
Accounts Payable [Member] | Supplier O [Member] | |||||
Concentration Risk, Percentage | 100.00% | ||||
[1] | Less than 10%. |
COMMITMENTS (Details)
COMMITMENTS (Details) | Dec. 31, 2018USD ($) |
Year ending December 31, [Abstract] | |
-2019 | $ 105,004 |
-2020 | 118,021 |
-2021 | 118,021 |
-2022 | 43,711 |
-2023 and thereafter | 0 |
Total | $ 384,757 |
COMMITMENTS (Details Textual)
COMMITMENTS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lease Expiration Date | Dec. 31, 2022 | ||
Operating Leases, Rent Expense | $ 59,414 | $ 70,586 | $ 19,694 |