Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Mar. 31, 2021 | Aug. 02, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Happiness Biotech Group Ltd | |
Document Type | 20-F | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 31,953,025 | |
Amendment Flag | false | |
Entity Central Index Key | 0001751876 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Annual Report | true | |
Document Shell Company Report | false | |
Document Transition Report | false | |
Entity File Number | 333-230170 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 36,558,752 | $ 33,654,765 |
Accounts receivable | 34,563,743 | 30,036,448 |
Inventories | 1,785,379 | 2,029,406 |
Prepaid expenses and other current assets | 22,189,744 | 4,264,130 |
Total current assets | 95,097,618 | 69,984,749 |
Property, plant and equipment, net | 10,514,031 | 7,896,501 |
Intangible assets, net | 1,832,099 | 719,722 |
Goodwill | 162,832 | |
Other assets | 5,138,105 | 6,496,501 |
TOTAL ASSETS | 112,744,685 | 85,097,473 |
Current liabilities | ||
Accounts payable | 8,841,163 | 1,549,255 |
Other payables and accrued liabilities | 3,694,943 | 512,249 |
Due to related party | 844,716 | |
Income tax payable | 334,523 | 568,830 |
Short-term bank borrowings | 2,237,000 | 2,032,434 |
TOTAL LIABILITIES | 15,107,629 | 5,507,484 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.0005 par value, 90,000,000 shares authorized, 30,481,580 and 25,000,000 shares issued and outstanding, respectively | 15,241 | 12,500 |
Preferred shares, $0.0005 par value, 10,000,000 shares authorized, 0 shares issued and outstanding | ||
Additional paid-in capital | 26,545,384 | 15,044,002 |
Statutory surplus reserve | 7,622,765 | 2,064,096 |
Retained earnings | 61,475,891 | 66,623,204 |
Accumulated other comprehensive loss | (913,621) | (4,153,813) |
Total Happiness Biotech Group Limited’s shareholders’ equity | 94,745,660 | 79,589,989 |
Non-controlling interests | 2,891,396 | |
Total shareholders’ equity | 97,637,056 | 79,589,989 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 112,744,685 | $ 85,097,473 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0005 | $ 0.0005 |
Ordinary shares, shares authorized | 90,000,000 | 90,000,000 |
Ordinary shares, shares issued | 30,481,580 | 25,000,000 |
Ordinary shares, shares outstanding | 30,481,580 | 25,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.0005 | $ 0.0005 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 71,484,703 | $ 65,061,953 | $ 63,936,185 |
Cost of revenues | (53,309,102) | (34,642,649) | (31,689,117) |
Gross profit | 18,175,601 | 30,419,304 | 32,247,068 |
Operating expenses: | |||
Selling and marketing | 9,958,886 | 9,179,160 | 6,291,228 |
General and administrative | 5,030,899 | 3,482,459 | 1,951,259 |
Research and development | 1,660,100 | 2,358,968 | 2,161,708 |
Total operating expenses | 16,649,885 | 15,020,587 | 10,404,195 |
Operating income | 1,525,716 | 15,398,717 | 21,842,873 |
Other income (expenses): | |||
Interest income | 131,901 | 74,929 | 42,038 |
Interest expense | (111,799) | (98,086) | (83,549) |
Other income, net | 105,522 | 156,562 | 103,771 |
Total other income, net | 125,624 | 133,405 | 62,260 |
Income before income taxes | 1,651,340 | 15,532,122 | 21,905,133 |
Income tax provision | (959,384) | (2,844,087) | (3,183,154) |
Net income | 691,956 | 12,688,035 | 18,721,979 |
Net loss attributable to non-controlling interests | 94,400 | ||
Net income attributable to Happiness Biotech Group Limited | 786,356 | 12,688,035 | 18,721,979 |
Other comprehensive income: | |||
Foreign currency translation adjustments | 6,113,570 | (3,356,032) | (2,985,586) |
Comprehensive income | 6,805,526 | 9,332,003 | 15,736,393 |
Less: comprehensive income attributable to non-controlling interests | (2,873,378) | ||
Comprehensive income attributable to Happiness Biotech Group Limited | $ 3,932,148 | $ 9,332,003 | $ 15,736,393 |
Basic and diluted earnings per ordinary share | |||
Basic and diluted (in Dollars per share) | $ 0.03 | $ 0.53 | $ 0.81 |
Weighted average number of ordinary shares outstanding | |||
Basic and diluted (in Shares) | 26,160,270 | 23,843,836 | 23,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Ordinary shares | Additional paid-in capital | Statutory surplus reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total Happiness Biotech Group Limited shareholders’ equity | Non-controlling interests | Total |
Balance at Mar. 31, 2018 | $ 11,500 | $ 5,075,035 | $ 2,008,019 | $ 35,269,267 | $ 2,187,805 | $ 44,551,626 | $ 44,551,626 | |
Balance (in Shares) at Mar. 31, 2018 | 23,000,000 | |||||||
Capital contributions | 627,628 | 627,628 | 627,628 | |||||
Net income (loss) | 18,721,979 | 18,721,979 | 18,721,979 | |||||
Statutory reserve | 56,077 | (56,077) | ||||||
Foreign currency translation adjustments | (2,985,586) | (2,985,586) | (2,985,586) | |||||
Balance at Mar. 31, 2019 | $ 11,500 | 5,702,663 | 2,064,096 | 53,935,169 | (797,781) | 60,915,647 | 60,915,647 | |
Balance (in Shares) at Mar. 31, 2019 | 23,000,000 | |||||||
Ordinary shares issued for cash | $ 1,000 | 9,341,339 | 9,342,339 | 9,342,339 | ||||
Ordinary shares issued for cash (in Shares) | 2,000,000 | |||||||
Net income (loss) | 12,688,035 | 12,688,035 | 12,688,035 | |||||
Foreign currency translation adjustments | (3,356,032) | (3,356,032) | (3,356,032) | |||||
Balance at Mar. 31, 2020 | $ 12,500 | 15,044,002 | 2,064,096 | 66,623,204 | (4,153,813) | 79,589,989 | 79,589,989 | |
Balance (in Shares) at Mar. 31, 2020 | 25,000,000 | |||||||
Ordinary shares issued for cash | $ 2,550 | 10,723,150 | 10,725,700 | 10,725,700 | ||||
Ordinary shares issued for cash (in Shares) | 5,100,000 | |||||||
Ordinary shares issued for services | $ 191 | 778,232 | 778,423 | 778,423 | ||||
Ordinary shares issued for services (in Shares) | 381,580 | |||||||
Net income (loss) | 786,356 | 786,356 | (94,400) | 691,956 | ||||
Dividend | (375,000) | (375,000) | (375,000) | |||||
Statutory reserve | 5,558,669 | (5,558,669) | ||||||
Contribution from non-controlling shareholders | 112,418 | 112,418 | ||||||
Foreign currency translation adjustments | 3,240,192 | 3,240,192 | 2,873,378 | 6,113,570 | ||||
Balance at Mar. 31, 2021 | $ 15,241 | $ 26,545,384 | $ 7,622,765 | $ 61,475,891 | $ (913,621) | $ 94,745,660 | $ 2,891,396 | $ 97,637,056 |
Balance (in Shares) at Mar. 31, 2021 | 30,481,580 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 691,956 | $ 12,688,035 | $ 18,721,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 880,879 | 690,749 | 699,538 |
Inventory write-downs | 117,753 | ||
Loss (gain) on disposal of equipment | 38 | (3,155) | |
Share-based compensation | 778,423 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,106,752) | 393,143 | (1,601,202) |
Other receivables | 3,714 | ||
Inventories | 389,388 | (276,909) | 148,388 |
Prepaid expenses and other current assets | (8,057,239) | 1,525,053 | (6,025,735) |
Other assets | 1,718,110 | (4,402,208) | (2,257,979) |
Accounts payable | 6,723,151 | (32,722) | (3,378,079) |
Other payables and accrued liabilities | 3,134,093 | (559,496) | 61,303 |
Due to related parties | (844,718) | 966,589 | |
Income taxes payable | (402,825) | (332,182) | 176,107 |
Net cash provided by operating activities | 2,904,466 | 10,777,843 | 6,544,879 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (2,783,440) | (1,159,355) | (283,100) |
Purchase of intangible assets | (1,051,138) | ||
Purchase of DAJI | (75,044) | ||
Deposits paid for business acquisitions | (9,313,225) | ||
Proceeds from disposal of equipment | 5,942 | ||
Net cash used in investing activities | (13,222,847) | (1,159,355) | (277,158) |
Cash Flows from Financing Activities: | |||
Ordinary shares issued for cash | 10,965,553 | 9,342,339 | 627,628 |
Cash contribution from non-controlling shareholders | 37,522 | ||
Dividend payment | (375,000) | ||
Proceeds from short-term loans | 2,163,037 | 3,129,711 | 1,396,382 |
Repayments of short-term loans | (2,118,893) | (2,067,332) | (1,752,905) |
Net cash provided by financing activities | 10,672,219 | 10,404,718 | 271,105 |
Effect of exchange rate changes on cash and cash equivalents | 2,550,149 | (1,169,213) | (622,883) |
Net increase in cash and cash equivalents | 2,903,987 | 18,853,993 | 5,915,943 |
Cash and cash equivalents at the beginning of year | 33,654,765 | 14,800,772 | 8,884,829 |
Cash and cash equivalents at the end of year | 36,558,752 | 33,654,765 | 14,800,772 |
Supplemental disclosures of cash flows information: | |||
Cash paid for income taxes | 1,209,381 | 3,176,269 | 3,007,047 |
Cash paid for interest expense | $ 111,790 | $ 98,086 | $ 83,549 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Happiness Biotech Group Limited (“Happiness Biotech”) is a holding company incorporated on February 13, 2018 under the laws of the Cayman Islands. The Company has no substantive operations other than holding all of the outstanding share capital of Happiness Biology Technology Group Limited (“Happiness Hong Kong”). Happiness Hong Kong is a holding company of all of the equity or ownership of Happiness (Nanping) Biotech Co., Limited (“Happiness Nanping”). Happiness Nanping is a holding company of all of the equity or ownership of Fujian Happiness Biotech Co., Limited (“Fujian Happiness”), Fuzhou Happiness Enterprise Management Consulting Co., Ltd. and Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”). Fujian Happiness is a limited liability company established under the laws of the People’s Republic of China (“PRC”) on November 19, 2004. Fujian Happiness holds all of the equity or ownership of Shunchang Happiness Nutraceutical Co., Limited (“Shunchang Happiness”) and also owns 51% of Fujian Happiness comes Medical Equipment Manufacturing Co., Limited. Through Fujian Happiness and Shunchang Happiness, the Company is a biotech company that specializes in research, development, production and selling of nutraceutical and dietary supplements made of Ganoderma spore powder and others mainly in China etc. Hangzhou C'est la vie Interactive Technology Co., Ltd. ("Hangzhou C'est la vie") is a limited liability company established under the laws of the PRC on August 26, 2020. Through Hangzhou C’est la vie, the Company operated the online sales business. Happy Buy (Fujian) Automobile Service Co., Ltd. ("Happy Buy Automobile") is a limited liability company established under the laws of the PRC on October 27, 2020. Through Happy Buy Automobile, the Company purchases and sells automobiles to the customers. Happy Optimal (Fujian) Network Technology Co., Ltd. ("Happy Optimal") is a limited liability company established under the laws of the PRC on December 29, 2020. Through Happy Optimal, the Company provides internet information and advertising services. Reorganization A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of Happiness Biotech Group Limited, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Nanping) Biotech Co., Limited, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Nanping. Happiness Biotech, Happiness Hong Kong and Happiness Nanping are all holding companies and had not commenced operation until August 21, 2018. Prior to the reorganization, Mr. Wang Xuezhu, Chief Executive Officer owns 47.7% ownership of Fujian Happiness. On August 21, 2018, Mr. Wang Xuezhu and other shareholders of Fujian Happiness transferred their 100% ownership interests in Fujian Happiness to Happiness Nanping, which is 100% owned by Happiness Hong Kong. After the reorganization, Happiness Biotech owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Happiness Biotech, became the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. Since the Company is effectively controlled by the same Controlling Shareholder before and after the reorganization, it is considered under common control. Therefore, the above mentioned transactions were accounted for as a recapitalization. The reorganization has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company. On March 4, 2019, the Company subdivided its 50,000 ordinary shares into 90,000,000 Ordinary shares and 10,000,000 Preferred shares. The authorized ordinary shares became 100,000,000 shares and the par value was changed from $1 to $0.0005. On the same day, the Company cancelled 77,223,100 ordinary shares and sold additional 223,100 ordinary shares. As of March 31, 2019, the Company has 23,000,000 ordinary shares issued and outstanding. The Company has retrospectively reflected the stock subdivision and cancellation in all periods presented in these financial statements. Initial Public Offering On October 25, 2019, the Company announced the closing of its initial public offering of 2,000,000 ordinary shares, US$0.0005 par value per share (“Ordinary Shares”) at an offering price of $5.50 per share for a total of $11,000,000 in gross proceeds. The Company raised total net proceeds of $9,342,339 after deducting underwriting discounts and commissions and offering expenses. In addition, the Company granted to its underwriters, Univest Securities, LLC as the Underwriter Representative, an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s Ordinary Shares to be offered by the Company pursuant to the initial public offering (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. During the reporting periods, the Company has several subsidiaries in PRC. Details of the Company and its operating subsidiaries are set out below: Name of Entity Date of Incorporation Place of Incorporation Registered % of Principal Activities Happiness (Nanping) Biotech Co., Ltd. (“Nanping Happiness”) June 1, 2018 PRC US$ 36,100,000 Investment Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”) November 19, 2004 PRC RMB 100,000,000 100% by Nanping Happiness Research, development, production and selling of nutraceutical and dietary supplements Fujian Happiness comes Medical Equipment Manufacturing Co., Ltd. April 15, 2020 PRC RMB 10,000,000 51% by Fujian Happiness Selling of medical equipment Shunchang Happiness Nutraceutical Co., Ltd (“Shunchang Happiness”) May 19, 1998 PRC RMB 2,000,000 100% by Fujian Happiness Research, development, production and selling of edible fungi Fuzhou Happiness Enterprise Management Consulting Co., Ltd. December 15, 2020 PRC RMB 1,000,000 100% by Nanping Happiness Management and consulting service Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”) July 16, 2020 PRC RMB 30,000,000 100% by Nanping Happiness Advertising service, online sales Fujian Happy Studio Network Technology Co. LTD August 10, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Hangzhou C'est la vie Interactive Technology Co., Ltd. (“Hangzhou C’est la vie”) August 26, 2020 PRC RMB 10,000,000 51% by Happy Buy Online sales Fujian Lever Media Co., Ltd. (“Fujian Lever”) March 1, 2021 PRC RMB 10,000,000 51% by Hangzhou C'est la vie Online sales Shunchang Bangren Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Baolong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Shihong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd. August 21, 2017 PRC RMB 10,000,000 70% by Hangzhou C'est la vie Online sales Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”) February 8, 2021 PRC RMB 100,000 100% by Hangzhou C'est la vie Online sales Putian City Hanjiang District Qiyao Trading Co., Ltd. February 9, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Putian City Hanjiang District Zhiran Trading Co., Ltd. February 8, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) November 30, 2020 PRC RMB 10,000,000 100% by Hangzhou C'est la vie Online sales Shunchang Qida Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Shenghui Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Zhibo Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Shenzhou Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Penghong Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Tongyuan Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Guangxiang Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Lishijin Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Wangfu Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Yibo Electronic Commerce Co., Ltd. December 1, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Herui Electronic Commerce Co., Ltd. December 1, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Runhao Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Xianghong Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Fujian Daji Media Co., Ltd. (“Daji”) February 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Live streaming service Happy Buy (Fujian) Automobile Service Co., Ltd. (“Happy Buy Automobile”) October 27, 2020 PRC RMB 10,000,000 51% by Happy Buy Automobile sales Happy Buy (Nanping) Automobile Sales Co., Ltd. December 15, 2020 PRC RMB 5,000,000 100% by Happy Buy Automobile Automobile sales Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) December 29, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Shunchang Jiefei Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Happy Cat Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Xiaocongcong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Wansheng Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Happy Feiyue (Fujian) Network Technology Co., Ltd. March 19, 2021 PRC RMB 10,000,000 70% by Happy Buy Online sales |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Happiness Biotech and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation. Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, inventory reserve, and provisions necessary for contingent liabilities. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains all bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Inventories Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overheads. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of March 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB ASC 350 guidance on “Testing of Goodwill for Impairment”, a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. As of March 31, 2021 and 2020, there was no impairment indicator identified. Property and Equipment Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Useful Lives Buildings 20 years Machinery 10 years Furniture, fixture and electronic equipment 3-10 years Vehicles 4 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Intangible Assets, net Intangible assets purchased from third parties are initially recorded at cost. The intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed. The estimated useful lives of intangible assets are as follows: Useful life Land use right 50 years Licensed software 10 years Impairment of Long-lived Assets other than goodwill The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of March 31, 2021 and 2020. Fair Value of Financial Instruments The Financial Accounting Standards Board (FASB) Accounting Standards Codification 820, Fair Value Measurement and Disclosures ● Level 1 - Quoted prices in active markets for identical assets and liabilities. ● Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other receivable, accounts payable, short-term borrowings, accounts payable, and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2021 and 2020 based upon the short-term nature of the assets and liabilities. Revenue Recognition The Company generates its revenue mainly from sales of healthcare products, automobiles, online store sales and internet information and advertising services. The Company’s revenue recognition policies were in compliance with ASC 605, Revenue Recognition, for the period prior to April 1, 2019. Under this standard., sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. The Company allows its customers to return products within some range. The range was limited to 3% of the customer’s yearly payment amount for the year. The transportation fee is borne by the customers in the condition of products return. There was less than 1% products return of online sales incurred for the year ended March 31, 2021 and no products return incurred for the years ended March 31, 2020 and 2019. The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition on April 1, 2019. Topic 606 requires the Company to recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Healthcare products The Company sells nutraceutical and dietary supplements to distributors and experience stores. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay under the customary payment terms, which is generally less than six months. Automobile The Company sells automobiles in fiscal year 2021. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay under the customary payment terms, which is generally less than six months. Online store The Company sells various goods through its online store business in fiscal year 2021. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay to the third party platform before the goods were send out and the Company will receive the amount from the third party platform after the customer sign off the acceptance form on the platform. Internet information and advertising service The Company provides internet information and advertising service online. For all sales, the Company requires a signed contract and sales order, which specifies the price and service range. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to provide specified information and advertising service to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The information and advertising service provided is satisfied at a point in time, which is the time when the information and advertising service is performed. The selling price per click, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the completion of the service. Customers are required to pay to the Company in advance according to the contract. The Company adopted Topic 606 as of April 1, 2019 using the modified retrospective transition method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after April 1, 2019 are presented under the new standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods. The Company does not expect any impact to its net income from the adoption of ASU 2014-09 on an ongoing basis. All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in PRC. The following table presents an overview of our sales from our product lines for the years ended March 31, 2021, 2020 and 2019: For the years ended March 31, 2021 2020 2019 Nutraceutical and dietary supplements $ 45,389,702 $ 65,061,953 $ 63,936,185 Online store 13,473,626 - - Internet information and advertising 9,245,019 - - Automobile 3,376,356 - - Revenue $ 71,484,703 $ 65,061,953 $ 63,936,185 Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as compensation for the Company’s research and development efforts. For the years ended March 31, 2021, 2020 and 2019, the Company recognized government grants of $63,520, $162,268 and $146,992, respectively, for the government support of the Company’s research and development activities and patent applications. The government grants were recorded as other income. Research and Development Costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services, raw materials, and supplies, are expensed as incurred. Shipping and Handling Costs Shipping and handling costs are expensed when incurred as selling and marketing expense. Shipping and handling costs were $1,104,120, $1,869,505 and $1,841,312 for the years ended March 31, 2021, 2020 and 2019, respectively. Advertising Costs Advertising costs are expensed as incurred in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $5,720,458, $3,856,921 and $3,217,096 for the years ended March 31, 2021, 2020 and 2019, respectively. Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Stock option forfeitures are recognized at the date of employee termination. Effective April 1, 2019, the Company adopted ASU 2018-07 for the accounting of share-based payments granted to non-employees for goods and services and no material impacts to the Financial Statements. Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at March 31, 2021 and 2020. To the extent applicable, the Company records interest and penalties as a general and administrative expense. All of the tax returns of the Company and its subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The Company is subject to Chinese tax laws. We are not subject to U.S. tax laws and local state tax laws. Our income and our related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and we are subject to Chinese tax laws, all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of China will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by us, reducing the amount available to pay dividends to the holders of our ordinary shares. We are a holding company with no material operations of our own. We conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends and to finance any debt we may incur depends upon dividends paid by our subsidiaries. Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50% of its registered capital. These reserves are not distributable as cash dividends. As of March 31, 2021, our PRC subsidiaries had an aggregate retained earnings of approximately RMB 440.5 million (US$65.5 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Any declaration and payment, as well as the amount, of dividends will be subject to our By-Laws, charter and applicable Chinese and U.S. state and federal laws and regulations, including the approval from the shareholders of each subsidiary which intends to declare such dividends, if applicable. Value-added Tax (“VAT”) Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is generally subject to the value added tax (“VAT”) for merchandise sales and services performed. Before May 1, 2018, the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. 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 common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common 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 common 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. Foreign Currency Translation The Company and its subsidiaries’ principal country of operations is the PRC. The Company maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The consolidated statements of income and comprehensive income and cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average rate of exchange, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: March 31, 2021 March 31,2020 March 31,2019 Period-end spot rate US$1=RMB 6.5713 Yuan US$1=RMB 7.0851 Yuan US$1=RMB 6.7335 Yuan Average rate US$1=RMB 6.7960 Yuan US$1=RMB 6.9655 Yuan US$1=RMB 6.7317 Yuan Comprehensive Income Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of income and comprehensive income. Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Concentration of Risks Exchange Rate Risks The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As of March 31, 2021 and 2020, cash and cash equivalents of $36,203,665 (RMB 237,905,147 Yuan) and $33,430,403 (RMB 236,857,749 Yuan), respectively, is denominated in RMB and is held in PRC. Currency Convertibility Risks Substantially all of the Company’s operating activities are 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 other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. Bank interest bearing loans are charged at variable interest rates within the reporting period. The Company is subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. COVID-19 Pandemic The outbreak of COVID-19 began in January 2020 and was quickly declared as a Public Health Emergency of International Concern and subsequently a pandemic by the World Health Organization. A series of prevention and control measures including quarantines, travel restrictions, and the temporary closure of facilities were implemented across the country. The Company was impacted by the COVID-19 pandemic in many ways, including the plump of closures of experience stores, diving sales by distribution channels, and shut down or partly shut down of production facilities for around three months in the year ended March 31, 2021. Revenue recovered quickly after the Company reopened and increased 10% in the year 2021 compared with 2020 as the Company expanded its online distribution channel and also from several new business stream. Despite the fact that China has largely brought the pandemic under control, there is still a high degree of uncertainty as to how the pandemic will evolve going forward. A new outbreak in China could cause new disruptions of our production, distribution and sales, and have an adverse impact on our business, financial condition and results of operations for the remainder of the fiscal year ending March 31, 2022, which cannot be reasonably estimated at the current stage. The Company will regularly assess its business conditions and adopt measures to mitigate any new impact of the ongoing pandemic. Related Parties The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospect |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Accounts receivable, gross $ 34,563,743 $ 30,036,448 Less: allowance for doubtful accounts - - Accounts receivable $ 34,563,743 $ 30,036,448 The Company recorded no allowance for doubtful accounts as of March 31, 2021 and 2020. The Company gives its customers credit period of 180 days and continually assesses the recoverability of uncollected accounts receivable. As of March 31, 2021 and 2020, the balances of the Company’s accounts receivable are all due within 1 year. The Company believes the balances of its accounts receivable are fully recoverable as of March 31, 2021. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Raw materials $ 1,422,941 $ 1,647,667 Work in process 34,717 - Finished goods 327,721 381,739 Total $ 1,785,379 $ 2,029,406 No lower of cost or net realizable value adjustment was recorded as of March 31, 2021 and 2020, respectively. No inventory provision or write-downs for the years ended March 31, 2021 and 2019. The inventory write-downs for the year ended March 31, 2020 was $117,753. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Prepayments to suppliers $ 9,334,225 $ 3,564,705 Other current assets 12,855,519 699,425 Total $ 22,189,744 $ 4,264,130 The Company and Fujian Shennong Jiagu Development Co., Ltd. (Fujian Shennong) are in negotiation for the Company to acquired 51% of Fujian Shennong and the Company has paid $9,130,613 (RMB 60 million) to the owner of Fujian Shennong as a deposit for the transaction. Fujian Shennong is a company focusing on trading of agriculture products, which generates a stable revenue and maintain a solid customers base. The transaction is expected to be completed within one year pending parties complete their due diligence and Fujian Shennong to provide audited financial statements. If the parties are not able to complete this transaction, the deposit will be refunded to the Company. In fiscal year 2021, the Company made a prepayment of $8,877,817 (RMB 58.3 million) to Shandong Guanxian Lingzhibao Biological Co., Ltd. (Guanxian Lingzhibao) to purchase certain materials that the Company uses in its products. The prepayment was deposit for raw material purchase in order to secure the quantities Guanxian Linzhibao produces. The prepayment the Company made is fully refundable in condition of failure of supply caused by Guanxian Lingzhibao. As of March 31, 2021, the Company has received approximate $5,000,000 of products and $4,022,851 (approximately RMB 26.4 million) prepayments made to Guanxian Lingzhibao remained outstanding. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Buildings $ 12,813,510 $ 9,590,058 Machinery 2,867,046 2,339,879 Furniture, fixture and electronic equipment 231,929 163,819 Vehicles 147,132 131,381 Total property plant and equipment, at cost 16,059,617 12,225,137 Less: accumulated depreciation (5,545,586 ) (4,328,636 ) Property, plant and equipment, net $ 10,514,031 $ 7,896,501 As of March 31, 2021 and 2020, the Company pledged its building with a carrying value of approximately $5.1 million and $5.1 million, respectively, as the collateral for short-term bank loans (see Note 9 Depreciation expense was $849,454, $674,247 and $682,462 for the years ended March 31, 2021, 2020 and 2019, respectively. Depreciation allocated as manufacturing overhead to inventories was $589,610, $555,636 and $568,017 for the years ended March 31, 2021, 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 – INTANGIBLE ASSETS, NET As of As of 2021 2020 Land use right, cost $ 879,886 $ 811,194 Software, cost 1,084,858 - Total 1,964,744 811,194 Less: accumulated amortization (132,645 ) (91,472 ) Intangible assets, net $ 1,832,099 $ 719,722 The Company purchased several software to support its business operation in fiscal year 2021. As of March 31, 2021 and 2020, the Company pledged its land use right on its land with a carrying value of $758,504 (29,720 square meters) and $719,722 (29,720 square meters), respectively, as the collateral for a short-term bank loans (see Note 9 Amortization expense was $31,425, $16,502 and $17,076 for the years ended March 31, 2021, 2020 and 2019, respectively. Estimated future amortization expense is as follows as of March 31, 2021: Years ending March 31, Amortization 2022 $ 126,084 2023 126,084 2024 126,084 2025 126,084 2026 126,084 Thereafter 1,201,679 $ 1,832,099 |
Other Assets
Other Assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER ASSETS | NOTE 8 – OTHER ASSETS Other assets consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Prepayments for advertising or marketing $ 4,909,840 $ 6,200,104 Prepayment of celebrity endorsement fee 228,265 296,397 Total $ 5,138,105 $ 6,496,501 The Company entered into several agreements with 50 exclusive distributors to provide subsidy of $152,177 (RMB 1 million) to each exclusive distributor for advertising and marketing. The prepayments were amortized within the contract periods of 3 years. In order to promote the culture of Chinese medicine and to seek for opportunities to export traditional Chinese herbal products to overseas health care and wellness market, the Company entered into a business development cooperation agreement with a service company located in the U.S. The agreement has a 3-year term for a total of $1,600,000. The service provider will provide market channel and advertisement supports to the Company. In October 2018, the Company paid a celebrity endorsement fee of $445,533 (RMB 3 million). The celebrity endorsement contract is for a period of 5 years. |
Short-Term Bank Borrowings
Short-Term Bank Borrowings | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK BORROWINGS | NOTE 9 – SHORT-TERM BANK BORROWINGS Short-term bank borrowings consisted of the following as of March 31, 2021 and 2020: As of As of 2021 2020 Industrial Bank Co., Ltd $ 1,065,238 $ 987,989 Postal Saving Bank of China 1,171,762 1,044,445 Total $ 2,237,000 $ 2,032,434 On May 4, 2018, the Company entered into a bank loan agreement with Industrial Bank Co., Ltd to borrow $1,039,578 (RMB 7 million Yuan) as working capital for one year with due date on April 21, 2019 and it was renewed in 2019 for another year. The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +2.19% on the date of drawing per annum. The loan facility agreement is personally guaranteed by Mr. Xuezhu Wang, Mr. Xianfu Wang, and Mrs. Yanying Lin. Based on guarantee contract the maximum guaranteed amount was RMB 7 million Yuan. The Company also pledged its building and land use rights as collaterals. Based on the pledge agreement, the maximum pledged amount was RMB 17.4 million Yuan. There were no loan guarantee fees paid to the personal guarantors. In April 2020, Fujian Happiness renewed the loan agreement with Industrial Bank Co. Ltd for $1,065,238 (RMB 7,000,000) bearing interest rate at LPR plus 1.45% per annum, payable monthly. The loan was expired and paid off in April 2021. On June 24, 2019, the Company entered into a loan facility framework agreement with Postal Saving Bank of China. The agreement allows the Company to access a total borrowing of approximately $3.4 million (RMB 24.4 million Yuan) for short-term loans. The loan facility agreement is valid until June 23, 2025 and subject to renewal. The loan facility agreement is personally guaranteed by Mr. Xuezhu Wang and Happiness Nanping. The Company also pledged its building and land use right as collaterals. Pursuant to the loan facility agreement with Postal Saving Bank of China, which is valid from June 24, 2019 to June 23, 2025. On January 15, 2020 and February 6, 2020, the Company entered into a loan agreement of $846,848 (RMB 6.0 million) and $197,597 (RMB 1.4 million) short-term loans bearing fixed interest rate of 4.35%, which was due on January 14, 2021 and February 5, 2021, respectively. The Company repaid RMB 7.4 million during year ended March 31, 2021. In addition, on April 7, 2020 and January 15, 2021, the Company entered into a loan agreement of RMB 1.7 million Yuan and RMB 6.0 million Yuan with Postal Saving Bank of China as working capital for one year, respectively. The loans bear a fixed interest rate of LPR+20 BP; and the Company repaid RMB 1.7 million Yuan on April 6, 2021 and April 8, 2021. The carrying values of the Company’s pledged assets to secure short-term borrowings by the Company are as follows: As of As of 2021 2020 Buildings, net $ 5,062,724 $ 5,079,080 Land use rights, net 758,504 719,722 Total $ 5,821,228 $ 5,798,802 For the years ended March 31, 2021, 2020 and 2019, interest expense on all short-term bank loans amounted to $111,790, $98,086 and $83,549, respectively. |
Amounts Due to Related Party
Amounts Due to Related Party | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
AMOUNTS DUE TO RELATED PARTY | NOTE 10 – AMOUNTS DUE TO RELATED PARTY As of March 31, 2020, $844,716 due to related party were payables due to Xuezhu Wang, CEO of the Company, for the payment of expenses on behalf of the Company. The Company repaid the amount due to CEO during the year ended March 31, 2021 and the amount due to related party was $0 at March 31, 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11 – SHAREHOLDERS’ EQUITY Ordinary shares Happiness Biotech was incorporated under the laws of the Cayman Islands on February 9, 2018. The Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in Fujian Happiness from the former shareholders to Happiness Nanping. A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of Happiness Biotech Group Limited, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Nanping) Biotech Co., Ltd, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Nanping. In May 2018, the Company received $627,628 (RMB 4,000,000 Yuan) from two investors into Fujian Happiness. On March 4, 2019, the Company subdivided its 50,000 ordinary shares into 90,000,000 Ordinary shares and 10,000,000 Preferred shares. The authorized ordinary shares became 100,000,000 shares and the par value changed from $1 to $0.0005. On the same day, the Company cancelled 77,223,100 ordinary shares and sold additional 223,100 ordinary shares. The Company has retrospectively reflected the stock subdivision and cancellation in all periods presented in these financial statements. On October 25, 2019, the Company announced the closing of its initial public offering of 2,000,000 ordinary shares, US$0.0005 par value per share (“Ordinary Shares”) at an offering price of $5.50 per share for a total of $11,000,000 in gross proceeds. The Company raised total net proceeds of $9,342,339 after deducting underwriting discounts and commissions and offering expenses. The Company entered several Securities Purchase Agreement from September 2020 through March 2021. Pursuant to which, the Company issued 5,100,000 ordinary shares to the purchasers with a total consideration amounted $10,965,703. The Company collected total net proceeds of $10,725,700 after deducting commissions and offering expenses. On March 15, 2021, the Company issued 381,580 ordinary shares to its management and employees for their service. The Company recorded compensation cost $778,423 according to the fair value of the shares issued. Non-controlling Interest Non-controlling interests represent the interest of non-controlling shareholder in Happiness Biotech Group Limited based on his proportionate interests in the equity of that company adjusted for its proportionate share of income or losses from operations. See Note 1 Statutory reserve The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. In 2019, $56,077 was appropriated by Fujian Happiness to the statutory surplus reserve and the statutory reserve reached 50% of its registered capital. In 2020, no statutory surplus was appropriated. In 2021, $5,558,669 was appropriated by Fujian Happiness to the statutory surplus reserve. The reserved amounts as determined pursuant to PRC statutory laws amounted $7,622,765 and $2,064,096 as of March 31, 2021 and 2020. Under PRC laws and regulations, statutory surplus reserves are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company, and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor allowed for distribution except under liquidation. Amounts restricted include paid-in capital, additional paid-in capital and statutory surplus reserves of the Company in PRC amounted $18,978,449 and $7,778,259 as of March 31, 2021 and 2020, respectively. As of March 31, 2021, our PRC subsidiaries had an aggregate retained earnings of approximately RMB 440.5 million (US$65.5 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Dividend On July 31, 2020, the Board of the Company declared a special cash dividend of $0.015 per Ordinary Shares. The dividend, equal to $375,000 in the aggregate, was fully paid on August 17, 2020. Options In October 2019, the Company granted its underwriters an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s Ordinary Shares to be offered by the Company pursuant to the offering (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. These options expired and unexercised in 2020. Number Outstanding Weighted Average Exercise Price Contractual Life in Days Intrinsic Value Options Outstanding as of March 31, 2019 - $ - - $ - Options Exercisable as of March 31, 2019 - $ - - Options granted 300,000 5.12 45 - Options forfeited - - - - Options expired (300,000 ) 5.12 45 - Options Outstanding as of March 31, 2021 and 2020 - $ - - $ - Options Exercisable as of March 31, 2021 and 2020 - $ - - $ - Warrants In October 2019, the Company granted to the underwriters warrants to purchase up to a total of 184,000 ordinary shares (equal to 8% of the aggregate number of ordinary shares sold in the offering, if over-allotment shares are placed by the underwriters. Without over-allotment share issuance, a total of 160,000 warrants will be granted). The warrants will be exercisable at an exercise price equal to one hundred twenty percent (120%) of the offering price, in whole or in parts, at any time from issuance and expire five (5) years from the effective date of the offering. The Company’s outstanding and exercisable warrants as of March 31, 2021 are presented below: Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Warrants Outstanding as of March 31, 2019 - $ - - $ - Warrants granted 160,000 $ 6.60 5.0 - Warrants forfeited - - - - Warrants exercised - $ - - - Warrants Outstanding as of March 31, 2020 160,000 $ 6.60 4.6 $ - Warrants Outstanding as of March 31, 2021 160,000 $ 6.60 3.6 $ - |
Taxes
Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 12 – TAXES (a) Corporate Income Taxes (“CIT”) The Company was incorporated in the Cayman Islands and is not subject to tax on income or capital gain under the laws of the Cayman Islands. Happiness Hong Kong was incorporated in Hong Kong and is subject to a statutory income tax rate of 16.5%. Under the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Fujian Happiness, the Company’s main operating entity in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from December 2019 to December 2022. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended March 31, 2021 and 2020, respectively, and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2021. The following table reconciles the statutory rate to the Company’s effective tax rate: For the years ended March 31, 2021 2020 2019 PRC statutory income tax rate 25 % 25 % 25 % Effect of PRC preferential tax rate (10 )% (10 )% (10 )% Effect of other deductible expenses 7.4 % 3.3 % (0.5 )% Total 22.4 % 18.3 % 14.5 % The provision for income tax consisted of the following: For the years ended March 31, 2021 2020 2019 Current income tax provision $ 959,384 $ 2,844,087 $ 3,183,154 Deferred income tax provision - - - Total $ 959,384 $ 2,844,087 $ 3,183,154 Deferred income taxes reflect the net effects of temporary difference between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. The Company recorded no deferred tax assets and liabilities as of March 31, 2021, 2020 and 2019, as there were no material temporary difference between the carrying amounts of assets and liabilities. (b) Income Tax Payable The Company’s taxes payable as of March 31, 2021 and 2020 consisted of the following: As of As of 2021 2020 Income tax payable $ 377,025 $ 568,830 VAT payable (53,035 ) 109,414 Other tax payables 10,533 18,408 Total $ 334,523 $ 696,652 |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 13 – BUSINESS COMBINATION On February 1, 2021, the Company acquired 51% equity interest of DAJI with total cash consideration of $75,044 (RMB510,000). DAJI is a company incorporated in Nanjing, the PRC and engages in providing live show service. The results of DAJI have been included in the consolidated financial statements of the Company since the acquisition date of February 1, 2021. On the acquisition date, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows. Fair value of the non-controlling interests was estimated based on the equity value of DAJI derived by the discounted cash flow method after considering a discount for lack of control: Net liabilities acquired $ (11,544 ) Goodwill 162,832 Non-controlling interests (76,244 ) Total 75,044 Purchase price – cash consideration $ 75,044 The accompanying unaudited pro forma combined statements of operations presents the accounts of the Company and DAJI for the years ended March 31, 2021 and 2020, respectively, assuming the acquisition occurred on April 1, 2019. 2021 Summary Statement of Operations HAPPINESS BIOTECH GROUP LIMITED DAJI Combined Revenue $ 71,433,130 $ 175,425 $ 71,608,555 Net Income (Loss) $ 683,926 $ (2,333 ) $ 681,593 Net Income (Loss) per ordinary share - basic and diluted $ 0.03 $ 0.03 Weighted average ordinary shares - basic and diluted 26,160,270 26,160,270 2020 Summary Statement of Operations HAPPINESS BIOTECH GROUP LIMITED DAJI Combined Revenue $ 65,061,953 $ 7,429 $ 65,069,382 Net Income (Loss) $ 12,688,035 $ (21 ) $ 12,688,014 Net Income (Loss) per ordinary share - basic and diluted $ 0.53 $ 0.53 Weighted average ordinary shares - basic and diluted 23,843,836 23,843,836 |
Commitments and Contngencies
Commitments and Contngencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 – COMMITMENTS AND CONTINGENCIES As of March 31, 2021 and 2020, Company has no significant leases or unused letters of credit. From time to time, the Company is involved in various legal proceedings, claims and other disputes arising from commercial operations, employees, and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. As of March 31, 2021 and 2020, Company has no pending legal proceedings. |
Customer and Supplier Concentra
Customer and Supplier Concentration | 12 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATION | NOTE 15 – CUSTOMER AND SUPPLIER CONCENTRATION Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases. The Company’s sales are made to customers that are located primarily in China. For the years ended March 31, 2021, 2020 and 2019, no individual customer accounted for more than 10% of the Company’s total revenues. For the years ended March 31, 2021 and 2020, the Company purchased a substantial portion of raw materials from one third-party supplier (16.84% of total raw materials purchase for the year ended March 31, 2021 and 16.67% of total raw materials purchases for the year ended March 31, 2020). As of March 31, 2021, the amounts due to this vendor was $645,635. As of March 31, 2020, the amounts due to this vendor was $-0-. For the year ended March 31, 2019, the Company purchased a substantial portion of raw materials from two third-party suppliers (12.7% and 11.7% of total purchases for the year ended March 31, 2019, respectively). As of March 31, 2019, the amounts due to the two vendors were $384,547 and $129,984, respectively. The Company believes there are numerous other suppliers that could be substituted should these suppliers become unavailable or non-competitive. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 – SUBSEQUENT EVENTS On February 24, 2021, the Company signed a share purchase agreement with the shareholder of Fuzhou Baodeng Trading Co., Ltd. (“Baodeng”). Pursuant to which, the Company purchased 51% of Baodeng from the shareholder with a total consideration amounted to $257,179 (RMB 1,690,000). As of March 31, 2021, the Company has made a deposit of $182,612 (RMB 1,200,000). Baodeng provides management service to the online stores under on JD.com platform. The transaction is completed on April 1, 2021. The Company started to consolidate Baodeng since April 1, 2021 after the transaction is completed. The Company evaluated and determined that the combination did not meet the significance tests under the reporting requirements. On May 8, 2021, the Company entered into a Max Pledge Amount Agreement with Industrial Bank Co., Ltd. Pursuant to which, the Company obtained a total $2,617,443 (RMB 17,200,000 Yuan) bank facility with its building and land use right as collaterals. There were no loan guarantee fees paid to the personal guarantors. On June 9, 2021, the Company borrowed $1,065,238 (RMB 7,000,000) under the above Max Pledge Amount Agreement from Industrial Bank Co., Ltd and shall be repaid by June 5, 2022. The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +0.75% on the date of drawing per annum. On June 21, 2021, the Company issued an aggregate of 231,445 ordinary shares of the Company to certain employees and a director for their services. The total compensation cost was $351,812. On July 1, 2021, the Company has completed a registered direct offering with four non-U.S. investors on Form F-3 (File No. 333-250026) for gross proceeds of $2.2 million before deducting any offering expenses. The 1,240,000 shares were purchased by four non-U.S. investors. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Happiness Biotech and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, inventory reserve, and provisions necessary for contingent liabilities. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains all bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overheads. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of March 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB ASC 350 guidance on “Testing of Goodwill for Impairment”, a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. As of March 31, 2021 and 2020, there was no impairment indicator identified. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows: Useful Lives Buildings 20 years Machinery 10 years Furniture, fixture and electronic equipment 3-10 years Vehicles 4 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Intangible Assets, net | Intangible Assets, net Intangible assets purchased from third parties are initially recorded at cost. The intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed. The estimated useful lives of intangible assets are as follows: Useful life Land use right 50 years Licensed software 10 years |
Impairment of Long-lived Assets other than goodwill | Impairment of Long-lived Assets other than goodwill The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets as of March 31, 2021 and 2020. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Financial Accounting Standards Board (FASB) Accounting Standards Codification 820, Fair Value Measurement and Disclosures ● Level 1 - Quoted prices in active markets for identical assets and liabilities. ● Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other receivable, accounts payable, short-term borrowings, accounts payable, and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2021 and 2020 based upon the short-term nature of the assets and liabilities. |
Revenue Recognition | Revenue Recognition The Company generates its revenue mainly from sales of healthcare products, automobiles, online store sales and internet information and advertising services. The Company’s revenue recognition policies were in compliance with ASC 605, Revenue Recognition, for the period prior to April 1, 2019. Under this standard., sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. The Company allows its customers to return products within some range. The range was limited to 3% of the customer’s yearly payment amount for the year. The transportation fee is borne by the customers in the condition of products return. There was less than 1% products return of online sales incurred for the year ended March 31, 2021 and no products return incurred for the years ended March 31, 2020 and 2019. The Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition on April 1, 2019. Topic 606 requires the Company to recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Healthcare products The Company sells nutraceutical and dietary supplements to distributors and experience stores. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay under the customary payment terms, which is generally less than six months. Automobile The Company sells automobiles in fiscal year 2021. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay under the customary payment terms, which is generally less than six months. Online store The Company sells various goods through its online store business in fiscal year 2021. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment. Customers are required to pay to the third party platform before the goods were send out and the Company will receive the amount from the third party platform after the customer sign off the acceptance form on the platform. Internet information and advertising service The Company provides internet information and advertising service online. For all sales, the Company requires a signed contract and sales order, which specifies the price and service range. Under ASC 606, the Company recognizes revenue upon the satisfaction of its performance obligation, which is to provide specified information and advertising service to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The information and advertising service provided is satisfied at a point in time, which is the time when the information and advertising service is performed. The selling price per click, which is specified in the signed sales orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the completion of the service. Customers are required to pay to the Company in advance according to the contract. The Company adopted Topic 606 as of April 1, 2019 using the modified retrospective transition method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after April 1, 2019 are presented under the new standard. The comparative information has not been restated and continues to be reported under the historic accounting standards in effect for those periods. The Company does not expect any impact to its net income from the adoption of ASU 2014-09 on an ongoing basis. All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in PRC. The following table presents an overview of our sales from our product lines for the years ended March 31, 2021, 2020 and 2019: For the years ended March 31, 2021 2020 2019 Nutraceutical and dietary supplements $ 45,389,702 $ 65,061,953 $ 63,936,185 Online store 13,473,626 - - Internet information and advertising 9,245,019 - - Automobile 3,376,356 - - Revenue $ 71,484,703 $ 65,061,953 $ 63,936,185 |
Government Grant | Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as compensation for the Company’s research and development efforts. For the years ended March 31, 2021, 2020 and 2019, the Company recognized government grants of $63,520, $162,268 and $146,992, respectively, for the government support of the Company’s research and development activities and patent applications. The government grants were recorded as other income. |
Research and Development Costs | Research and Development Costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services, raw materials, and supplies, are expensed as incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed when incurred as selling and marketing expense. Shipping and handling costs were $1,104,120, $1,869,505 and $1,841,312 for the years ended March 31, 2021, 2020 and 2019, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $5,720,458, $3,856,921 and $3,217,096 for the years ended March 31, 2021, 2020 and 2019, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Stock option forfeitures are recognized at the date of employee termination. Effective April 1, 2019, the Company adopted ASU 2018-07 for the accounting of share-based payments granted to non-employees for goods and services and no material impacts to the Financial Statements. |
Income Taxes | Income Taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not believe that there was any uncertain tax position at March 31, 2021 and 2020. To the extent applicable, the Company records interest and penalties as a general and administrative expense. All of the tax returns of the Company and its subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The Company is subject to Chinese tax laws. We are not subject to U.S. tax laws and local state tax laws. Our income and our related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and we are subject to Chinese tax laws, all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of China will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by us, reducing the amount available to pay dividends to the holders of our ordinary shares. We are a holding company with no material operations of our own. We conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends and to finance any debt we may incur depends upon dividends paid by our subsidiaries. Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reaches 50% of its registered capital. These reserves are not distributable as cash dividends. As of March 31, 2021, our PRC subsidiaries had an aggregate retained earnings of approximately RMB 440.5 million (US$65.5 million) under PRC GAAP. With respect to retained earnings accrued after such date, our Board of Directors may declare dividends after taking into account our operations, earnings, financial condition, cash requirements and availability and other factors as it may deem relevant at such time. Any declaration and payment, as well as the amount, of dividends will be subject to our By-Laws, charter and applicable Chinese and U.S. state and federal laws and regulations, including the approval from the shareholders of each subsidiary which intends to declare such dividends, if applicable. |
Value-added Tax (“VAT”) | Value-added Tax (“VAT”) Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is generally subject to the value added tax (“VAT”) for merchandise sales and services performed. Before May 1, 2018, the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law. |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. 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 common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common 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 common 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. |
Foreign Currency Translation | Foreign Currency Translation The Company and its subsidiaries’ principal country of operations is the PRC. The Company maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The consolidated statements of income and comprehensive income and cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average rate of exchange, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: March 31, 2021 March 31,2020 March 31,2019 Period-end spot rate US$1=RMB 6.5713 Yuan US$1=RMB 7.0851 Yuan US$1=RMB 6.7335 Yuan Average rate US$1=RMB 6.7960 Yuan US$1=RMB 6.9655 Yuan US$1=RMB 6.7317 Yuan |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of income and comprehensive income. |
Segment Reporting | Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Concentration of Risks | Concentration of Risks Exchange Rate Risks The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As of March 31, 2021 and 2020, cash and cash equivalents of $36,203,665 (RMB 237,905,147 Yuan) and $33,430,403 (RMB 236,857,749 Yuan), respectively, is denominated in RMB and is held in PRC. Currency Convertibility Risks Substantially all of the Company’s operating activities are 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 other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. Bank interest bearing loans are charged at variable interest rates within the reporting period. The Company is subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
COVID-19 Pandemic | COVID-19 Pandemic The outbreak of COVID-19 began in January 2020 and was quickly declared as a Public Health Emergency of International Concern and subsequently a pandemic by the World Health Organization. A series of prevention and control measures including quarantines, travel restrictions, and the temporary closure of facilities were implemented across the country. The Company was impacted by the COVID-19 pandemic in many ways, including the plump of closures of experience stores, diving sales by distribution channels, and shut down or partly shut down of production facilities for around three months in the year ended March 31, 2021. Revenue recovered quickly after the Company reopened and increased 10% in the year 2021 compared with 2020 as the Company expanded its online distribution channel and also from several new business stream. Despite the fact that China has largely brought the pandemic under control, there is still a high degree of uncertainty as to how the pandemic will evolve going forward. A new outbreak in China could cause new disruptions of our production, distribution and sales, and have an adverse impact on our business, financial condition and results of operations for the remainder of the fiscal year ending March 31, 2022, which cannot be reasonably estimated at the current stage. The Company will regularly assess its business conditions and adopt measures to mitigate any new impact of the ongoing pandemic. |
Related Parties | Related Parties The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and requires the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In May 2020, the FASB issued ASC 2020-05 to defer the effective date for non-issuer entities that have not yet issued their financial statements reflecting the adoption of leases; the amended effective date non-issuer entities is for fiscal years beginning after December 15, 2021. The Company as an “emerging growth company” has elected to adopt the new lease standard as of the effective date applicable to non-issuers and will adopt the new lease standard on April 1, 2022 using the modified retrospective method. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company does not expect this update will have a material impact on the Company’s consolidated financial position, results of operations and cash flow. In October 2020, the FASB issued Accounting Standards Update No. 2020-10, Codification Improvements – Disclosures (“ASU 2020-10”) to align with the SEC’s regulations. This ASU improves consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The Company will adopt ASU 2020-10 as of the reporting period beginning April 1, 2021. This ASU will not affect the Company's results of operations, cash flows or financial position and the Company does not expect the adoption to have a material impact on the disclosures to the consolidated financial statements. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of operating subsidiaries | Name of Entity Date of Incorporation Place of Incorporation Registered % of Principal Activities Happiness (Nanping) Biotech Co., Ltd. (“Nanping Happiness”) June 1, 2018 PRC US$ 36,100,000 Investment Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”) November 19, 2004 PRC RMB 100,000,000 100% by Nanping Happiness Research, development, production and selling of nutraceutical and dietary supplements Fujian Happiness comes Medical Equipment Manufacturing Co., Ltd. April 15, 2020 PRC RMB 10,000,000 51% by Fujian Happiness Selling of medical equipment Shunchang Happiness Nutraceutical Co., Ltd (“Shunchang Happiness”) May 19, 1998 PRC RMB 2,000,000 100% by Fujian Happiness Research, development, production and selling of edible fungi Fuzhou Happiness Enterprise Management Consulting Co., Ltd. December 15, 2020 PRC RMB 1,000,000 100% by Nanping Happiness Management and consulting service Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”) July 16, 2020 PRC RMB 30,000,000 100% by Nanping Happiness Advertising service, online sales Fujian Happy Studio Network Technology Co. LTD August 10, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Hangzhou C'est la vie Interactive Technology Co., Ltd. (“Hangzhou C’est la vie”) August 26, 2020 PRC RMB 10,000,000 51% by Happy Buy Online sales Fujian Lever Media Co., Ltd. (“Fujian Lever”) March 1, 2021 PRC RMB 10,000,000 51% by Hangzhou C'est la vie Online sales Shunchang Bangren Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Baolong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Shihong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd. August 21, 2017 PRC RMB 10,000,000 70% by Hangzhou C'est la vie Online sales Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”) February 8, 2021 PRC RMB 100,000 100% by Hangzhou C'est la vie Online sales Putian City Hanjiang District Qiyao Trading Co., Ltd. February 9, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Putian City Hanjiang District Zhiran Trading Co., Ltd. February 8, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) November 30, 2020 PRC RMB 10,000,000 100% by Hangzhou C'est la vie Online sales Shunchang Qida Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Shenghui Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Zhibo Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Shenzhou Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Penghong Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Tongyuan Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Guangxiang Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Lishijin Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Wangfu Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Yibo Electronic Commerce Co., Ltd. December 1, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Herui Electronic Commerce Co., Ltd. December 1, 2020 PRC RMB 100,000 100% by Fujian Seravi Online sales Shunchang Runhao Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Xianghong Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Fujian Daji Media Co., Ltd. (“Daji”) February 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Live streaming service Happy Buy (Fujian) Automobile Service Co., Ltd. (“Happy Buy Automobile”) October 27, 2020 PRC RMB 10,000,000 51% by Happy Buy Automobile sales Happy Buy (Nanping) Automobile Sales Co., Ltd. December 15, 2020 PRC RMB 5,000,000 100% by Happy Buy Automobile Automobile sales Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) December 29, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Shunchang Jiefei Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Happy Cat Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Xiaocongcong Electronic Commerce Co., Ltd. December 3, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Shunchang Wansheng Electronic Commerce Co., Ltd. December 2, 2020 PRC RMB 30,000 100% by Happy Optimal Online sales Happy Feiyue (Fujian) Network Technology Co., Ltd. March 19, 2021 PRC RMB 10,000,000 70% by Happy Buy Online sales |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment net | Useful Lives Buildings 20 years Machinery 10 years Furniture, fixture and electronic equipment 3-10 years Vehicles 4 years |
Schedule of estimated useful lives of intangible assets | Useful life Land use right 50 years Licensed software 10 years |
Schedule of our sales from our product lines | For the years ended March 31, 2021 2020 2019 Nutraceutical and dietary supplements $ 45,389,702 $ 65,061,953 $ 63,936,185 Online store 13,473,626 - - Internet information and advertising 9,245,019 - - Automobile 3,376,356 - - Revenue $ 71,484,703 $ 65,061,953 $ 63,936,185 |
Schedule of foreign currency translation | March 31, 2021 March 31,2020 March 31,2019 Period-end spot rate US$1=RMB 6.5713 Yuan US$1=RMB 7.0851 Yuan US$1=RMB 6.7335 Yuan Average rate US$1=RMB 6.7960 Yuan US$1=RMB 6.9655 Yuan US$1=RMB 6.7317 Yuan |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of As of 2021 2020 Accounts receivable, gross $ 34,563,743 $ 30,036,448 Less: allowance for doubtful accounts - - Accounts receivable $ 34,563,743 $ 30,036,448 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of As of 2021 2020 Raw materials $ 1,422,941 $ 1,647,667 Work in process 34,717 - Finished goods 327,721 381,739 Total $ 1,785,379 $ 2,029,406 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | As of As of 2021 2020 Prepayments to suppliers $ 9,334,225 $ 3,564,705 Other current assets 12,855,519 699,425 Total $ 22,189,744 $ 4,264,130 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of As of 2021 2020 Buildings $ 12,813,510 $ 9,590,058 Machinery 2,867,046 2,339,879 Furniture, fixture and electronic equipment 231,929 163,819 Vehicles 147,132 131,381 Total property plant and equipment, at cost 16,059,617 12,225,137 Less: accumulated depreciation (5,545,586 ) (4,328,636 ) Property, plant and equipment, net $ 10,514,031 $ 7,896,501 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | As of As of 2021 2020 Land use right, cost $ 879,886 $ 811,194 Software, cost 1,084,858 - Total 1,964,744 811,194 Less: accumulated amortization (132,645 ) (91,472 ) Intangible assets, net $ 1,832,099 $ 719,722 |
Schedule of estimated future amortization expense | Years ending March 31, Amortization 2022 $ 126,084 2023 126,084 2024 126,084 2025 126,084 2026 126,084 Thereafter 1,201,679 $ 1,832,099 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other assets | As of As of 2021 2020 Prepayments for advertising or marketing $ 4,909,840 $ 6,200,104 Prepayment of celebrity endorsement fee 228,265 296,397 Total $ 5,138,105 $ 6,496,501 |
Short-Term Bank Borrowings (Tab
Short-Term Bank Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank borrowings | As of As of 2021 2020 Industrial Bank Co., Ltd $ 1,065,238 $ 987,989 Postal Saving Bank of China 1,171,762 1,044,445 Total $ 2,237,000 $ 2,032,434 |
Schedule of secure short term borrowings | As of As of 2021 2020 Buildings, net $ 5,062,724 $ 5,079,080 Land use rights, net 758,504 719,722 Total $ 5,821,228 $ 5,798,802 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of options outstanding | Number Outstanding Weighted Average Exercise Price Contractual Life in Days Intrinsic Value Options Outstanding as of March 31, 2019 - $ - - $ - Options Exercisable as of March 31, 2019 - $ - - Options granted 300,000 5.12 45 - Options forfeited - - - - Options expired (300,000 ) 5.12 45 - Options Outstanding as of March 31, 2021 and 2020 - $ - - $ - Options Exercisable as of March 31, 2021 and 2020 - $ - - $ - |
Schedule of outstanding options granted | Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Warrants Outstanding as of March 31, 2019 - $ - - $ - Warrants granted 160,000 $ 6.60 5.0 - Warrants forfeited - - - - Warrants exercised - $ - - - Warrants Outstanding as of March 31, 2020 160,000 $ 6.60 4.6 $ - Warrants Outstanding as of March 31, 2021 160,000 $ 6.60 3.6 $ - |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes reconciles rate | For the years ended March 31, 2021 2020 2019 PRC statutory income tax rate 25 % 25 % 25 % Effect of PRC preferential tax rate (10 )% (10 )% (10 )% Effect of other deductible expenses 7.4 % 3.3 % (0.5 )% Total 22.4 % 18.3 % 14.5 % |
Schedule of income tax | For the years ended March 31, 2021 2020 2019 Current income tax provision $ 959,384 $ 2,844,087 $ 3,183,154 Deferred income tax provision - - - Total $ 959,384 $ 2,844,087 $ 3,183,154 |
Schedule of taxes payable | As of As of 2021 2020 Income tax payable $ 377,025 $ 568,830 VAT payable (53,035 ) 109,414 Other tax payables 10,533 18,408 Total $ 334,523 $ 696,652 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of discounted cash flow method after considering a discount | Net liabilities acquired $ (11,544 ) Goodwill 162,832 Non-controlling interests (76,244 ) Total 75,044 Purchase price – cash consideration $ 75,044 |
Schedule of business combination statment of operation | 2021 Summary Statement of Operations HAPPINESS BIOTECH GROUP LIMITED DAJI Combined Revenue $ 71,433,130 $ 175,425 $ 71,608,555 Net Income (Loss) $ 683,926 $ (2,333 ) $ 681,593 Net Income (Loss) per ordinary share - basic and diluted $ 0.03 $ 0.03 Weighted average ordinary shares - basic and diluted 26,160,270 26,160,270 2020 Summary Statement of Operations HAPPINESS BIOTECH GROUP LIMITED DAJI Combined Revenue $ 65,061,953 $ 7,429 $ 65,069,382 Net Income (Loss) $ 12,688,035 $ (21 ) $ 12,688,014 Net Income (Loss) per ordinary share - basic and diluted $ 0.53 $ 0.53 Weighted average ordinary shares - basic and diluted 23,843,836 23,843,836 |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) - USD ($) | Mar. 04, 2019 | Aug. 21, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Oct. 25, 2019 | Mar. 31, 2019 | Aug. 31, 2018 | Feb. 09, 2018 |
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ownership percentage | 51.00% | 100.00% | ||||||
Equity method investment, description | Mr. Wang Xuezhu and other shareholders of Fujian Happiness transferred their 100% ownership interests in Fujian Happiness to Happiness Nanping, which is 100% owned by Happiness Hong Kong. After the reorganization, Happiness Biotech owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Happiness Biotech, became the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. | |||||||
Ordinary shares authorized | 100,000,000 | 90,000,000 | 90,000,000 | |||||
Preferred shares, authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Cancelled ordinary shares | 77,223,100 | |||||||
Ordinary shares, issued | 30,481,580 | 25,000,000 | 23,000,000 | |||||
Ordinary shares, Outstanding | 30,481,580 | 25,000,000 | 23,000,000 | |||||
Purchase percentage | 15.00% | |||||||
Ownership [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ownership percentage | 100.00% | |||||||
Minimum [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ordinary shares authorized | 50,000 | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0005 | |||||||
Maximum [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ordinary shares authorized | 90,000,000 | |||||||
Ordinary shares, par value (in Dollars per share) | $ 1 | |||||||
Ordinary shares [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Additional shares sold | 223,100 | |||||||
Ordinary shares, issued | 50,000 | |||||||
IPO [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ordinary shares authorized | 2,000,000 | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0005 | |||||||
Share per price (in Dollars per share) | $ 5.50 | |||||||
Total net proceeds (in Dollars) | $ 11,000,000 | |||||||
Total net proceeds (in Dollars) | $ 9,342,339 | |||||||
Mr. Wang Xuezhu [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ownership percentage | 47.70% |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of operating subsidiaries | 12 Months Ended |
Mar. 31, 2021 | |
Happiness (Nanping) Biotech Co., Ltd. (“Nanping Happiness”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | June 1, 2018 |
Place of Incorporation | PRC |
Registered Capital | US$ 36,100,000 |
Principal Activities | Investment |
Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | November 19, 2004 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000,000 |
% of Ownership | 100% by Nanping Happiness |
Principal Activities | Research, development, production and selling of nutraceutical and dietary supplements |
Fujian Happiness comes Medical Equipment Manufacturing Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | April 15, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Fujian Happiness |
Principal Activities | Selling of medical equipment |
Shunchang Happiness Nutraceutical Co., Ltd ("Shunchang Happiness") [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | May 19, 1998 |
Place of Incorporation | PRC |
Registered Capital | RMB 2,000,000 |
% of Ownership | 100% by Fujian Happiness |
Principal Activities | Research, development, production and selling of edible fungi |
Fuzhou Happiness Enterprise Management Consulting Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 15, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 1,000,000 |
% of Ownership | 100% by Nanping Happiness |
Principal Activities | Management and consulting service |
Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | July 16, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000,000 |
% of Ownership | 100% by Nanping Happiness |
Principal Activities | Advertising service, online sales |
Fujian Happy Studio Network Technology Co. LTD [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | August 10, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Happy Buy |
Principal Activities | Advertising service |
Hangzhou C'est la vie Interactive Technology Co., Ltd. (“Hangzhou C’est la vie”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | August 26, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Happy Buy |
Principal Activities | Online sales |
Fujian Lever Media Co., Ltd. (“Fujian Lever”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | March 1, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Hangzhou C'est la vie |
Principal Activities | Online sales |
Shunchang Bangren Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Lever |
Principal Activities | Online sales |
Shunchang Baolong Electronic Commerce Co., Ltd One [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Lever |
Principal Activities | Online sales |
Shunchang Shihong Electronic Commerce Co., Ltd Two [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Lever |
Principal Activities | Online sales |
Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | August 21, 2017 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 70% by Hangzhou C'est la vie |
Principal Activities | Online sales |
Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | February 8, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Hangzhou C'est la vie |
Principal Activities | Online sales |
Putian City Hanjiang District Qiyao Trading Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | February 9, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Putian Luochen |
Principal Activities | Online sales |
Putian City Hanjiang District Zhiran Trading Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | February 8, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Putian Luochen |
Principal Activities | Online sales |
Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | November 30, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 100% by Hangzhou C'est la vie |
Principal Activities | Online sales |
Shunchang Qida Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Shenghui Electronic Commerce Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Zhibo Electronic Commerce Co., Ltd {Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Shenzhou Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Penghong Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Tongyuan Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Guangxiang Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Lishijin Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Wangfu Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Yibo Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 1, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Herui Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 1, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 100,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Runhao Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Shunchang Xianghong Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Fujian Seravi |
Principal Activities | Online sales |
Fujian Daji Media Co., Ltd. (“Daji”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | February 1, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Happy Buy |
Principal Activities | Live streaming service |
Happy Buy (Fujian) Automobile Service Co., Ltd. (“Happy Buy Automobile”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | October 27, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Happy Buy |
Principal Activities | Automobile sales |
Happy Buy (Nanping) Automobile Sales Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 15, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 5,000,000 |
% of Ownership | 100% by Happy Buy Automobile |
Principal Activities | Automobile sales |
Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 29, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 51% by Happy Buy |
Principal Activities | Advertising service |
Shunchang Jiefei Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Happy Optimal |
Principal Activities | Online sales |
Shunchang Happy Cat Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Happy Optimal |
Principal Activities | Online sales |
Shunchang Xiaocongcong Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 3, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Happy Optimal |
Principal Activities | Online sales |
Shunchang Wansheng Electronic Commerce Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | December 2, 2020 |
Place of Incorporation | PRC |
Registered Capital | RMB 30,000 |
% of Ownership | 100% by Happy Optimal |
Principal Activities | Online sales |
Happy Feiyue (Fujian) Network Technology Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Data of Incorporation | March 19, 2021 |
Place of Incorporation | PRC |
Registered Capital | RMB 10,000,000 |
% of Ownership | 70% by Happy Buy |
Principal Activities | Online sales |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020CNY (¥) | Mar. 31, 2018USD ($) | |
Significant Accounting Policies (Details) [Line Items] | ||||||
Percentage of maximum revenue payment to customer | 3.00% | |||||
Percentage of Online sales products | 1.00% | |||||
Government grants | $ 63,520 | $ 162,268 | $ 146,992 | |||
Shipping and handling costs | 1,104,120 | 1,869,505 | 1,841,312 | |||
Advertising costs | $ 5,720,458 | 3,856,921 | 3,217,096 | |||
After tax profit | 10.00% | |||||
Accumulative amount of reserve | 50.00% | |||||
Retained earnings | $ 61,475,891 | 66,623,204 | ||||
Description of value-added tax | the applicable VAT rate was 17%, while after May 1, 2018 and before April 1, 2019, the Company is subject to a VAT rate of 16%. After April 1, 2019, the Company is subject to a VAT rate of 13% based on the new Chinese tax law. | |||||
Operating segment | 1 | |||||
Cash and cash equivalents | $ 36,558,752 | 33,654,765 | $ 14,800,772 | $ 8,884,829 | ||
Percentage of revenue recovered | 10.00% | |||||
Cash and Cash Equivalents [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Cash and cash equivalents | $ 36,203,665 | $ 33,430,403 | ¥ 237,905,147 | ¥ 236,857,749 | ||
Retained Earnings [Member] | ||||||
Significant Accounting Policies (Details) [Line Items] | ||||||
Retained earnings | $ 65,500,000 | ¥ 440,500,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of property and equipment net | 12 Months Ended |
Mar. 31, 2021 | |
Buildings [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 20 years |
Machinery [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 10 years |
Vehicles [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 4 years |
Minimum [Member] | Furniture, fixture and electronic equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 3 years |
Maximum [Member] | Furniture, fixture and electronic equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets | 12 Months Ended |
Mar. 31, 2021 | |
Land [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 50 years |
Software License Arrangement [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of our sales from our product lines - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | $ 71,484,703 | $ 65,061,953 | $ 63,936,185 |
Nutraceutical and dietary supplements [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 45,389,702 | 65,061,953 | 63,936,185 |
Online store [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 13,473,626 | ||
Internet information and advertising [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 9,245,019 | ||
Automobile {[Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | $ 3,376,356 |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of foreign currency translation | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Period-end spot rate [Member] | |||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||
Currency exchange rates | US$1=RMB 6.5713 Yuan | US$1=RMB 7.0851 Yuan | US$1=RMB 6.7335 Yuan |
Average Rate [Member] | |||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | |||
Currency exchange rates | US$1=RMB 6.7960 Yuan | US$1=RMB 6.9655 Yuan | US$1=RMB 6.7317 Yuan |
Accounts Receivable (Details)
Accounts Receivable (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Customers credit period | 180 years |
Accounts receivable due | 1 year |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts Receivable - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable, gross | $ 34,563,743 | $ 30,036,448 |
Less: allowance for doubtful accounts | ||
Accounts receivable | $ 34,563,743 | $ 30,036,448 |
Inventories (Details)
Inventories (Details) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Inventory Disclosure [Abstract] | |
Inventory write-downs | $ 117,753 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 1,422,941 | $ 1,647,667 |
Work in process | 34,717 | |
Finished goods | 327,721 | 381,739 |
Total | $ 1,785,379 | $ 2,029,406 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Mar. 31, 2021 | USD ($) | CNY (¥) |
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Deposits | $ 182,612 | ¥ 1,200,000 |
Fujian Shennong Jiagu Development [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Deposits | 9,130,613 | 60,000,000 |
Guanxian Lingzhibao [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Prepaid expenses | 8,877,817 | 58,300,000 |
Fujian Shennong Jiagu Development [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Deposits | 0.51 | |
Geographic Concentration Risk [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Prepaid expenses | 5,000,000 | |
Suppliers [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Prepaid expenses | $ 4,022,851 | ¥ 26,400,000 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepayments to suppliers | $ 9,334,225 | $ 3,564,705 |
Other current assets | 12,855,519 | 699,425 |
Total | $ 22,189,744 | $ 4,264,130 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Building collateral for short-term bank loans | $ 5,100,000 | $ 5,100,000 | |
Depreciation expense | 849,454 | 674,247 | $ 682,462 |
Capitalized depreciation in inventories | $ 589,610 | $ 555,636 | $ 568,017 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 16,059,617 | $ 12,225,137 |
Less: accumulated depreciation | (5,545,586) | (4,328,636) |
Property, plant and equipment, net | 10,514,031 | 7,896,501 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 12,813,510 | 9,590,058 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 2,867,046 | 2,339,879 |
Furniture, fixture and electronic equipment [Memebr] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 231,929 | 163,819 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 147,132 | $ 131,381 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | $ 758,504 | $ 719,722 | |
Land square meters | 29,720 | 29,720 | |
Amortization expense | $ 31,425 | $ 16,502 | $ 17,076 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of intangible assets, net [Abstract] | ||
Land use right, cost | $ 879,886 | $ 811,194 |
Software, cost | 1,084,858 | |
Total | 1,964,744 | 811,194 |
Less: accumulated amortization | (132,645) | (91,472) |
Intangible assets, net | $ 1,832,099 | $ 719,722 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense | Mar. 31, 2021USD ($) |
Schedule of estimated future amortization expense [Abstract] | |
2022 | $ 126,084 |
2023 | 126,084 |
2024 | 126,084 |
2025 | 126,084 |
2026 | 126,084 |
Thereafter | 1,201,679 |
Total | $ 1,832,099 |
Other Assets (Details)
Other Assets (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2018USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of exclusive distributors | 50 | 50 | |
Subsidy to exclusive distributor for advertising and marketing | $ 152,177 | ¥ 1 | |
Prepayments amortized contract period | 3 years | 3 years | |
Marketing and advertisement cost | $ 1,600,000 | ||
Amount paid to celebrity endorsement fee | $ 445,533 | ||
AmountPaidToCelebrityEndorsementFees | 3 years | ||
Celebrity endorsement contract period | 5 years |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of other assets - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of other assets [Abstract] | ||
Prepayments for advertising or marketing | $ 4,909,840 | $ 6,200,104 |
Prepayment of celebrity endorsement fee | 228,265 | 296,397 |
Total | $ 5,138,105 | $ 6,496,501 |
Short-Term Bank Borrowings (Det
Short-Term Bank Borrowings (Details) | Apr. 08, 2021CNY (¥) | Apr. 06, 2021CNY (¥) | Feb. 06, 2020USD ($) | Jan. 15, 2020USD ($) | May 04, 2018USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jan. 15, 2021CNY (¥) | Apr. 07, 2020CNY (¥) | Feb. 06, 2020CNY (¥) | Jan. 15, 2020CNY (¥) | Jun. 24, 2019USD ($) | Jun. 24, 2019CNY (¥) | Apr. 30, 2019CNY (¥) | May 04, 2018CNY (¥) |
Short-Term Bank Borrowings (Details) [Line Items] | ||||||||||||||||||
Repayment of debt | ¥ 7,400,000 | |||||||||||||||||
Debt repaid | ¥ 1,700,000 | ¥ 1,700,000 | ||||||||||||||||
Interest expense on short-term bank loans (in Dollars) | $ | $ 111,790 | $ 98,086 | $ 83,549 | |||||||||||||||
Industrial Bank Co., Ltd [Member] | ||||||||||||||||||
Short-Term Bank Borrowings (Details) [Line Items] | ||||||||||||||||||
Short-term bank borrowings | $ 1,039,578 | $ 1,065,238 | ¥ 7,000,000 | ¥ 7,000,000 | ||||||||||||||
Interest rate, description | The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +2.19% on the date of drawing per annum. | Ltd for $1,065,238 (RMB 7,000,000) bearing interest rate at LPR plus 1.45% per annum, payable monthly. | ||||||||||||||||
Maximum guaranteed amount | 7,000,000 | |||||||||||||||||
Maximum pledged amount for building and land use rights | ¥ 17,400,000 | |||||||||||||||||
Postal Saving Bank of China [Member] | ||||||||||||||||||
Short-Term Bank Borrowings (Details) [Line Items] | ||||||||||||||||||
Short-term bank borrowings | $ 197,597 | $ 846,848 | ¥ 6,000,000 | ¥ 1,700,000 | ¥ 1,400,000 | ¥ 6,000,000 | $ 3,400,000 | ¥ 24,400,000 | ||||||||||
Interest rate, description | loans bearing fixed interest rate of 4.35%, which was due on January 14, 2021 and February 5, 2021, respectively. | loans bearing fixed interest rate of 4.35%, which was due on January 14, 2021 and February 5, 2021, respectively. | ||||||||||||||||
Due date | Feb. 5, 2021 | Jan. 14, 2021 |
Short-Term Bank Borrowings (D_2
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | $ 2,237,000 | $ 2,032,434 |
Industrial Bank Co., Ltd [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | 1,065,238 | 987,989 |
Postal Saving Bank of China [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | $ 1,171,762 | $ 1,044,445 |
Short-Term Bank Borrowings (D_3
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings [Line Items] | ||
Pledged assets to secure short-term borrowings | $ 5,821,228 | $ 5,798,802 |
Buildings, net [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings [Line Items] | ||
Pledged assets to secure short-term borrowings | 5,062,724 | 5,079,080 |
Land use rights, net [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings [Line Items] | ||
Pledged assets to secure short-term borrowings | $ 758,504 | $ 719,722 |
Amounts Due to Related Party (D
Amounts Due to Related Party (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | |
Amounts Due to Related Party (Details) [Line Items] | ||
Amount due to related party | $ 0 | |
Xuezhu Wang [Member] | ||
Amounts Due to Related Party (Details) [Line Items] | ||
Due to related parties | $ 844,716 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Mar. 04, 2019$ / sharesshares | Jul. 31, 2020USD ($) | Oct. 31, 2019 | May 31, 2018USD ($) | May 31, 2018CNY (¥) | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2021CNY (¥)shares | Mar. 15, 2021USD ($)shares | Oct. 25, 2019USD ($)$ / sharesshares | Mar. 31, 2019shares | Aug. 31, 2018 | Feb. 09, 2018$ / sharesshares |
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Issued ordinary shares (in Shares) | shares | 30,481,580 | 25,000,000 | 30,481,580 | 23,000,000 | |||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | $ 0.0005 | ||||||||||
Ownership percentage | 51.00% | 51.00% | 100.00% | ||||||||||
Cash received from investor | ¥ | ¥ 4,000,000 | ||||||||||||
Ordinary shares authorized (in Shares) | shares | 100,000,000 | 90,000,000 | 90,000,000 | 90,000,000 | |||||||||
Preferred stock, shares authorized (in Shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Cancelled ordinary shares (in Shares) | shares | 77,223,100 | ||||||||||||
Sold additional ordinary shares (in Shares) | shares | 223,100 | ||||||||||||
Ordinary shares issued (in Shares) | shares | 5,100,000 | 5,100,000 | |||||||||||
Total Purchase Consideration Amounted | $ | $ 10,965,703 | ||||||||||||
Net proceeds | $ | $ 10,725,700 | ||||||||||||
Shares issued (in Shares) | shares | 381,580 | ||||||||||||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ | $ 778,423 | ||||||||||||
Statutory surplus reserve percentage description | Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. In 2019, $56,077 was appropriated by Fujian Happiness to the statutory surplus reserve and the statutory reserve reached 50% of its registered capital. In 2020, no statutory surplus was appropriated. | ||||||||||||
Statutory surplus reserve | $ | $ 5,558,669 | ||||||||||||
Statutory laws amounted | $ | 7,622,765 | $ 2,064,096 | |||||||||||
Retained earnings | ¥ | ¥ 440,500,000 | ||||||||||||
Cash dividend | $ | $ 0.015 | ||||||||||||
Aggregate cash dividend | $ | $ 375,000 | ||||||||||||
Investor 2 [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Cash received from investor | $ | $ 627,628 | ||||||||||||
Minimum [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Ordinary shares authorized (in Shares) | shares | 50,000 | ||||||||||||
Maximum [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Ordinary shares authorized (in Shares) | shares | 90,000,000 | ||||||||||||
PRC [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Retained earnings | $ | $ 65,500,000 | ||||||||||||
Ordinary Shares [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Issued ordinary shares (in Shares) | shares | 50,000 | ||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | $ 1 | |||||||||||
Sold additional ordinary shares (in Shares) | shares | 5,100,000 | 2,000,000 | |||||||||||
Additional Paid-in Capital [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Statutory surplus reserve | $ | $ 18,978,449 | $ 7,778,259 | |||||||||||
Warrant [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Description of warrant | the Company granted to the underwriters warrants to purchase up to a total of 184,000 ordinary shares (equal to 8% of the aggregate number of ordinary shares sold in the offering, if over-allotment shares are placed by the underwriters. Without over-allotment share issuance, a total of 160,000 warrants will be granted). The warrants will be exercisable at an exercise price equal to one hundred twenty percent (120%) of the offering price, in whole or in parts, at any time from issuance and expire five (5) years from the effective date of the offering. | ||||||||||||
IPO [Member] | |||||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0005 | ||||||||||||
Ordinary shares authorized (in Shares) | shares | 2,000,000 | ||||||||||||
Share per price (in Dollars per share) | $ / shares | $ 5.50 | ||||||||||||
Total gross proceeds | $ | $ 11,000,000 | ||||||||||||
Total net proceeds | $ | $ 9,342,339 | ||||||||||||
Closing purchase percentage | 15.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of options outstanding | 12 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Schedule of options outstanding [Abstract] | |
Number Outstanding, Options Outstanding, beginning balance | |
Weighted Average Exercise Price, Options Outstanding, beginning balance (in Dollars per share) | $ / shares | |
Contractual Life in Days, Options Outstanding, beginning balance | |
Intrinsic Value, Options Outstanding, beginning balance (in Dollars) | $ | |
Number Outstanding, Options Exercisable, beginning balance | |
Weighted Average Exercise Price, Options Exercisable, beginning balance (in Dollars per share) | $ / shares | |
Contractual Life in Days, Options Exercisable, beginning balance | |
Intrinsic Value, Options Exercisable, beginning balance (in Dollars) | $ | |
Number Outstanding, Options granted | 300,000 |
Weighted Average Exercise Price, Options granted (in Dollars per share) | $ / shares | $ 5.12 |
Contractual Life in Days, Options granted | 45 years |
Intrinsic Value, Options granted | |
Number Outstanding, Options forfeited | |
Weighted Average Exercise Price, Options forfeited (in Dollars per share) | $ / shares | |
Contractual Life in Days, Options forfeited | |
Intrinsic Value, Options forfeited | |
Number Outstanding, Options expired | (300,000) |
Weighted Average Exercise Price, Options expired (in Dollars per share) | $ / shares | $ 5.12 |
Contractual Life in Days, Options expired | 45 years |
Intrinsic Value, Options expired | |
Number Outstanding, Options Outstanding, ending balance | |
Weighted Average Exercise Price, Options Outstanding, ending balance (in Dollars per share) | $ / shares | |
Contractual Life in Days, Options Outstanding, ending balance | |
Intrinsic Value, Options Outstanding, ending balance (in Dollars) | $ | |
Number Outstanding, Options Exercisable, ending balance | |
Weighted Average Exercise Price, Options Exercisable, ending balance (in Dollars per share) | $ / shares | |
Contractual Life in Days, Options Exercisable, ending balance | |
Intrinsic Value, Options Exercisable, ending balance (in Dollars) | $ |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of outstanding options granted - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of outstanding options granted [Abstract] | |||
Number Outstanding, Warrants Outstanding, Beginning | 160,000 | ||
Weighted Average Exercise Price, Warrants Outstanding, Beginning (in Dollars per share) | $ 6.60 | ||
Contractual Life in Years, Warrants Outstanding, Beginning | |||
Intrinsic Value, Warrants Outstanding, Beginning (in Dollars) | |||
Number Outstanding, Warrants granted | 160,000 | ||
Weighted Average Exercise Price, Warrants granted (in Dollars per share) | $ 6.60 | ||
Contractual Life in Years, Warrants granted | 5 years | ||
Intrinsic Value, Warrants granted (in Dollars) | |||
Number Outstanding, Warrants forfeited | |||
Weighted Average Exercise Price, Warrants forfeited (in Dollars per share) | |||
Contractual Life in Years, Warrants forfeited | |||
Intrinsic Value, Warrants forfeited (in Dollars) | |||
Number Outstanding, Warrants exercised | |||
Weighted Average Exercise Price, Warrants exercised | |||
Contractual Life in Years, Warrants exercised | |||
Intrinsic Value, Warrants exercised (in Dollars) | |||
Number Outstanding, Warrants Outstanding, Ending | 160,000 | 160,000 | |
Weighted Average Exercise Price, Warrants Outstanding, Ending (in Dollars per share) | $ 6.60 | $ 6.60 | |
Contractual Life in Years, Warrants Outstanding, Ending | 3 years 219 days | 4 years 219 days | |
Intrinsic Value, Warrants Outstanding, Ending (in Dollars) |
Taxes (Details)
Taxes (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Taxes (Details) [Line Items] | |||
Statutory income tax rate | 22.40% | 18.30% | 14.50% |
Income tax (''New EIT Law''), description | effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Fujian Happiness, the Company’s main operating entity in PRC, was approved as HNTEs and is entitled to a reduced income tax rate of 15% from December 2019 to December 2022. | ||
Hong Kong [Member] | |||
Taxes (Details) [Line Items] | |||
Statutory income tax rate | 16.50% |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes reconciles rate | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of taxes reconciles rate [Abstract] | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Effect of PRC preferential tax rate | (10.00%) | (10.00%) | (10.00%) |
Effect of other deductible expenses | 7.40% | 3.30% | (0.50%) |
Total | 22.40% | 18.30% | 14.50% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of income tax [Abstract] | |||
Current income tax provision | $ 959,384 | $ 2,844,087 | $ 3,183,154 |
Deferred income tax provision | |||
Total | $ 959,384 | $ 2,844,087 | $ 3,183,154 |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of taxes payable - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of taxes payable [Abstract] | ||
Income tax payable | $ 377,025 | $ 568,830 |
VAT payable | (53,035) | 109,414 |
Other tax payables | 10,533 | 18,408 |
Total | $ 334,523 | $ 696,652 |
Business Combination (Details)
Business Combination (Details) | Feb. 01, 2021USD ($) | Feb. 01, 2021CNY (¥) |
Business Combinations [Abstract] | ||
Equity interest | 51.00% | 51.00% |
Total cash consideration | $ 75,044 | ¥ 510,000 |
Business Combination (Details)
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Schedule of discounted cash flow method after considering a discount [Abstract] | |
Net liabilities acquired | $ (11,544) |
Goodwill | 162,832 |
Non-controlling interests | (76,244) |
Total | 75,044 |
Purchase price – cash consideration | $ 75,044 |
Business Combination (Details_2
Business Combination (Details) - Schedule of business combination statment of operation - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
HAPPINESS BIOTECH GROUP LIMITED [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $ 71,433,130 | $ 65,061,953 |
Net Income (Loss) | $ 683,926 | $ 12,688,035 |
Net Income (Loss) per ordinary share - basic and diluted (in Dollars per share) | $ 0.03 | $ 0.53 |
Weighted average ordinary shares - basic and diluted (in Shares) | 26,160,270 | 23,843,836 |
DAJI [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $ 175,425 | $ 7,429 |
Net Income (Loss) | (2,333) | (21) |
Combined [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 71,608,555 | 65,069,382 |
Net Income (Loss) | $ 681,593 | $ 12,688,014 |
Net Income (Loss) per ordinary share - basic and diluted (in Dollars per share) | $ 0.03 | $ 0.53 |
Weighted average ordinary shares - basic and diluted (in Shares) | 26,160,270 | 23,843,836 |
Customer and Supplier Concent_2
Customer and Supplier Concentration (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Customer and Supplier Concentration (Details) [Line Items] | |||
Description of the risk factors | Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases. | ||
Customer [Member] | Revenue Benchmark [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration Risk, Description | For the years ended March 31, 2021, 2020 and 2019, no individual customer accounted for more than 10% of the Company’s total revenues. For the years ended March 31, 2021 and 2020, the Company purchased a substantial portion of raw materials from one third-party supplier (16.84% of total raw materials purchase for the year ended March 31, 2021 and 16.67% of total raw materials purchases for the year ended March 31, 2020). | ||
Third-party supplier 1 [Member] | Revenue Benchmark [Member] | Purchased [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 16.84% | 12.70% | |
Third-party supplier 2 [Member] | Revenue Benchmark [Member] | Purchased [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 16.67% | 11.70% | |
Vender [Member] | Revenue Benchmark [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 6456.35% | ||
Vendor 1 [Member] | Revenue Benchmark [Member] | Purchased [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 0.00% | 3845.47% | |
Vendor 2 [Member] | Revenue Benchmark [Member] | Purchased [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 1299.84% |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 24, 2021USD ($) | Feb. 24, 2021CNY (¥) | Mar. 31, 2021USD ($)shares | Jul. 01, 2021USD ($) | Jun. 21, 2021USD ($)shares | Mar. 31, 2021CNY (¥) | |
Subsequent Events (Details) [Line Items] | ||||||
Purchased percentage | 51.00% | 51.00% | ||||
Total consideration | $ 257,179 | ¥ 1,690,000 | ||||
Deposit | $ 182,612 | ¥ 1,200,000 | ||||
Debt instrument description | On May 8, 2021, the Company entered into a Max Pledge Amount Agreement with Industrial Bank Co., Ltd. Pursuant to which, the Company obtained a total $2,617,443 (RMB 17,200,000 Yuan) bank facility with its building and land use right as collaterals. There were no loan guarantee fees paid to the personal guarantors. On June 9, 2021, the Company borrowed $1,065,238 (RMB 7,000,000) under the above Max Pledge Amount Agreement from Industrial Bank Co., Ltd and shall be repaid by June 5, 2022. The loan bears a fixed interest rate of 1-year Loan Prime Rate (“LPR”) +0.75% on the date of drawing per annum. | |||||
Ordinary shares issued (in Shares) | shares | 231,445 | |||||
Gross Proceeds | $ | $ 2,200,000 | |||||
Purchased by four non-U.S. investors (in Shares) | shares | 1,240,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Compensation cost | $ | $ 351,812 |